| Mon 11 Jul 2011, 14:35 | | EQS - Eqstra Holdings Limited - Update: Disruptions at Pilanesburg Platinum Mine |
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EQS
EQS
EQS - Eqstra Holdings Limited - Update: Disruptions at Pilanesburg Platinum Mine
Eqstra Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/011672/06)
ISIN: ZAE000117123
Share code: EQS
UPDATE: DISRUPTIONS AT PILANESBURG PLATINUM MINE
On 24 June 2011, Eqstra Holdings Limited ("Eqstra") issued an announcement
relating to disruptions to its operations at the Pilanesberg Platinum Mine
caused by a small group of employees of MCC Contracts (Proprietary) Limited
("MCC"), a wholly owned subsidiary of Eqstra.
MCC`s priorities since the disruptions have been to ensure the safety of
employees, the security of assets and equipment and the rapid resumption of
mining operations. An assessment of the impact of the damage to equipment and
vehicles whose book value amounts to R 98 million is ongoing, and will be
lessened by the salvaging of component parts and insurance claims. Drilling and
blasting equipment, fundamental to mining operations, was unaffected.
On Saturday 9 July 2011, MCC maintenance teams began to repair the damaged
vehicles and normal working shifts will resume today, Monday 11 July 2011.
Employees who engaged in illegal industrial action and damage to property on 23
June will remain suspended, pending disciplinary action. MCC has engaged with
the National Union of Mineworkers ("NUM") in terms of MCC`s recognition
agreement, and the parties are working closely with the South African Police
Services in identifying and prosecuting those individuals suspected of being
involved in the disruptions. Several arrests have been made.
Mining activities have been affected by these events. However, the trading
statement that was released on SENS on 30 May 2011 remains valid, wherein it is
stated that Eqstra anticipates headline earnings per share and earnings per
share of not less than 60 cents for the financial year ended 30 June 2011
compared to the reported loss per share of 19.6 cents and a headline loss per
share of 21.7 cents for the year ended 30 June 2010. More specific range
guidance, as required by the JSE, will be provided to shareholders as soon as
there is a reasonable degree of certainty.
11 July 2011
Johannesburg
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 11/07/2011 14:35:01 Produced by the JSE SENS Department.
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