Aquarius Platinum warns about upcoming strikes

The boss of Aquarius Platinum has warned his firm is likely to be hit by strikes over the South African winter.

In a production update the Chief Executive, Stuart Murray, said that "the likelihood of industrial action [...] is high, largely as a result of inter-union rivalries.

"Aquarius is by no means immune to this threat, and intermittent unlawful industrial action has occurred at one of Kroondal's four shafts in July."

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The news sent the stock down 4% in early trading on Monday.

The attributable production across Aquarius's six active mines in the three months to the end of June came in at 98,143 ounces, broadly flat on the previous quarter but down 14% on the same period of 2011.

The firm is also struggling with a weaker rand which fell 5% against the dollar over the quarter, while platinum group metal prices fell between 6% and 9%.

BS