Impala Platinum’s annual profit fell as it experienced "one of the most difficult" years in the company’s history, it said.

Releasing its results for the year-ended June 30 2010, it said headline earnings for the financial year declined by 22 percent to 786 cents per share from 1001 cents per share in the previous year.

Revenue decreased by 3.0 percent to R25.4 billion from R26.1bn previously.

“Not only did Implats have to contend with the global economic crisis, but also the impacts of both the tragedy at 14 Shaft and industrial action at the beginning of the period,” the company said.

“Regrettably, the year started tragically when nine of our colleagues lost their lives in a single fall of ground incident at Impala Rustenburg.”

Implats said six more workers died at the same operation during the course of the year, bringing to 15 the total number of fatalities for the group, 14 of them in the first half of the year and one in the second.

Gross platinum production for the period under review was up by 2.0 percent to 1.74 million ounces despite the loss of about 80,000 ounces at Impala Rustenburg because of the 14 Shaft incident and strike action.

Group capital expenditure for the period under review totalled R4.6 bn compared to R7.0bn the previous year.

Looking ahead, the company said the risks of returning to global recessionary conditions were decreasing through the concerted efforts of world governments to stimulate their economies.

“Notwithstanding this, it is forecast that a year of

unenthusiastic economic growth can be expected prior to a full

revival of the world economy,”

Given this scenario, the platinum market was expected to remain in deficit for 2010, and stay there as growing heavy duty diesel demand for platinum would encounter a challenging supply environment.

“The group is positioned to benefit from improved medium- to long-term fundamentals for platinum group metals.

“The key to this is a stable and long-lasting production platform.”

Implats said the delivery of new mining projects at Impala Rustenburg, the first of which was scheduled to start production next year, provided this base.

“Growth opportunities exist throughout the group and these will be developed in line with our growth profile to 2.1 million ounces of platinum by 2014,” it said.