The impact of the four-week strike action that affected Evraz Highveld in 2012 has now reflected in the company’s year-end financials, with the South African steel and vanadium producer posted a loss for the second straight year.

“The operating loss for the year was R293 million, compared to a loss of R854 million for 2012, mainly attributed to lower production due to the effect of the 2012 strike,” Evraz Highveld said, with its headline loss per share at 153 cents.

Evraz Highveld said its credit lines were “fully drawn and may not be sufficient to support the company if the company cannot achieve its production and sales and cost targets,” adding that it is now facing serious financial difficulties as it can no longer borrow more money.

“Labour stability, health of the market and production stability continue to pose a threat to the operations of the company and the ability to generate profits,” Evraz Highveld said in its annual results statement.