IFL.L Regulatory News (IFL)

29 Sep 2006 09:02

International Ferro Metals Limited29 September 2006 29 September 2006 International Ferro Metals Limited (IFL) Results for the 12 months ending 30 June 2006 International Ferro Metals Limited (the "Company") has today released its AnnualFinancial Statements for the year ended 30 June 2006. Highlights for the year and period to date are as follows: •Admission to AIM on 30 September 2005, raised £99 million (ZAR1,135m converted to ZAR as at date of Admission) in new equity from strategic and institutional investors •Project Finance of £79 million (ZAR912m) was secured, with £28m (ZAR382m) drawn down to date •The Lesedi chromite mine was successfully commissioned in July 2006. Chromite production at Lesedi is progressing well and is in line with the production schedule. Ore is being stockpiled for supply to the Company's ferrochrome furnaces during the first quarter of 2007 •Construction of the integrated ferrochrome facility at Buffelsfontein is in its 12th month and is over 70% complete. It remains on within budget and on schedule to achieve a production rate of 267,000 tonnes per annum of ferrochrome by the end of 2007 •The chromite resources of the Group more than doubled through the acquisition of Purity Metals Holdings Limited in January 2006. The resource statement for the Group as at 30 June 2006 is set out below •Audited results for the 12 months ended 30 June 2006 reported a consolidated loss of £18.5m (ZAR 211m) for the year ended 30 June 2006, of which £15.9m (ZAR 183.2m) is attributable to the accounting treatment of the JISCO share subscription. This loss was in accordance with budgeted expenditure for this construction period. Stephen Turner. MD of International Ferro Metals said, "This has been a verystrong first year for IFM - on being admitted to AIM we raised considerablefunds and this has enabled us to make excellent progress on the construction ofour ferrochrome facility. We are entirely within budget and on schedule to beproducing 267,000 tonnes of ferrochrome per annum by the end of 2007. We arehighly confident and positive about the future performance of the Company". The June 2006 Financial Statements are available on the International FerroMetals Limited website at www.ifml.com. Extracts from these financial statementsfollow. Progress at the mine and construction site can be viewed on the Company's website at www.ifml.com/Mine%20Opening.aspx and www.ifml.com/Project%20Photos.aspx ENDS For more information contact: International Ferro Metals Limited Parkgreen CommunicationsStephen Turner, Managing Director Simon Robinson / Ana RibeiroMob: +61 418 440 844 Tel: 020 7493 3713www.ifml.com FINANCIALS Following are extracts from the audited consolidated the financial statementsfor the 12 months to 30 June 2006: Income Statement Consolidated 2006 2005 ZAR'000 ZAR'000-------------------------------- -------- -------- RevenueSales Revenue 1,558 560Cost of goods sold (3,881) (20) -------- --------Gross profit/(loss) (2,323) 540 Other income/(expenses)Interest Income 29,371 250Preference dividend income - -Finance costs (2,445) (13,855)Share based payments expense (191,547) (410)Other expenses (44,949) (27,374) -------- --------Loss before income tax (211,893) (40,849)Income tax expense - - -------- -------- Loss for the period after tax (211,893) (40,849)Loss attributable to minority interests 610 - -------- --------Net loss attributable to members of parent (211,283) (40,849) ======== ======== Balance SheetAs at 30 June 2006 Consolidated 2006 2005 ZAR'000 ZAR'000------------------------------ -------- --------ASSETSCurrent AssetsCash and cash equivalents 85,348 15,574Receivable - Intercompany - -Trade and other receivables 51,945 8,672Prepayments 3,327 7,132Inventories 772 -Other current assets 195,204 - -------- --------Total Current Assets 336,596 31,378 -------- --------Non-current AssetsReceivables 13,797 -Investments 65,775 -Property, plant and equipment 882,723 407Other non current assets 236,576 25,972 -------- --------Total Non-current Assets 1,198,871 26,379 -------- --------TOTAL ASSETS 1,535,467 57,757 -------- --------LIABILITIESCurrent LiabilitiesTrade and other payables 208,414 7,247Provisions 5,852 438 -------- --------Total Current Liabilities 214,266 7,685 -------- --------Non-current LiabilitiesInterest Bearing Loans and Borrowings 224,381 60,554Non Current Provisions 5,022 -Derivative liability 12,489 - -------- --------Total Non-current Liabilities 241,892 60,554 -------- --------TOTAL LIABILITIES 456,158 68,239 -------- --------NET ASSETS 1,079,309 (10,482) ======== ========EQUITYShare Capital 1,340,492 48,212Convertible note - 5,977Share based payments reserve (4,209) 410Accumulated losses (276,364) (65,081) -------- --------Parent Entity interests 1,059,919 (10,482) -------- --------Minority interests 19,390 - -------- --------Total Shareholders equity 1,079,309 (10,482) ======== ======== Cash Flow Statement For the year ended 30 June 2006 Consolidated 2006 2005 ZAR'000 ZAR'000----------------------------- --------- ------- Cash flows from operating activitiesReceipts from customers 1,558 -Payments and advances to suppliers andemployees (inclusive of GST) (89,312) (21,910)Interest paid (2,445) (11,135) --------- -------Net cash flows from operating activities (90,199) (33,044) --------- ------- Cash flows from investing activitiesPayments for property, plant and equipment (830,455) (2,578)Guarantees paid (235,296) -Loan to Global Eagle - -Investments made - -Investment in Purity (11,375) -Feasibility Study costs - (6,082)Deposits paid - -Interest received 29,371 228 --------- -------Net cash flows used in investing activities (1,047,755) (8,431) --------- ------- Cash flows from financing activitiesProceeds from issue of shares (net of issuecosts) 1,072,490 20,092Proceeds from issue of convertible note - 41,942Prepaid IPO costs - (2,045)Payment of loan establishment fee (2,666)Loans to subsidiary - -Repayment of shareholder loans (16,514) (2,756)Proceeds from borrowings 151,246 - --------- -------Net cash flows from financing activities 1,207,222 54,658 --------- ------- Net increase/(decrease) in cash and cashequivalents 69,268 13,092Cash and cash equivalents at beginning ofthe 15,574 1,337yearEffects of exchange rate changes on cash 502 1,145 --------- -------Cash and cash equivalents at end of year 85,348 15,574 ========= ======= Reserves and Resources The table below sets out the Company's total Reserves and Resources whichinclude the mining operations to date and the acquisition of Purity MetalsHoldings Limited. The table below has been reviewed by SRK, and Geoconsult, inaccordance with the guidelines stipulated in SAMREC and the JORC code RESERVES (Buffelsfontein) RESOURCES (Buffelsfontein and Skychrome) ----------------------- -------------------------------- ------- ------- ------- --------- ------- ------- ------ Tonnes CR203 Cr:Fe Tonnes CR203 Cr:Fe (kt) (%) Ratio (kt) (%) Ratio --------- ------- ------- ------- --------- ------- ------- ------Proved 9,344 30% 1.08 Measured & 50,852 38% 1.36 Indicated --------- ------- ------- ------- --------- ------- ------- ------Probable 3,653 32% 1.16 Inferred 37,593 37% 1.36--------- ------- ------- ------- --------- ------- ------- ------Total 12,997 31% 1.10 Total 88,445 38% 1.36Reserves Resources --------- ------- ------- ------- --------- ------- ------- ------ The above statement fairly reflects the reports prepared by these CompetentPersons and has been reviewed by T V Willsteed, BE (Min), Hons BA FAusIMM MSMEas Competent Person for International Ferro Metals Ltd. Mr Willsteed consents tothe inclusion in this report of these matters based on their information in theform and context in which it appears. Source: SRK Consulting for the Buffelsfontein Resource and Geo-ConsultInternational (Pty) Ltd for the Skychrome Resource This information is provided by RNS The company news service from the London Stock Exchange