IFL.L Regulatory News (IFL)

6 Mar 2007 07:03

International Ferro Metals Limited06 March 2007 6 March 2007 International Ferro Metals Limited ("IFM" or the "Company") Interim Results for the 6 months ending 31ST December 2006 International Ferro Metals Limited announces its Interim Financial Statementsfor the six months ended 31 December 2006. Highlights for the six months ended 31 December 2006 and since the period endare as follows: • The Company's Lesedi chromite mine was successfully commissioned in July 2006. Chromite production at Lesedi is progressing well and is ahead of the production schedule. • The integrated ferro chrome production facility's ore beneficiation plant was commissioned during January 2007. This plant is currently operating at full capacity. • The first and second furnaces were commissioned during January 2007 and after a two week ramp-up period were operating at their design capacity. Audited results for the six months ended 31 December 2006 report a consolidatedloss of £5.1m (ZAR 70.9m),of which £2.3m (ZAR 31.8m) is attributable to financecosts. This loss was in line with budgeted expenditure for this constructionperiod. The current price of Charge Chrome is US$0.77/lb (Heinz Pariser 12 Feb. 07). IFM's forecast production costs at steady state full production still remainbelow US$0.40/lb. Stephen Turner, Managing Director of International Ferro Metals said, "This hasbeen an excellent period for IFM. Throughout the construction of the integratedferrochrome facility costs have remained within budget. The Lesedi mine wasopened in July 2006 and production has exceeded budget. In January 2007 both ourferrochrome furnaces were switched-on three months earlier than scheduled. Weare very proud of our workforce and contractors who have worked tirelessly toachieve a quicker than anticipated increase in productivity of these furnaces totheir design capacity. The furnaces are now able to operate at a combined rateto produce 267,000 tonnes per annum of Charge Chrome. It is pleasing to be ableto supply IFM's ferrochrome into a relatively strong stainless steel market.IFM's first product sales are to China and Japan and our guaranteed offtakeagreements are working well. IFM has a strong and committed management team andwe are highly confident and positive about the future performance of theCompany". The December 2006 Interim Financial Statements are available on theInternational Ferro Metals Limited website at www.ifml.com. Extracts from thesefinancial statements follow. Condensed Income StatementFOR THE HALF-YEAR ENDING 31 DECEMBER 2006 CONSOLIDATED Audited Unaudited 2006 2005 ZAR'000 ZAR'000----------------------- ---------- ----------- RevenueSales Revenue 4,441 635Cost of goods sold (3,600) (123) ---------- -----------Gross profit 841 512 Other income/(expenses)Interest Income 17,709 12,305Other Income 2,031 -Finance costs (31,818) (4,718)Other expenses (60,391) (223,207) ---------- -----------Loss before income tax (71,628) (215,108)Loss attributable to minority interests 701 - ---------- -----------Net loss attributable to members of parent (70,927) (215,108) ========== =========== Earnings / (loss) per share (cents per share)- basic loss per share (17.29) (90.81)- diluted loss per share (17.29) (90.81) Condensed Balance SheetAS AT 31 December 2006 CONSOLIDATED Audited Audited 31 Dec 2006 30 June 2006 ZAR'000 ZAR'000--------------------- ----------- --------- ASSETSCurrent AssetsCash and cash equivalents 11,197 85,348Trade and other receivables 31,034 51,945Inventories 20,472 772Other current assets 35,522 198,530 ----------- ---------Total Current Assets 98,225 336,596 ----------- --------- Non-current AssetsReceivables 16,656 13,797Property, plant and equipment 1,448,173 882,723Mineral Resources 61,601 65,775Other non current assets 274,780 236,576 ----------- ---------Total Non-current Assets 1,801,210 1,198,871 ----------- ---------TOTAL ASSETS 1,899,434 1,535,467 ----------- --------- LIABILITIESCurrent LiabilitiesTrade and other payables 119,461 208,414Derivative liability 26,472 -Provisions 15,850 5,852 ----------- ---------Total Current Liabilities 161,783 214,266 ----------- --------- Non-current LiabilitiesInterest Bearing Loans and Borrowings 706,129 224,381Non Current Provisions 7,414 5,022Derivative liability 21,975 19,598 ----------- ---------Total Non-current Liabilities 735,518 249,002 ----------- ---------TOTAL LIABILITIES 897,301 463,268 ----------- ---------NET ASSETS 1,002,133 1,072,199 =========== ========= EQUITYShare Capital 1,341,463 1,340,492Share based payments reserve (3,618) (4,209)Accumulated losses (354,401) (283,474) ----------- ---------Parent Entity interests 983,444 1,052,808 ----------- ---------Minority interests 18,689 19,390 ----------- ---------Total Shareholders equity 1,002,133 1,072,199 =========== ========= Condensed Cash Flow StatementFOR THE HALF-YEAR ENDED 31 December 2006 CONSOLIDATED Audited naudited 2006 2005 ZAR'000 ZAR'000-------------------------------- --------- ---------- Cash flows from operating activitiesReceipts from customers 4,441 635Payments and advances to suppliers and employees(inclusive of GST) (53,378) (25,271)Interest paid (15,418) (2,686) ---------- -----------Net cash flows used in operating activities (64,355) (27,322) ---------- ----------- Cash flows from investing activitiesPayments for property, plant and equipment (492,096) (415,064)Investment in Mineral Resources (7,168) (3,729)Interest received 16,053 12,305 ---------- -----------Net cash flows used in investing activities (483,211) (406,488) ---------- ----------- Cash flows from financing activitiesProceeds from issue of shares (net of issue costs) - 1,055,978Payment for Treasury shares (10,365) -Repayment of shareholder loans - (16,512) Environmental deposit - (11,700) Proceeds from borrowings 480,669 (11,881) ---------- -----------Net cash flows from financing activities 470,304 1,015,885 ---------- ----------- Net increase/(decrease) in cash and cash equivalents (77,262) 582,075Cash and cash equivalents at beginning of the period 85,348 15,574Effects of exchange rate changes on cash 3,105 2,538 --------- ---------------Cash and cash equivalents at end of period 11,191 600,187 ========= =============== Condensed Statement of Changes in EquityFOR THE HALF-YEAR ENDED 31 DECEMBER 2006 Attributable to equity holders of the parent Minority Total Interest equity---------- ------- -------- -------- ------- ------- ------- -------- CONSOLIDATED Share Convertible Accumulated Share-Based Total Capital note losses Payments Reserve ZAR'000 ZAR'000 ZAR'000 ZAR'000 ZAR'000 ZAR'000 ZAR'000---------- ------- -------- -------- ------- ------- ------- -------- At 1 July 2005 48,212 5,977 (65,080) 410 (10,481) - (10,481)Loss for theperiod - - (215,108) - (215,108) - (215,108)Share placementcosts (55,538) - - - (55,538) - (55,538) ------- -------- -------- ------- ------- ------- --------Total income/(expense) for the period (55,538) - (215,108) - (270,646) - (270,646) ------- -------- -------- ------- ------- ------- -------- Cost of share based payments - - - 7,472 7,472 - 7,472Issue of shares 1,328,158 - - - 1,328,158 - 1,328,158Conversionof Global Eagleconvertible note - - - - - 20,000 20,000Conversionof RABconvertible note 19,659 (5,977) - - 13,682 - 13,682 -------- -------- -------- ------- -------- ------- --------At 31December 2005 1,340,492 - (280,188) 7,882 1,068,185 20,000 1,088,185 ======== ======== ======== ======= ======== ======= ======== At 1 July 2006 1,340,492 - (283,474) (4,209) 1,052,808 19,390 1,072,199Loss for theperiod - - (70,927) - (70,927) (701) (71,627) -------- -------- -------- ------- -------- ------- --------Total income/(expense) for the period (70,927) - (70,927) (701) (71,627) -------- -------- -------- ------- -------- ------- --------Cost ofshare - - - 591 591 - 591basedpaymentsPurchase ofTreasuryshares (10,366) - - - (10,366) - (10,366)Issue ofTreasuryshares 11,337 - - - 11,337 - 11,337 -------- -------- -------- ------- -------- ------- --------At 31December 2006 1,341,463 - (354,401) (3,618) 983,444 18,689 1,002,133 ======== ======== ======== ======= ======== ======= ======== Progress at the integrated ferrochrome facility can be viewed on the Company'sweb site at www.ifml.com/Project%20Photos.aspx ENDS For more information contact:International Ferro Metals Limited Parkgreen CommunicationsStephen Turner, Managing Director Simon Robinson / Clare IrvineMob: +61 418 440 844 Tel: 020 7851 7480www.ifml.com Grant Thornton Corporate FinanceFiona OwenTel: 020 7383 5100 This information is provided by RNS The company news service from the London Stock Exchange