IFL.L Regulatory News (IFL)

16 Jan 2007 08:00

International Ferro Metals Limited16 January 2007 16th January 2007 International Ferro Metals Limited ("IFM" or "the Company") Production commences ahead of schedule International Ferro Metals Limited (AIM:IFL) announces that it has commencedproduction at its ferrochrome smelting facility, more than three months ahead ofschedule. Construction of the integrated facility remained within its costbudget and the additional ferrochrome production from this early start-up willgenerate sales revenue commencing from February 2007. An update is providedbelow: Construction Progress • The first of the two ferrochrome furnaces at the Company's Buffelsfontein facility has commenced production. Each furnace has the capacity to produce 133,500 tonnes of charge chrome per annum.• The first furnace was commissioned on Monday 8th January and tapped yesterday, 15th January 2007, producing ferrochrome which will be sold to a Chinese stainless steel producer.• Construction of the integrated ferrochrome facility remains ahead of schedule with commissioning of the facility's second ferrochrome furnace planned for later this month.• The overall project remains within its cost budget. Chrome Production Update • IFM plans to produce 267,000 tonnes of saleable ferrochrome per annum. The early start up of its furnaces is forecast to add an additional 39,000 tonnes of Charge Chrome to the first year's production.• The price of Charge Chrome is US$0.78/lb.• IFM's forecast production costs at full production remain below US$0.40/lb.• Progress at the integrated ferrochrome facility can be viewed on the Company's web site at www.ifml.com/Project%20Photos.aspx Stephen Turner, MD of International Ferro Metals commented "The earlycommissioning of IFM's ferrochrome furnaces is a major achievement for theCompany. Today's production will be shipped to stainless steel producers inFebruary, generating the Company's first significant revenue three monthsearlier than anticipated. The project is entirely within budget. The continuingstrength of the ferrochrome market should provide an ideal market for theadditional production that IFM's early start-up achieves. I congratulate ourmanagement and contractors for this significant achievement". 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