10 Jul 2008 07:00
International Ferro Metals Limited
("IFL" or the "Company")
Production Report for the three months to 30 June 2008
Highlights:
Commenting on the June quarter production results, Chief Executive Stephen Turner said:
"We are pleased with the 16 percent improvement in ferrochrome production over the fourth quarter despite continuing electricity constraints imposed by Eskom. Production was enhanced by recovering chrome from the slag stockpile which illustrates the management's commitment to extracting as much value from the operations as possible. We remain focussed on improving operational performance and together with tight cost controls, and a strong ferrochrome price, the management is positive on the outlook for the future."
Ferrochrome Production
| Tonnes | June 2008 QTR | June 2007 QTR | March 2008 QTR | June Q08 Vs June Q07 | Jun Q08 Vs Mar Q08 |
| Ferrochrome | 56,608 | 29,498 | 52,422 | +92% | +8.0% |
| Contained Chrome in slag | 4,090 | N/A* | N/A* | N/A* | N/A* |
| Total | 60,698 | 29,498 | 52,422 |
* June 2008 is the first period in which contained chrome in stockpiled slag has been recorded
Ferrochrome production for the three months ended June 2008 was up almost 16% to 60,698 tonnes, which includes 4,090 tonnes recoverable chrome contained in stockpiled slag. Sales volumes for the period were 89,091 tonnes up 57% on the March 2008 quarter (56,905 tonnes) which was due to a 19,207 tonnes drawdown on the stockpile to its current size of 1,934 tonnes.
Full year production and sales amounted to 205,607 tonnes including estimated recoverable ferrochrome contained in slag and 207,862 tonnes respectively, against a design capacity of 267,000 tonnes. Production for the full year was impacted by the ramp up of the facility to full production, and electricity constraints imposed by Eskom, both of which have been well documented over the year.
Demand for ferrochrome remains strong which is reflected in the 6.8% increase of the September quarter ferrochrome prices announced on 1 July 2008 from US$1.92 per pound to US$2.05 per pound. The ferrochrome price is now at a record high with industry commentators anticipating further increases throughout the year.
There will be a conference call for analysts and investors today, Thursday 10 July, at 9.00 am (London time). Dial in details are as follows:
Dial in number +44 (0) 1452 541 076
Conference ID 55511045
A replay facility of the conference call will be available on the following numbers:
Dial in number +44 (0) 1452 550 000
Access code 55511045
The Company's preliminary annual financial statements to the year ended 30 June 2008 will be announced on 22 September 2008.
For further information please contact:
International Ferro Metals Limited
Stephen Turner, Chief Executive Officer +61 418 440 844
David Kovarsky, Managing Director +27 82 650 1192
Brunswick Group
Patrick Handley / Carole Cable +44 (0) 20 7404 5959
Numis Securities Limited
John Harrison / Stuart Skinner +44 (0) 20 7260 1000
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa. International Ferro Metals is listed on the London Stock Exchange under the symbol IFL.
For further information please visit www.ifml.com
Forward Looking Statements
This announcement contains certain forward looking statements which by nature, contain risk and uncertainty because they relate to future events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.