IFL.L Regulatory News (IFL)

20 Nov 2006 07:02

International Ferro Metals Limited20 November 2006 20th November 2006 International Ferro Metals Limited ("IFM" or "the Company") Production to commence ahead of schedule International Ferro Metals Limited (AIM:IFL) announces that it will commenceproduction at its ferrochrome smelting facility in January 2007, three monthsahead of schedule. Construction of the integrated facility remains within itscost budget and the additional ferrochrome production from this early start-upwill generate sales revenue from February 2007. An update is provided below: Construction Progress • Construction of the integrated ferrochrome facility is ahead of schedule with planned commissioning of the facility's two ferrochrome furnaces in January 2007, three months earlier than previously anticipated. • Project progress, which includes the construction of the beneficiation and smelting facilities, is more than 80% complete. • Installation of the pelletising and sintering plant remains on schedule to commence production in April 2007. Until that time ferrochrome production will consume lumpy chromite. • The overall project remains within its cost budget. Projected cash flow and profits brought forward • 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 has increased by 3c to US$0.78/lb during the current quarter. • IFM's forecast production costs at full production remain below US$0.40/ lb. Mine production ahead of schedule • Chromite production at the Company's Lesedi mine is developing well and its production is ahead of schedule. Ore is being stockpiled for supply to the Company's ferrochrome furnaces in January 2007. • The Company has sufficient ore resources to feed the two furnaces currently under construction, along with a further two furnaces of the same size, for over 50 years. Progress at the mine and construction site can be viewed on the Company's website 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. The project is entirely within budget and we expect to commence thesale of ferrochrome in February 2007, three months earlier than anticipated. Thecurrent strength of the ferrochrome market, driven by increased demand forstainless steel which is evidenced by the increasing near record high price offerrochrome, should provide an ideal market for the additional production thatIFM's early start-up will achieve. I thank our management and contractors forthis achievement". 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 This information is provided by RNS The company news service from the London Stock Exchange