11 Sep 2012 07:00
11 September 2012
International Ferro Metals Limited
("IFL" or the "Company")
Production Update for the two months to 31 August 2012
Ahead of its full year results statement on 17 September 2012, the Company provides the following operational update to the market for the first two months of FY2013.This update specifically looks at two major Company projects, Sky Chrome and the Co-gen plant, that focus on reducing costs and improving throughput.
MINING
The Sky Chrome mine ramp up to a record 73,000 tonnes per month run-of-mine was achieved in August and development of the open pit box-cut has progressed to plan. Sky Chrome provides low cost chrome ore for the smelting operations and now fully compensates for the closure of the Lesedi open pit mine, which reached end of life in July 2012 as previously announced. Ore recovery has improved commensurate with deeper mining beyond the weathered material, as previously reported. The Lesedi underground mine produced 14,000 tonnes run-of-mine during August.
SMELTING
Management is very pleased to report that the furnaces have performed better than expected during July and August and produced 39,700 tonnes of ferrochrome. As previously reported, the Company voluntarily reduces load during specific expensive peak winter tariff hours to reduce production costs. The winter tariffs are effective from June to August every year and the load reductions are expected to reduce ferrochrome production volumes by about 10% during this period. Efficiencies during July and August were especially gratifying in terms of ore, reductant and electricity consumption.
The Co-gen facility continued to improve and achieved a record production of 5.5GWh in July, or 6.9% of the Company's total power demand. In August, this was eclipsed by a new record of 8.1GWh. This equates to 10.2% of total power demand, a level that we expect to continue as we move towards our 11% target when all engines are running at full capacity
The UG2 programme continued as planned, having seen delivery of the full contractual 15,000 tonnes per month of chrome concentrate since April this year. The use of UG2 in the smelting process has reached new levels as the feed to the pelletising is gradually increased and reached 7,000 tonnes in August.
These ongoing improvements are helping the Company to attain its goal of repositioning itself towards the lowest end of the cost curve. With the achievements reported for the new financial year so far, the Company remains confident that the cost reduction strategy deployment is well on course to deliver improved and sustainable margins.
- ENDS-
For further information please visit www.ifml.com or contact:
International Ferro Metals Limited Chris Jordaan, Chief Executive Officer | +27 (0) 82 653 1463 |
Brunswick Group Carole Cable / Clemmie Raynsford | +44 (0) 20 7404 5959 |
Numis Securities Limited James Black / Alastair Stratton / 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.
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.