15 Oct 2012 07:04
15 October 2012
International Ferro Metals Limited
("IFL" or the "Company")
Update in relation to Anglo Platinum UG2 supply
IFL provides the following update in regards to the supply of UG2 it receives from Anglo Platinum following the unprotected strike action at Anglo Platinum.
The UG2 Chrome Recovery Plant (CRP) at Anglo Platinum's Waterval operations in Rustenburg was shut down on 12 September 2012, following the shutdown of the Waterval Concentrator, due to the ongoing strike action. This reflects the fact that the CRP is directly reliant on feed from the Waterval Concentrator.
Under the current supply agreement, IFL has the right to receive the first 15,000 tonnes of metallurgical concentrate production per month from the UG2 CRP plant and received 13,400 tonnes in September 2012. As the Waterval Concentrator has now been shut for a month, the CRP is still not in operation and as a result, IFL has not received any UG2 in October as of yet.
IFL's ferrochrome production has not been affected by this and is not expected to be. The UG2 supplied by Anglo Platinum constitutes 30% of the Company's ore demand. The Company has sufficient supplies of ore from its own operations and other sources and is therefore not reliant on UG2 as supply to its own operations. However, there is likely to be an added cost as a result of not receiving 15,000 tonnes per month of UG2 concentrate but the management believes this additional cost to input will not be significant to overall production costs.
IFL can further confirm that recently reported strike action in the transport sector has had no impact on supply commitments to any of its customers.
For further information please visit www.ifml.com or contact:
International Ferro Metals Limited
Chris Jordaan, Chief Executive Officer
Mob: +27 (0) 82 653 1463
Brunswick Group
Carole Cable / Clemmie Raynsford
Tel: +44 (0) 20 7404 5959
Numis Securities Limited
James Black / Stuart Skinner
Tel: +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 their 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.