This rising star seems to have been overlooked by this board. It is strongly tipped in todays Sun Times as extremely undervalued still with much more interest when it moves to the main list in a few weeks time--straight into the ftse 350. The institutions are coming onboard and I'm happy with my long term hold.

No idea but I hold. It just seems to be slipping away into oblivion.

The only 3 things I can think are

1) There is a big seller in the market still unloading
2) The market is going down to a double bottom and this is slowly heading down back to 10 - 20p
3) MM's trying to frighten PI's into selling their stock

To be honest atm it just doesn't look as though it is going back up so I don't suggest you buy anymore!

I have been disappointed with this share so now I've moved on--there are better invetments out there at the moment.

Me too.The trouble is,they only seem to go up when I sell.Consequently they are now 3 points higher,since selling this a.m.The message seems to be,"now that bast++d has sold.it's time to buy!
C'est la vie!

why not do a CFD with a guaranteed stop?

Quarterly management statement due to be released tomorrow.

There's something here about not selling at the bottom or buying at the top.

Bought back in after todays' positive statement
Should have waited another day
RNS Number : 3816C
International Ferro Metals Limited
12 November 2009






12 November 2009

International Ferro Metals Limited

("IFL" or the "Company")

Production Report for the three months to 30 September 2009

and Interim Management Statement

Highlights:

Ferrochrome production was 36,773 tonnes for the quarter to 30 September 2009, up sharply from the June 2009 quarter due to the start up of the second furnace

Ferrochrome sales were down from 41,916 tonnes in the June 2009 quarter when the Company was selling inventory plus production, to 36,383 tonnes in the September quarter

Inventory remained stable at 9,752 tonnes, compared to 9,362 tonnes at 30 June 2009

Net cash balance of ZAR433m as at 30 September 2009 (30 June 2009: ZAR340m)

Ferrochrome price was US$0.89 per pound for the September 2009 quarter, compared to US$0.69 for the June 2009 quarter




Post-period highlights

Ferrochrome price has increased to US$1.03 per pound for the December quarter of 2009






Three months to 30 September 2009

(tonnes)
Three months to

30 June 2009

(tonnes)
Three months to 30 September 2008

(tonnes)

Production
36,773
18,437
59,470

Ferrochrome sales
36,383
41,916
28,025

Ferrochrome stock at quarter end
9,752
9,362
33,265





Commenting on the operational update, Chief Executive Officer David Kovarsky said:

"Following increased ferrochrome demand and general shortages during the quarter we made a decision to start up the second furnace on 17 August 2009, having switched on the first furnace on 20 April 2009. The start up went smoothly and production is now running at full Eskom constrained capacity. With the prospect of continued ferrochrome price increases through 2010, IFL is well placed to take full advantage of its strategic access to growth in stainless steel production."



Ferrochrome market conditions

Since the beginning of 2009, global stainless steel production volumes have steadily increased and although there has been a recent slowdown over the quarter under review, it is expected that the upward trend will resume from the beginning of 2010.

Production

Production for the quarter to September 2009 was 36,773 tonnes compared with 18,437 tonnes in the previous quarter when only one furnace was in operation and 59,470 tonnes for the quarter to 30 September 2008 when both furnaces were running at full capacity after allowing for electricity constraints. Both furnaces are now running smoothly and achieved Eskom constrained nameplate capacity towards the end of October.

Sales

Ferrochrome sales were 36,383 tonnes for the quarter compared with 41,916 tonnes in the previous quarter when the Company was selling stockpiled material as well as production. These sales were executed in all of the Company's traditional markets: China, Europe and the United States. The strength of the Rand has adversely impacted achieved ZAR revenues and reduced margins.

Inventory and costs

Costs have been well controlled during the quarter.

Stock levels were low in the June quarter due to increased sales and are currently low as IFL turned on its second furnace part-way through the September quarter. The Company is now rebuilding inventory to more normal levels in response to expected increases in electricity prices due to regulatory tariff charges and seasonal pricing and in response to expected increases in the ferrochrome price.

Capital expenditure

Total capital expenditure budgeted for the remainder of the financial year is ZAR350 million which includes ZAR190 million for the electricity co-generation project and ZAR80 million for mine development.

The mine capital programme has begun with the MG2 decline expected to be completed by the end of November 2009. Development of the MG1 decline has commenced.

Construction of the co-generation plant, which will allow the Company to generate 10% of its electricity requirements at significantly lower cost, after allowing for carbon credits, is well underway and will be commissioned in the second half of 2010.

Cash

The Company's balance sheet remains strong with net cash of ZAR433m at the end of September 2009 and the ZAR500 million Bank of China working capital facility in place. The Company will continue its prudent management of cash and resources.

Outlook

Due to a lack of transparency in demand from developing economies and the outlook for the Rand and electricity costs, the Company remains cautious in the near term. However, on an operational level, the Company's furnaces are operating efficiently, mining development has commenced as planned and the development of our co-generation project is on track. Our strategic relationships are key in harnessing the growth in demand in China and our belief in the outlook for stainless steel demand in the long term remains intact.




Other than as detailed above in this Interim Management Statement, there have been no material events or transactions in the period from 1 October 2009 to 12 November 2009.




For further information please visit www.ifml.com or contact:




International Ferro Metals Limited

David Kovarsky, Chief Executive Officer
+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.




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.


This information is provided by RNS
The company news service from the London Stock Exchange

END

The most important thing is that the price of chrome has shot up and the sp should have support at this level....jumped in for the first time here on recovery hopes.

RF What is the best site for accessing metal prices?

FT (financial times)...I think....I shall have to sign up myself one of these days...

From the "UPS" thread late yesterday ..........

Master RSI - 19 Nov'09 - 22:00 - 170 of 180 edit

KEEP and EYE

IFL 40.675p ( 40.25 / 41p )

Moving slowly from lows, the last candlesticks have given a buy signal ( short term )

Master rsi you cloud be right i see a brake out coming 49p/50p charts look good

And about time too!

Expected rises on the price of ferrochrome says CEO ...........

20 November 2009
London-listed South African ferrochrome producer International Ferro Metals (IFM) says in a report on page 10 of this edition of Mining Weekly that it expects the ferrochrome price to continue to rise throughout 2010. IFM CEO David Kovarsky expects the upward trend to resume as 2010 kicks off, despite the downturn in demand in the September quarter.

The ferrochrome price is $1,03/lb currently, up from $0,89/lb in the September 2009 quarter, and $0,69/lb in the June quarter. The $1,03/lb price level is expected to persist as Europe and North America adopt it as the benchmark. Though the spot price of ferrochrome has been softer in China, it is expected to firm once Chinese stockpiles normalise.

ferrochrome prices

MRSI. Thanks for info.
The Telegraph rated IFL a buy at 58,so there should be a good deal of mileage here.

The rebound in IFL may have started today (up 3 to 27).If so, it is about time.It could be a good one as it is down well over 50%

This news should,I think ,give the stock a big boost. It is already up a third from recent lows.

21 January 2010




International Ferro Metals Limited

("IFL" or the "Company")




Production report for the three months to 31 December 2009




Highlights:

Production was 57,942 tonnes for the three months to 31 December 2009 ("Q2 FY2010"), up 85%
on the three months to 31 December 2008 ("Q2 FY2009") following the successful start-up of the second furnace in August 2009

Ferrochrome sales volumes were up 61% for the three months under review compared with the previous year, reflecting the suspension of production which took place in November 2008

Ferrochrome inventory was 32,504 tonnes as at 31 December 2009, reflecting management's decision to increase inventory above normal levels

Second furnace started up during August 2009 and both furnaces are now operating at Eskom constrained capacity

Electricity co-generation plant is on schedule and on budget for commissioning during the second half of calendar 2010

Net cash balance of ZAR248 million as at 31 December 2009.




Ferrochrome
Three months to 31 Dec 2009



Three months to 31 Dec 2008



Three months to 30 Sept 2009



Six months to 31 Dec 2009



Six months to 31 Dec 2008




Production tonnes
57,942
31,289
36,773
94,715
90,759

Sales tonnes
34,553
21,410
36,383
70,936
49,435

Stock at period end
32,504
42,523
9,752









Commenting on the operational update, Chief Executive David Kovarsky said:

"Following the successful start up of our second furnace in August 2009, the Company has built up inventory levels in anticipation of higher ferrochrome prices in 2010. So far in 2010, stainless steel production and demand have both strengthened and the management and Board are confident that the Company is well placed to take advantage of a revival in the global stainless steel and ferrochrome markets due to its strong balance sheet, furnaces are running at high utilisation levels, and strong relationships exist with the Chinese market."




Ferrochrome Market Conditions

The revival of the ferrochrome market in August 2009 led the Company to start up its second furnace in the expectation that this trend would continue. Benchmark prices mirrored this expectation with the Q4 2009 European benchmark price increasing to US$1.03 per pound, from US$0.89 in Q3 2009. However due to stainless steel overstocking and, to a lesser extent, an increase of global ferrochrome production and overstocking, this momentum slackened towards the end of Q4 2009. Ferrochrome benchmark and spot prices came under pressure, with the European benchmark price reducing by 2 cents to US$1.01 per pound for Q1 2010.




Metal Bulletin has reported that since the beginning of the calendar year strong Chinese demand for ferrochrome and higher South African costs have resulted in increases in the ferrochrome spot price. Ferrochrome demand in Europe and the USA is also rising although stainless steel production in these markets is improving from a very low base.




In anticipation of future increases in electricity prices and to allow IFL to benefit from future price increases, the Company decided to increase inventory over the quarter under review from the low levels reported at the end of the September 2009 quarter.




IFL's strategic relationship with JISCO, and marketing campaigns to China partnered with JISCO, have historically led to improved customer relationships and a competitive advantage in the Chinese market. IFL intends to continue to focus its marketing efforts on the Chinese market in 2010 as well as supplying its other markets.




Production

Production for Q2 FY2010 (57,942 tonnes) increased by 58% compared with Q1 FY2010 (36,773 tonnes) due to the start-up of the second furnace in August 2009. Production for H1 FY2010 was 4% higher than in H1 FY2009. We are particularly pleased to note that the Company achieved record production for the month of December 2009 of 21,898 tonnes.




Sales

Sales increased from 21,410 tonnes in Q2 FY2009 to 34,553 tonnes in Q2 FY2010 and half year sales increased 43% from 49,435 tonnes in H1 FY2009 to 70,936 tonnes in H1 FY2010. The bulk of sales were made under contract at prices which were higher than those available during the quarter on the spot market.



Inventory

As detailed in the production report and IMS released to the market on 12 November 2009, IFL took steps to rebuild its inventory over the quarter under review from the low levels at the end of September 2009 of 9,752 tonnes to 32,504 tonnes at 31 December 2009 in order to take advantage of the expected increases in ferrochrome and electricity prices.



The current inventory level is higher than the approximately one month's production which the Company would normally maintain.




Capital expenditure

Capital expenditure budgeted for the remainder of the financial year is ZAR304 million which includes ZAR187
million for the electricity co-generation plant and ZAR58 million for mine development. There is no other planned significant capital expenditure and IFL remains focused on controlling costs.




Cash balance

As at 31 December 2009, the Company's net cash balance was ZAR248 million (ZAR448 million cash less ZAR200 million drawn on the ZAR500 million working capital facility), against a net cash balance of ZAR433
million on 30 September 2009. The decrease in net cash was principally due to the build up of finished stock,
and to a lesser extent an increased working capital requirement, planned capital expenditure, and unrecovered overhead.




Outlook

Since the beginning of the year stainless steel production utilisation levels, particularly in China, have
increased. This has had a positive impact on ferrochrome demand and spot prices. This trend is similar to those experienced by other commodities and has been driven by Chinese growth and a stabilisation of other economies. We expect this trend to continue.




The Company is well placed to take advantage of this revival with its strong balance sheet, furnaces running at high utilisation levels, and strong relationship with the Chinese market.




All major capital expenditure projects are running on time and on budget. This will further enhance the Company's production capacity and cost base, ensuring that IFL is well positioned to benefit from improving market conditions.







The Company's interim financial statements for the six months ended 31 December 2009 will be released on
23 February 2010.

Sold out last month at a loss......it's looking better now....

Further good news on top of last months anouncement of quarterly production up by 85%.


17 February 2010



International Ferro Metals Limited
("IFL" or the "Company")



Agreement with Anglo Platinum for chromite supply derived from UG2



The Company has entered into an agreement with Rustenburg Platinum Mines Limited ("RPM"), a subsidiary of Anglo Platinum Limited, whereby IFL will pay approximately ZAR150m for the construction of a chrome re-treatment plant ("CRP") to treat the tailings arising from RPM's UG2 concentrator situated at their Waterval section. The CRP's primary objective will be to extract chromite from the tailings. The CRP will be constructed and commissioned by an EPCM Contractor and owned, maintained and operated by RPM.



IFL will be entitled to 15,000 tonnes of chromite per month (tpm) at no cost other than the cost of transporting the concentrate to its facilities at Buffelsfontein, which is about 50km from the CRP. The 15,000tpm represents almost 30% of the Company's current concentrate requirements and the effective cost of the concentrate will be significantly below the Company's in-house mining cost.



The contract endures for ten years from commencement of the project and IFL is entitled to 15,000tpm from the date of commissioning of the CRP. It is estimated that IFL will therefore receive concentrate for a period of nine years. Construction on the CRP is expected to commence in June 2010 and commissioning is expected to follow 12 months later. The Company will fund the project using existing cash facilities.



David Kovarsky, Chief Executive Officer of IFL commented:



"This is a very exciting and innovative deal for International Ferro Metals and we are very pleased to be partnering with Anglo Platinum, the world's leading primary producer of platinum group metals. This new source of chromite supply for our two furnaces will reduce our input cost and will enable us to better leverage the improving ferrochrome market conditions. This agreement and the start up of the co-gen plant expected in the second half of the calendar year illustrates the management's focus on lowering costs and increasing production capacity."



ENDS




For further information please visit www.ifml.com or contact:



International Ferro Metals Limited

David Kovarsky, Chief Executive Officer

Mob: +27 82 650 1192



Brunswick Group

Carole Cable / Fiona Mulcahy

Tel: +44 (0) 20 7404 5959



Numis Securities Limited

John Harrison / 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.






This information is provided by RNS
The company news service from the London Stock Exchange

RNS Number : 5158H
International Ferro Metals Limited
23 February 2010











23 February 2010



International Ferro Metals Limited
("IFL" or the "Company")



Interim Financial Results for the half year to 31 December 2009





Highlights

Financial highlights

Sales volumes increased to 71kt, up 35% on the June 2009 half

Higher sales volumes but lower ferrochrome prices and a stronger Rand resulted in

o Revenue of ZAR452m for the December 2009 half, down 14% on the December 2008 half, but up 77% on the June 2009 half

o Loss before tax of ZAR145 millionin the December 2009 half, an increase from the ZAR27 million loss in the December 2008 half but a significant improvement from the ZAR429 million loss in the June 2009 half

Net cash balance of ZAR248 million as at 31 December 2009

No interim dividend to be paid

Operational highlights

Production volumes increased by 4% to 95kt

Rand production costs in line with budget

Second furnace started up during August 2009 and both furnaces are now operating at Eskom
constrained capacity

Ferrochrome inventory was 33kt as at 31 December 2009, reflecting management's decision to
increase inventory above normal levels

Electricity co-generation plant is on schedule and on budget for commissioning during the second

half of calendar 2010



Post period highlights

Innovative UG2 chrome supply contract with Anglo Platinum for 15kt per month expected to reduce
costs

Significantly improved ferrochrome market conditions





Six months to 31 December 2009
Six months to 31 December 2008
Six months to 30 June 2009
% Change between six months to 31 December 2009 & six months to 30 June 2009



(ZAR'000)
(ZAR'000)
(ZAR'000)



Sales revenue
451,917
526,057
255,517
77%

Cost of goods sold
(509,055)
(456,560)
(412,417)
23%

Gross (loss) / profit
(57,138)
69,497
(156,900)
-64%

Loss before tax
(144,842)
(26,809)
(428,970)
-66%

Net (loss) / profit after tax
(105,093)
3,251
(341,830)
-69%

(Loss) / profit per share (ZAR cents)
(19.08)
0.81





Production volumes (tonnes)
94,715
90,759
19,605
383%

Sales volumes (tonnes)
70,936
49,435
52,400
35%










David Kovarsky, Chief Executive Officer of IFL commented:



"With both our furnaces operating at full capacity for most of the half year under review, we were able to increase sales volumes by 35% albeit at a lower ferrochrome price and in a stronger Rand environment. Our Rand denominated costs have now stabilised and we are continuing to manage our inventory and look for further opportunities to increase our margins and production volumes. The announcement of our UG2 chrome supply contract with Anglo Platinum last week illustrates the innovation of the management team and our focus on finding opportunities to reduce costs. The cash on our balance sheet gives us the strength to take advantage of opportunities as they arise."



There will be a presentation to analysts of the interim results today, Tuesday 23 February 2010 at 8.30am (UK time) at 16 Lincoln's Inn Fields, London WC2A 3ED. The presentation slides and a recording of the presentation will be available on the Company's website.



For further information please visit www.ifml.com or contact:



International Ferro Metals Limited

David Kovarsky, Chief Executive Officer

Mob: +27 82 650 1192



Brunswick Group

Carole Cable / Fiona Mulcahy

Tel: +44 (0) 20 7404 5959



Numis Securities Limited

John Harrison / James Black

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.




Operational and Financial Review



During November 2008 the Company turned off both its furnaces due to the sharp and sudden collapse in ferrochrome demand. In April 2009 one furnace was restarted to convert raw materials to finished product. The market began to show some improvement and the furnace was kept in production after the raw materials conversion campaign ended.



A recovery in ferrochrome market conditions in the second half of 2009 led to the start up of the second furnace, increased sales volumes and significantly improved results over the previous six months. The results however remained markedly below levels reached in the six months to 31 December 2008 ("the comparative period"). The Company reported a loss before tax of ZAR144.8 million for the six months ended 31 December 2009 ("the period") against a loss of ZAR429 million in the previous six months and a loss of ZAR26.8 million for the comparative period.



The average European ferrochrome benchmark price for the period of US$0.96/lb was US$0.99 lower than the US$1.95/lb average price for the comparative period but US$0.20 higher than the previous six months. While ferrochrome production increased by only 4% (to 95kt) from the comparative period, sales volumes increased by 43% to 71kt. The more than halving of ferrochrome prices and the strengthening Rand however resulted in sales revenue decreasing by 14% to ZAR452 million from the comparative period but increasing by 77% from the previous six months.



Production costs in Rand terms were in line with budget and significantly lower than in the comparative period during which coke prices reached record levels, although these savings were partially offset by the increase in electricity prices. The production cost per pound for the period was US$0.80/lb at an average exchange rate of ZAR7.63/$ compared with the Company's forecast made in September 2009 of US$0.72/lb at ZAR8.25/$ which equates to US$0.78/lb at ZAR7.63/$. The constituents of the US$0.80/lb production costs were: ore 22.3c (28%); reductant 22.8c (29%); electricity 14.2c (18%); operating costs 5.2c (6%); fixed costs 11.0c (14%); and depreciation 4.2c (5%).



Administration and other expenses decreased from ZAR196 million in the comparative period to ZAR67 million. This was primarily due to a reduction in both inventory write-downs and unabsorbed fixed costs and the Company's continued focus on controlling costs.



In order to take advantage of the expected increases in ferrochrome and electricity prices, the Company has been rebuilding its ferrochrome inventory from the low levels at the end of June 2009 of 9,362 tonnes to 32,504 tonnes at the end of December 2009.



In July 2009 the Company secured a ZAR500 million three year working capital facility from Bank of China of which ZAR200 million was drawn down as at 31 December 2009. On 3 August 2009 the Company raised ZAR284 million, before expenses, through a share placement, the proceeds of which will be used principally to fund the electricity co-generation plant. The net cash balance at 31 December 2009 was ZAR248 million against a net cash balance of ZAR340 million at 30 June 2009. The ZAR248 million cash is calculated as ZAR395 million cash on balance sheet plus ZAR52 million cash guarantees for the co-generation plant, less the ZAR200 million drawn on the working capital facility.



Operating activities utilised ZAR274 million cash during the period of which ZAR244 million relates to increased inventories of ferrochrome and raw materials. Capital expenditure for the period was ZAR61 million and the budget for the remainder of the financial year is ZAR304 million which includes ZAR187 million for the electricity co-generation plant and ZAR58 million for mine development.



EBITDA loss for the period increased to a loss of ZAR102 million from a loss of ZAR2 million for the comparative period, although this represents a significant decrease from a loss of ZAR394 million for the previous six months. The positive tax charge of ZAR40 million to the income statement is a deferred tax credit resulting from the Company's unclaimed calculated tax losses and unredeemed capital balance available for offset against future profits. Headline earnings per share decreased from a profit of ZAR0.01 per share for the comparative period to a loss of ZAR0.19 per share.



Stainless Steel and Ferrochrome Market Review



The stainless steel market continues to strengthen with European and US utilisation rates increasing significantly in recent weeks, albeit from a low base. Chinese utilisation rates continued at a high level right until the Chinese New Year. Ferrochrome demand has reflected increased stainless steel production and has increased consistently throughout the December 2009 quarter with spot prices increasing in all markets. Market commentators are predicting an increase in the ferrochrome price in the second quarter of 2010.



Over the past twelve months the Company has secured additional long term contracts in Europe and the United States with the objective of placing half of the Company's production under long term contracts. To date one third of IFL's production is under long term contract and it is expected that within six months the balance should be secured. The Company's relationship with major customers in all geographic areas is now well entrenched.



Agreement with Anglo Platinum for Supply of Chromite Derived from UG2



The Company has entered into an agreement with Rustenburg Platinum Mines Limited ("RPM") a subsidiary of Anglo Platinum Limited whereby IFL will pay approximately ZAR150 million for the construction of a chrome re-treatment plant ("CRP") to treat the tailings arising from RPM's UG2 concentrator situated at their Waterval section. The CRP's primary objective will be to extract chromite concentrate from the tailings. The CRP will be constructed and commissioned by an EPCM Contractor and owned, maintained and operated by RPM.



The CRP plant will be capable of producing 50,000 tonnes of chrome concentrate per month and IFL will be entitled to 15,000 tonnes per month (tpm) of chromite at no cost other than the cost of transporting the concentrate to its facilities at Buffelsfontein, which is about 50km from the CRP. The 15,000tpm represents almost 30% of the Company's current beneficiated ore requirements and the effective cost of the concentrate would be significantly below the Company's in-house mining cost.



The contract endures for ten years from commencement of the project and IFL is entitled to 15,000tpm from the commissioning of the CRP. It is estimated that IFL should therefore receive concentrate for a period of nine years. Construction on the CRP is expected to commence in June 2010 and commissioning is expected to follow 12 months later. The Company will fund the project using existing cash facilities.



Mining Operations



The earlier than anticipated start up of the second furnace in August 2009 and a revision of the Lesedi underground mine plan has resulted in the Company having to buy in chrome ore. The Anglo Platinum UG2 concentrate is expected to provide for the shortfall in supply in approximately one year's time and IFL has purchased ore to fulfil its production needs until the UG2 CRP has been commissioned. These requirements have not been fully secured for the next 12 months but the Company is confident that they will be met without a significant impact on overall costs. Because the open pit has significant quantities of low grade ore, the Company will continue to purchase high grade ore to blend with the open pit material. These purchases represent between ten and fifteen percent of ore requirements.



Mining operations were resumed on a limited scale in late 2009 and increased at the beginning of 2010. Most of the focus over the period under review has been on mine development. The negotiations regarding the appointment of a mine contractor are well advanced and it is expected that an appointment should be made by the end of March 2010. The winning contract is expected to be on a fixed cost basis over a three year period with allowances for escalations. Production of ore from the mine is expected to increase significantly shortly after the appointment of the contractor at costs materially below current mining costs.



The Company is reviewing the Sky Chrome mine plan and it is expected that this review will be completed within two months. The application for the Sky Chrome mining licence is proceeding according to expectations and it is expected to be granted by the middle of 2010.



Expansion



The South African electricity crisis in early 2008 and the global economic crisis later that year put a hold on the Company's planned expansion activity. Before those crises it was expected that the company would expand from its current ferrochrome production capacity of 267,000 tonnes per year (tpy) to 665,000tpy. In light of current economic conditions and the anticipated electricity supply increase in 2012 from the Medupi power plant, the Company is conducting pre-feasibility studies on expanding its operations. The feasibility study will include a review of the use of other technologies such as pre-reduction and Direct Current (Plasma) furnaces. All of these technologies include the use of off-gases to generate power on the same basis as the co-generation plant which is expected to be commissioned in the second half of calendar 2010 that will supply the Company with 10% of its energy requirements. The Company is also exploring funding alternatives that range from project finance to joint ventures with stainless steel producers. It is expected that the feasibility studies will be completed by January 2011.



Dividends



The Board of Directors resolved not to declare an interim dividend for the six months ended 31 December 2009.



Outlook



Stainless steel utilisation rates have increased in the US, Europe and China over the past three months driven by restocking in developed countries and growth from fiscal stimulus in China. This has had a positive impact on demand for ferrochrome. Whilst we expect short term demand to remain positive, there may be volatility along the way. However, long term we are confident that demand for South African ferrochrome will remain strong as developing economies continue to urbanise and industrialise and look for diversity and security of supply. IFL will continue to look for and implement innovative ways to preserve margins and expand production in order to adapt to changing market conditions.



The interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). An abridged version of the financial statements follows; the full set for the period is available on the Company web site www.ifml.com.




Abridged Financial Statements



Consolidated Income Statement

For the half year ended 31 December 2009







CONSOLIDATED





31 Dec 2009
31 Dec 2008





R'000
R'000










Sales revenue


451,917
526,057

Cost of goods sold


(509,055)
(456,560)

Gross (loss) / profit


(57,138)
69,497










Other income / expenses









Administrative and other expenses


(67,147)
(196,343)

Share-based payment (expense) / income


(2,848)
43,924

Foreign exchange (loss) / gains


(9,608)
49,543

Loss before interest and tax


(136,741)
(33,379)










Finance income


6,540
27,215

Finance costs


(14,641)
(20,645)

Loss before tax


(144,842)
(26,809)










Deferred tax


39,867
31,698

Current tax expense


(118)
(1,638)

(Loss) / profit after tax for the period


(105,093)
3,251










Attributable to:







Non-controlling interests


(1,134)
(864)

Equity holders of the parent


(103,959)
4,115





(105,093)
3,251




























Earnings per share (cents per share)







- basic (loss) / earnings per share


(19.08)
0.81

- diluted (loss) / earnings per share


(19.08)
0.81







Consolidated Statement of Financial Position

At 31 December 2009







CONSOLIDATED





31 Dec 2009
30 June 2009





R'000
R'000










Assets







Current assets







Cash and cash equivalents


395,344
340,089

Trade and other receivables


69,132
81,059

Prepayments


18,553
6,263

Inventories


434,619
195,820

Other current financial assets


52,447
-

Total current assets


970,095
623,231










Non-current assets







Deferred tax asset


106,520
66,653

Financial assets


10,712
8,550

Property, plant & equipment


1,829,698
1,798,151

Intangible assets


9,882
10,062

Other non-current financial assets


22,490
18,234

Total non-current assets


1,979,302
1,901,650

Total assets


2,949,397
2,524,881










Equity and liabilities







Current liabilities







Interest-bearing loans and borrowings


8,959
24,988

Provisions


17,890
12,411

Trade and other payables


138,344
81,010

Total current liabilities


165,193
118,409










Non-current liabilities







Interest-bearing loans and borrowings


265,308
64,053

Provisions


21,017
13,307

Total non-current liabilities


286,325
77,360

Total liabilities


451,518
195,769

Net assets


2,497,879
2,329,112










Shareholders' equity







Contributed equity


3,088,240
2,814,380

Share-based payment reserve


8,272
8,272

Accumulated losses


(593,272)
(489,313)

Non-distributable reserve


(6,044)
(6,044)

Equity attributable to equity holders of the parent


2,497,196
2,327,295

Non-controlling interests


683
1,817

Total shareholders' equity


2,497,879
2,329,112



































































Consolidated Statement of Cash Flows

For the half year ended 31 December 2009







CONSOLIDATED





31 Dec 2009
31 Dec 2008





R'000
R'000










Cash flows from operating activities







Receipts from customers


464,033
805,706

Payments and advances to suppliers and employees (inclusive of goods and services tax)


(724,030)
(1,109,570)

Phantom options exercised and paid


(427)
-

Interest paid


(13,530)
(17,534)

Net cash flows utilised in operating activities


(273,954)
(321,398)










Cash flows from investing activities







Payments for property, plant & equipment


(60,772)
(103,785)

Restricted cash payments


(58,157)
-

Interest received


6,540
27,215

Net cash flows utilised in investing activities


(112,389)
(76,570)










Cash flows from financing activities







Proceeds from issues of shares


286,755
-

Proceeds from borrowings


200,000
200,000

Repayment of borrowings


(21,797)
(6,094)

Payment of share issue costs


(12,895)
-

Payment of share buyback


-
(20,032)

Equity dividends paid


-
(76,148)

Net cash flows from financing activities


452,063
97,726

Net increase / (decrease) in cash held


65,720
(300,242)

Cash at the beginning of the financial period


340,089
972,190

Effects of exchange rate changes on cash


(10,465)
31,875

Cash and cash equivalents at the end of the period


395,344
703,823














This information is provided by RNS
The company news service from the London Stock Exchange

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