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.

likely the chinese will take them over.

Halifax
Is there any special reason for this viewpoint?

sp suddenly spurting upwards.

sp up again today towards the close, must be a buyer waiting in the wings.

strong again today up 5%.

This report of a few months back might help explain the situation a little bit.


FERROCHROME
Ongoing ferrochrome price rises expected in 2010 IFM
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By: Martin Creamer
13th November 2009
TEXT SIZE JOHANNESBURG (miningweekly.com) Increases in the price of ferrochrome are likely to be ongoing throughout 2010, says London-listed South African ferrochrome producer International Ferro Metals (IFM).

IFM CEO David Kovarsky expects the upward trend to resume from the beginning of 2010, despite the downturn in demand in the September quarter.

"What the commentators say is that there was an overstocking of stainless steel inventory in China, which was a result of exports into China by Japan, Taiwan, Korea and Europe.

"I think that will ease off by the end of the year and I think that will calm the demand-supply equation," Kovarsky adds.

The ferrochrome price is at $1,03/lb in the December quarter, 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.

"I think that the Chinese spot price will resemble the benchmark price and commentators are saying that they expect further price increases in the first half of next year," says Kovarsky.

"Although we remain cautious for demand in the near-term, I believe the outlook for stainless steel demand remains intact," says Kovarsky.

IFM started up its second furnace on August 17, after switching on its first furnace on April 20.

"The start up went smoothly and production is now running at full Eskom constrained capacity," Kovarsky said.

On the proposal of South Africa's State-owned electricity utility Eskom to increase its tariff by 45% a year in the next three years on top of this year's 30% increase, Kovarsky says that the tariff would make the South African ferrochrome producers higher cost producers.

But a key aspect is that South Africa, as the largest producer, is generally the price maker and any costs that are increased in South Africa will be built into the selling price, which will have to cater for a higher electricity cost.

Kovarsky doubts whether higher priced product from South African producers would be spurned because of the dependence on South Africa.

"To make up that slack would be extremely difficult. If anything, I think that there is going to be a shortage of capacity in a couple years time because of the constraints that South Africans have on their electricity," Kovarsky adds.

"The first area for the pick up in demand will be China. The Chinese consumption is extremely strong. The three key areas of consumption of stainless steel in China are in construction, infrastructure and automotive and all three are doing well.

"From what we have seen, the destocking should cease by year-end and we should start seeing the pick up of production activity in China and therefore a pick up in demand for ferrochrome.

"I was in the US a couple of weeks ago and although production is relatively low, stainless steel producers are anticipating higher demand. Stainless steel stockists were delaying purchases because of the spike in the nickel price, but the nickel price has since come down and the US expectation is that things are going to pick up in the near future," he says.

IFM is rebuilding its inventory to more normal levels to take advantage of further increases in the ferrochrome price.

Global stainless steel production has increased steadily since the start of 2009 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.

Eloquent IFM chairperson, Tony Grey, quoting Shakespeare, says: "To afford comfort in a time of great stress, Macbeth said, Come what come may, time and the hour run through the roughest day'.

"For the company, the year that has just passed was a period that called for such an observation, Grey says.

The blow of the global financial crisis knocked the ferrochrome producers off balance, but they have slowly got back on their feet, after promptly reducing production.

The scene is now set for better days: "We are now rebuilding inventory to more normal levels to take advantage of any increase in the ferrochrome price and to mitigate against the expected increase in electricity prices in 2010," Kovarsky tells Mining Weekly Online.

IFM produced 36 773 t in the three months to September 30, up from the 18 437 t of the June quarter.

The company's ferrochrome sales of 36 383 t in the September quarter were down 13% on the 41 916 t of the June 2009 quarter, when the company was selling both inventory and production, but 30% higher than the sales in the September 2008 quarter, when the global financial crisis hit.

Continued rand strength is, however, lowered rand-denominated revenue and reduced margins.

Inventory is at a low level of 9 752 t, compared to 9 362 t as at June 30.

Ferrochrome prices are now in excess of $1.30 lb. IFL has double from its December lows,but still well below prices of last summer when it was rated a buy. Performing very strongly again today.SHARES rate them a buy

Ferrochrome production up 48%


27 April 2010



International Ferro Metals Limited

("IFL" or the "Company")



Interim Management Statement incorporating a production statement for the three months to 31 March 2010



Highlights:

Ferrochrome (FeCr) production of 54,394 tonnes (t) for the quarter to 31 March 2010, up 48% on the prior year comparative quarter but down 6% on the previous quarter

Sales of 64,063t for the quarter, up 76% on the prior year comparative quarter and up 85% on the previous quarter. Sales include 15,735t that is subject to pricing revisions based on subsequent benchmark pricing

Inventory of 22,748t at 31 March 2010 (32,504t as at 31 December 2009)

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

UG2 ore supply agreement concluded with Anglo Platinum which will significantly reduce input costs and extend Lesedi life of mine

Net borrowings of ZAR26 million as at 31 March 2010, principally due to increased working capital requirements (net cash of ZAR248 million as at 31 December 2009)

European benchmark FeCr price increased from US$1.01 per pound in the first quarter of 2010 to US$1.36 per pound in the second quarter of 2010



Ferrochrome
Three months to 31 March 2010

(tonnes)
Three months to 31 December 2009

(tonnes)
Three months to 31 March 2009

(tonnes)

Production tonnes
54,394
57,942
36,773

Sales tonnes
64,063
34,553
36,383

Stock at period end
22,748
32,504
9,752






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

"Stable and improving market conditions resulted in a healthy price increase and good sales growth during the quarter. While production was less than the previous quarter due to variability in the grade of bought in ore feed, we expect these issues to be resolved as mining operations ramp up and for sales and production tonnages to be in line with management forecasts. The Company remains confident that IFL is well placed to take advantage of the continuing improvement in market conditions."




Ferrochrome Market Conditions

Reflecting global stainless steel production growth, the European benchmark ferrochrome price increased by US$0.35 per pound from US$1.01 per pound in the first quarter of 2010 to US$1.36 per pound in the second quarter.



The strong South African Rand continues to impact the Company, but Management are working to control those costs which it can influence, through innovations and measures such as the co-generation plant and the UG2 ore off-take agreement with Anglo Platinum.



Production

Production for the quarter (54,394t) decreased by 6% compared with the previous quarter (57,942t). The lower production was principally due to inconsistencies in the grade of bought in ore feed while underground mining operations are ramped up. Over the last two quarters, IFL has focussed on the development of the underground mine to ensure long term sustainability and the provision of high grade ore. As a result, the output from the mine has declined in the short term. Increasing mine production and the creation of larger stockpiles of bought in ore allowing for improved blending and better ore feed consistency, will result in an improvement of production by July 2010.



Sales

Sales for the quarter to March (64,063t) increased by 85% compared with the previous quarter (34,553t). This included 15,735t sold but which still bears pricing exposure; final pricing for these tonnages will be fixed based on the benchmark price for the quarter in which it is consumed by the customer. It is expected that about 70% will be consumed in the second quarter of 2010 at the higher benchmark price of US$1.36 and the balance in the subsequent quarter, giving IFM the benefit of both having reduced its inventory and providing pricing upside.



Inventory

As announced in February 2010, the Company increased ferrochrome stock levels to higher than the normal level of one month's production in order to take advantage of the then expected increase in ferrochrome prices in the second quarter of 2010. The reduced inventory level of 22,748t at the end of March 2010, from 32,504t at the end of December 2009, reflects 15,735t of sales with ongoing pricing exposure as described above held as a debtor balance at Q1 pricing with an anticipated price adjustment to be accounted for in Q2 and Q3 of 2010.



UG2 Ore Supply

As announced in February 2010, the Company concluded a UG2 ore supply agreement with Rustenburg Platinum Mines Limited ("RPM"), a subsidiary of Anglo Platinum Limited. Under the agreement IFL will pay approximately R150m for a chrome re-treatment plant ("CRP") to extract chrome concentrate from RPM's UG2 concentrator tailings. The contract has a 10 year life commencing on the construction start date and entitles IFL to 15,000t per month concentrate (about 30% of IFL's beneficiated ore requirements) from the commissioning date at an effective cost per tonne significantly below underground mining cost. Construction is expected to start in June 2010 with commissioning in July 2011. The project is to be funded using existing cash facilities.



Capital expenditure

Capital expenditure budgeted for the remainder of the financial year is ZAR218 million which includes ZAR134 million for the electricity co-generation plant, ZAR30 million for mine development and ZAR 15 million for the metal recovery plant, in line with previous announcements.



Cash balance

As at 31 March 2010, the Company's net borrowings were ZAR26 million, against net cash of ZAR248 million at 31 December 2009. The decrease of ZAR274 million was principally due to increased working capital (mostly trade receivables) of ZAR160m and planned capital expenditure of ZAR83m, principally on our co-generation plant and mine development. The Company has a working capital facility of ZAR500m and expects to generate significant operating cash inflows during the quarter ending June 2010, under current market conditions.



Outlook

The demand for ferrochrome has increased over the quarter with corresponding improvement in stainless steel demand, as is reflected in the current premium in the spot ferrochrome price over the contract price. IFL expects this trend to continue as demand from the USA and Europe continues to improve.



Other than as detailed above in this Interim Management Statement, there have been no material events or transactions in the period from 1 January 2010 to 27 April 2010.



- ENDS-



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



International Ferro Metals Limited

David Kovarsky, Chief Executive Officer
+27 (0) 82 650 1192

Brunswick Group

Carole Cable / Fiona Mulcahy
+44 (0) 20 7404 5959

Numis Securities Limited

John Harrison / Stuart Skinner
+44 (0) 20 7260 1000

RNS Number : 4339L
International Ferro Metals Limited
06 May 2010









06 May 2010



International Ferro Metals Limited

("IFL" or the "Company")



Statement regarding proposed changes to Australian tax regime



International Ferro Metals notes the Australian government's proposal to introduce a uniform resource rent tax to those mining companies with operations in Australia.



As all of IFL's operations and resources are located in South Africa with no mining activities undertaken in Australia, IFL believes, having consulted with its advisors, that it will not be liable for the newly proposed resource rent tax.



- ENDS-



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



International Ferro Metals Limited

David Kovarsky, Chief Executive Officer
+27 (0) 82 650 1192

Brunswick Group

Carole Cable / Fiona Mulcahy
+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

The change of TREND as is moving into a BREAKOUT of the last Intraday high

Hopefully a good sign.I expect that the recent results have been interpereted as better than expected.

(IFL) IFL ferrochrome output up 46% on last year
Obviously not a well received result, as the price is down 10% -3.25

IFL DUE FOR A LONG LEAP UPWARDS.....THE PRODUCTION UPDATE WILL PROVE TO BE THE CATALYST. ONCE THE VALUE OF THE DOLLAR VS RAND INCREASES, MORE PROFIT WILL BE CHANNELLED TO THE BOTTOM LINE. RATED BUY BY 3 MAJOR BROKERS.....BUY BEFORE ITS TOO LATE.

Certainly worthy of attention.Especially in view of a very poor sp performance.

Heavy drop after negative update on Tuesday, but yesterday there was signs of bouncing back and this morning has confirmed that with the double bottom

If this stock isn't a contender for the most disappointing stock in the FTSE 25 ,then I'll eat my shirt. The Telegraph rated them a buy at 58,now they are barely 1/3 of that Thank the good lord that I am not a holder.

Unfortunately, I am!

chessplayer

re >>>>>Thank the good lord that I am not a holder.

For not being a holder, you do seem to follow her a bit too much
Maybe you have sold recently?.
I did buy yesterday, expecting a bounce that I can profit from.

I sold at about 30, but didn't lose much. They are on my watch list,so may get back in. They are certainly a momentum stock. The trouble is ,most of the momentum has been the wrong way!!

Sales went well up from the large stockpile they had, though production was lower last year >>>>>

Furnace repairs cut IFL ferrochrome output

Furnace repairs cut International Ferro Metals' ferrochrome production to 47,054 tonnes in the three months to the end of December.

This was 13% down on the previous quarter and 19% below the corresponding period in 2009.

But IFL said sales of 74,917 tonnes were up 159% from the previous quarter and 117% higher the corresponding period in 2009 due to strong demand in Asia.

And it said net borrowings were reduced from ZAR309m at the end of October to ZAR216m at 31 December.

CEIO David Kovarsky said: "IFL achieved strong sales during the quarter due to our good relationships in Asia where we have focussed on higher-value markets.

"Production at our mines, underground and surface, is also approaching record levels and IFL should be self-sufficient in ore supply by January 2012.

"We remain focussed on maximising production from our furnaces and have identified a permanent solution to achieve nameplate ferrochrome production.

"Minimising costs continues to be another area of operational focus as we seek to maximise margins."