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.

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."

This might be the time to get back in. Results probably better than expected, and pushing off support level at 20

Could be that some sort of recovery is at last starting to take place here. IFL is up over 30% from recent lows.( in the last week) Is it time to buy a few?!?

The Company was today informed that Terry Willsteed, a non-executive director of the Company, today purchased 100,000 ordinary shares in the Company at a price of 23.75 pence. Following this transaction Mr Willsteed will hold a total of 1,100,000 ordinary shares in IFL representing 0.20% of the Company's issued share capital

This stock has surely hit rock bottom. What about a recovery?

Don't know whether youve seen this article

http://www.telegraphindia.com/1110630/jsp/business/story_14179034.jsp

Recommended in yesterday's shares at 21 p.They are of the opinion that a re-rating is on the cards. A bit of a comeback seems to be on the cards.Up from lows of about 14 p over the past few months.
Also, check out the article referred to above.

I've had my fingers burned twice with this stock! I hope not to make it a hat trick