International Ferro Metals (IFM) aims to be one of the world’s low cost ferrochrome producers through the use of latest mining technology and integrated mine and processing plants.

IFL announces that it has raised £85.2 million (before expenses) through the placing by Numis Securities Limited of 71 million new ordinary shares with certain existing shareholders and new institutional investors at 120 pence per share.

Highlights

• The IFL group is a low cost ferrochrome producer with guaranteed off-take agreements, long life resources and a highly experienced management team
• £85.2 million raised (before expenses)
• 71m new ordinary shares placed at 120p/share
• Proceeds will be used to fund the equity component of the planned expansion of existing chromite mining and ferrochrome processing operations
• Expansion is projected to increase production capacity by up to 150% to 6, 65,000 tpa
• Off-take agreements should more than double following the expansion
• Strong forecast ferrochrome demand (66% growth between 2007 and 2015) driven by expanding demand for stainless steel especially from China
• Move to the Official List of the Financial Services Authority and to trading on the main market of the London Stock Exchange in August 2007

Stephen Turner, Managing Director of International Ferro Metals commented:
"The stronger equity base positions IFL to take full advantage of the current and forecast shortage in the supply of ferrochrome. Through the issue of additional shares representing 16.5% of the Company, its production capacity will be increased by up to 150%. With the ferrochrome price increasing to US$1/lb, IFL looks forward to an excellent period of growth".

For more information contact:

International Ferro Metals Limited
Stephen Turner, Managing Director
Mob: +61 418 440 844
www.ifml.com

Brunswick Group
Carole Cable / Laure Korenian-Chabert
Tel: 020 7404 5959

Grant Thornton Corporate Finance
Fiona Owen
Tel: 020 7383 5100

Numis Securities Limited
John Harrison
Tel: 020 7260 1000

View full press release

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