Reviewed Interim Results - 31 December 2007

Reviewed Interim Results - 31 December 2007

03 March 2008

International Ferro Metals Limited (LSE: IFL), the integrated ferrochrome producer, presents its interim results for the half year ended 31 December 2007.

Highlights

  • Through this six month period of ramp-up to full production, Ferrochrome costs per pound have reduced by 30%.
  • The average market ferrochrome price was approximately US$1.00/lb over the period.
  • Ferrochrome production for the six months ended 31 December 2007 amounted to 93,317 tonnes.
  • Revenue of ZAR367 million.
  • EBITDA of ZAR14.52 million
  • Loss of ZAR23.9 million.

Post period highlights

  • First quarter Ferrochrome price has increased 21% to US$1.21/lb.
  • ZAR has depreciated 15% from 1US$:R6.85 at 31 December 2007 to the current exchange rate of 1US$:R7.89.
  • Eskom restricted Ferrochrome producers to operate utilising no more than 90% of their maximum electricity demand. Eskom’s electricity constraints support higher Ferrochrome prices.
  • Feasibility study underway to increase capacity to 6, 65,000 tonnes per year.
  • Outlook for ferrochrome market remains strong.
  • David Kovarsky joined the Board as Managing Director from 1 February 2008.

31 Dec 2007 ZAR’000 31 Dec 2006 ZAR’000
Sales revenue 3, 67,525 4,441
Cost of goods sold (3, 49,595) (3,600)
Gross profit 17,930 841
Net loss after tax (23,858) (71,628)
Loss per share (ZAR cents) (4.54) (17.29)


Stephen Turner, Chief Executive Officer of IFL commented:
"These results are in line with our expectations given the production problems we experienced which, with the exception of the industry-wide electricity supply problems, have since been rectified. We continue to achieve increasing ferrochrome prices and the outlook for demand remains very positive. This is driven largely by the strong growth in developing countries like China, whose population continues to urbanise. Ferrochrome supply has been affected most recently by well-publicised electricity supply constraints in South Africa. We do not expect significant new electricity capacity to come on stream in the near future, thus supporting further price increases. IFL’s position as an established ferrochrome producer, with substantial expansion plans supported by electricity supply commitments, positions the Company well to benefit from the consistent growth in stainless steel demand."

For further information please contact:

International Ferro Metals Limited
Stephen Turner, Chief Executive Officer
Mob: +61 418 440 844
OR
David Kovarsky, Managing Director Mob: +27 82 650 1192
www.ifml.com

Brunswick Group
Patrick Handley / Carole Cable
Tel: +44 (0) 20 7404 5959

Numis Securities Limited
John Harrison / Stuart Skinner
Tel: +44 (0) 20 7260 1000

Notes to editors:
IFL produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa.

« Back