Preliminary Annual Financial Statements for year ended 30 June 2008

Preliminary Annual Financial Statements for year ended 30 June 2008

22 September 2008

International Ferro Metals Limited (LSE: IFL), the integrated ferrochrome producer, presents its full year results for the year ended 30 June 2008.

Record earnings, maiden dividend and significant resource upgrade

  • First full year production of 205,607 tonnes of ferrochrome
  • Steady state operations achieved by year end
  • Ferrochrome prices up 92% to US$1.92/lb over the period
  • Revenue increased 944% to ZAR1.9bn (£131m)
  • EBITDA of ZAR727m (£49m)
  • Strong balance sheet with ZAR972m (£61m) of cash and no debt
  • Board considering share buyback
  • Chromite resources increased from 73.5m tonnes to 126m tonnes
  • Maiden dividend of 1 pence per share payable on 3 November 2008


Highlights for FY 2008
  H1 2008 H2 2008 FY 2008 FY 2007 Y on Y % change
FeCr production 93,317 112,290 205,607 49,370 316%
  ZAR’000 ZAR’000 ZAR’000 ZAR’000  
Total Revenue 367,252 1,552,144 1,919,396 183,863 944%
Cost of goods sold (349,595) (841,331) (1,190,926) (168,006) 609%
EBITDA 14,520 712,207 726,727 (255,285) n/a
Net profit/(loss) after tax (23,858) 602,040 578,182 (344,269) n/a
Net Operating Cashflow (236,234) 487,491 251,257 (204,787) n/a
EPS (cents per share) (4.54) 118.59 114.05 (82.78) n/a
DPS - £0.01 £0.01 - n/a


Stephen Turner, Chief Executive commented:
“These results reflect a successful first full year of ferrochrome production resulting in record earnings and a maiden dividend. Strong cash flows have resulted in the Board’s decision to evaluate the benefits of utilising part of the Company’s existing cash resources to acquire its shares in the market. Shareholders should note however that at present there is no commitment to buy back shares.

“Despite electricity constraints, our growth profile remains robust with production expected to increase by over 10% to 267,000 tonnes of charge chrome per annum from July 2009 following the commissioning of our off-gas power generation plant. We have completed the SkyChrome underground feasibility study which has resulted in a 72% increase of total resources to 126 million tonnes and our new 1.8 million tonne per year beneficiation plant is due to be commissioned in November 2009. With tight cost control, increasing production and no debt, IFL is well positioned to benefit from the strong demand for ferrochrome.”

The full published accounts for the financial year ended 30 June 2008 will be posted to shareholders on the 15th October 2008, and will be available on the Company’s web site, www.ifml.com.

There will be a presentation to analysts of the full year results on Monday 22 September at 9.00am UK time at 16 Lindoln’s Inn Fields, London WC2A 3ED.

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

International Ferro Metals Limited
Stephen Turner, Chief Executive Officer
Mob: +61 418 440 844

David Kovarsky, Managing Director
Mob: +27 826 501 192

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

To view the complete report

Notes to editors:
International Ferro Metals produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa, supplying 3.5% of the world’s ferrochrome to the global stainless steel industry. 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.

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