Preliminary Annual Financial Statements for year ended 30 June 2009

14 September 2009

International Ferro Metals Limited (LSE: IFL), the integrated ferrochrome producer, presents its full year results for the year ended 30 June 2009.

  • Strong balance sheet with ZAR340 million (GBP26 million) of cash
  • Ferrochrome price US$0.69/lb in Q4 of FY2009, down 64 percent from Q4 of FY2008
  • Revenue ZAR782 million, down 59 percent
  • EBITDA loss of ZAR396 million
  • Net loss before tax of ZAR456 million, compared with net profit of ZAR630 million in FY2008
  • Loss per share of ZAR0.66
  • Excellent safety record results in the Company being certified ISO compliant during the year

Post period update – well placed to benefit from rising demand

  • GBP22.2 million placing, proceeds will fund an electricity cogeneration plant expected to generate 11% of IFL’s overall electricity requirements, and reduce electricity costs
  • ZAR500 million three year irrevocable working capital facility secured from Bank of China
  • Second furnace restarted mid August
  • Open pit mining ramping up and underground mine development resumed
  • Recovery in ferrochrome price to US$0.89/lb in Q1 of FY2010


Financial highlights for FY 2009
  H1 2009 H2 2009 FY 2009 FY 2008
  Tonnes ‘000 Tonnes ‘000 Tonnes ‘000 Tonnes ‘000
FeCr production (tonnes) 90,759 19,605 110,364 205,607
  ZAR’000 ZAR’000 ZAR’000 ZAR’000
Sales Revenue 526,057 255,517  781,574 1,919,396 
Cost of goods sold (456,560) (412,417) (868,977) (1,190,926)
EBITDA (2,331) (393,637) (395,968) 726,727 
Net profit/(loss) after tax 3,251  (341,830) (338,579) 578,182 
Net Operating Cashflow (321,398) (26,776) (348,174) 251,257 
EPS (cents per share) 1 (67) (66) 114
DPS (pence) - - - 1p


David Kovarsky, Chief Executive of IFL commented:

“The year under review was very challenging for IFL as demand and prices plummeted from the previous year. The Company responded quickly and prudently to this new environment and cut production, focused on cost cutting, cash preservation and monetising inventory. The post period successful GBP22.2 million capital raising, restart of the second furnace and resumption of mining highlights market support for these actions and the long-term ferrochrome view. We are confident that the recent resumption in demand and stronger ferrochrome prices are sustainable and IFL is back on track to take advantage of this with an improved cost base.”

The full published accounts for the financial year ended 30 June 2009 will be posted to shareholders on 24 October 2009, and will be available on the Company’s web site, www.ifml.com

An analyst presentation on the full year results will start at 9.00am UK time on Monday 14 September 2009 at:

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

International Ferro Metals Limited
David Kovarsky, Chief Executive                 Mob: +27 82 650 1192

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

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 percent 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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