1st Sep 2014 09:18
LONDON (Alliance News) - International Ferro Metals Ltd Monday said it has received 20,000 tonnes of UG2 chrome concentrate supply during August, part of its supply deal with Anglo Platinum, a unit of FTSE 100-listed Anglo American Platinum Ltd, which resumed last month.
International Ferro expects to receive 15,000 tonnes per month on an ongoing basis as part of the contract, along with a contracted backlog of 5,000 tonnes per month until the backlog is cleared. At the end of August, the backlog stood at approximately 94,000 tonnes.
"We are very pleased that the supply of UG2 has recommenced from Anglo Platinum, which delivers UG2 at a cost significantly below the company's in-house production cost of chrome concentrate, and is a direct contributor to profitability," said International Ferro Chief Executive Chris Jordaan.
"The resumption of UG2 ore gives us increased confidence that this year's production cost will be lower than that achieved for the final quarter of full year 2014," Jordaan added.
International Ferro shares were up 20% to 7.39 pence on Monday, putting it among the biggest risers on the London market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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