6th Dec 2007 08:15
International Ferro Metals Limited06 December 2007 International Ferro Metals Limited ("IFL" or the "Company") Operations Update London, 6 December 2007 - International Ferro Metals Limited (LSE: IFL), theintegrated ferrochrome producer, is pleased to announce that the replacementprogramme for its electrode pressure rings has been successfully completed onemonth ahead of schedule. Mining has begun at a new open pit mine on the Buffelsfontein site to provideadditional access to the chromite deposit thus increasing current tonnage to alevel above that currently consumed by its two ferrochrome furnaces. The surplusproduction will be stockpiled ahead of the Company's planned expansion of itssmelting capacity. The four percent appreciation of the US dollar against the Rand in the lastmonth will assist in restoring average profit margins throughout the SouthAfrican ferrochrome industry. Published ferrochrome prices are anticipated toincrease to a record high for sales in the first quarter of 2008. Replaced Electrode Pressure Rings Successful replacement of all the pressure rings, which hold the contact pointsagainst the electrodes within each of the Company's two furnaces, was completedover one month ahead of schedule. The full operating capacity of the integratedfacility has been fully restored. Production Disruption The consequential loss of production from replacing the pressure rings andremedying the earlier failure of the ball mill gear box through both replacementtime and associated power ramp-ups was approximately 30,000 tonnes; in line withour initial predictions. All components of the integrated ferrochrome facility are operating at capacityand the plant has resumed production at the rate of 267,400 tpa. Over the last five weeks all South African ferrochrome producers have sufferedelectricity supply disruptions imposed by Eskom. While such disruptions areexpected to be an ongoing issue as Eskom brings additional electricitygeneration online, IFL's production suffered only minimal disruption and theCompany is able to coincide maintenance activity during these reductions inelectricity supply. Furthermore, under its guaranteed electricity supplyagreement Eskom has part compensated the Company for the disruption. New Open Pit Mine Increases Production The Company has increased mine production above that required to feed thecurrent facility. A new open pit mining operation has been established on theBuffelsfontein site. This new mining operation will not interfere withoperations at the Lesedi decline and is forecast to increase the rate ofchromite extraction at Buffelsfontein to 110,000 tonnes per month. The currentintegrated facility consumes 80,000 tonnes of chromite per month. The surplusproduction will be stockpiled ahead of the Company's planned expansion of itssmelting capacity. This open pit mining is expected to operate for at least thenext seven months at which time its production potential will be reassessed. The reserve confirmation and mine plan for the adjacent Skychrome deposit arebeing developed by SRK and no problems have been encountered. Ferrochrome Price The ferrochrome industry anticipates an increase from 1st January 2008 in thepublished ferrochrome price which, since 1st July 2007, has been US$1 /lb. Thisexpectation is supported by the Company's negotiations with its customers foroffers received to purchase a portion of the Company's production at above US$1/lb of ferrochrome. This anticipated price increase should be enhanced by thefour per cent appreciation of the US dollar against the South Africa Rand in thelast month. For more information please visit the Company's website, www.ifml.com or contact: International Ferro Metals LimitedStephen Turner, Managing DirectorMob: +61 (0)418 440 844 Brunswick GroupCarole Cable / Alexandra TweedTel: +44 (0)20 7404 5959 Numis Securities LimitedJohn HarrisonTel: +44 (0)20 7260 1000 About International Ferro Metals: IFL is a ferrochrome producer that has recently commenced shipments from itsintegrated chromite mine and ferrochrome processing operations in South Africafor use in the global stainless steel industry. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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