London, England — MININGREVIEW.COM — 22 September 2008 – Integrated ferrochrome producer International Ferro Metals Limited (IFM) – listed on the London Stock Exchange – has completed an impressive first full year of production in South Africa, posted a substantial turnaround in net profit, and expects both production and profits to increase further in the current financial year.
Releasing its annual financial statements for the year ended 30 September 2008, IFM revealed that it had produced 205 607 tonnes of ferrochrome in the period under review – more than three times production in the previous year. Revenue had risen almost 950% to R1.92 billion, and profits had topped R578 million.
IMF chief executive Stephen Turner commented: “These results reflect a successful first full year of ferrochrome production, resulting in record earnings and a maiden dividend.”
He went on to say that 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,” Turner added.
“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,” he said.
“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 tpa beneficiation plant is due to be commissioned in November 2009,” Turner confirmed..
“With tight cost control, increasing production and no debt, IFM is well positioned to benefit from the strong demand for ferrochrome,” he concluded.