International Ferro Metals Six-month Period Loss Narrows; Revenue Up; Sees Strong Ferrochrome Market [IFL.L]

3/3/2008 6:38:59 AM Monday, International Ferro Metals Ltd. (IFL.L, ITFMF.PK) reported a narrower loss in the first six-month period, on strong demand for its ferrochrome. The revenue for the period increased on raising ferrochrome prices. The South African ferrochrome producer noted that the outlook for ferrochrome market remains strong.

International Ferro Metals reported that its six-month period net loss narrowed to ZAR 23.86 million from ZAR 71.63 in the corresponding period of last year. On a per share basis, loss was ZAR 4.54, compared to a loss of ZAR 17.29 a year earlier.

Net loss attributable to members of the parent was ZAR 22.74 million, compared to net loss of ZAR 70.93 million a year before.

The company's half-yearly revenues increased sharply to ZAR 367.53 million from ZAR 4.44 million a year ago.

Ferrochrome production for the six months ended on December 31, 2007 amounted to 93,317 tonnes. The company noted that the demand for its ferrochrome is strong and its two-offtake agents, JISCO and CoMetals, have increased their guaranteed offtake commitment to 400,000 tpa to take effect following the proposed facilities expansion.

By the end of the current reporting period, the price of ferrochrome increased by 21% to US$1.21/lb from US$1.00. It is anticipated that the prices will move upward substantially in the immediate future.

Gains on mark-to-market of derivatives were ZAR 6.62 million for the period, compared to a loss of ZAR 27.50 million in the previous year.

Stephen Turner, Chief Executive Officer, commented, “These results are in line with our expectations given the production problems we experienced which, with the exception of the industry-wide electricity supply problems, have since been rectified. We continue to achieve increasing ferrochrome prices and the outlook for demand remains very positive.”

Further, International Ferro Metals announced that David Kovarsky has joined the Board as Managing Director from February 1, 2008.

Looking forward, the company said that it is well positioned to take advantage of opportunities for expansion and consolidation in the ferrochrome industry. International Ferro Metals was included in the FTSE 250 index from December 24, 2007.

In addition, the company noted that it is finalizing its feasibility study to increase the annual production capacity to 665,000 tonnes of ferrochrome per year.

On the LSE, IFL.L is currently trading at 116.75 pence, up 2.75 pence or 2.1%, on a volume of 1.03 million shares.

ITFMF.PK closed trading at $2.21 on February 2008.