International Ferro Metals (IFL), the AIM-listed integrated ferrochrome producer, has reached an agreement with South African utility company Eskom to assist with the power utility's electricity supply requirements by participating in its electricity buy-back programme for an agreed period.
IFL will switch out the first furnace from today until May 31st and the second from April until that same date.
Under the agreement, Eskom will buy back the electricity which would have been consumed by the two furnaces, "at a rate that results in a net financial benefit" to IFM, the statement said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
IFL said that its contractual commitments to other customers will not be affected by the new agreement.
"This agreement is value accretive for IFL shareholders, cash generative for the company, helps our national power utility manage its maintenance programme before the winter period, and is agreeable to our lender," said Chief Executive Officer Chris Jordaan.
Shares gained 3.9% to 20.00p.
NR/BC
-
Are you one of 15 million people at risk of retirement poverty?Two-fifths of people in the UK aren’t on track for a minimum lifestyle in retirement, new data shows. Are there steps you can take to boost your pension?
-
150 banking hubs now open across UK – is there one near you?As the 150th banking hub opens its doors, a Post Office deal that offers basic banking services has also been extended until 2030. We explain what this means for you
