International Ferro Metals' shares jump on production rise

International Ferro Metals, the South African ferrochrome producer, saw production rise 15% in the final three months of 2011 compared to the same period of 2010.

Ferrochrome is an essential ingredient in the manufacture of stainless steel. International Ferro Metals made 54,142 tonnes of the substance in the final quarter.

The sales picture, however, was more complicated; up 39% on the previous quarter but down 22% compared to 2010.

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The firm says European steel mills are operating at only around 60-70% of capacity because of the Eurozone debt crisis, while in the US the figure is around 85%.

International Ferro Metals also managed to complete a roof rebuild project at its furnace facility which Chief Executive Chris Jordan described as "pleasing". He added that: "Cost savings continue to be a focus for the Company, with initiatives completed or underway across smelting, mining and inputs including power and chrome concentrate."

Chrome ore production is rising significantly at the company's Sky Chrome mine, with the extracted tonnage increasing from 72,000 in the three months to the end of September, to 122,000 by the end of the year.

The Lebedi mine saw production drop from 191,000 tonnes to 149,000 tonnes as a result of industrial action.

Today's update saw International Ferro Metals gain 9.87% by 09:56.

BS