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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.