29 December 2015
International Ferro Metals Limited
("IFL" or the "Company")
Chromite Supply Agreement with Rustenburg Platinum Mines Limited and
publication of accounts
The Company announces that its South African subsidiaries, International Ferro
Metals (SA) (Pty) Limited ("IFMSA") (in business rescue) and International
Ferro Metals SA Holdings (Pty) Ltd ("IFMSAH") have commenced proceedings
against Rustenburg Platinum Mines Limited ("RPM") to protect their interests
under a Chromite Supply Agreement under which RPM is obliged to supply UG2
chrome ore to IFMSAH. RPM has purported to terminate the Agreement. IFMSA and
IFMSAH have received counsel's advice that the purported termination is
invalid, and have commenced court proceedings to seek orders to protect their
position, including orders that the purported termination is ineffective and
that RPM is obliged to continue to supply chrome ore under the Chromite Supply
Agreement. The proceedings are expected to be heard in mid-January 2016.
In the meantime, RPM has agreed to continue to supply about 57,000 tonnes of
ore which IFMSAH has an accrued right to receive but which have not yet been
delivered, at a rate of 5,000 tonnes per month. The reduced supply of UG2
chrome ore from RPM in the interim period will considerably reduce the group's
revenue and place significant strain on its liquidity. As a result, the Company
is no longer in a position to publish its annual report and accounts for the
year ended 30 June 2015 by the end of December, but expects to do so following
the successful resolution to this dispute.
Additionally, the Company has applied to the Australian Securities and
Investments Commission ("ASIC") for a further deferral of its Annual General
Meeting to 31 March 2016.
Further announcements in relation to these proceedings will be released in due
course.
- ENDS-
For further information please visit www.ifml.com or contact:
International Ferro Metals Limited Tel: +27 14 574 6302
Chris Jordaan, Chief Executive Officer
Numis Securities Limited Tel: +44 (0) 20 7260 1000
James Black / John Prior / Paul Gillam
About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential ingredient in
stainless steel, from its integrated chromite mine and ferrochrome processing
operations in South Africa. International Ferro Metals is listed on the London
Stock Exchange under the symbol IFL.
Forward Looking Statements
This announcement contains certain forward looking statements which by nature,
contain risk and uncertainty because they relate to future events and depend on
circumstances that occur in the future. There are a number of factors that
could cause actual results or developments to differ materially from those
expressed or implied by these forward looking statements.