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.