JOHANNESBURG (miningweekly.com) – London-listed ferrochrome producer International Ferro Metals (IFM) on Thursday reported record half-year production, driven by operational improvements, for the six months ended December 31, of 116 469 t, up 5.8% on the previous record.

Quarterly production for the three months ended December also increased by 1.3% quarter-on-quarter to 58 621 t. During the previous quarter production increased by 47% to 57 849 t.

“We have continued to build on a strong first quarter with our furnaces stable and operating at full load.  Our sharp focus on reducing costs has put us further down the cost curve and we remain competitive in the Chinese market. Sales were evenly distributed over our broad global customer base, which the company has developed over the last two years,” IFM CE Chris Jordaan said.

Ferrochrome sales of 57 394 t were up 9.8% on the previous quarter’s 52 249 t, reflecting the higher commitment of sales during the second quarter of the 2014 financial year, while net borrowing was reduced to R372-million at December 31 from R393-million at September 30.

As of December 31, the company’s ferrochrome inventory of 16 156 t was in line with that of September 30.

Meanwhile, IFM said its operations were cash generative and were expected to be profitable for the quarter, while production costs continued to allow the company to be cost competitive with global ferrochrome producers.

"Improved alloy prices in the first quarter of calendar 2014 and a weaker South African rand, together with our cost reduction initiatives, are adding momentum to the profitability and turnaround of the company.  This, plus our integrated operations mean that we have the flexibility to react to changing market conditions while generating cash and profitability," Jordaan stated.

Meanwhile, IFM’s Lesedi underground mine remained out of production as the findings of the mine’s review were now only expected to be completed in March, as opposed to January, as was initially announced.

“The company is currently evaluating its options [with regard to the mine] and a decision will be made once the review is finalised,” IFM said, adding that it had continued to source sufficient ore supply from a combination of stockpiles, the upper group two supply agreement, the buying-in of ores in the market and production from its Sky Chrome operation.

As planned, production at Sky Chrome amounted to about 30 000 t for the quarter, compared with about 40 000 t in the previous quarter.

“The improvement in the recovery yield, compared with the same quarter in 2012, was owing to increased production from the chrome recovery plant, improved Sky Chrome feed grades and successful modifications to the beneficiation plant's spiral circuit,” the company said.

Further improvements were under way to optimise recovery.