[miningmx.com] — International Ferro Metals (IFM) said second-quarter output was below its maximum capacity, after the ferrochrome producer was forced to shut down operations at its two key furnaces for repairs.
The South African firm’s shares, which have shed about 19% in value since the company posted a drop in quarterly sales in November, were down about 16% at 22.5 pence in late trading on Tuesday on the London Stock Exchange.
IFM also said construction of a retreatment plant by mining peer Anglo Platinum was running behind schedule and it expects to get the first feed of chrome concentrate in December.
In February, IFM had inked a deal with Anglo Platinum that would see IFM getting 15 000 tonnes of chromite every month from the world’s top platinum producer.
IFM that produces ferrochrome – used in stainless steel to prevent corrosion – said both furnaces were shut in November for 5 days leading to a fall in output.
In September, the company had said production at the two furnaces was below maximum capacity, as roof leaks slowed led to a shutdown in operations.
For the last three months of 2010, ferrochrome output was at 47054 tonnes. Ferrochrome output in the year-ago period was 57 942 tonnes
