[miningmx.com] — International Ferro Metals has appointed former BHP Billiton manager Christiaan Jordaan as its new chief executive, after it found a replacement for incumbent David Kovarsky earlier than expected.
Mechanical engineer Jordaan – who will replace 63-year-old Kovarsky in August, five months before the latter’s contract was due to expire – was general manager at BHP’s Metalloys division from 2008, running one of the largest producers of manganese alloys in the world. Jordaan’s tasks will include pushing ahead with the a cost-reduction programme that saw IFM cut costs by 10% from last year and promising a further 5% this year.
Analysts said that while the timing was a surprise, the move to replace Kovarsky, whose contract was due to end in January 2012, was not entirely unexpected.
“We believed in the story with the current management, but this appointment is positive. (Jordaan) obviously comes with a strong background in metal alloys and ferrochrome in particular,” analyst Andy Davidson at Numis said.
“The key catalyst in the near term for the stock will be the furnace rebuild which they are doing in the next couple of months. Positive news there should really drive the price.”
IFM has said it expects prices of ferrochrome – used in stainless steel to prevent corrosion – to remain steady in the near term with the potential for a pick-up as stainless steel producers begin to run down stocks.
