Losses Rise At International Ferro

South African ferrochrome producer International Ferro has reported increased losses as a combination of lower ferrochrome prices and a stronger Rand outweighed higher volumes.

Losses for the six months to December 2009 were R145m, up from R27m in the December 2008 half-year. In the previous six months losses were R429m.

Revenues fell 14% to R452m for the six months to December 2009, though this was up 77% on the previous six months.

There was a loss before tax of R145m in the December 2009 half, compared to a R27m loss in the December 2008 half. Losses in the previous six months were R429m. There is no interim dividend.

Sales volumes increased to 71,000 tonnes, up 35% on the June 2009 half, while production volumes increased by 4% to 95,000 tonnes as furnaces operated at full capacity for the half-year.

Meanwhile CEO David Kovarsky has suggested that Ferrochrome contract prices may rise as much as 29 percent in the second quarter as demand improves citing a tightness of supply. Mr Kovarsky said he expecs the European benchmark contract prices may rise to between $1.20 and $1.30 a pound from $1.01 a pound this quarter.