International Ferro in electricity agreement with South African utility firm

1st Mar 2012 11:11

International Ferro Metals (IFL), the AIM-listed integrated ferrochrome producer, has reached an agreement with South African utility company Eskom to assist with the power utility's electricity supply requirements by participating in its electricity buy-back programme for an agreed period. IFL will switch out the first furnace from today until May 31st and the second from April until that same date.Under the agreement, Eskom will buy back the electricity which would have been consumed by the two furnaces, "at a rate that results in a net financial benefit" to IFM, the statement said.IFL said that its contractual commitments to other customers will not be affected by the new agreement."This agreement is value accretive for IFL shareholders, cash generative for the company, helps our national power utility manage its maintenance programme before the winter period, and is agreeable to our lender," said Chief Executive Officer Chris Jordaan.Shares gained 3.9% to 20.00p. NR/BC