Reuters reported that International Ferro Metals Limited expects full production in the first quarter on ferrochrome restocking by steel mills, and aims to generate cash in the same period despite rising input costs and weak prices, sending its shares up 10%.

International Ferro Metals, which has already achieved 12% of its targeted production cost savings, said there was a likelihood of ferrochrome restocking after the Chinese New Year in early February 2012.

In the latter part of 2011, stock levels of ferrochrome remained low at mills. A sovereign debt crisis in the European Union and slowing economic growth in top consumer China slowed the pace of global steel production growth.

International Ferro Metals, whose production facilities are located in South Africa, said its production costs could go up on increasing electricity prices in the country.

Mr Chris Jordaan CEO of International Ferro Metals Limited said that "On April 1st 2012, electricity prices in South Africa will increase another 25%. That might put pressure on our bright expectations."

(Sourced from www.reuters.com)