IFM's South African Subsidiary Enters Into Business Rescue

Mining Weekly reported that International Ferro Metals’ (LSE:IFL) South African subsidiary has entered into business rescue.
As quoted in the market news:

The financially distressed IFM SA, which operates the Lesedi underground mine and ferrochrome-smelting operations, had been battling a downward trend in its operations and profitability that had proved more “deep-seated and sustained than anyone expected.”
Since the beginning of the 2015 financial year, the company had faced unsustainably low ferrochrome prices, rising costs, including labour and electricity costs, and interruptions in power supply and the resultant production losses.
The company had recorded a pretax loss of R176-million for the six months to December 2014. The company expected to report similar operating losses for the second half of the 2015 financial year, ended June 30. The business rescue process, which would take around six months, could see some of the IFM SA’s furnaces and all mining operations idled to reduce expenses.

Click here to read the full Mining Weekly report.