International Ferro to Start Up Sky Mine by April; Shares Slump

Internatiogold mining rocker boxnal Ferro Metals Ltd., an operator of mines in South Africa that reported a fiscal first- half loss and reduced cash, will start up its Sky chrome mine by the end of April, funded mainly by its mining contractor. “The intention is to get in a contractor to do the open pit mining and that contractor will bear most of the capital cost,” Chief Executive Officer David Kovarsky said today.

Sky may produce 100,000 metric tons of ore a month from January 2012, and sales will help fund the cost of a processing plant, Kovarsky told a conference call, declining to elaborate. The contractor, to be named in about 10 days, will recover the costs of building the mine by adding them to its fees, he said. The company today reported a net loss of 106 million rand ($15 million) in the fiscal first half through Dec. 31, from 104 million rand a year earlier. The pretax loss of 160 million rand was almost three times Numis Securities Ltd.’s forecast. Gains in the South African currency eroded earnings in dollars, said the London-based producer of the stainless steel ingredient...