Final Results for the year ended 30/6/15

Released : 01 Nov 2016 07:47

1 November 2016

                      International Ferro Metals Limited

                           ("IFL" or the "Company")

                Financial results for the year to 30 June 2015

IFL announces that its Annual Financial Report for the year ended 30 June 2015
is now available on its website at http://www.ifml.com/investor-centre/
results-and-presentations/2015.

For further information please visit www.ifml.com or contact:

International Ferro Metals Limited

Jannie Muller, Finance Director            +27 82 785 1364

Wayne Kernaghan, Company Secretary         +61 407 233 153

About International Ferro Metals:

International Ferro Metals produces ferrochrome, the essential ingredient in
stainless steel, from its integrated chromite mine and ferrochrome processing
operations in South Africa.  International Ferro Metals is listed on the London
Stock Exchange under the symbol IFL.

Forward Looking Statements

This announcement contains certain forward looking statements which by nature,
contain risk and uncertainty because they relate to future events and depend on
circumstances that occur in the future.  There are a number of factors that
could cause actual results or developments to differ materially from those
expressed or implied by these forward looking statements.

OPERATIONS REVIEW

Overview

The year under review was noted for the continued marked slowdown in the
ferrochrome market as well as operational issues that plagued performance. This
was on the back of declining demand, continued oversupply and lower market
prices for most commodities across the globe. Since the beginning of the 2015
financial year, the IFL Group has suffered from a downtrend in its operations
and profitability that has proved more deep-seated and sustained than anyone
expected.

Chrome ore and alloy prices dropped significantly over the year. The European
benchmark price for ferrochrome dropped throughout the year and into the
subsequent period since year end, from U$c119/lb in Q3 of calendar 2014 to
U$c92/lb Cr in Q1 of calendar 2016, a drop of 26.7% over the period. Chrome ore
prices showed some resilience in the earlier part of the year but lost steam in
November 2015 dropping from U$183/t CIF China in Q3 of 2014 to U$110/t CIF
China in Q4 of 2015 as Chinese demand slowed down. The rand/U.S. dollar
exchange rate did bring some relief.

The price of ferrochrome continued to decline. This was caused largely by the
slowdown in Chinese economic activity and its consequent effect on stainless
steel output and increased production by Chinese ferrochrome producers. These
factors drove prices lower and are expected to continue to keep prices low.

IFMSA was also affected by rising costs and other factors which impacted its
operations, largely outside of its control. This included militant union
activity and a general thrust for above inflation wage hikes which increased
IFMSA's labour costs.

Most significant of all were the rising electricity costs and interruptions in
power supply. Ferrochrome producers rely heavily on electricity for their
furnaces and are particularly vulnerable to power discontinuity.  In July 2015
IFMSA lost more than 10% of its ferrochrome production because of load shedding
and power trips.

Production losses also occurred during the year resulting from section 54
orders to shut the furnaces made by government inspectors. While IFMSA was
vindicated in court proceedings to lift these orders, the damage was done. A
strike of workers employed by one of IFMSA's contractors resulted in IFMSA
having to reduce production from its furnaces and disrupted its logistics and
shipping schedule, causing a further loss in production and strain on its
liquidity.

Management made stringent efforts to continue the cost cutting programme that
had previously been reported, but despite these efforts, the Group's
profitability continued to be under pressure.  As a result of deteriorating
business conditions, IFL's South African subsidiary, International Ferro Metals
(SA) (Pty) Limited ("IFMSA"), which operates the IFL Group's Lesedi mine and
ferrochrome smelting operations, took the step of entering into business rescue
on 26 August 2015. This is a South African statutory means of enabling a
financially distressed company to continue in business, under the supervision
of a business rescue practitioner ("BRP"), protected from its creditors. While
in business rescue there is a moratorium on creditors and others taking legal
proceedings or enforcement action against IFMSA. This allows for the
development and implementation of a business rescue plan.

Mining Operations

Mining activities were challenged on many fronts. The Lesedi underground mine
ramp-up was below expectations as reported in the second half. In the 4th
quarter the mine produced 34,390 tonnes of run-of-mine ore ("RoM"), a decrease
of 25% on the previous quarter. The targeted production level of approximately
25kt/m RoM by the financial year end was not achieved due to low availabilities
of mobile equipment and a Department of Mineral Resources related stoppage
during April 2015. The stoppage lasted for 10 days.

The introduction of a drill rig and roof bolter machines in the 4th quarter
improved productivity in the MG2 ore seam areas significantly. It was a further
step in the mechanisation of the MG2 reef which was expected to improve
productivity as the mine ramps up.

The accelerated mine ramp up plan was in line with the overall strategy of
becoming self-sufficient in terms of ore supply. Significant infrastructure
developments were completed to support the accelerated ramp up with particular
focus on ore reserve development to ensure sustainability of ore supply. In
addition, the ends on both reef horizons were extended and the load haul dumper
rebuild programme delivered 4 of the 8 machines. These two key initiatives were
designed to decrease downtime and tram distances to enable increased production
levels of 40kt/m RoM by the end of calendar 2016.

The Company previously announced it had signed agreements with Chrometco
Limited ("Chrometco") to mine at its LG6 open pit mine (Rooderand mine) and to
purchase the ore mined. Mining at Chrometco's Rooderand mine was started in
November 2014. The difficulties related to the ore body exhibiting a higher
degree of geological faulting, steeper dips and a higher degree of weathering
resulted in mining operations being suspended in May 2015. In the meantime the
Group was successful in securing high grade ore supply below the cost of
Rooderand Mine production.

Smelter Operations

The pelletiser plant achieved a new production record for the year. However,
the smelter production was below expectation due to:

·     The furnaces were shut down for the annual planned maintenance and
although the maintenance was carried out on time, this had a negative impact on
production costs.

·     The quality of coke sourced within South Africa deteriorated as reported
in the first half of the year. This had a negative influence on power
efficiency and ultimately production levels. An alternative supply was secured
successfully from China.

·     In order to develop alternative reductant technology IFMSA embarked on a
silicon carbide trial, which did not yield the desired results.

·     After this test IFMSA was instructed to shut down its furnaces as a S54
stoppage was issued by the DMR. The situation was resolved but had a direct
impact on cost and production.

·     With the improved stability of electrodes during the prior financial
year, furnace power was increased during the first half in an effort to raise
output, testing previous assumptions on electrode integrity versus power input.
However, some issues with electrode integrity recurred, although not as
significant as in the past, which contributed to lower than planned production.
Furnace input power was subsequently decreased to the levels maintained in the
prior financial year to ensure integrity of electrodes and process stability.
Although not as severe as in previous quarters, the furnace operations were
still affected by tip losses on the electrodes. Continued work on eliminating
these tip losses resulted in an alternative electrode paste being identified
and introduced to the furnaces by the end of the third quarter of the financial
year. The aim of this paste was to produce an electrode with improved
resistance to thermal shock that occurs during downtimes on the furnaces, which
is the main cause of the tip losses on the electrodes.

·     The low grade ore stockpile from Sky Chrome was used in the furnaces in
the first half that negatively influenced efficiencies therefore production and
costs. All low grade ore was used in the first half of the year.

·     This resulted in total ferrochrome production of 198kt for 2015, 13.2%
lower than the previous year. Commensurately cost increased by 21.7% to R8.36/
lb.

·     In addition a few safety deviations at the metal recovery plant resulted
in a production stoppage for a few days to implement corrective actions. This
reduced production and increased costs due to less dilution of the recovered
alloy. Production costs increased 7.8% quarter on quarter due to the aspects
identified above.

During August 2015, the employees of the materials handling contractor went on
strike. This resulted in the furnaces operating at low load for a number of
days. The dispute seemed to be part of labour unrest affecting other mining
operations in the region, and was with the contractor, Almar Investments, not
with the Company. As a result of the labour unrest, the Company's furnaces had
to intermittently reduce production. About 1,000t ferrochrome production for
the month of August was lost. This also caused a disruption to the Company's
logistics and shipping schedules affecting the Company's liquidity.

Power supply and costs

Power supply was at times variable which resulted in regular load reductions on
the furnaces. The annual increase in power prices amounted to 12.69%, greatly
in excess of inflation, further exacerbating the winter tariff costs.

Since 2007, Eskom's prices have increased by 374% for heavy industrial users,
which equates to 21.5% p.a. against CPI inflation of 6.3% p.a. over that same
period. In July IFMSA lost more than 10% of its ferrochrome production because
of load shedding and power trips.

Sales and Marketing

The Group achieved ferrochrome sales of 204,730t, 10% down on the previous
year. The decrease is a result of the lower production of alloy.

Inventories ended at 7,582t at year end. All alloy and ore stocks were sold
during the business rescue proceedings.

Health and Safety

The Group maintained its zero fatality rate since inception achieving 3 758 238
fatality free shifts. Lost time injuries increased from 3 in the previous year
to 12.

The increase in injuries was mostly due to the recommencement of underground
mining operations.

Environmental Impact

The Group has always, and continued this year, to run environmentally
sustainable operations. This forms part of the zero harm strategy which
includes people and the environment we operate in.

On the back of the ISO 14001:2004 system, the Group continues to monitor and
manage the impact that the operations had on the environment. This was done by
conducting regular audits, verifying compliance to these standards and
recording and investigating all incidents.

Black Economic Empowerment

In July 2012, the DMR granted the conversion of the Old Order Mining Right to a
New Order Mining Right. However, since the submission of the proposed BEE
transaction to the DMR in 2009, there have been legislative changes, and
developments within the Group which have presented an opportunity for the Group
to implement a more simplified BEE transaction.

The Company has therefore not executed the conversion and in February 2014
resubmitted its proposal, which aims to simplify the funding of the BEE
transaction. The DMR has informed the Company that it is satisfied with the
revised plan and ready to execute the conversion of the mining right. However,
because the IFMSA business rescue plan contemplates the sale of IFMSA's assets,
the proposed BEE transaction will not be implemented.

UG2 supply

The Company has a chromite supply agreement with Rustenburg Platinum Mines
Limited ("RPM"), a subsidiary of Anglo Platinum, to provide 15,000t per month
of UG2 chrome concentrate until 2020. This beneficial agreement delivers UG2 at
a cost significantly below the Company's in-house cost of concentrate
production.

Due to the protracted strike action at Anglo Platinum from February to June
2014, a backlog of UG2 ore was created, which at 30 June 2015 was approximately
71kt. Anglo Platinum is obliged under the agreement to make up any shortfalls
from future production, and the Company will benefit from a higher supply of
UG2 ore, which is a direct contributor to profitability.

During December 2015 proceedings commenced against RPM to protect IFMSA's
interests under the chromite supply agreement. RPM had purported to terminate
the agreement. The Company received counsel's advice that the purported
termination was invalid, and commenced court proceedings to seek orders to
protect its position, including orders that the purported termination is
ineffective and that RPM is obliged to continue to supply chrome ore under the
agreement.

In January 2016 the company entered into a settlement agreement RPM under which
RPM is obliged to continue supply of UG2 chrome ore under the following revised
terms:

RPM to supply 10,000 tonnes of UG2 per month for calendar year 2016 at no cost
and 7,500 tonnes per month from January 2017 to November 2020 at a cost of
ZAR170 per tonne. The backlog of approximately 57,000 tonnes at the end of
December 2015 to be supplied at a rate of 10,000 tonnes per month from January
2016, also at no cost. The original contract provided for RPM to supply 15,000
tonnes per month until November 2020 at no cost. The settlement eliminated the
uncertainty surrounding the supply agreement and accordingly assisted with the
asset sale process that was in progress.

FINANCIAL REVIEW

Overview

The year was extremely challenging as a combination of lower ferrochrome
prices, high electricity prices, and production losses due to DMR stoppages and
power disruptions, significantly impacted production, profitability and
liquidity.

FeCr production volumes were 198,131t achieved against the previous year's
228,260t, a decrease of 13.2%. Production costs increased by 21.7% from ZAR6.87
/lb in 2014 to ZAR8.36/lb with the main contributors being increase in ore,
electricity and fixed costs.

The Group incurred a loss before tax of ZAR176 million for the first half of
the year and net borrowings increased by ZAR113 million to ZAR451 million at 31
December 2014. The first half was negatively impacted by annual maintenance,
silicon carbide trials, the DMR stoppage in November 2014, more expensive ores
due to the ramp-up of mining operations at Lesedi and Rooderand, and the low
grade ore stock consumed by the furnaces during the period. This had a negative
impact on all efficiencies, resulting in lower production volumes and higher
production cost.

In the third quarter of the financial year the European benchmark price for
ferrochrome decreased to 108¢/lb from 115¢/lb in the previous quarter.
Ferrochrome production cost increased to ZAR8.43/lb, up 7.8% from the previous
quarter's ZAR7.82/lb, mainly due to lower recoveries on ore beneficiation,
lower UG2 consumption due to committed UG2 sales, and a lower ratio of alloy
recovery production relative to furnace production as unplanned maintenance was
required on the metal recovery plant. By 31 March 2015 net borrowings had
increased by ZAR34 million to ZAR485 million.

The fourth quarter of the financial year saw a rollover in the European
benchmark price at 108¢/lb even though electricity prices had increased by
12.69% on 1 April 2015 and with June 2015 being a winter tariff month, where
electricity prices are almost 60% higher than in summer. This resulted in
further significant cost pressures and ferrochrome production costs for the
quarter increased by 3% to ZAR8.70/lb. Net borrowings decreased by ZAR35
million to ZAR450 million at 30 June 2015 from ZAR485 million at 31 March 2015,
as a result of a forward sale of 15,000t FeCr during May 2015 for an upfront
payment of ZAR116 million.

For the full financial year the Group recorded a loss before tax from
operations of ZAR313 million for the full year. The deterioration in market
conditions and operating results of the Company has necessitated a
re-assessment of the carrying value of the assets of the Group which has
resulted in an impairment charge of ZAR1.6 billion for the year. This increased
the loss before tax to ZAR1.9 billion for the year. The deferred tax asset was
derecognised resulting in a charge of ZAR235 million to the tax line in the
income statement for an after tax loss of ZAR2.2 billion for the year.

The first quarter of the new financial year staring 1 July 2015 again saw a
rollover of the European benchmark price at 108¢/lb, despite the first two
months being electricity winter tariff months. During July 2015 the supply of
electricity was constrained and the Company lost more than 10% of its
ferrochrome production because of load shedding and power trips. In August 2015
the Company's materials handling contractor's staff went on strike on site
which resulted in production losses of about 1,000 tonnes of ferrochrome and
caused a disruption to the Company's logistics and shipping schedules.  This
affected approximately 1,500 tonnes of ferrochrome shipments, and consequently
further impacting the Company's liquidity.

These factors caused IFMSA's financial position to deteriorate so that it
became financially distressed and on 26 August 2015 the directors of IFMSA
placed it under business rescue.

Business rescue is a South African statutory means of enabling a financially
distressed company to continue in business, under the supervision of a business
rescue practitioner, protected from its creditors. While in business rescue
there is a moratorium on creditors and others taking legal proceedings or
enforcement action against IFMSA. This allowed for the development and
implementation of a business rescue plan that seeks to enhance the potential
return for IFMSA's stakeholders.

As a result of the business rescue, operations were placed on care and
maintenance, significantly reducing expenses.

On 7 December 2015 the creditors of IFMSA approved the business rescue plan
which provided for the sale of the business and assets of IFMSA and the shares
and claims against Sky Chrome, to Samancor Chrome Limited ("Samancor") for
ZAR650 million and ZAR70 million respectively for a total consideration of
ZAR720 million.

During December 2015 Rustenburg Platinum Mines Limited ("RPM") purported to
cancel the UG2 chrome ore supply agreement with IFMSA and the IFL Group
proceeded with legal action to protect its interests under the supply
agreement. In January 2016 the Company entered into a settlement agreement with
RPM under which RPM would continue the supply of UG2 ore but at reduced
quantities and at additional costs to IFMSA.

The settlement eliminated the uncertainty surrounding the supply agreement and
accordingly assisted with the business rescue process. However, it had a
material impact on the UG2 agreement's value and consequently on the value of
the assets of IFMSA. As a result, Samancor revised its offer price down from
ZAR720 million to ZAR520 million, with the transaction split into three
divisible tranches:

1.   ZAR310 million for the business and assets of IFMSA;

2.   ZAR140 million for the IFMSA Mining Right and Beneficiation Plant; and

3.   ZAR70 million for certain receivables of Sky Chrome and Sky Chrome's
equity for ZAR100.

The BRP proposed an amendment of the business rescue plan to the creditors of
IFMSA to take account of the settlement agreement reached in respect of the UG2
supply agreement and the reduced offer price from Samancor and on 24 March 2016
creditors unanimously approved the amended business rescue plan.

The proceeds were distributed to creditors of IFMSA in September 2016 in
accordance with the amended business rescue plan.

The outstanding conditions for the remaining two tranches of the transactions
include obtaining regulatory approvals, specifically ministerial approval for
the transfer of mining rights, and consents of other parties to certain
material contracts, which are usual for transactions of this nature.

Due to the reduced offer price of ZAR520 million, it is expected that the
shareholders will not receive any dividend or distribution.

Operational Results

Ferrochrome sales volumes decreased by 7.9% to 204,730t recording a 3% decrease
in revenue to ZAR2.04 billion. Adjusting for ore sales, revenue decreased by
8%. Ore sales of 120kt generated revenue of ZAR130 million against prior year
ore sales of 40kt as the Group received more UG2 ore from its supply agreement
with Rustenburg Platinum Mines. FeCr sales were well diversified with 32% to
Europe, 25% China and the balance mainly to India and the U.S.

The Rand depreciated on average by some 10% against the U.S. dollar. However,
the average European benchmark ferrochrome price for the year decreased by 3.2%
to 112¢/lb and discounts increased in the second half resulting in lower
realised ZAR prices.

Condensed Income Statement       H1 FY15       H2 FY15      FY2015        FY2014    YoY%

FeCr production (tonnes)          98 016      100 115      198 131      228 260     -13%

FeCr sales (tonnes)              101 700      103 030      204 730      222 320      -8%

                                 ZAR'000      ZAR'000      ZAR'000      ZAR'000     YoY%

Sales Revenue                  1 021 576    1 016 169    2 037 745    2 100 506      -3%

Cost of goods sold            (1 073 797)  (1 074 578)  (2 148 375)  (1 869 875)     15%

Gross (loss) profit              (52 221)     (58 409)    (110 630)     230 631

Other expenses                   (86 128)     (46 700)    (132 828)    (125 585)

Impairment                             -   (1 655 939)  (1 655 939)           -

Loss (profit) before int. &     (138 349)  (1 761 048)  (1 899 397)     105 046
tax

Net finance cost                 (37 253)     (37 724)     (74 977)     (63 946)     17%

Loss (profit) before tax        (175 602)  (1 798 772)  (1 974 374)      41 100

Taxation                               -     (235 081)    (235 081)       2 065

Net loss (profit) after tax     (175 602)  (2 033 853)  (2 209 455)      43 165

Loss (profit) before int. &                             (1 899 397)     105 046
tax

Add back: Impairment                                     1 655 939            -

Add back: Depreciation                                     100 479       97 451

EBITDA                                                    (142 979)     202 497

EPS (SA cents per share)                                    (398.2)         7.9

Operating margin deteriorated severely from 11% in the prior year to -5% this
financial year. A gross operating loss of ZAR111 million was recorded compared
with a gross profit of ZAR231 million in the prior year.

EBITDA decreased by ZAR345 million from ZAR202 million in the prior year to
negative ZAR143 million.

Earnings per share were negative 398 ZAR cents for the year against a prior
year earnings of 7.91 cents.

Costs

Production costs for the year were ZAR8.36/lb, an increase of 21.7% on the
prior year's ZAR6.87/lb.  This was mainly driven by higher ore and electricity
cost and per unit fixed costs.

Ore costs increased due to the higher cost of mining Lesedi underground mine
during the ramp-up phase and the buy-in of more expensive sweetener ores to
compensate for higher use of UG2 ore.

Electricity costs increased as a result of Eskom's annual increase of 12.69%, a
deterioration in electricity consumption due to the production interruptions
and the cogeneration plant not being in operation. Since 2007, electricity
prices for large industrial users have increased by a total of 374%, which
equates to 21.5% p.a. against CPI inflation of 6.3% p.a. over that same period.

Fixed costs per unit increased owing to higher maintenance costs resulting from
production interruptions, above-inflation wage increases and lower production
volumes.

Other income and expenses

Administrative and other expenses, excluding asset impairments, decreased by
9.2% to ZAR86 million. This was mainly because mine related salaries were
recognised in production cost with the restart of the Lesedi mine whereas in
the prior year it was treated as an unabsorbed cost and expensed directly
through the income statement.

Impairment of assets

The present low price environment and reduction in market activity, has
necessitated the re-assessment of the carrying value of the assets of the
Group. The future viability of the assets has become uncertain given the
current challenges faced by the Group. Previously impairment was determined
using value in use as the valuation basis. In determining 'value in use',
future cash flows are based on estimates for which there is a high degree of
confidence of future production levels, future commodity prices and future cash
costs of production.  Due to the Business Rescue Process, IFMSA was placed
under care and maintenance and as a result of the uncertainties surrounding the
timing of restarting the operations and working capital requirements, the
'value in use' assessment was not used.

On the basis of the above it has been concluded that the carrying value of the
assets be written down to the best estimate of fair value less costs to sell.
The fair value is determined as a level 3 hierarchy as the final offer through
the business rescue process was used to determine the impairment. The Company
had initiated negotiations with an interested party for the sale of IFMSA
before year end but before any transaction could be concluded, IFMSA became
financially distressed and on 26 August 2015 entered into Business Rescue, and
its operations were placed on care and maintenance.

The outcome of the discussions were used to determine the best estimate of fair
value less cost to sell as at 30 June 2015.This resulted in an impairment of
ZAR1,547,057 on the tangible and intangible assets of IFMSA (refer note 20 and
note 21) and ZAR67,378 on the assets of International Ferro Metals Limited. The
remainder of the impairment mainly relates to specific impairment on the Cogen
plant ZAR13,773 due to the failure of the engines, Furnace winter shutdown of
ZAR1,943 due to the items being replaced annually, Capital work in progress
items ZAR6,902 due to the project not continuing. Bankable feasibility study
and previously expansion costs capitalised ZAR15,418 due to the financial
position of the Group and the unlikelihood for an expansion to proceed,
Rooderand mining development costs ZAR1,539 due to cessation of mining
operations, and the Madibeng water project ZAR1,927 due to the project not
going ahead.

This has resulted in a significant impairment charge of ZAR1.6 billion on the
assets of the Group and reversal of all deferred tax assets amounting to ZAR235
million.

Capital expenditure

Capital expenditure amounted to ZAR100 million compared with ZAR35 million in
the prior year, and the main items were engineering capital of ZAR41 million
for furnace maintenance, Lesedi mine development of ZAR35 million and
cogeneration plant capital of ZAR9 million.

Cash

The Company's net borrowings increased by ZAR112 million to ZAR450 million at
30 June 2015, from ZAR338 million at 30 June 2014. The increase was as a result
of operations utilising ZAR106 million, working capital generating ZAR162
million, investing activities utilising ZAR119 million and financing activities
utilising ZAR50 million.

During May 2015 a forward sale of 15,000t FeCr was concluded resulting in an
upfront receipt of ZAR116 million.

The ZAR500 million Bank of China working capital facility expired on 16
September 2015 and was rolled forward for 3 months to 9 December 2015 to allow
sufficient time for the business rescue practitioner to publish the business
rescue plan. The Bank of China working capital facility then became repayable
on demand. On 24 March 2016 the amended business rescue plan was approved
unanimously by creditors including the Bank of China. While the facility is
repayable on demand it is subject to the provisions of the business rescue
process which imposes a moratorium on creditor claims and enforcement. Since
year end an amount of ZAR30 million capital was repaid on the facility
resulting in an outstanding balance of ZAR470 million. The proceeds of the
first tranche of the total consideration to be received from Samancor resulted
in a payment of ZAR232 million to the Bank of China. The proceeds of the
remaining two tranches, which amounts to ZAR210 million, will be distributed to
the Bank of China. These payments along with any residual funds available in
IFMSA, are expected to result in settlement of the facility.

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE 2015

                                                                 Consolidated

                                               Note                2015            2014

                                                                ZAR'000         ZAR'000

Sales revenue                                    5           2,037,745       2,100,506

Cost of goods sold                                          (2,148,375)     (1,869,875)

Gross (loss)/profit                                           (110,630)        230,631

Other (expenses)/income

Other income                                     6               3,914           4,256

Administrative and other expenses                7             (85,808)        (94,484)

Impairment assets                               20          (1,655,939)         (5,679)

Loss on disposal of assets                                      (5,630)             -

Foreign exchange gain                                           17,582          10,270

Write down of inventory to net realisable       18             (25,840)         (4,851)
value

Unabsorbed fixed costs                                         (35,186)        (32,985)

Share based payment expense                     10              (1,860)         (2,112)

Net (loss)/profit before interest and tax                   (1,899,397)        105,046

Finance income                                  11                 882           1,991

Finance costs                                   11             (75,859)        (65,937)

Net (loss)/profit before tax                                (1,974,374)         41,100

Income taxation (expense)/credit                12            (235,081)          2,065

Net (loss)/profit after tax                                 (2,209,455)         43,165

Attributable to:

Non-controlling interest                        30              (3,534)           (665)

Owners of the parent                                        (2,205,921)         43,830

                                                            (2,209,455)         43,165



Earnings per share (cents per share)

- basic (loss)/profit per share                    13           (398.17)          7.91

- diluted (loss)/profit per share                  13           (398.17)          7.91

The above income statement should be read in conjunction with the notes to the
financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2015

                                                                  Consolidated

                                                                    2015           2014

                                                                 ZAR'000        ZAR'000

(Loss)/profit for the period                                 (2,209,455)        43,165

Total comprehensive (loss)/income for the                    (2,209,455)        43,165
period, net of tax

Attributable to:

Non-controlling interests                                        (3,534)          (665)

Owners of the parent                                         (2,205,921)        43,830

                                                             (2,209,455)        43,165

The above statement of comprehensive income should be read in conjunction with
the notes to the financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2015

                    Contributed   Accumulated      Share  Non-distributable Non-controlling       Total
                         equity        losses      based            reserve        interest      equity
                      (Note 26)     (Note 28)    payment          (Note 29)       (Note 30)
                                                 reserve
                                               (Note 27)

                        ZAR'000       ZAR'000    ZAR'000            ZAR'000         ZAR'000     ZAR'000

At 1 July 2013       3,088,240      (886,722)    19,179             (6,044)         (3,606)  2,211,047

Profit/(loss) for            -        43,830          -                  -            (665)     43,165
the period

Total                        -        43,830          -                  -            (665)     43,165
comprehensive
income for the
period

Equity
transactions:

Share-based                  -             -      2,191                  -               -       2,191
payment
transactions

At 30 June 2014      3,088,240      (842,892)    21,370             (6,044)         (4,271)  2,256,403

At 1 July 2014       3,088,240      (842,892)    21,370             (6,044)         (4,271)  2,256,403

Loss for the                 -    (2,205,921)         -                  -          (3,534) (2,209,455)
period

Total                        -    (2,205,921)         -                  -          (3,534) (2,209,455)
comprehensive loss
for the period

Equity
transactions:

Share-based                  -             -      1,944                  -               -       1,944
payment
transactions

Share buy-back -             -        (6,071)         -                  -           1,821      (4,250)
subsidiary

At 30 June 2015      3,088,240    (3,054,884)     23,314            (6,044)         (5,984)      44,642

The above statement of changes in equity should be read in conjunction with the
notes to the financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2015

                                                                 Consolidated

                                                Note               2015            2014

                                                                ZAR'000         ZAR'000

ASSETS

Current assets

Cash and cash equivalents                        15             49,856         162,275

Trade and other receivables                      16            205,638         169,386

Prepayments                                      17                364          29,036

Inventories                                      18            257,210         370,054

Total current assets                                           513,068         730,751

Non-current assets

Deferred tax asset                               12                  -         235,081

Financial investments                            19            129,395         101,145

Property, plant & equipment                      20            367,356       2,045,135

Intangible assets                                21            108,510         136,699

Other non-current assets                         22              5,760           9,866

Total non-current assets                                       611,021       2,527,926

Total assets                                                 1,124,089       3,258,677

EQUITY & LIABILITIES

Current liabilities

Trade and other payables                         23            359,155         294,445

Provisions                                       24             35,198          37,612

Interest bearing loans and borrowings            25            510,883         506,429

Total current liabilities                                      905,236         838,486

Non-current liabilities

Provisions                                       24            110,811         103,063

Interest bearing loans and borrowings            25             63,400          60,725

Total non-current liabilities                                  174,211         163,788

Total liabilities                                            1,079,447       1,002,274

Net assets                                                      44,642       2,256,403

Shareholder's equity

Contributed equity                               26          3,088,240       3,088,240

Share based payment reserve                      27             23,314          21,370

Accumulated losses                               28         (3,054,884)       (842,892)

Non-distributable reserve                        29             (6,044)         (6,044)

Parent entity interests                                         50,626       2,260,674

Non-controlling interests                        30             (5,984)         (4,271)

Total shareholders' equity                                      44,642       2,256,403


The above statement of financial position should be read in conjunction with
the notes to the financial statements.

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015

                                                                   Consolidated

                                                      Note           2015         2014

                                                                  ZAR'000      ZAR'000

Cash flows from operating activities

Receipts from customers and other                              2,020,254    2,070,602

Payments and advances to suppliers and employees              (1,957,206)  (1,937,536)
(inclusive of goods and services tax)

Tax (paid) net of VAT adjustments                                      -         (432)

Interest paid                                                     (6,616)      (2,730)

Net cash flows from operating activities                          56,432      129,904

Cash flows used investing activities

Payments for property, plant & equipment                         (99,886)     (30,445)

Interest received                                                    882        1,991

Restricted cash deposits and investments                         (19,820)     (14,708)

Net cash flows used in investing activities                     (118,824)     (43,162)

Cash flows used financing activities

Payment of finance costs                                         (56,988)     (53,634)

Increase in borrowings                                            12,773            -

Repayment of borrowings                                          (5,812)       (8,342)

Net cash flows used in financing activities                      (50,027)     (61,976)

Net (decrease)/increase in cash held                            (112,419)      24,766

Cash at the beginning of the financial year                      162,275      137,509

Cash and cash equivalents at the end of the year       15         49,856      162,275

The above statements of cash flows should be read in conjunction with the notes
to the financial statements.

RECONCILIATION OF OPERATING (LOSS)/PROFIT TO CASH FLOWS FROM OPERATING
ACTIVITIES

FOR THE YEAR ENDED 30 JUNE 2015

                                                                    Consolidated

                                                    Note               2015         2014

                                                                    ZAR'000      ZAR'000

(Loss)/profit from ordinary activities before                   (1,974,374)      41,100
income tax

Adjustments to reconcile (loss)/profit before
tax to net cash flow:

Non-Cash Items:                                                  1,869,637      168,651

Amortisation of mineral rights                                           -          129

Amortisation of intangible asset                                    20,442        8,735

Amortisation of debt establishment costs                             4,326        3,350

Adjustments to inventory provisions and                             10,466        4,076
quantity write downs

Decommissioning and restoration expense and                          4,309        6,409
unwinding

Depreciation                                                       100,479       97,322

Impairment of assets                                             1,655,939        5,679

Loss on disposal of assets                                           5,630            -

Unrealised foreign exchange profit                                 (18,761)      (3,769)

Interest received/accrued                                           56,234       50,655

Write down of inventory to net realisable value                     25,840        4,851

Reversal of impairment of loan                                      (3,450)           -

Cost of product adjustments                                          9,910       (8,137)

Fair value adjustments on financial assets                          (4,323)      (6,935)

Share based payment movements                                        1,565        2,112

Increase in provisions                                               1,031        4,174

Working Capital  Adjustments:                                      161,169      (79,415)

(Increase) in receivables                                          (17,491)     (29,904)

Decrease/(Increase) in inventories                                  90,367      (97,657)

Decrease/(Increase) in prepayments                                  28,672      (28,423)

Increase in payables and accruals                                   59,621       76,569

Tax provision adjustment                                                 -         (432)

Net cash flow from operating activities                             56,432      129,904

NOTES TO THE FINANCIAL REPORT

1.     CORPORATE INFORMATION

International Ferro Metals Limited ("the Parent") is a Company limited by
shares incorporated in Australia whose shares are publicly traded on the London
Stock Exchange, as of 1 September 2007.  The Company previously traded on the
Alternative Investment Market of the London Stock Exchange.

The financial report for the year ended 30 June 2015 was issued in accordance
with a resolution of Directors on 31 October 2016.

2.     ACCOUNTING POLICIES

a)     Basis of preparation

The financial report is a general-purpose financial report, which has been
prepared in accordance with the requirements of the Corporations Act 2001 and
Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board. The financial report has also been
prepared on a historical cost basis, except for certain financial instruments
which have been measured at fair value.

The financial report is presented in South African Rand and all values are
rounded to the nearest thousand Rand (ZAR'000) unless otherwise stated.

Comparative information is reclassified where appropriate to enhance
comparability.

Going concern

As at 30 June 2015, the Group had net current liabilities of ZAR392 million
(2014: ZAR114 million) including the Bank of China working capital facility.
The ZAR500 million working capital facility expired on 16 September 2015 and
was rolled forward for 3 months to 10 December 2015 to enable the Business
Rescue Practitioner to publish the Business Rescue Plan. The facility is
payable on demand subject to the provisions of business rescue.  Since year end
an amount of ZAR30 million capital was repaid on the facility resulting in an
outstanding balance of ZAR470 million. The proceeds of the first tranche of the
total consideration to be received from Samancor resulted in a payment of
ZAR232 million to the Bank of China. The proceeds of the remaining two
tranches, which amounts to ZAR210 million, will be distributed to the Bank of
China. These payments along with any residual funds available in IFMSA, are
expected to result in settlement of the facility.

Since the inception of business rescue the appointed business rescue
practitioner has been facilitating the support of IFML by cash flow from IFMSA
to cover ongoing costs. This support continued until June 2016. The amount of
cash flow to IFML totalled ZAR17.4 million which was used to pay expenses
subsequent to year end. South African Exchange Control approval has recently
been obtained and IFML's claim of ZAR4.5 million is expected to be paid
shortly. This amount is expected to be sufficient to fund the limited
operations of IFML until such time as the outstanding conditions for the
remaining two tranches of the transaction with Samancor have been met. These
conditions include obtaining regulatory approvals, specifically ministerial
approval for the transfer of mining rights, and consents of other parties to
certain material contracts, which are usual for transactions of this nature.
The company does not expect any further distributions from its subsidiaries.
After the completion of the above transactions the directors will consider all
options available for the company, which may include the wind up of the
company. It is not expected that the shareholders of IFML will receive any
dividend or distribution from the conclusion of the process.

Taking the above risks into consideration, the Directors have concluded that
the combination of these circumstances presents material uncertainty that casts
significant doubt upon the Company's ability to continue as a going concern.
The Company may not be able to realise its assets and discharge its liabilities
whilst IFMSA is under business rescue. However, the Company will continue to
adopt the going concern basis of accounting in preparing the annual financial
statements, with the necessary disclosures included, regarding the material
uncertainties that are being faced.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

b)     Statement of compliance

The financial report complies with Australian Accounting Standards and
International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB").

4.     SEGMENT INFORMATION

Identification of reportable segments.

The group has determined operating segments based on the information provided
to the Board of Directors (Chief Operating Decision Maker).

The group operates predominately in one business segment, being the mining and
processing of chromite in South Africa and sale of ferrochrome.  There is no
material difference between the financial information presented to the Chief
Operating Decision Maker and the financial information presented in this
report.

Sales revenue by geographic location

Revenue obtained from external customers is attributed to individual countries
based on the location of the customer.

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

China                                                               509,328      651,880

Europe                                                              660,297      853,531

South Africa                                                        222,904      129,014

South Korea                                                          19,935       39,286

India                                                               302,625      110,655

United States of America                                            322,656      316,140

Total External Revenue                                            2,037,745    2,100,506

Major customers

The group received 76% (2014: 89%) of its external revenue from its Chinese and
European agents.  During 2015 the group received 51% (2014:56%) of its external
revenue from CMC Cometals, 16% (2014:5%) from Jindal and 24% (2014:33%) from
JISCO.

There are no additional customers which account for more than 10% of the
group's external revenues.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

5.     SALES REVENUE

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Sales revenue

 - Ferrochrome sales                                             1,915,509     2,077,090

 - Fair value adjustments (a)                                       (7,952)       (3,824)

 - Other sales (b)                                                 130,188        27,240

                                                                 2,037,745     2,100,506

a)    Fair value adjustments represent re-valuations performed on chrome ore
and ferrochrome sales contracts for which the price is linked to future
fluctuations in the published ferrochrome and ore prices until the day of
consumption by the end customer (also refer to note 3(j)).

b)    Other sales relate to chrome ore, including UG2 sales.

6.     OTHER INCOME

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Other income (a)                                                     3,914         4,256

                                                                     3,914         4,256

a)    Other income for the current financial year relates mainly to the
reversal of a previously recognised impairment on the loan to Global Eagle
Mineral and Beneficiation (Pty) Ltd. The loan was recovered through the
repurchase of their shares in International Ferro Metals SA (Pty) Ltd.  Other
income for the prior year mainly relates to an insurance claim received of
ZAR3,702.

7.     ADMINISTRATIVE AND OTHER EXPENSES

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Accounting fees                                                         89           600

Auditors remuneration - external                                     3,760         3,803

Auditors remuneration - internal                                       997           598

Consulting fees                                                      1,739         1,046

Depreciation not in cost of goods sold                               6,178           422

Legal fees                                                           4,939         4,283

Remuneration of Key Management Personnel (refer                     23,384        23,833
note 8)

Staff costs (refer note 9)                                          25,781        34,505

Fair value adjustments on financial assets                         (4,323)        (6,935)

Other administrative expenses                                       23,264        32,329

                                                                    85,808        94,484

NOTES TO THE FINANCIAL REPORT (CONTINUED)

8.     REMUNERATION OF KEY MANAGEMENT PERSONNEL

a)    Details of Key Management Personnel

Please refer to the audited Remuneration Report for details of Key Management
Personnel, option and shareholding disclosures.

b)    Remuneration of Key Management Personnel

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Basic salary and fees                                               23,082        22,079

Incentive payments                                                       -         1,430

Superannuation *                                                       302           324

Total remuneration before share based payments                      23,384        23,833

Share based payment expense                                             65           864

Performance share scheme                                               433           246

Phantom option expense                                                   -          (139)

Total remuneration                                                  23,882        24,804

* Superannuation represents payments made in respect of a defined contribution
pension scheme.

9.     STAFF COSTS (EXCLUDING REMUNERATION OF KEY MANAGEMENT PERSONNEL

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Basic salary and fees                                              331,172       214,042

Superannuation *                                                       149           140

Termination costs **                                                    26           825

STI bonus provisions                                                     -        10,759

                                                                   331,347       225,766

Less amounts included in inventories/cost of                      (305,566)     (191,261)
goods sold

Total staff costs                                                   25,781        34,505

*   Superannuation represents payments made in respect of a defined
contribution pension scheme.

** Termination payment relate to the organisational restructuring during the
year.

10.   SHARE BASED PAYMENT EXPENSE

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Phantom option adjustments                                             380           291

Share-based payment expense                                         (2,240)       (2,403)

                                                                    (1,860)       (2,112)

Refer to note 27 and 31 for further details on the phantom option plan and
share option plan.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

11.   FINANCING INCOME AND COSTS

                                                                       Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Interest income                                                        882         1,991

Interest expense, comprising:                                      (75,859)      (65,937)

Finance cost                                                       (13,652)      (11,561)

- Amortisation of debt establishment costs                          (5,851)       (4,350)

- Unwinding of discount on rehabilitation provision                 (7,801)       (7,211)

Interest charges                                                   (62,207)      (54,376)

- Interest on debt financing                                       (49,550)      (45,228)

- Interest on finance leases                                        (7,567)       (7,419)

- Interest paid - other                                             (5,090)       (1,729)

Net finance costs                                                  (74,977)      (63,946)

12.   INCOME TAX

                                                                         Consolidated

                                                                           2015          2014

                                                                        ZAR'000       ZAR'000

Income tax expense

Current Income tax charge:                                                 -             -

Adjustment in respect of income tax of previous year                       -             -

Deferred income tax relating to origination and                      235,081        (2,065)
reversal of temporary differences

Income tax expense/(credit) recorded in income                       235,081        (2,065)
statement

(Loss)/profit from ordinary activities before income              (1,974,373)        41,100
tax expense

At parent entity statutory tax rate of 30%:                         (592,312)        12,330

Overseas tax rate differential                                        38,148          (880)

Expenses not deductible for tax purposes                              23,690         2,304

Deferred tax assets not recognised /(utilised)                       765,555       (15,819)

Aggregate income tax expense/(credit)                                235,081        (2,065)

Deferred income tax liability

Debtors and prepayments                                                6,776          5,531

Inventory                                                                129            129

Total deferred tax liability                                           6,905          5,660

Deferred income tax asset

Property plant and equipment, including unredeemed                 (458,696)        (9,818)
capital expenditure

Provisions                                                           (7,948)        (7,793)

Finance lease payments                                              (20,656)       (18,706)

Other payables                                                      (37,329)       (12,620)

Share option charges                                                     (4)          (100)

Loss available for offset against future income                    (233,766)      (164,733)

Rehabilitation provisions, claimable in future                      (28,283)       (26,971)

Total deferred tax (asset)                                         (786,683)      (240,741)

Net deferred tax (asset)                                           (779,778)      (235,081)

Unrecognised deferred tax (asset)                                   779,778              -

Recognised deferred tax (asset)                                           -       (235,081)


Calculated taxation losses

The Group has de-recognised the net deferred tax asset of ZAR235 million
previously recognised due to the probability that the asset would not be fully
utilised in future. IFML has unrecognised tax losses of ZAR233 million (2014:
ZAR215 million) in relation to the parent entity. IFMSA has unrecognised gross
tax losses of ZAR734 million (2014: ZAR49 million). IFMSA Holdings has
unrecognized gross tax losses of ZAR18 million (2014: ZAR14 million). Sky
Chrome mining has unrecognised gross tax losses of ZAR23 million (2014: nil).

Unredeemed mining capital expenditure available for offset       1,986,023   1,925,412
against future mining taxable income

NOTES TO THE FINANCIAL REPORT (CONTINUED)

13.   EARNINGS PER SHARE

                                                                      Consolidated

                                                                      2015             2014

Basic (loss)/profit per share (cents per share)                      (398.17)         7.91

Diluted (loss)/profit per share (cents per share)                    (398.17)         7.91

(Loss)/profit used in calculating basic earnings                  (2,205,921)       43,830
per share (ZAR'000)

(Loss)/profit used in calculating diluted earnings                (2,205,921)       43,830
per share (ZAR '000)

                                                                       Shares        Shares

Weighted average number of ordinary shares in issue used in      554,008,047   554,008,047
calculation of basic and diluted earnings per share

Weighted average number of ordinary shares in issue used in      554,008,047   554,008,047
calculation of diluted earnings per share


Share Options and performance rights at 30 June 2015 and 30 June 2014 are
anti-dilutive and therefore have not been included in the calculation of
diluted earnings per share in the current period.

14.   DIVIDENDS PAID AND PROPOSED

The Board of Directors resolved not to declare a dividend for the year ended 30
June 2015 (2014: nil).

15.   CASH AND CASH EQUIVALENTS

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Cash at bank and on hand                                            24,306        18,462

Short-term deposits                                                 25,550       143,813

Closing balance                                                     49,856       162,275

16.   TRADE AND OTHER RECEIVABLES

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Trade debtors (a)                                                  160,802       140,186

Outstanding tax refunds (b)                                         21,363        27,668

Other debtors (c)                                                   23,473         1,532

Closing balance                                                    205,638       169,386

a)    Trade debtors relate to the sale of ferrochrome and chrome ore.  Payment
terms are thirty days from date of final invoice.

b)    Tax refunds relate to the relevant Goods and Services Tax and Value Added
Tax refunds owing in Australia and South Africa.

c)     Other debtors mainly relate to funds receivable from Eskom under the
instantaneous trips of ZAR1,087 as well as ZAR12,600 which relates to VAT paid
on forward sale.

Details of the terms and conditions of receivables are discussed in detail
under note 33.

The carrying value of trade and other receivables is assumed to approximate the
fair value due to the short term nature of the trade and other receivables.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

17.   PREPAYMENTS

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Prepaid creditors                                                        -        28,443

Prepaid stewardship costs                                              364           593

Closing balance                                                        364        29,036

Prepaid creditors in the prior period relates to payments made in advance for
raw materials. This was utilised during the current period.

18.   INVENTORIES

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Consumable stores at cost or net realisable                         77,329        47,632
value

Ore stock at cost or net realisable value                           58,818       137,704

Raw materials at cost or net realisable value                       51,242        55,503

Finished goods at cost or net realisable value                      69,821       129,215

Closing balance                                                    257,210       370,054

Cost of sales reflects the amount of inventory expensed for the year.

Included in the value of inventory is provisions for handling losses of ZAR542
(2014: ZAR1,604).

Included in inventory is a net realisable value adjustment of R25 840 (2014: R4
851)

19.   FINANCIAL INVESTMENTS

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Investments                                                        129,395       101,145

Closing balance                                                    129,395       101,145

a)    These financial assets consist of investment portfolios which are managed
by various financial institutions in favour of rehabilitation.  Of these
investments ZAR99,644 (2014: ZAR75,238) is ceded to Lombard Insurance Company
Ltd for guarantees issued. The remainder of the funds can only be applied to
relevant rehabilitation expenditure.  These financial assets are classified at
fair value through profit and loss.

The fair value of these financial instruments has been estimated by the
financial institutions using a variety of valuation techniques. These financial
instruments are classified as a level 2 in the fair value hierarchy as their
fair values have been estimated using inputs other than quoted prices that are
observable for the assets, either directly or indirectly.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

20.   PROPERTY, PLANT & EQUIPMENT

                                                       Consolidated

                                                Cost       Accumulated   Net book value
                                                        depreciation &
                                                            impairment

30 June 2015                                 ZAR'000           ZAR'000          ZAR'000

Mineral rights and reserves (a)              157,251         (144,034)           13,217

Land and buildings                            66,083          (56,304)            9,779

Decommissioning asset                         54,563          (27,602)           26,961

Plant & equipment                          1,700,168       (1,507,349)          192,819

Leased plant & equipment                     117,639         (102,559)           15,080

Mine development                             448,651         (345,828)          102,823

Computer equipment                            25,784          (23,413)            2,371

Furniture & fittings                           4,510           (4,391)              119

Capital work in progress (b)                  40,478          (36,652)            3,826

Vehicles                                       5,836           (5,741)               95

Leased vehicles                               11,579          (11,313)              266

Total                                      2,632,542       (2,265,186)          367,356



                                                           Consolidated

                       Carrying Disposals Adjustments Additions  Impairment Depreciation Carrying
                          value                   (c)                   (d)                 value
                             at                                                            at end
                      beginning                                                           of year
                        of year

30 June 2015            ZAR'000   ZAR'000     ZAR'000   ZAR'000     ZAR'000      ZAR'000  ZAR'000

Mineral rights and      147,846        -           -          -   (134,070)        (559)   13,217
reserves (a)

Land and buildings       55,919        -           -      3,357    (47,939)      (1,558)    9,779

Decommissioning asset    47,540        -         375          -    (19,012)      (1,942)   26,961

Plant & equipment     1,290,759  (3,920)           -     39,234 (1,063,507)     (69,747)  192,819

Leased plant &           82,942        -           -     15,679    (79,406)      (4,135)   15,080
equipment

Mine development        339,937  (1,748)           -     35,091   (253,308)     (17,148)  102,824

Computer equipment       14,799        -           -      4,580    (12,885)      (4,123)    2,371

Furniture & fittings        707        -           -         22       (466)        (144)      119

Capital work in          62,325  (22,408)          -        561    (36,652)           -     3,826
progress (b)

Vehicles                    768      (14)          -        211       (528)        (343)       94

Leased vehicles           1,593        -           -        929     (1,476)        (780)      266

Total                 2,045,135  (28,090)        375     99,664 (1,649,249)    (100,479)  367,356


a)    Mineral rights and reserves of ZAR61 million relating to the Sky Chrome
deposit is held in Purity Metals Holdings Limited ("Purity"), a wholly owned
subsidiary of the Group.

b)    Capital work in progress relates to capital costs incurred for the
expansion of the Group's associated infrastructure.

c)     The adjustment relates to reallocation of capital work in progress to
the various assets and changes in estimates in relation to the decommissioning
asset.

d)    Impairment of assets

The present low price environment and reduction in market activity, has
necessitated the re-assessment of the carrying value of the assets of the
Group. The future viability of the assets has become uncertain given the
current challenges faced by the Group. Previously impairment was determined
using value in use as the valuation basis. In determining 'value in use',
future cash flows are based on estimates for which there is a high degree of
confidence of future production levels, future commodity prices and future cash
costs of production.  Due to the Business Rescue Process, IFMSA was placed
under care and maintenance and as a result of the uncertainties surrounding the
timing of restarting the operations and working capital requirements, the
'value in use' assessment was not used.

On the basis of the above it has been concluded that the carrying value of the
assets be written down to the best estimate of fair value less costs to sell.
The fair value is determined as a level 3 hierarchy as the final offer through
the business rescue process was used to determine the impairment. The Company
had initiated negotiations with an interested party for the sale of IFMSA
before year end but before any transaction could be concluded, IFMSA became
financially distressed and on 26 August 2015 entered into Business Rescue, and
its operations were placed on care and maintenance.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

20.   PROPERTY, PLANT & EQUIPMENT (continued)

(d) Impairment of assets (continued)

The outcome of the discussions were used to determine the best estimate of fair
value less cost to sell as at 30 June 2015.This resulted in an impairment of
ZAR1,547,057 on the tangible and intangible assets of IFMSA (refer note 21) and
ZAR67,378 on the assets of International Ferro Metals Limited. The remainder of
the impairment mainly relates to specific impairment on the Cogen plant
ZAR13,773 due to the failure of the engines, Furnace winter shutdown of
ZAR1,943 due to the items being replaced annually, Capital work in progress
items ZAR6,902 due to the project not continuing. Bankable feasibility study
and previously expansion costs capitalised ZAR15,418 due to the financial
position of the Group and the unlikelihood for an expansion to proceed,
Rooderand mining development costs ZAR1,539 due to cessation of mining
operations, and the Madibeng water project ZAR1,927 due to the project not
going ahead.

Property, mineral rights and plant and equipment of IFMSA have been pledged as
security for the working capital facility provided by the Bank of China. (Refer
to note 25 for further details).  The carrying value of this Property, mineral
rights and plant and equipment at 30 June 2015 is ZAR0.3 billion (2014: ZAR1.89
billion).

                                                       Consolidated

                                                Cost       Accumulated   Net book value
                                                          depreciation

30 June 2014                                 ZAR'000           ZAR'000          ZAR'000

Mineral rights and reserves (a)              157,287           (9,441)          147,846

Land and buildings                            62,725           (6,806)           55,919

Decommissioning asset                         54,188           (6,648)           47,540

Plant & equipment                          1,679,600         (388,841)        1,290,759

Leased plant & equipment                     101,960          (19,018)           82,942

Mine development                             415,309          (75,372)          339,937

Computer equipment                            21,204           (6,405)           14,799

Furniture & fittings                           4,487           (3,780)              707

Capital work in progress (b)                  62,325               -             62,325

Vehicles                                      10,694           (9,926)              768

Leased vehicles                               10,650           (9,057)            1,593

Total                                      2,580,429         (535,294)        2,045,135



                                                 Consolidated

                        Carrying  Disposals Adjustments  Additions Depreciation  Carrying
                           value                    (c)                     and     value
                              at                                     impairment    at end
                       beginning                                                  of year
                         of year

30 June 2014             ZAR'000    ZAR'000     ZAR'000    ZAR'000      ZAR'000   ZAR'000

Mineral rights and       147,975        -           -          -          (129)   147,846
reserves (a)

Land and buildings        56,527        -         600          280      (1,488)    55,919

Decommissioning asset     48,552        -         848            -      (1,860)    47,540

Plant & equipment      1,362,367    (6,226)       1,248      5,788     (72,418) 1,290,759

Leased plant &            74,042        -      10,513            -      (1,613)    82,942
equipment

Mine development         355,833        -         686            -     (16,582)   339,937

Computer equipment         3,373      (135)    13,434           51      (1,924)    14,799

Furniture & fittings         861        -           -           43        (197)       707

Capital work in           59,933        -    (26,481)       28,873          -      62,325
progress (b)

Vehicles                   1,523      (218)         -            -        (537)       768

Leased vehicles            2,296        -           -            -        (703)     1,593

Total                  2,113,282    (6,579)         848     35,035     (97,451) 2,045,135

Refer to previous page for notes (a), (b) and (c).

NOTES TO THE FINANCIAL REPORT (CONTINUED)

21.   INTANGIBLE ASSETS

                                                                        Consolidated

                                                 Licence fees      UG2 asset b         Total
                                                            a

                                                      ZAR'000          ZAR'000       ZAR'000

30 June 2014

At 1 July 2013 net of accumulated amortisation         8,618          136,916       145,534

Amortisation                                            (362)          (8,473)       (8,835)

At 30 June 2014 net of accumulated amortisation        8,256          128,443       136,699

Cost (gross carrying amount)                          10,837          161,000       171,837

Accumulated amortisation                              (2,581)         (32,557)      (35,138)

Net carrying amount                                    8,256          128,443        136,699

30 June 2015

At 1 July 2014 net of accumulated amortisation         8,256          128,443       136,699

Amortisation                                            (361)         (21,138)      (21,499)

Impairment (refer note 20)                            (6,690)               -        (6,690)

At 30 June 2015 net of accumulated amortisation        1,205          107,305       108,510

Cost (gross carrying amount)                          10,837          161,000       171,837

Accumulated amortisation                              (2,942)         (53,695)      (56,637)

Accumulated impairment                                (6,690)               -        (6,690)

Net carrying amount                                    1,205          107,305       108,510


a)    Licence fees relate to the fees paid for the use of patented technology
and is amortised over the life of plant. An impairment of ZAR6,690 was
recognised on the license fees.

b)    The UG2 Chrome Retreatment Plant ("CRP") at RPM's Waterval operations in
Rustenburg started producing the contractual 15,000 tonnes per month in April
2012.  The original supply agreement entitled IFM to receive 15,000 tonnes per
month of chrome concentrate until November 2020. This intangible is amortised
to inventory with the quantities received.

During January 2016 the company entered into a settlement agreement with
Rustenburg Platinum Mines Limited ("RPM") regarding its interests under the
chromite supply agreement under which RPM is obliged to supply UG2 chrome ore
to IFMSA.

The terms of the settlement are that RPM will supply IFMSA with 10,000 tonnes
of UG2 per month for calendar year 2016 at no cost and 7,500 tonnes per month
from January 2017 to November 2020 at a cost of ZAR170 per tonne. The backlog
of approximately 57,000 tonnes at the end of December 2015 will be supplied at
a rate of 10,000 tonnes per month from January 2016, also at no cost. The
original contract provided for RPM to supply 15,000 tonnes per month until
November 2020 at no cost.

22.   OTHER NON-CURRENT ASSETS

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Restricted cash (a)                                                  1,232         5,631

Deposits (b)                                                         4,528         4,235

Closing balance                                                      5,760         9,866

a)    Restricted cash represents cash set aside for bank guarantees provided by
Standard Bank to the Department of Minerals Resources for environmental
rehabilitation and cash set aside for foreign exchange contracts with the Bank
of China.

b)    Deposits mainly relates to funds deposited into a trust account. The
trust account was set up to provide funds for possible damages to houses in the
proximity of the Sky Chrome mining operations.

23.   TRADE AND OTHER PAYABLES

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Sundry creditors and accruals                                       20,247        22,327

Trade creditors                                                    198,261       253,041

Short term portion of finance lease liability                       10,371         6,085
(a)

Pre payments received (b)                                          130,276        12,992

Closing balance                                                    359,155       294,445

a)    Refer to note 35.

b)    This represents advance debtor payments mainly received from Noble
Resources International SA (Pty) Limited during May 2015.  The forward sale was
for 15,000t FeCr, to be delivered at 3,000 tonnes per month for the 5 months to
October 2015.  As at 30 June 2015 12,000t FeCr remained outstanding for
delivery.

Due to the short term nature of these payables, their carrying value is assumed
to approximate their fair value.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

24.   PROVISIONS

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Current provisions

Employee entitlements (a)                                           34,960        36,994

Share based payment liability (c)                                       16           396

Taxation                                                               222           222

Total current provisions                                            35,198        37,612

Employee entitlements

Opening balance                                                     36,994        34,126

Provision recognised during the year                                 43,446       44,761

Provision utilised during the year                                 (45,480)      (41,893)

Closing balance                                                     34,960        36,994

Phantom options

Opening balance                                                        396           586

Cash settled share based payment expense                              (380)         (203)

Effect of foreign exchange                                               -            13

Closing balance                                                         16           396

Income tax

Opening balance                                                        222           655

Provision utilised during the year                                       -          (433)

Income tax paid during the year                                          -             -

Closing balance                                                        222           222

Non-current provisions

Employee entitlements (a)                                            9,801         6,736

Decommissioning and restoration (b)                                101,010        96,327

Total non-current provisions                                       110,811       103,063

Employee entitlements

Opening balance                                                      6,736         5,230

Provision recognised during the year                                  8,676        6,736

Provision utilised during the year                                  (5,611)       (5,230)

Closing balance                                                      9,801         6,736

Decommissioning and restoration

Opening balance                                                      96,327       89,069

Additional provision recognised during the
year:

   -Recorded in property, plant and equipment                          375           848

   -Unwinding of discount                                            7,801         7,211

   -Adjustment in restoration provision                             (3,493)        (801)

Closing balance                                                    101,010        96,327


a)    The provision for employee entitlements represents accrued annual leave
liabilities and other employee provisions. Resulting from the business rescue
process all current and non-current employee entitlements were paid in the 2016
financial year. .

b)    The provision for decommissioning and restoration represents management's
estimate of the restoration and exit costs associated with the integrated
mining and ferrochrome smelting facility at Buffelsfontein and mining
operations at Sky Chrome.  It is expected that these costs will be incurred at
the end of the operations/mine life. Due to the long-term nature of the
liability the greatest uncertainty in estimating the provision is the costs
that will be ultimately incurred.  The provision has been calculated using a
pre-tax discount rate of 8% (2014: 8%).

c)     The Phantom Share Option scheme options are treated as "cash settled"
share based payments in accordance with the accounting policy described in note
2(q). These were cancelled subsequent to year end.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

25.   INTEREST BEARING LOANS AND BORROWINGS

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Current interest bearing loans and borrowings

Bank debt (a)                                                      500,000       500,000

Debt Establishment costs and accrued interest                        3,811          (643)
(a)

Other loans (c)                                                      7,072         7,072

Closing balance                                                    510,883       506,429

Non-current interest bearing loans and
borrowings

Long term portion of finance lease liability                        63,400        60,725
(b)

Closing balance                                                     63,400        60,725

a)    Working capital facility

The ZAR500 million Working capital facility expired on 16 September 2015 and
was rolled forward for 3 months to 10 December 2015 to enable the Business
Rescue Practitioner to publish the Business Rescue Plan. On 24 March 2016 the
amended business rescue plan was approved unanimously by creditors including
the Bank of China. While the facility is repayable on demand it is subject to
the provisions of the business rescue process which imposes a moratorium on
creditor claims and enforcement. The facility interest is charged at JIBAR rate
plus 3.85%.  Since year end an amount of ZAR30 million capital was repaid on
the facility resulting in an outstanding balance of ZAR470 million. The
proceeds of the first tranche of the total consideration to be received from
Samancor resulted in a payment of ZAR232 million to the Bank of China. The
proceeds of the remaining two tranches, which amounts to ZAR210 million, will
be distributed to the Bank of China. These payments along with any residual
funds available in IFMSA, are expected to result in settlement of the facility.
The entire statement of financial position of IFMSA is pledged as collateral
for the loan facility.  Bank of China has the option to cancel the loan
facility and call upon any balance outstanding in the event of a material
deterioration in the financial position of IFMSA.

b)    Finance leases

The weighted average effective interest rate on finance leases is 11%. The
current portion of this is reflected in note 23. The lease liabilities were
settled in terms of the amended business rescue in September 2016.

c)     Other loans

The loan constitutes the 20% community participation of funding provided to Sky
Chrome by the group. The loan is interest free and payable on demand before
earning distributions are made.

As at 30 June 2015, the Group had no undrawn loan facilities (2014: nil),
excluding debtors discounting facilities.

The carrying values of each class of interest bearing loans and borrowings
approximates their fair value.

26.   CONTRIBUTED EQUITY

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Movement in ordinary shares on issue

Opening balance                                                  3,088,240     3,088,240

Issue of ordinary shares                                                 -             -

Closing balance                                                  3,088,240     3,088,240

                                                                     Shares        Shares

Opening balance                                                554,008,047   554,008,047

Issue of ordinary shares                                                 -             -

Closing balance                                                554,008,047   554,008,047

No ordinary shares were issued during the years ended 30 June 2015 and 30 June
2014.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

26.   CONTRIBUTED EQUITY (continued)

Ordinary shares

Ordinary shares have the right to receive dividends as declared and, in the
event of the winding up of the Company, to participate in the proceeds from the
sale of all surplus assets in proportion to the number of and amounts paid up
on shares held.

Ordinary shares entitle their holder to one vote, either in person or by proxy,
at a meeting of the Company.

Options

The Group has a share option scheme under which options to subscribe for the
Company's shares have been granted to certain executives.  See note 31 for
further details.

JISCO Anti-Dilution Rights

JISCO has certain non-dilution rights under the Subscription Agreement, which
apply if an Option is exercised, to require JISCO to be offered and issued
Ordinary Shares at the same exercise price at which such Options are exercised
to enable JISCO to maintain its guaranteed holding of 26.1% of the issued
Ordinary Shares of the Company.  These non-dilution rights are accounted for as
a derivative liability. Since JISCO's shareholding is above 26.1%, under the
Subscription Agreement, IFM is not obliged to offer JISCO shares in terms of
the anti-dilution clause, unless the issue would dilute JISCO's ownership below
26.1% and therefore no derivative liability has been recognised at 30 June 2015
(2014: nil).

Capital Management

When managing capital, management's objective is to ensure the Group continues
as a going concern as well as to maintain optimal returns to shareholders and
benefits for other stakeholders.  Management also aims to maintain a capital
structure that ensures the lowest cost of capital available to the Group.

Capital is defined as total shareholders' equity which represented ZAR51
million at 30 June 2015 (2014: ZAR2.3 billion).

The Board of Directors and Management regularly review the group's capital
structure using a detailed cash flow model.  They assess the adequacy of the
capital structure against the major variables impacting the Group's
profitability.

As the market is constantly changing, management may change the amount of
dividends to be paid to shareholders, return capital to shareholders or issue
new shares to reduce debt.  Should a strategic acquisition be assessed,
management may issue further shares on the market.

27.   SHARE BASED PAYMENT RESERVE

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Opening balance                                                     21,370        19,179

Share based payment expense                                          2,240         2,403

Effect of foreign exchange                                            (296)         (212)

Closing balance                                                     23,314        21,370

Share based payment expense relates to options and performance rights issued to
Mr Jordaan and the performance share scheme implemented the prior year.  See
note 31 for further details.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

28.   ACCUMULATED LOSSES

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Opening balance                                                   (842,892)     (886,722)

After tax (loss)/profit attributable to the                     (2,205,921)       43,830
equity holders of the parent during the year

Share buy-back - subsidiary (a)                                     (6,071)            -

Closing balance                                                 (3,054,884)     (842,892)

a)    During the year International Ferro Metals (SA) Pty Ltd (IFMSA)
repurchased the 0.625% shareholding that Global Eagle Minerals and
Beneficiation Pty Ltd held in IFMSA. These shares were cancelled.

29.   NON-DISTRIBUTABLE RESERVE

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Opening balance                                                     (6,044)       (6,044)

Closing balance                                                     (6,044)       (6,044)

The non-distributable reserve relates to the transaction that took place to
reduce the non-controlling interest shareholding.

30.   NON-CONTROLLING INTEREST

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Opening balance                                                     (4,271)       (3,606)

Loss attributable to the non-controlling                            (3,534)         (665)
interest during the year

Share buy-back - subsidiary (see note 28)                            1,821             -

Closing balance                                                     (5,984)       (4,271)

31.   SHARE BASED PAYMENT PLANS

Phantom Share Option Plan

The Phantom Share Option Scheme was introduced on 15 November 2006 as a long
term incentive scheme.  Options are offered to eligible Key Management
Personnel and employees subject to the satisfaction of certain vesting and
exercise conditions. A cash amount is determined by reference to the excess of
the market price of an ordinary share in the Company over the exercise price at
the time the options are exercised.  The options, in most cases, vest in equal
tranches over three years subject to the recipients' continued employment by
the Company.  The options may also vest immediately.  Vesting and exercise
conditions are determined by the Board.  Executives and employees are able to
exercise the share options for up to five years from the grant of the options.
Each tranche of these options has a price cap of £1.00.  The Phantom Share
Option Scheme options are treated as "cash settled" share based payments in
accordance with the accounting policy described in note 2(q).

NOTES TO THE FINANCIAL REPORT (CONTINUED)

31.   SHARE BASED PAYMENTS PLANS (continued)

The following tables list the inputs to the Binomial model taking into account
the terms and conditions upon which the options were granted.

                                                                       2015          2014

Expected volatility (a) (%)                                          68.50%        67.71%

Risk-free interest rate range (%)                               0.57%-2.39%   0.57%-2.39%

Option exercise price (GBP)                                   £0.14 - £0.29 £0.14 - £0.57

Expected dividend yield range                                            0%   0% - 16.17%

Option cap                                                            £1.00         £1.00

Exercise multiple                                                         2             2

a)    The expected volatility reflects the assumption that the historical
volatility is indicative of future trends, which may also not necessarily be
the actual outcome. Share price volatility is re-assessed at each reporting
period based on historical share prices.  The current volatility is based on
actual volatility since the listing of the company in September 2005.

The estimated fair value of each phantom option tranche is estimated as at the
financial reporting date and is detailed in the table below:

 Exercise price     No of options     Fair value at     Fair value at     Fair value at
                                     reporting date    reporting date    reporting date
                                        Tranche 1         Tranche 2         Tranche 3

      £0.14                 621,000           £0.0008           £0.0008           £0.0008

      £0.18                  32,000           £0.0000           £0.0000           £0.3463

      £0.19                 860,000           £0.0003           £0.0003           £0.0003

      £0.20                 403,000           £0.0001           £0.0001           £0.0001

      £0.22                 287,000           £0.0000           £0.0000           £0.0000

      £0.29                 149,000           £0.0000           £0.0000           £0.0000

Total                     2,352,000

The total number of phantom options granted, forfeited or cancelled and
exercised during the relevant periods are as follows:

                                        30 June 2015                30 June 2014

Phantom Share Options                Number of      Weighted     Number of      Weighted
                                       Options       average       Options       average
                                                    exercise                    exercise
                                                       price                       price

Opening balance at beginning of     2,987,000          £0.12    9,985,931          £0.15
year

Granted during the period                   -             -             -             -

Forfeited/cancelled during the              -             -      (688,000)         £0.20
year

Expired during the year              (635,000)         £0.39   (6,310,931)         £0.16

Exercised during the period                 -             -             -             -

Closing balance                     2,352,000          £0.04    2,987,000          £0.12

At 30 June 2015 the total number of options outstanding was 2,352,000 with a
fair value of ZAR16,072 (2014: ZAR395,743). Refer to note 24.

The weighted average share price for the year ended 30 June 2015 is £0.05
(2014: £0.11).

The weighted average remaining contractual life of the above outstanding
options is 1.34 years (2014: 1.6 years).

All these share options were cancelled subsequent to year end.

Performance Rights Plan

The Performance Right Plan is an incentive aimed at creating a stronger link
between employee and executive officer performance and reward and increasing
shareholder value by enabling participants to have a greater involvement with,
and share in the future growth and profitability of, the Company.  The
Performance Right Plan Options are treated as "equity settled" share based
payments in accordance with the accounting policy described in note 2(q).

NOTES TO THE FINANCIAL REPORT (CONTINUED)

31.   SHARE BASED PAYMENTS PLANS (continued)

i.   On 23 November 2011, at the Company's Annual General Meeting, Mr C Jordaan
was granted a total of 4 million options (rights) to subscribe for fully paid
ordinary shares in the capital of the Company. The options will vest in three
tranches on 31 July 2012, 31 July 2013 and 31 July 2014 subject to Mr Jordaan
being employed on each of these dates.  These rights have been issued under the
Company's Performance Rights Plan and on the terms and conditions of the
Performance Rights Plan Rules as described below:

·      Tranche 1:  1,333,334 Performance Rights vesting on 31 July 2012,
subject to employment with the Company until vesting date, with an exercise
price of £0.17 and having an expiry date of 31 July 2015.

·      Tranche 2:  1,333,333 Performance Rights vesting on 31 July 2013,
subject to employment with the Company until vesting date, with an exercise
price being the volume weighted average price of the Company's shares traded on
the main market of London Stock Exchange plc ("LSE") over the last 30 days
prior to 30 June 2012 and having an expiry date of 31 July 2016.

·      Tranche 3: 1,333,333 Performance Rights vesting on 31 July 2014, subject
to employment with the Company until vesting date, with an exercise price being
the volume weighted average price of the Company's shares traded on the main
market of London Stock Exchange plc ("LSE") over the last 30 days prior to 30
June 2013 and having an expiry date of 31 July 2017.

The following tables list the inputs to the Binomial model taking into account
the terms and conditions upon which the options were granted at grant date.

Expected volatility (b) (%)                                                        71.95%

Risk-free interest rate range (%)                                             0.43%-1.51%

Option exercise price (GBP)                                            £0.1700 - £0.1353

Expected dividend yield range                                                  0% - 14.5%

Exercise multiple                                                                       2

a)    The expected volatility reflects the assumption that the historical
volatility is indicative of future trends, which may also not necessarily be
the actual outcome.  The current volatility is based on actual volatility since
the listing of the company in September 2005.

The fair value of the outstanding share options is estimated as at the grant
date using a Binomial model taking into account the terms and conditions upon
which the options were granted.

The estimated fair value of the share options issued at grant date is detailed
in the table below:

Description of     Exercise  No of options  Fair value at  Fair value at  Fair value at
 Option Holder        price                    grant date     grant date     grant date
                                                Tranche 1      Tranche 2      Tranche 3

C Jordaan           £0.1700     1,333,334          £0.10              -              -

C Jordaan           £0.1353     1,333,333              -          £0.12              -

C Jordaan           £0.0929     1,333,333              -              -          £0.13

                                4,000,000

The weighted average share price for the year ended 30 June 2015 is £0.05
(2014: £0.11).

The weighted average remaining contractual life of the above outstanding
options is 1.08 years (2014: 2.08 years).

All these options were cancelled subsequent to year end.

ii. The Company also issued Mr Jordaan rights to receive the equivalent of up
to ZAR6 million worth of fully paid ordinary shares (to a maximum of 1.1
million shares per tranche), calculated on the basis of the volume weighted
average sale price of the shares of the Company on the LSE on the five trading
days immediately prior to the relevant performance condition being satisfied.
If the relevant performance condition is satisfied, then the relevant number of
shares will vest and those shares will then be issued upon such performance
rights being exercised.  The performance conditions are as follows:

Transaction 1:  ZAR2 million equivalent of shares, up to a maximum of 1,100,000
shares, dependent upon continuing employment and the Company achieving
nameplate ferrochrome production of 66,250 tonnes for one calendar quarter.

This right was cancelled subsequent to year end.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

31.   SHARE BASED PAYMENTS PLANS (continued)

Performance Share Scheme

On 25 June 2013, a Performance Share Scheme ("PSS") was introduced and
implemented to replace the existing Phantom Option Scheme, where upon
fulfilment of certain performance conditions, employees are issued with fully
paid-up physical shares in the Company.  The PSS was implemented after
Shareholder's approval was obtained at the company's AGM on 21 November 2012.

Awards of performance shares will be made annually and will have a three-year
vesting cycle. The performance period for each grant will be the three year
period following grant date and coinciding with the Company's financial
year-end, subject to the recipients' continued employment by the Company on
both grant and ultimate vesting date. This performance period will apply to all
grants, except for grant 1 during financial year 2013 for which the performance
period will be 2 years and 9 months. The PSS is split into three equal tranches
each with its own performance vesting criteria being (refer table below for
vesting conditions):

·      Absolute Total Shareholder Return (A-TSR);

·      Relative Total Shareholder Return(R-TSR);  and

·      Return On Capital Employed (ROCE).

Recipients are awarded the fully paid up shares immediately once it has been
determined that all performance conditions were satisfied and no exercise
conditions will apply.  The Performance Shares are treated as "equity settled"
share based payments in accordance with the accounting policy described in note
2(q).

The following table lists the inputs to the Binomial model taking into account
the terms and conditions upon which the performance shares were granted as well
as the performance conditions that include a market condition:

NOTES TO THE FINANCIAL REPORT (CONTINUED)

31.   SHARE BASED PAYMENTS PLANS (continued)

                                            A-TSR              R-TSR               ROCE

Grant 1

Measurement date                     25 June 2013       25 June 2013       25 June 2013

IFM share price                           £0.0875            £0.0875            £0.0875

Expected volatility (a) (%)                 79.1%              79.1%              79.1%

Risk-free interest rate (%)                  1.1%               1.1%               1.1%

Expected dividend yield (%)                    0%                 0%                 0%

Exercise multiple                               1                  1                  1

Performance period (yrs)                     2.44               2.44               2.44

Index                                         n/a            FTSE350                n/a

Index volatility (%)                          n/a              46.9%                n/a

0% vesting                                    50%              Index                 6%

100% vesting                                 100%         Index +35%                13%

Grant 2

Measurement date                  2 December 2013    2 December 2013    2 December 2013

IFM share price                           £0.1075            £0.1075            £0.1075

Expected volatility (a) (%)                 57.0%              57.0%              57.0%

Risk-free interest rate (%)                 0.83%              0.83%              0.83%

Expected dividend yield (%)                    0%                 0%                 0%

Exercise multiple                               1                  1                  1

Performance period (yrs)                     3.00               3.00               3.00

Index                                         n/a            FTSE350                n/a

Index volatility (%)                          n/a              31.1%                n/a

0% vesting                                    50%              Index                 6%

100% vesting                                 100%         Index +35%                13%

Grant 3

Measurement date                  4 December 2014    4 December 2014    4 December 2014

IFM share price                           £0.0662            £0.0662            £0.0662

Expected volatility (a) (%)                 55.0%              55.0%              55.0%

Risk-free interest rate (%)                 1.11%              1.11%              1.11%

Expected dividend yield (%)                    0%                 0%                 0%

Exercise multiple                               1                  1                  1

Performance period (yrs)                     3.00               3.00               3.00

Index                                         n/a            FTSE350                n/a

Index volatility (%)                          n/a              26.0%                n/a

0% vesting                                    50%              Index            6% ROCE

100% vesting                                 100%         Index +35%           13% ROCE



Performance Share Scheme             Grant 1        Grant 2        Grant 3          Total

Balance at 30 June 2013           9,359,529              -              -      9,359,529

Granted during the period                 -     11,080,119              -     11,080,119

Forfeited/cancelled during                -              -              -              -
the year

Vested /exercised during the              -              -              -              -
period

Balance at 30 June 2014           9,359,529     11,080,119              -     20,439,648

Granted during the period                 -              -     11,080,116     11,080,116

Forfeited/cancelled during                -              -              -              -
the year

Vested /exercised during the              -              -              -              -
period

Balance at 30 June 2015           9,359,529     11,080,119     11,080,116     31,519,764

Number of performance shares      5,291,012      6,294,859      7,018,591     18,604,462
expected to vest

Years remaining to vesting             0.42           1.42           2.42           1.48

Weighted average value of              1.43p          2.70p          1.18p          1.77p
performance shares (GBP
pence)

NOTES TO THE FINANCIAL REPORT (CONTINUED)

32.   PARENT ENTITY INFORMATION

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Current assets                                                       9,441         50,464

Total assets                                                        10,491      2,258,196

Current liabilities                                                (2,391)        (1,793)

Total liabilities                                                  (2,391)        (1,793)

Issued capital                                                   3,088,240      3,088,240

Accumulated losses                                              (3,103,454)     (853,206)

Share based payment reserve                                         23,314         21,369

Total shareholders' equity                                           8,100      2,256,403

(Loss)/profit of the parent entity                              (2,213,705)        43,166

Total comprehensive income of the parent entity                 (2,213,705)        43,166

Details of any guarantees entered into by the                      500,000        500,000
parent entity in relation to the debts of its
subsidiaries (a)

Details of other financial assets (b)                                    -      2,199,594

a)    The ZAR500 million Working capital facility expired on 16 September 2015
and was rolled forward for 3 months to 10 December 2015 to enable the Business
Rescue Practitioner to publish the Business Rescue Plan. On 24 March 2016 the
amended business rescue plan was approved unanimously by creditors including
the Bank of China. While the facility is repayable on demand it is subject to
the provisions of the business rescue process which imposes a moratorium on
creditor claims and enforcement. The facility interest is charged at JIBAR rate
plus 3.85%.  Since year end an amount of ZAR30 million capital was repaid on
the facility resulting in an outstanding balance of ZAR470 million. The
proceeds of the first tranche of the total consideration to be received from
Samancor resulted in a payment of ZAR232 million to the Bank of China. The
proceeds of the remaining two tranches, which amounts to ZAR210 million, will
be distributed to the Bank of China. These payments along with any residual
funds available in IFMSA, are expected to result in settlement of the facility.
The entire statement of financial position of IFMSA is pledged as collateral
for the loan facility.  Bank of China has the option to cancel the loan
facility and call upon any balance outstanding in the event of a material
deterioration in the financial position of IFMSA.

b)    The following table represents details of other financial assets:

                                                                       2015          2014

Information relating to International Ferro                         ZAR'000       ZAR'000
Metals Limited:

Investment in subsidiaries at cost                               2,955,762      3,040,662

Provision for diminution and impairment (c)                     (2,955,762)     (841,068)

Net investment in subsidiaries                                          -       2,199,594

c)     This provision has arisen as a result of losses incurred by subsidiary
companies and the impairment of assets amounting to ZAR1.6 billion during the
current financial year.

The parent entity has no contingent liabilities, nor does it have any
contractual commitments for the acquisition of property, plant or equipment.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

33.   FINANCIAL RISK MANAGEMENT AND OBJECTIVES

Exposure to foreign currency risk, interest rate risk, commodity price risk,
credit risk, liquidity risk and share price risk arises in the normal course of
the Group's business.  Derivative financial instruments may be used to hedge
exposure to fluctuations in foreign exchange rates, interest rates, and
commodity prices.  During the period under review the Group entered into
certain forward exchange contracts ("FEC") in order to hedge against
fluctuating exchange rates.

The following table displays the financial instruments held at the end of the
year:

Financial assets and liabilities (including leases) by categories

                                                        Consolidated

At 30 June 2015         Loans and     Held to    At fair   Financial       Other     Total
                      receivables    maturity      value liabilities   financial
                                  investments    through measured at  assets and
                                                profit &   amortised liabilities
                                                    loss        cost

                          ZAR'000     ZAR'000    ZAR'000     ZAR'000    ZAR '000   ZAR'000

Recognised Financial
assets

Cash & cash               25,550           -          -           -      24,306    49,856
equivalents (note 15)

Trade and other          205,638           -          -           -           -   205,638
receivables (note 16)

Deposits (note 22)         4,528           -          -           -           -     4,528

Restricted cash (note          -       1,232          -           -           -     1,232
22)

Other financial                -           -   129,3951           -           -    129,395
investments (note 19)

Total recognised         235,716       1,232    129,395           -      24,306   390,649
financial assets

Recognised financial
liabilities

Trade and other                -           -          -    (359,155)          -  (359,155)
payables (note 23)

Interest bearing               -           -          -    (574,283)          -  (574,283)
liabilities (note 25)

Total recognised               -           -          -    (933,438)          -  (933,438)
financial liabilities

Unrecognised
Financial liabilities

Un-drawn loan                  -           -          -           -           -         -
facilities (note 25)

Total unrecognised             -           -          -           -           -         -
financial liabilities

¹ These financial assets consist of investment portfolios which are managed by
various financial institutions. The fair value of these financial instruments
has been estimated by the financial institutions using a variety of valuation
techniques. These financial instruments are classified as a level 2 in the fair
value hierarchy as their fair values have been estimated using inputs other
than quoted prices that are observable for the assets, either directly or
indirectly.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

33.   FINANCIAL RISK MANAGEMENT AND OBJECTIVES (continued)

Financial assets and liabilities (including leases) by categories

                                                        Consolidated

At 30 June 2014         Loans and     Held to    At fair   Financial       Other     Total
                      receivables    maturity      value liabilities   financial
                                  investments    through measured at  assets and
                                                profit &   amortised liabilities
                                                    loss        cost

                          ZAR'000     ZAR'000    ZAR'000     ZAR'000    ZAR '000   ZAR'000

Recognised financial
assets

Cash & Cash              143,813           -          -           -      18,462   162,275
equivalents (note 15)

Trade and other          169,386           -          -           -           -   169,386
receivables (note 16)

Deposits (note 22)         4,235           -          -           -           -     4,235

Restricted cash (note          -       5,631          -           -           -     5,631
22)

Other financial                -           -    101,1451          -           -   101,145
investments (note 19)

Total recognised         317,434       5,631    101,145           -      18,462   442,672
financial assets

Recognised financial
liabilities

Trade and other                -           -          -    (294,445)          -  (294,445)
payables (note 23)

Interest bearing               -           -          -    (567,154)          -  (567,154)
liabilities (note 25)

Total recognised               -           -          -    (861,599)          -  (861,599)
financial liabilities

Unrecognised
financial liabilities

Un-drawn loan                  -           -          -           -           -         -
facilities (note 25)

Total unrecognised             -           -          -           -           -         -
financial liabilities

¹ These financial assets consist of investment portfolios which are managed by
various financial institutions. The fair value of these financial instruments
has been estimated by the financial institutions using a variety of valuation
techniques. These financial instruments are classified as a level 2 in the fair
value hierarchy as their fair values have been estimated using inputs other
than quoted prices that are observable for the assets, either directly or
indirectly.

For all feasibility assessments including expansion planning, raising of debt
funding, evaluation of acquisition opportunities and corporate strategy, the
Group uses various methods to measure the types of risk to which it is exposed.
These methods include cash flow forecasting, sensitivity and breakeven
analysis.  The Group performs an ageing analysis for credit risk.

Treasury risk management is carried out by a central treasury function under
policies approved by the Board of Directors. The Board provides written
principles for overall risk management, as well as policies covering specific
areas, such as foreign exchange risk, interest rate risk and credit risk, use
of derivative financial instruments and non-derivative financial instruments,
and investment of excess liquidity.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

33.   FINANCIAL RISK MANAGEMENT AND OBJECTIVES (continued)

(i)    Foreign currency risk

Foreign currency risk arises from commercial transactions and recognised assets
and liabilities that are denominated in currencies other than the functional
currency of each entity in the Group, which is South African Rand (ZAR).  In
order to hedge this foreign currency risk, the Group may enter into forward
foreign exchange ("FEC"), foreign currency swaps and foreign currency option
contracts. During the year the Group entered into FEC contracts in order to
hedge against the fluctuations of the ZAR against the USD. The details of the
FEC's are as follows:

   June 2015                            ZAR'000            ZAR'000
FEC Value - USD      FEC RATE       Realised loss on  FEC value at year
                                          FEC                end

 US$51,000,000     ZAR/USD11.18         (3,619)              Nil

   June 2014                            ZAR'000            ZAR'000
FEC Value - USD      FEC RATE      Realised Profit on FEC value at year
                                          FEC                end

 US$77,000,000     ZAR/USD10.61          4,704               Nil

The above forward exchange contracts were used to manage transactional exposure
and were not classified as cash flow, fair value or net investment hedges and
are entered into for periods consistent with the currency transaction exposure.
These derivatives do not qualify for hedge accounting and therefore profits and
or losses resulting from the transactions were accounted for in the income
statement with other foreign exchange movements.

The following table represent the financial assets and liabilities denominated
in foreign currencies:

                                                 Consolidated

                         Foreign currency     Amount in ZAR        Rate of exchange
                              amount

                               2015     2014    2015     2014          2015          2014

                               '000     '000 ZAR'000  ZAR'000

Financial assets

Cash and cash
equivalents

 - US Dollar                  1,916   7,601   23,514  80,430   ZAR/US$12.27  ZAR/US$10.58

 - Euro                           6       7       87      96     ZAR/€13.73    ZAR/€14.44

 - UK pound sterling             62      78    1,203   1,409     ZAR/£19.30    ZAR/£18.02

 - AU Dollar                    282     311    2,659   3,105     ZAR/A$9.41    ZAR/A$9.97

Trade and other
receivables

 - US Dollar                 12,175   12,865 149,407 136,124   ZAR/US$12.27  ZAR/US$10.58

 - AU Dollar                      6      28       52     282     ZAR/A$9.41    ZAR/A$9.97

Financial liabilities

Trade and other
payables

 - UK pound sterling             18      21      339     386     ZAR/£19.30    ZAR/£18.02

 - AU Dollar                    117      42    1,098     424     ZAR/A$9.41    ZAR/A$9.97

The Group had no foreign currency borrowings at year end (2014: nil).

The following table demonstrates the estimated sensitivity to a 10% increase
and decrease in the different exchange rates the Group is exposed to, with all
other variables held constant, the estimated impact on post tax profit would be
as shown in the following table.  Equity is not directly affected by changes in
currency rates. The flow through effect of the post-tax effect will be the same
for equity.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

33.   FINANCIAL RISK MANAGEMENT AND OBJECTIVES (continued)

(i)   Foreign currency risk

                                                                     Consolidated

                                                                       2015          2014

Pre-Tax Profit Higher/(lower)                                       ZAR'000       ZAR'000

ZAR/USD +10%                                                        17,292        21,653

ZAR/USD - 10%                                                      (17,292)      (21,653)

ZAR/EUR +10%                                                             9            10

ZAR/EUR - 10%                                                           (9)          (10)

ZAR/GBP + 10%                                                          154           180

ZAR/GBP - 10%                                                         (154)         (180)

ZAR/AUD + 10%                                                          381           381

ZAR/AUD - 10%                                                         (381)         (381)

(ii)  Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in market interest rate.
The Group is exposed to interest rate movement through variable rate debt and
interest bearing investment of surplus funds.  Other than for finance leases,
the Group has no undrawn borrowing facilities at year end (2014: ZAR: nil).

The following table sets out the variable interest bearing and fixed interest
bearing financial instruments of the Group:

                                      Consolidated

                                     30 June 2015                  30 June 2014

                                   Variable Fixed Interest       Variable Fixed Interest
                                   Interest                      Interest

                                    ZAR'000        ZAR'000        ZAR'000        ZAR'000

Financial assets

Cash and cash equivalents           49,856              -        162,275              -
(note 15)

Other non-current assets             4,528          1,232          4,235          5,631
(note 22)

Financial liabilities

Interest bearing liabilities      (503,811)       (73,771)      (499,357)       (66,810)
(note 23 & 25)

Total                             (449,427)       (72,539)      (332,847)       (61,179)



                                                                     Consolidated

Based upon the balance of gross debt (including leases) as at 30 June 2015, if
interest rates increased or decreased by 1%, with all other variables held
constant, the estimated impact on post tax profit would be as shown in the
following table.  Equity is not directly affected by changes in interest rates.
The flow through effect of the post-tax effect will be the same for equity.

                                                                    Higher/(Lower)

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Interest rates +1%                                                   4,494         3,328

Interest rates -1%                                                  (4,494)       (3,328)

The ZAR500 million Working capital facility expired on 16 September 2015 and
was rolled forward for 3 months to 10 December 2015 to enable the Business
Rescue Practitioner to publish the Business Rescue Plan. On 24 March 2016 the
amended business rescue plan was approved unanimously by creditors including
the Bank of China. While the facility is repayable on demand it is subject to
the provisions of the business rescue process which imposes a moratorium on
creditor claims and enforcement. Since year end an amount of ZAR30 million
capital was repaid on the facility resulting in an outstanding balance of
ZAR470 million. The proceeds of the first tranche of the total consideration to
be received from Samancor resulted in a payment of ZAR232 million to the Bank
of China. The proceeds of the remaining two tranches, which amounts to ZAR210
million, will be distributed to the Bank of China. These payments along with
any residual funds available in IFMSA, are expected to result in settlement of
the facility. Since draw down of the funds commenced, the Group has maintained
an interest rate structure which reduces the impact of rapidly increasing
interest rates on projects.  This has been done by alternating between one and
three months JIBAR roll forward.  This decision is reviewed at each treasury
committee meeting.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

33.   FINANCIAL RISK MANAGEMENT AND OBJECTIVES (continued)

(iii)  Commodity price risk exposure

The Group is exposed to the risk of fluctuations in prevailing market commodity
prices of ferrochrome and coke. The price of ferrochrome has fluctuated widely,
particularly in recent years, and is affected by numerous factors beyond the
Group's control including international, economic and political trends,
expectations of inflation, currency exchange fluctuations, interest rates,
global or regional consumptive patterns, speculative activities and increased
production due to new extraction developments and improved extraction and
production methods. The effect of these factors on the price of ferrochrome,
and therefore the financial performance of the Group cannot accurately be
predicted. However, the Group may enter into ferrochrome option contracts to
manage its commodity price risk.  To date these contracts have not been easily
accessible and the Group has not entered into any of these agreements. The
final trade receivables balance, where applicable, is adjusted to take into
account any movements in the ferrochrome price.

(iv)  Credit risk

Credit risk arises from the financial assets of the Group, which comprise cash
and cash equivalents (note 15), trade and other receivables (note 16), deposits
(note 22) and financial instruments held by third parties (note 19).  The
Group's exposure to credit risk arises from potential default of the counter
party, with a maximum exposure equal to the carrying amount of these
instruments. It is the Group's policy that all customers who wish to trade on
credit terms are subject to credit verification procedures.  The Group trades
only with recognised, creditworthy third parties and as such collateral is not
requested nor is it the Group's policy to securitise its trade and other
receivables. Due to the global demise in large reputable companies the group
has made use of bank issued Letters of Credit and has discounted certain of its
debtors.  In addition, receivable balances are monitored on an ongoing basis
with the result that the Group's exposure to bad debts is not significant.  A
provision for doubtful debts is made when there is objective evidence that the
Group will not be able to collect the debts.  Doubtful debts are written off to
the income statement.  To date the Group has not been required to write off any
significant debts.

Trade Receivables

IFMSA has an off-take agreement with JISCO, the largest steel maker in
Northwest China. Under the terms of the agreement entered into in June 2005,
JISCO agreed to purchase at least 120,000 tpa of ferrochrome on a take-or-pay
basis at a market related price dependant on IFM's sales to Europe.  JISCO also
agreed to act as agent for IFMSA to market ferrochrome in China, Taiwan, Japan
and Korea.

In addition, IFMSA has a further off-take agreement with CMC Cometals, a
division of Commercial Metals Company ("CMC") to purchase 30,000 tpa of
ferrochrome, as well as 20,000 tpa of ferrochrome fines, on a take-or-pay basis
at a market related price. In addition, CMC acts as an exclusive agent selling
the remainder of the Group's ferrochrome production outside JISCO's territories
as identified above.

As a result of the off-take agreements most of the Group's trade receivables
relate to sales made to JISCO and Co-Metals, presenting a counterparty
concentration of risk.  JISCO is a Chinese state owned company and CMC is a New
York Stock Exchange listed metals trader with a market capitalisation of US$1.6
billion. IFMSA has the option of receiving a provisional payment from its
offtake partners of up to 90% of the value of each shipment within 15 working
days of any shipment. This provisional payment accrues interest by IFMSA. The
balance due, which is payable up to six months later, is jointly determined by
the offtake partners and IFMSA, based on actual prices, costs and factors that
affect the landed price of each shipment.  The Group does not hold any credit
derivatives to offset its credit exposure, other than Letters of Credit.  No
impairment was recognised as the group considers the offtake partners to be in
a sound financial position.  There are no receivables past due and considered
impaired.

Cash and Investments

The credit risk policy aims to ensure that the organisation is adequately
protected against settlement risk for cash, investments and derivatives by
transacting with reputable financial institutions with a minimum Fitch Ratings
International long term credit rating of A (or equivalent S&P or Moody's
rating) and where applicable, within stated limits. It is noted that the group
is not envisaged to hold large cash balances for extended periods of time.  At
the reporting date, cash deposits were spread amongst a number of financial
institutions to minimise the risk of default by counterparties.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

33.   FINANCIAL RISK MANAGEMENT AND OBJECTIVES (continued)

(iv) Credit risk (continued)

Other receivables

Other balances within trade and other receivables do not contain impaired
assets and are not past due. It is expected that these other balances will be
received when due.

The following table sets out the financial assets that are exposed to credit
risk:

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Financial assets

Cash & Cash equivalents (note 15)                                   49,856       162,275

Trade and other receivables (note 16)                              205,638       169,386

Restricted cash and investments (note 19 & 22)                     135,155       111,011

Total                                                              390,649       442,672

Set out below is an ageing analysis on the Group's trade receivables:

                                          Consolidated

              Total     0-30 days    31-60 days    61-90 days    91-120 days  120-150 PDNI
                                          PDNI*          PDNI           PDNI      daysPDNI

            ZAR'000       ZAR'000       ZAR'000       ZAR'000        ZAR'000       ZAR'000

2015       160,802         97,899        10,470        12,025         21,040        19,368

2014       140,186        70,681        10,185        12,662         11,986        34,672

* Past due not impaired ('PDNI')

None of the consolidated or parent trade and other receivables are considered
past due or impaired.

Credit terms for customers and agents are 30 days from the date of the final
invoice.  The final invoice is issued once the product is received (average
time between product being delivered FOB and to time received by customer is
between 3-4 months) and final specification agreed by the customer.  Debtors'
sales are recognised, in accordance with AASB 118 "Revenue", when risks and
rewards transfer.  The long shipment lead time between BOL date and final
invoice date may move certain debtors into the PDNI category.  Sales are
recognised on "Free On Board", "at-port" or "Free on truck".

(iv)  Liquidity risk

Liquidity risk is the risk that there will be inadequate funds available to
meet financial commitments as they fall due.  The Group recognises the ongoing
requirement to have committed funds in place to cover both existing business
cash flows and reasonable headroom for cyclical debt fluctuations, and capital
expenditure programmes. The key funding objective is to ensure the availability
of flexible and competitively priced funding from alternative sources to meet
the Group's current and future requirements. The Group utilises a detailed cash
flow model to manage its liquidity risk.

The Group attempts to accurately project the sources and uses of funds, whereby
a framework for decision making is established which increases the
effectiveness and efficiency with which the treasury function operates.

The table below summarises the maturity profile of the Group's contractual cash
flow financial liabilities at 30 June 2015 based on contractual undiscounted
repayment obligations.  Repayments which are subject to notice are treated as
if notice were to be given immediately.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

33.   FINANCIAL RISK MANAGEMENT AND OBJECTIVES (continued)

(v)  Liquidity Risk (continued)

                                              Consolidated

Liabilities    On demand       Less than 3       3 to 12      1 to 5 Over 5 years     Total
                                    months        months       years

30 June 2015     ZAR'000           ZAR'000       ZAR'000     ZAR'000      ZAR'000   ZAR'000

Trade and             -            348,784            -           -            -   348,784
other
payables

Finance               -              4,737        13,664      41,243       85,223  144,867
Leases

Loans             7,072            503,811            -           -            -   510,883

Total             7,072            857,332        13,664      41,243       85,223 1,004,534
Liabilities



                                             Consolidated

Liabilities    On demand       Less than 3       3 to 12      1 to 5 Over 5 years    Total
                                    months        months       years

30 June 2014     ZAR'000           ZAR'000       ZAR'000     ZAR'000      ZAR'000  ZAR'000

Trade and             -           288,360             -           -            -  288,360
other
payables

Finance               -             3,358        10,057      36,743       92,628  142,786
Leases

Loans             7,072           500,000             -           -            -  507,072

Total             7,072           791,718        10,057      36,743       92,628  938,218
Liabilities

34.   EVENTS AFTER THE REPORTING DATE

On 19 August 2015, a strike of workers employed by one of IFMSA's contractors
resulted in IFMSA having to reduce production from its furnaces and disrupted
its logistics and shipping schedule, causing losses in production.

The combination of low ferrochrome prices, rising electricity prices,
interruptions to power supply and other costs and losses of ferrochrome
production strained IFMSA's liquidity to the point that it became financially
distressed.

As a result, on 26 August 2015, the Company announced that IFMSA, which
operates the IFL Group's Lesedi mine and ferrochrome smelting operations, was
placed under business rescue by the Board of Directors of IFMSA.  Business
rescue is a South African statutory means of enabling a financially distressed
company to continue in business, under the supervision of a business rescue
practitioner ("BRP"), protected from its creditors. While in business rescue
there is a moratorium on creditors and others taking legal proceedings or
enforcement action against IFMSA. This allows for the development and
implementation of a business rescue plan ("Plan") that seeks to enhance the
potential return for IFMSA's stakeholders.  On the same day The Financial
Conduct Authority (FCA) granted a suspension of the listing of the Company's
fully paid ordinary shares on the Official List.

As a result of the business rescue process, IFMSA's operations were placed
under care and maintenance, significantly reducing its expenses. In view of the
operational requirements of IFMSA, a process in terms of section 189A of the
Labour Relations Act 66 of 1995 ("LRA") commenced on 7 September 2015.  In
order to treat all employees equally, the process entailed the retrenchment of
the entire staff compliment and thereafter, the re-engagement of a limited
number of people on a limited duration contract basis for the duration of the
business rescue proceedings. All the outstanding long term incentive rights
were cancelled subsequent to year end.

The Bank of China, IFMSA's largest and secured creditor, agreed to the
following:

·      Trade receivables that existed at the date of commencement of business
rescue proceedings to be collected and applied to reduce the Bank of China
working capital facility; and

·      Proceeds derived from the sale of inventory at the date of commencement
of business rescue proceedings together with the proceeds derived from the RPM
UG2 supply agreement, to be applied to fund business rescue proceedings.

In January 2016 a settlement was reached with RPM under which RPM would
continue the supply of UG2 chrome ore but at reduced quantities and at
additional costs to IFMSA. The settlement eliminated the uncertainty
surrounding the supply agreement and accordingly assisted in business rescue
process. However, it had a material impact on the UG2 agreement's value and
consequently on the value of the assets of IFMSA.

The amended business rescue plan, which has been approved by creditors on 24
March 2016, provides for the sale of IFMSA's business and assets together with
IFMSA's loan claim against and IFL's 80% equity interest in Sky Chrome, to
Samancor for a total of ZAR520 million, split into three divisible tranches:

1.     ZAR310 million for the business and assets of IFMSA;

2.     ZAR140 million for the IFMSA Mining Right and Beneficiation Plant; and

3.     ZAR70 million for certain receivables of Sky Chrome and Sky Chrome's
equity for ZAR100.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

34.   EVENTS AFTER THE REPORTING DATE (continued)

In August 2016 the first tranche transaction was concluded and in September
2016 the proceeds from the transaction were distributed to creditors of IFMSA
in accordance with the amended business rescue plan. South African Exchange
Control approval has recently been obtained and IFML's claim of ZAR4.5 million
is expected to be paid shortly. The proceeds from the second and third tranches
will be paid to the Bank of China.

Since the inception of business rescue the appointed business rescue
practitioner has been facilitating the support of IFML by cash flow from IFMSA
to cover ongoing costs. This support continued until June 2016. The amount of
cash flow to IFML totalled ZAR17.4 million which was used to pay expenses
subsequent to year end. IFML will receive ZAR4.5 million as settlement of its
claim against IFMSA once Exchange Control approval has been received. This
amount is expected to be sufficient to fund the limited operations of IFML
until such time as the outstanding conditions for the remaining two tranches of
transactions with Samancor have been met. These conditions include obtaining
regulatory approvals, specifically ministerial approval for the transfer of
mining rights, and consents of other parties to certain material contracts,
which are usual for transactions of this nature. The proceeds of the remaining
two tranches, which amounts to ZAR210 million, will be distributed to the Bank
of China. These payments along with any residual funds available in IFMSA, are
expected to result in settlement of the facility. After which the directors
will consider all options available including the wind up of the company. It is
not expected that the shareholders of IFML will receive any dividend or
distribution from any of the above.

Due to the disposal process, assets will be realised principally through a
sales transaction rather than through continuing use. The affected assets
should thus be classified as assets held for sale in terms of AASB 5 for the
year ending 30 June 2016 as the criteria per AASB 5 has only been met after
year end.

Other than those outlined above and in note 34 to the Financial Statements, no
matters or circumstances have arisen since 30 June 2015 that have significantly
affected or may significantly affect:

·      the Company's operations in future financial years; or

·      the result of those operations in future financial years; or

·      the Company's state of affairs in future financial years.

35.   COMMITMENTS AND CONTINGENCIES

Capital commitments

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Contracted for                                                       33,655        51,888

Authorised but not contracted for                                         -        32,807

Total                                                                33,655        84,695

Capital incurred for the subsequent financial year amounted to R13 million.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

35.   COMMITMENTS AND CONTINGENCIES (continued)

Finance lease commitments

The minimum lease payments under finance lease arrangements are set out in the
following table:

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Within 1 year                                                       18,401        13,415

Between 1 and 5 years                                               41,243        36,743

Greater than 5 years                                                85,223        92,628

Total future lease payments                                        144,867       142,786

Less:  future finance charges                                      (71,096)      (75,976)

Lease liability                                                     73,771        66,810

   Represented by:

Current lease liability (note 23)                                   10,371         6,085

Non-current lease liability                                         63,400        60,725

Lease liability                                                     73,771        66,810

The present values of lease payments under finance lease
arrangements are set out in the following table

Within 1 year                                                       10,371         6,085

Between 1 and 5 years                                               16,857        12,322

Greater than 5 years                                                46,543        48,403

Lease liability                                                     73,771        66,810

Contingent liabilities

There were no contingent liabilities outstanding at 30 June 2015 (2014: nil).

36.   RELATED PARTY TRANSACTIONS

Loans to Directors and Director-related entities

No loans have been granted to Directors and/or Director-related entities.

Refer to audited Remuneration Report for details of remuneration and
arrangements with Key Management Personnel.

The community royalty accrued at year end amounted to ZAR0.3 million (2014:
ZAR0.5 million).

The Parent company is due management fees of ZAR6.8 million (2014: ZAR5.67
million) from its subsidiary company International Ferro Metals (SA) Pty Ltd.
Related party transactions exist between the companies within the Group.

Jiuquan Iron and Steel Group Company (JISCO) own 29.10% (2014: 29.10%) of the
Parent company's shares.  Sales made to JISCO totalled 46,095 tonnes (2014:
71,546 tonnes) and were made in terms of the off-take agreement which was
entered into at arm's length.  The value of sales made to JISCO during the year
amounted to ZAR460 million (2014: ZAR691 million).

37.   INTEREST IN SUBSIDIARIES

The Company has the following direct/indirect material interests in
subsidiaries:

Name                                     Country of  Ownership  Ownership
                                      incorporation   interest   interest

                                                          2015       2014    Investment

International Ferro Metals (SA)        South Africa       100%    99.375%        ZAR339
(Pty) Ltd (a)                                                                   million

Purity Metals Holdings Ltd           British Virgin       100%       100%  USD9 million
                                            Islands

Sky Chrome Mining (Pty) Ltd            South Africa        80%        80%        ZAR800

International Ferro Metals SA          South Africa       100%       100%        ZAR2.6
Holdings (Pty) Ltd                                                              billion

(a) This company was placed under business rescue on 26 August 2015.

NOTES TO THE FINANCIAL REPORT (CONTINUED)

38.   AUDITORS REMUNERATION

                                                                     Consolidated

                                                                       2015          2014

                                                                    ZAR'000       ZAR'000

Amounts received or due and receivable by Ernst
& Young Australia for:

(i)            an audit or review of the financial report of                          604
the entity and any other entity in the consolidated entity              604

Total received by Ernst & Young Australia                               604           604

Amounts received or due and receivable by
Ernst & Young South Africa for:

(i)            an audit or review of the financial report of          2,307         2,645
any other entity in the consolidated entity

(ii)           other assurance services                                   -           469

(iii)          taxation services                                         76            86

Total received by Ernst & Young South Africa                          2,383         3,200

Closing balance                                                       2,987         3,804

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