FRC - Punting @ 0.655

Punters at work. Joined them too late?

Punting this damned old news?

Why FRC dropped so much despites good earning?

The Board of Directors of FerroChina Limited (the “Company” or “Group”) is pleased to announce that Changshu Xingyu Advanced Building Material Co., Ltd (“Xingyu”) has completed the installation of its recrystallation annealing production line and tension levelling line. With these equipments, the Group will be able to sell additional product range, capture higher value add product value chain and improve the overall profitability going forward. The output of these equipments will be used as feedstock for other subsidiaries of the Group until the cold reversing mill of Xingyu is ready.

Further to the Announcement on 25 April 2008 and 20 August 2008 regarding the appointment of Merrill Lynch as our financial advisor to assist with a review of potential strategic alternatives, the Company wishes to update that the Company has identified a potential investor, which has signed a Confidentiality and Non-Disclosure Agreement with the Company and is currently carrying out its due diligence investigations on the Company and its subsidiaries.

The Company and potential investor had entered into several discussions and negotiations on the terms of investment, following which a draft Term Sheet has been drawn up for the parties’ review.

However, the parties have to date not signed nor concluded any Term Sheet or Memorandum of Understanding. Hence, the proposed investment by the potential investor is still under negotiations pending the latter’s completion of its due diligence investigations.

Meanwhile, Shareholders are advised to exercise caution in trading their shares. There is no certainty or assurance as at the date of this Announcement that the proposed investment by the potential investor will be concluded. The Company will release further announcement to update Shareholders should there be further development regarding the proposed investment by the potential investor