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Shares in International Ferro Metals (LON:IFL) surged on Monday as it revealed chrome concentrate supply had resumed from Anglo Platinum (Amplats) following strikes.
The firm produces ferrochrome, which is an essential ingredient in stainless steel, from its operations in South Africa.
IFL said it received 20,000 tonnes of UG2 chrome concentrate supply last month (August), which was ahead of previous expectations.
Previously, the strikes over wages meant the ore did not come through under contract.
Chief executive Chris Jordaan said: "We are very pleased that the supply of UG2 has recommenced from Anglo Platinum, which delivers UG2 at a cost significantly below the company's in-house production cost of chrome concentrate, and is a direct contributor to profitability.
"The resumption of UG2 ore gives us increased confidence that this year's production cost will be lower than that achieved for the final quarter of FY2014."
IFL now expects to receive 15,000 tonnes per month together with the contracted backlog of 5,000t per month until the backlog is over.
At the end of August the backlog was around 94,000 tonnes.
Broker FinnCap repeated a 'buy' stance on the stock after the announcement.
"This concentrate is delivered to International Ferro Metals free of cost except for transport from the Rustenburg platinum plant. This will substantially reduce the overall operating cost for the company for the next two years," said analyst Martin Potts, who has a target price of 42p.
IFL shares rose 13.82% to 7 pence each.