<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q


(Mark One)

/X/     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 For the quarterly period ended APRIL 30, 2000

                                    or

/ /     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 For the transition period from _______ to _______


                         COMMISSION FILE NUMBER 333-4513


                               RENCO METALS, INC.
             (Exact name of registrant as specified in its charter)

                       DELAWARE                             13-3724916
            (State or other jurisdiction of               (IRS Employer
             incorporation or organization)             Identification No.)

                 238 NORTH 2200 WEST
                 SALT LAKE CITY, UTAH                         84116
       (Address of principal executive offices)             (Zip Code)


                                 (801) 532-2043
              (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
                                                              / / YES     /X/ NO


Number of shares outstanding of each of the registrant's classes of common
stock, as of June 12, 2000:
COMMON STOCK, NO PAR VALUE                                          1,000 SHARES


<PAGE>

                                    FORM 10-Q

                               RENCO METALS, INC.

                          QUARTER ENDED APRIL 30, 2000


<TABLE>
<CAPTION>

                                TABLE OF CONTENTS
                                -----------------
                                                                                                  PAGE NO.
                                                                                                  --------
<S>                                                                                               <C>
PART I - FINANCIAL INFORMATION

     ITEM 1 -   FINANCIAL  STATEMENTS

         Condensed Consolidated Balance Sheets - April 30, 2000 and October 31, 1999                 3

         Condensed Consolidated Statements Of Operations - Six Months and Three Months Ended
            April 30, 2000 and 1999                                                                  4

         Condensed Consolidated Statements Of Cash Flows - Six Months Ended April 30, 2000
            and 1999                                                                                 5

         Notes To Consolidated Financial Statements                                                  6

     ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
              AND RESULTS OF OPERATIONS                                                              8

PART II - OTHER INFORMATION

     ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K                                                      11

SIGNATURES                                                                                          12

</TABLE>

                                       -2-
<PAGE>



                                PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS




                              RENCO METALS, INC. AND SUBSIDIARIES
                             CONDENSED CONSOLIDATED BALANCE SHEETS
                        (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>

                                                                           APRIL 30,       October 31,
                                                                             2000             1999
                                     Assets                               (UNAUDITED)       (Audited)
                                     ------                              -------------    -------------
<S>                                                                      <C>              <C>
Current assets:
      Cash and cash equivalents                                           $    2,442         $    8,448
      Accounts receivable, less allowance for doubtful accounts of
         $1,215 in 2000 and $532 in 1999                                      22,577             25,478
      Inventories, net (note 2)                                               49,430             44,979
      Prepaid expenses and other current assets                                1,142              1,678
                                                                          ----------         ----------
                  Total current assets                                        75,591             80,583
                                                                          ----------         ----------
Property, plant, and equipment, net                                           46,271             41,862
Other assets, net                                                              3,170              3,646
                                                                          ----------         ----------
                                                                          $  125,032         $  126,091
                                                                          ==========         ==========
                     Liabilities And Stockholder's Deficit
                     -------------------------------------
Current liabilities:
      Current installments of long-term debt                              $       25         $       25
      Accounts payable                                                         4,544              7,043
      Accrued expenses and other current liabilities                          14,421             14,294
                                                                          ----------         ----------
                  Total current liabilities                                   18,990             21,362
                                                                          ----------         ----------
Long-term debt, excluding current installments                               160,618            153,204
Other liabilities                                                             11,084             11,718
                                                                          ----------         ----------
                  Total liabilities                                          190,692            186,284
                                                                          ----------         ----------
Stockholder's deficit:
      Common stock, no par value.  Authorized, issued, and
         outstanding 1,000 shares                                                  1                  1
      Additional paid-in capital                                                 600                600
      Accumulated deficit                                                    (66,261)           (60,794)
                                                                          ----------         ----------
                  Total stockholder's deficit                                (65,660)           (60,193)
                                                                          ----------         ----------
Commitments and contingencies
                                                                          ----------         ----------
                                                                          $  125,032         $  126,091
                                                                          ==========         ==========

</TABLE>

The accompanying notes are an integral part of these condensed consolidated
financial statements.


                                       -3-
<PAGE>

                              RENCO METALS, INC. AND SUBSIDIARIES
                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                          (UNAUDITED)
                                     (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                SIX MONTHS                     THREE MONTHS
                                                              ENDED APRIL 30,                 ENDED APRIL 30,
                                                      ------------------------------    ---------------------------
                                                          2000             1999             2000           1999
                                                      -------------    -------------    ------------   ------------
<S>                                                   <C>              <C>              <C>            <C>
Sales                                                     $ 79,696         $ 87,567         $40,543       $ 45,947
Costs and expenses:
     Cost of sales                                          61,524           60,313          30,673         31,545
     Depreciation, depletion, and amortization               4,100            4,672           1,892          2,336
     Selling, general, and administrative expenses          10,306           10,199           5,337          5,520
                                                      -------------    -------------    ------------   ------------
            Total costs and expenses                        75,930           75,184          37,902         39,401
                                                      -------------    -------------    ------------   ------------
                Income from operations                       3,766           12,383           2,641          6,546
Other income (expense):
     Interest income                                           124              363              35            124
     Interest expense                                       (9,437)          (9,330)         (4,781)        (4,659)
     Equity in earnings of affiliate                            80                -               -              -
                                                      -------------    -------------    ------------   ------------
            Total other income (expense)                    (9,233)          (8,967)         (4,746)        (4,535)
                                                      -------------    -------------    ------------   ------------
                Income (loss) before income taxes           (5,467)           3,416          (2,105)         2,011

Income tax benefit                                               -           (2,063)              -              -
                                                      -------------    -------------    ------------   ------------
                    Net income (loss)                     $ (5,467)         $ 5,479        $ (2,105)       $ 2,011
                                                      -------------    -------------    ------------   ------------

</TABLE>

The accompanying notes are an integral part of these condensed consolidated
financial statements.


                                       -4-
<PAGE>

                              RENCO METALS, INC. AND SUBSIDIARIES
                         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                         (UNAUDITED)
                                    (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                                          SIX MONTHS
                                                                                        ENDED APRIL 30,
                                                                                  ---------------------------
                                                                                      2000           1999
                                                                                  ------------    -----------
<S>                                                                               <C>             <C>
Net cash provided by (used in) operating activities                                  $ (4,913)         $ 899
                                                                                  ------------    -----------
Cash flows from investing activities -

      Capital expenditures                                                             (8,508)        (6,268)
                                                                                  ------------    -----------
                  Net cash used in investing activities                                (8,508)        (6,268)
                                                                                  ------------    -----------
Cash flows from financing activities:
      Net borrowings (repayments) under revolving credit agreements                     7,427           (375)
      Repayment of long-term debt                                                         (12)           (11)
      Payment of financing fees                                                             -            (50)
                                                                                  ------------    -----------
                  Net cash provided by (used in) financing activities                   7,415           (436)
                                                                                  ------------    -----------
Decrease in cash and cash equivalents                                                  (6,006)        (5,805)

Cash and cash equivalents, beginning of period                                          8,448         21,690
                                                                                  ------------    -----------
Cash and cash equivalents, end of period                                              $ 2,442       $ 15,885
                                                                                  ============    ===========



Supplemental Disclosures of Cash Flow Information
-------------------------------------------------
      Cash paid during the period for interest                                        $ 8,961        $ 8,836
      Cash paid during the period for income taxes                                    $     -        $   209

</TABLE>

The accompanying notes are an integral part of these condensed consolidated
financial statements.


                                       -5-
<PAGE>

                       RENCO METALS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1)    BASIS OF PRESENTATION

       The accompanying condensed consolidated financial statements have been
       prepared from the accounting records of Renco Metals, Inc. (Renco Metals)
       and its subsidiaries (the Company), Magnesium Corporation of America
       (Magcorp), and Sabel Industries, Inc. (Sabel), without audit (except
       where presented data is specifically identified as audited) pursuant to
       the rules and regulations of the Securities and Exchange Commission.
       Renco Metals is a 100% owned subsidiary of The Renco Group, Inc. (Group).
       The financial statements reflect all adjustments (consisting solely of
       normal recurring adjustments) which are, in the opinion of management,
       necessary for a fair statement of results for the interim periods
       presented. The results of operations for the interim periods presented
       are not necessarily indicative of the results to be expected for the full
       year. These interim condensed consolidated financial statements should be
       read in conjunction with the consolidated financial statements and notes
       thereto included in the Company's Form 10-K for the fiscal year ended
       October 31, 1999.

       Renco Metals' 11.5% Senior Notes due 2003 (Senior Notes) are
       unconditionally and fully guaranteed, jointly and severally, by both of
       its subsidiaries, Magcorp and Sabel (the Guarantors), each of which is
       wholly-owned. Separate financial statements of the Guarantors are not
       presented because, in management's opinion, such financial statements
       would not be material to investors because Renco Metals is a holding
       company with no independent operations and its only assets are cash and
       its investment in Magcorp and Sabel. Summarized financial information on
       the combined Guarantors is presented below:

<TABLE>
<CAPTION>

                      SUMMARIZED COMBINED GUARANTOR FINANCIAL INFORMATION
                      ---------------------------------------------------

                                                Six months                      Three months
                                              Ended April 30,                  Ended April 30,
                                            2000           1999               2000          1999
                                        -------------  -------------      -------------  ------------
                                           (dollars in thousands)           (dollars in thousands)
<S>                                     <C>            <C>                <C>            <C>
Statement of operations data:
       Net sales                            $ 79,696       $ 87,567           $ 40,543      $ 45,947
       Cost of sales                        $ 61,524       $ 60,313           $ 30,673      $ 31,545
       Net income (loss)                    $ (5,530)      $  5,422           $ (2,137)     $  1,972

<CAPTION>

                                                                                         October 31,
                                                                           APRIL 30,        1999
                                                                              2000        (Audited)
                                                                          -------------  ------------
                                                                            (dollars in thousands)
<S>                                                                       <C>            <C>
Balance sheet data:
       Current assets                                                         $ 73,674      $ 78,701
       Noncurrent assets                                                      $ 49,441      $ 45,508
       Current liabilities                                                    $ 12,357      $ 14,701
       Noncurrent liabilities                                                 $ 21,702      $ 14,922

</TABLE>


                                       -6-
<PAGE>

(2)    INVENTORIES

       Inventories consist of the following:

<TABLE>
<CAPTION>

                                                                                     October 31,
                                                                     APRIL 30,          1999
                                                                        2000          (Audited)
                                                                   ---------------  --------------
                                                                       (dollars in thousands)
       <S>                                                         <C>              <C>
       Finished goods                                                $     41,057    $     34,985
       Brine in ponds                                                       1,089           1,228
       Spare parts and supplies                                             9,788           9,076
       Raw materials and work-in-process                                      729             963
                                                                   ---------------  --------------
                                                                           52,663          46,252
       Less LIFO reserve                                                    3,233           1,273
                                                                   ---------------  --------------
                                                                     $     49,430    $     44,979
                                                                   ===============  ==============

</TABLE>

(3)    SEGMENT INFORMATION

       The Company classifies its operations into two operating segments:
       magnesium production and steel wholesaling and fabrication. Management
       evaluates a segment's performance based upon operating income. There are
       no intersegment sales, allocated costs, or jointly used assets.
       Summarized financial information by operating segment follows.

<TABLE>
<CAPTION>

                                                              SIX MONTHS                 THREE MONTHS
                                                            ENDED APRIL 30,             ENDED APRIL 30,
                                                     --------------------------------------------------------
                                                         2000           1999          2000          1999
                                                     -------------  ------------  ------------  -------------
                                                        (dollars in thousands)      (dollars in thousands)
          <S>                                        <C>            <C>           <C>           <C>
          Revenues:
                Magnesium                                 $56,838      $ 65,383       $28,352       $ 34,197
                Steel                                      22,858        22,184        12,191         11,750
                                                     -------------  ------------  ------------  -------------
                   Consolidated revenues                  $79,696      $ 87,567       $40,543       $ 45,947
                                                     =============  ============  ============  =============

          Profit or loss:
             Income from operations:
                Magnesium                                 $ 2,610      $ 11,612       $ 1,907        $ 5,865
                Steel                                         532           146           420            356
                                                     -------------  ------------  ------------  -------------
                   Total reportable segments                3,142        11,758         2,327          6,221
                                                     -------------  ------------  ------------  -------------

             All other income (expense), net               (8,609)       (8,342)       (4,432)        (4,210)
                                                     -------------  ------------  ------------  -------------
                   Consolidated income (loss)
                          before income taxes            $ (5,467)      $ 3,416      $ (2,105)       $ 2,011
                                                     =============  ============  ============  =============

</TABLE>

(4)    COMPREHENSIVE  INCOME

       The Company adopted Statement of Financial Accounting Standard No. 130
       ("SFAS 130"), Reporting Comprehensive Income, effective November 1, 1998.
       SFAS 130 establishes standards for reporting and display of comprehensive
       income and its components in financial statements. Comprehensive income
       (loss) was equal to the net income (loss) presented in the accompanying
       condensed consolidated statements of operations for each period
       presented.


                                       -7-
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

RESULTS OF OPERATIONS - SIX MONTHS ENDED APRIL 30, 2000 COMPARED TO SIX MONTHS
ENDED APRIL 30, 1999

SALES for the six-month period ended April 30, 2000 decreased 9.0% over the
corresponding prior period. The decrease was attributable to a 13.1% decrease in
Magcorp's revenues partially offset by a 3.0% increase in Sabel's revenues.
Magnesium shipments decreased 8.3% and Magcorp's average selling price for
magnesium decreased 5.9% when compared to the corresponding six-month period in
1999. Import competition from foreign producers continues to put pressure on
magnesium pricing and volumes. Magnesium pricing and volume are dependent on the
overall market supply and demand, and there is no certainty that current trends
will not continue. Sabel's sales increase was due to overall price increases in
the U.S. steel industry.

COST OF SALES for the six-month period ended April 30, 2000 increased 2.0% on a
consolidated basis. Magcorp's cost of sales increased 3.8% due primarily to
higher production costs at Magcorp caused by low production levels and high
natural gas costs. Cost of sales at Magcorp was also adversely affected by
increased processing costs associated with increased volumes of recycled
magnesium. When compared to the corresponding six-month period in 1999, Magcorp
increased its participation in die cast markets, which also requires handling
and recycling of die cast customer scrap, increasing costs and decreasing
margins. Magcorp's cost of sales increase was offset by a 3.6% cost of sales
decrease at Sabel attributable to volume decreases incurred while margins
increased in the U.S. Steel industry as mentioned above.

DEPRECIATION, DEPLETION, AND AMORTIZATION for the six-month period ended April
30, 2000 decreased 12.2% due to certain long-lived assets originally capitalized
at the time of Magcorp's acquisition in 1989 becoming fully depreciated, offset
by increased depreciation for recently acquired capital equipment additions.

INTEREST INCOME for the six-month period ended April 30, 2000 decreased $239,000
due to decreased cash and cash equivalent balances on hand.

INTEREST EXPENSE for the six-month period ended April 30, 2000 increased
$107,000 due to higher revolving credit facility borrowings at Magcorp.
Revolving credit facility rates are based on the prime rate, which also
increased during the period.

INCOME TAXES for the six-month period ended April 30, 2000 were zero. Effective
November 1, 1998, the Company was designated as a qualified subchapter S
subsidiary by Group. Accordingly, the Company is generally not subject to income
taxes. As a result of the subchapter S designation, during the six months ended
April 30, 1999 the Company recognized an income tax benefit of $2.1 million that
included the elimination of net deferred tax liabilities recorded as of October
31, 1998.

RESULTS OF OPERATIONS - THREE MONTHS ENDED APRIL 30, 2000 COMPARED TO THREE
MONTHS ENDED APRIL 30, 1999

SALES for the three-month period ended April 30, 2000 decreased 11.8% over the
corresponding prior period. The decrease was attributable to a 17.1% decrease in
Magcorp's revenues partially offset by a 3.8% increase in Sabel's revenues.
Magnesium shipments decreased 11.4% and Magcorp's average selling price for
magnesium decreased 7.1% over the corresponding 1999 three-month period. Import
competition from foreign producers continues to put pressure on magnesium
pricing and volumes. Magnesium pricing and volume are dependent on the overall
market supply and demand, and there is no certainty that current trends will not
continue. Sabel's sales increase was due to overall price increases in the U.S.
steel industry.

COST OF SALES for the three-month period ended April 30, 2000 decreased 2.8% on
a consolidated basis. Magcorp's cost of sales decreased 3.2% due primarily to
lower sales volumes, partially offset by higher production costs at Magcorp
caused by production levels being below capacity. A 1.3% cost of sales decrease
at


                                       -8-
<PAGE>

Sabel was attributable to volume decreases incurred while margins increased in
the U.S. Steel industry as mentioned above.

DEPRECIATION, DEPLETION, AND AMORTIZATION for the three-month period ended April
30, 2000 decreased 19.0% due to certain long-lived assets originally capitalized
at the time of Magcorp's acquisition in 1989 becoming fully depreciated, offset
by increased depreciation for recently acquired capital equipment additions.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES for the three-month period ended
April 30, 2000 decreased 3.3% due in large part to profit-based deferred
compensation accrual adjustments.

INTEREST INCOME for the three-month period ended April 30, 2000 decreased
$89,000 due to decreased cash and cash equivalent balances on hand.

INTEREST EXPENSE for the three-month period ended April 30, 2000 increased
$122,000 due to higher revolving credit facility borrowings at Magcorp.


LIQUIDITY AND CAPITAL RESOURCES

The Company's liquidity needs arise from working capital requirements, capital
investments and interest payment obligations. The Company's primary source of
liquidity has historically been cash provided by operating activities. The
Company also has available $40.0 million in revolving credit facilities that
provide for advances by the lender based on specified percentages of eligible
accounts receivable and inventories to a maximum of $33.0 million for Magcorp
and $7.0 million for Sabel, net of outstanding letters of credit. As of April
30, 2000, the unused amounts available to Magcorp and Sabel were approximately
$21.8 million and $2.2 million, respectively. During the six-month period ended
April 30, 2000, Magcorp and Sabel borrowed net amounts of $5.4 million and $2.0
million, respectively, under their revolving credit facilities.

Cash used in operating activities was $4.9 million for the six-month period
ended April 30, 2000 compared to $899,000 provided by operations for the
corresponding prior period. The $5.8 million increase in cash used in operations
when compared to the comparable period in 1999 resulted primarily from decreased
operating income, partially offset by favorable changes in working capital
items, most notably decreased accounts receivable levels and smaller increases
in inventory levels. The reduced operating income is attributable to lower sales
volume and pricing from increased import competition in the magnesium operations
and by lower margins earned on increased participation in die cast market
products as discussed above. Magnesium pricing and volume are dependent on the
overall market supply and demand, and there is no assurance that current trends
will not continue.

Capital expenditures were $8.5 million for the six-month period ended April 30,
2000, and are budgeted to total approximately $20 million for 2000, $10 million
for 2001, and $9 million for 2002. Of these projected capital expenditure
amounts, an estimated total of $31 million is related to new electrolytic cell
technology that is expected to improve manufacturing efficiencies and ensure
compliance with future environmental standards. Original plans for complete
plant conversion have been scaled back and timing of the project has been
revised to allow some flexibility due to reduced cash flow from operations
caused by worsened market conditions. As a result, conversion of the cells is
now expected to commence in late fall of 2000 and take place over a period of
approximately two years. Associated cost reductions and related manufacturing
efficiencies will occur gradually as conversion progresses, but will not be
fully realized in the Company's operating results until 2002.

Management anticipates that existing cash balances, cash generated from
operations, and availability under its revolving credit facilities will be
sufficient to finance the Company's liquidity needs through the end of the
current fiscal year. However, if magnesium market conditions continue to
deteriorate, in order to fund its planned capital expenditures, the Company is
considering additional sources of liquidity. In this regard, the Company is
currently in discussions with its primary lender to increase availability under
its revolving credit facilities.


                                       -9-
<PAGE>

The Company's long-term debt agreements contain numerous covenants and
prohibitions that limit the financial activities of the Company, including
requirements that the Company satisfy certain financial ratios and limitations
on additional indebtedness. The ability of the Company to meet its debt service
requirements and to comply with such covenants will be dependent upon future
operating performance and financial results of the Company, which will be
subject to financial, economic, political, competitive and other factors
affecting the Company, many of which are beyond its control.

ENVIRONMENTAL MATTERS

Title III of the Clean Air Act will establish, on a published schedule, new
national emission standards for hazardous air pollutants (NESHAPS). NESHAPS are
to be based on maximum achievable control technology as determined by a
comparison of installations at similar facilities in specific industry
categories. Representatives from the United States Environmental Protection
Agency (EPA) have visited Magcorp's facility in preparation for the process of
establishing NESHAPS for chlorine and hydrogen chloride emissions. It is
expected that Magcorp will be required to make substantial reductions in
chlorine emissions to meet NESHAPS for primary magnesium refineries that will be
promulgated by mid-2002, with an expected three to five year timetable for
compliance following promulgation of the new standards.

In anticipation of the new standards, Magcorp has embarked on a program to
install new electrolytic cell technology that will reduce chlorine emissions at
the source. The new cells are also expected to significantly reduce costs
because they have much higher throughput and are more energy efficient. As noted
above, cell conversion is expected to commence in late fall of 2000 and take
place over approximately two years. With respect to hydrogen chloride, Magcorp
has recently installed and is successfully operating scrubbers to reduce
pertinent emissions. Magcorp does not expect that it will be required to spend
significant additional amounts to meet the new standards for hydrogen chloride.
Magcorp plans to spend an estimated $30 to $35 million of its total capital
expenditure budget through 2002, directly or indirectly, to meet environmental
regulatory requirements, primarily for NESHAPS, and for other anticipated future
requirements. Prototype cell-related project development expenses to date total
$7.0 million. There can be no assurance that Magcorp's cell conversion program
will be successful, and to the extent it is not successful, it could have a
material adverse effect on the Company's financial condition and results of
operations.

Representatives of the Utah State Department of Environmental Quality (UDEQ)
Division of Solid and Hazardous Waste visited Magcorp in 1994 regarding the
issue of whether piles of material generated in the electrolytic process, which
cover an extensive land area at Magcorp's Rowley facility, can be classified as
a hazardous or solid waste, and if so classified, what measures might be
required to investigate and address these piles. No similar material has been
classified by the State as hazardous or solid waste. The State accepted
Magcorp's written storage plan, which does not consider the piles hazardous and
under which no remediation or action by the Company is necessary. If the piles
were at some point in the future to be classified as hazardous waste, thereby
becoming subject to State regulation, corrective action could be required. The
costs of such compliance, if any, could be material; however, such costs cannot
be assessed at this time.

Sampling conducted by Magcorp and by UDEQ in 1998 indicated a low but measurable
accumulation of chlorinated hydrocarbons in the form of dioxin/furan compounds
in soil and sediment samples from a contained and permitted process wastewater
collection and retention system used at the Magcorp plant site for over 25
years. While Magcorp does not consider, and believes that UDEQ does not
consider, a health hazard to be associated with these preliminary sampling
results, Magcorp conducted additional sampling to determine the extent of
accumulations of these compounds. Sampling results confirmed the accumulation of
small amounts of dioxin/furan compounds in soil and sediment from the process
wastewater collection and retention system, and that facility perimeter areas
contained only background levels of the compounds. Management does not expect
magnesium refineries to become subject to new regulations regarding these
compounds in the near future. If these compounds do become subject to government
regulation, the costs of such compliance, if any, could have a material adverse
effect on the Company's financial condition and results of operations; however,
such costs cannot be assessed at this time.


                                       -10-
<PAGE>

Industrial companies such as Magcorp and Sabel have in recent years become
subject to changing and increasingly demanding environmental standards imposed
by governmental laws and regulations. The Company cannot currently assess the
impact of more stringent standards on its results of operations or financial
condition.

FORWARD-LOOKING STATEMENTS

This report includes "forward-looking statements," which involve known and
unknown risks, uncertainties and other important factors that could cause the
actual results, performance or achievements of the Company to differ materially
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks, uncertainties and other important
factors include, among others: general economic and business conditions;
industry capacity; demand; industry trends; competition; currency fluctuations;
the loss of any significant customers; availability of qualified personnel;
changes in environmental regulations; successful completion of planned
installation of new technology; major equipment failures, import and customs
regulations, and outcome of litigation. These forward-looking statements speak
only as of the date of this report. The Company expressly disclaims any
obligation or undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events, conditions
or circumstances on which any such forward-looking statement is based.


                           PART II- OTHER INFORMATION

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits

         A list of exhibits required to be filed as part of this Report on Form
         10-Q is set forth in the "Exhibit Index" which immediately precedes
         such exhibits, and is incorporated herein by reference.

(b)      Reports on Form 8-K

         No reports on Form 8-K were filed during the quarter for which this
         report is filed.


                                       -11-
<PAGE>

                               S I G N A T U R E S

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                            RENCO METALS, INC.
                                            (Registrant)





         June 12, 2000                          /s/    Ira Leon Rennert
-------------------------------             ---------------------------------
Date                                        Ira Leon Rennert
                                            Chairman of the Board and
                                            Principal Executive Officer



         June 12, 2000                          /s/    Roger L. Fay
-------------------------------             ---------------------------------
Date                                        Roger L. Fay
                                            Vice President - Finance
                                            Principal Financial  and
                                            Accounting Officer


                                       -12-
<PAGE>

                                         RENCO METALS, INC.

                                           EXHIBIT INDEX

<TABLE>
<CAPTION>

                  Exhibit Number                           Description
                  --------------                           -----------
                  <C>                                      <S>
---------------------------------------------------------------------------------------------------------------
                        10.1 (f)                           Employment Agreement, between Magnesium
                                                           Corporation of America and Cameron F. Tissington,
                                                           dated May 15, 2000
---------------------------------------------------------------------------------------------------------------
                         10.1.2                            Amendment to Employment Agreement and
                                                           Consulting Agreement, between Magnesium
                                                           Corporation of America and Howard I. Kaplan, (with
                                                           Addendum), dated May 18, 2000
---------------------------------------------------------------------------------------------------------------
                           27                              Financial Data Schedule
---------------------------------------------------------------------------------------------------------------

</TABLE>