<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 JANUARY 31, 1999

                                       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 March 12, 1999:
COMMON STOCK, NO PAR VALUE                                         1,000 SHARES

<PAGE>


                                    FORM 10-Q
                               RENCO METALS, INC.
                         QUARTER ENDED JANUARY 31, 1999


                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                          PAGE NO.
<S>                                                                                                     <C>
TABLE OF CONTENTS                                                                                            2
PART I - FINANCIAL INFORMATION
     ITEM 1 -   FINANCIAL  STATEMENTS

         Condensed Consolidated Balance Sheets - January 31, 1999 And October 31, 1998                       3

         Condensed Consolidated Statements Of Income - Three Months Ended January 31, 1999 
            And 1998                                                                                         4

         Condensed Consolidated Statements Of Cash Flows - Three Months Ended January 31, 1999 
            And 1998                                                                                         5

         Notes To Consolidated Financial Statements                                                          6

     ITEM 2 -   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
                RESULTS OF OPERATIONS                                                                        7

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>
                                                                            JANUARY 31,        October 31,
                                                                               1999                1998
                                     ASSETS                                (UNAUDITED)          (Audited)
                                    --------                               ------------        -----------
<S>                                                                        <C>                 <C>
Current assets:
      Cash and cash equivalents                                             $  14,049           $  21,690
      Accounts receivable, less allowance for doubtful accounts of
         $551 in 1999 and $514 in 1998                                         23,191              25,749
      Inventories, net (note 2)                                                38,383              34,500
      Prepaid expenses and other current assets                                 3,215               3,024
                                                                            ---------           ---------
                  Total current assets                                         78,838              84,963
                                                                            ---------           ---------
Property, plant, and equipment, net                                            36,330              35,385
Other assets, net                                                               5,524               5,626
                                                                            ---------           ---------
                                                                            $ 120,692           $ 125,974
                                                                            ---------           ---------
                                                                            ---------           ---------
                     LIABILITIES AND STOCKHOLDER'S DEFICIT
                     -------------------------------------

Current liabilities:
      Current installments of long-term debt                                $      23           $      23
      Accounts payable                                                          6,430               7,279
      Accrued expenses and other current liabilities                            9,485              15,149
                                                                            ---------           ---------
                  Total current liabilities                                    15,938              22,451
                                                                            ---------           ---------
Long-term debt, excluding current installments                                154,678             154,954
Other liabilities                                                              12,219              14,180
                                                                            ---------           ---------
                  Total liabilities                                           182,835             191,585
                                                                            ---------           ---------
Stockholder's deficit:
      Common stock, no par value.  Authorized, issued, and
         outstanding 1,000 shares                                                   1                   1
      Additional paid-in capital                                                  500                 500
      Accumulated deficit                                                     (62,644)            (66,112)
                                                                            ---------           ---------
                  Total stockholder's deficit                                 (62,143)            (65,611)
                                                                            ---------           ---------
Commitments and contingencies
                                                                            ---------           ---------
                                                                            $ 120,692           $ 125,974
                                                                            ---------           ---------
                                                                            ---------           ---------
</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 INCOME
                                   (UNAUDITED)
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                     THREE MONTHS
                                                                  ENDED JANUARY 31,
                                                             ---------------------------
                                                                1999             1998
                                                             ----------       ----------
<S>                                                          <C>             <C>
Sales                                                        $ 41,620           $ 47,419
Costs and expenses:
      Cost of sales                                            28,768             30,934
      Depreciation, depletion, and amortization                 2,336              2,276
      Selling, general, and administrative expenses             4,679              5,166
                                                             ----------       ----------
                  Total costs and expenses                     35,783             38,376
                                                             ----------       ----------
                     Income from operations                     5,837              9,043

Other income (expense):
      Interest income                                             239                316
      Interest expense                                         (4,671)            (4,720)
                                                             ----------       ----------
                  Total other income (expense)                 (4,432)            (4,404)
                                                             ----------       ----------
                     Income before income taxes                 1,405              4,639
Income tax (benefit) expense (note 3)                          (2,063)             1,362
                                                             ----------       ----------
                         Net income                          $  3,468           $  3,277
                                                             ----------       ----------
                                                             ----------       ----------
</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>
                                                                                     THREE MONTHS
                                                                                   ENDED JANUARY 31,
                                                                             ---------------------------
                                                                                1999               1998
                                                                             ----------         ---------
<S>                                                                          <C>                <C>
Net cash used in operating activities                                        $ (4,035)          $ (1,172)
                                                                             ----------         ---------
Cash flows from investing activities -
      Capital expenditures, net                                                (3,280)            (1,483)
                                                                             ----------         ---------
                  Net cash used in investing activities                        (3,280)            (1,483)
                                                                             ----------         ---------
Cash flows from financing activities:
      Net borrowings (repayments) under revolving credit agreements              (270)               905
      Repayment of long-term debt                                                  (6)                (5)
      Payment of financing fees                                                   (50)                 -
      Dividends                                                                     -             (2,000)
                                                                             ----------         ---------
                  Net cash used in financing activities                          (326)            (1,100)
                                                                             ----------         ---------
Decrease in cash and cash equivalents                                          (7,641)            (3,755)
Cash and cash equivalents, beginning of period                                 21,690             26,607
                                                                             ----------         ---------
Cash and cash equivalents, end of period                                     $ 14,049           $ 22,852
                                                                             ----------         ---------
                                                                             ----------         ---------


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
      Cash paid during the period for interest                               $  8,737           $  8,830
      Cash paid during the period for income taxes                           $     65           $     12
</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, 1998.

       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:


               SUMMARIZED COMBINED GUARANTOR FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                    Three months
                                                                  Ended January 31,
                                                                     (Unaudited)
                                                              ------------------------- 
                                                                 1999            1998
                                                              ---------       ---------
                                                                 (dollars in thousands)
<S>                                                           <C>             <C>
              Statement of operations data:
                     Net sales                                 $41,620          $47,419
                     Cost of sales                             $28,768          $30,934
                     Income before extraordinary item          $ 3,450          $ 3,276
                     Net income                                $ 3,450          $ 3,276
</TABLE>

<TABLE>
<CAPTION>
                                                               JANUARY 31,    October 31,
                                                                  1999           1998
                                                              (UNAUDITED)      (Audited)
                                                              -----------     -----------
                                                                 (dollars in thousands)
<S>                                                           <C>             <C>
              Balance sheet data:
                     Current assets                            $77,350          $83,687
                     Noncurrent assets                         $41,854          $41,011
                     Current liabilities                       $13,605          $16,300
                     Noncurrent liabilities                    $16,897          $19,134
</TABLE>

                                       6
<PAGE>


(2)    INVENTORIES

       Inventories consist of the following:
<TABLE>
<CAPTION>
                                                       JANUARY 31,     October 31,
                                                           1999           1998
                                                       (UNAUDITED)     (Audited)
                                                       -----------    -----------
                                                          (dollars in thousands)
<S>                                                    <C>              <C>
              Finished goods                             $28,893          $24,451
              Brine in ponds                               1,141            1,100
              Spare parts and supplies                     8,207            8,740
              Raw materials and work-in-process              676              743
                                                       -----------    -----------
                                                          38,917           35,034
              Less LIFO reserve                              534              534
                                                       -----------    -----------
                                                         $38,383          $34,500
                                                       -----------    -----------
                                                       -----------    -----------
</TABLE>


(3)    INCOME TAXES

       On January 15, 1999, Group filed an election with the consent of its
       shareholders with the Internal Revenue Service to change its taxable
       status from that of a subchapter C corporation to that of a subchapter S
       corporation, effective November 1, 1998. At the same time, Group elected
       for the Company to be treated as a qualified subchapter S subsidiary
       (QSSS). Most states in which the Company operates will follow similar tax
       treatment. QSSS status requires the ultimate shareholders to include
       their pro rata share of the Company's income or loss in their individual
       tax returns. The Company will continue to provide for state and local
       income taxes for the taxing jurisdictions which do not recognize QSSS
       status, however, management believes this is not material to the Company.
       As a result of this change in tax status, the Company recognized an
       income tax benefit of $2,063,000 during the three months ended January
       31, 1999, which includes the elimination of net deferred tax liabilities
       recorded as of October 31, 1998.



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

RESULTS OF OPERATIONS - THREE MONTHS ENDED JANUARY 31, 1999 COMPARED TO THREE
MONTHS ENDED JANUARY 31, 1998

SALES for the three-month period ended January 31, 1999 decreased 12.2% over 
the prior period. The decrease was attributable to a 14.5% decrease in 
Magcorp's revenues and a 4.8% decrease in Sabel's revenues. Magnesium 
shipments decreased 12.5% and Magcorp's average selling price for magnesium 
decreased 1.4%. Foreign import competition primarily from Chinese and Russian 
producers continues to put pressure on magnesium volumes and pricing, 
particularly in the steel desulfurization segment of the magnesium business. 
According to International Magnesium Association statistics, calendar 1998 
shipments by such non-western producers represented a 24% increase over 1997 
levels, demonstrating the increased foreign imports in the markets. 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 
decrease was due to overall price and volume decreases affecting the U.S. 
steel industry.

COST OF SALES for the three-month period ended January 31, 1999 decreased 
7.0% on a consolidated basis. Magcorp's cost of sales decreased 7.5% due in 
large part to the decreases in sales volume noted above, offset by increases 
in certain energy costs when compared to the corresponding period in 1998. 
Magcorp's cost of sales is highly sensitive to acquired energy costs and 
levels of production. The 5.4% cost of sales decrease at Sabel is 
attributable to the volume decreases mentioned above.

                                       7
<PAGE>

DEPRECIATION, DEPLETION, AND AMORTIZATION for the three-month period ended 
January 31, 1999 increased 3% due to increased depreciation of plant and 
equipment as the result of recent capital equipment additions.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES for the three-month period 
ended January 31, 1999 decreased primarily due to decreased development 
costs, legal costs, and profit-based accruals when compared to the 
corresponding period in 1998.

INTEREST INCOME for the three-month period ended January 31, 1999 decreased 
$77,000 due to cash and cash equivalent balances on hand that decreased to a 
month-end average of $21.0 million in the current period from a month-end 
average of $26.8 million in the corresponding prior period.

INTEREST EXPENSE for the three-month period ended January 31, 1999 was lower 
than that of the corresponding prior period due to lower long-term debt 
levels than in the corresponding prior period.

INCOME TAXES for the three-month period ended January 31, 1999 reflects the 
Company's change in taxable status effective November 1, 1998 described in 
Note 3 to the condensed consolidated financial statements in Item 1 above. 
Accordingly, the Company recognized an income tax benefit of $2.1 million 
that represents the elimination of net deferred tax liabilities recorded as 
of October 31, 1998.

LIQUIDITY AND CAPITAL RESOURCES

The Company's liquidity needs arise from working capital requirements, 
capital investments and interest payment obligations. The Company's primary 
available source of liquidity is from 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 January 31, 1999, the unused amounts available to Magcorp and Sabel 
were approximately $28.3 million and $2.7 million, respectively. During the 
three-month period ended January 31, 1999, Sabel repaid a net amount of 
$271,000 under its revolving credit facility. Magcorp has not borrowed cash 
under its revolving credit facility since 1994.

Cash used in operating activities was $4.0 million for the three-month period 
ended January 31, 1999 compared to $1.2 million for the corresponding prior 
period. The increase in cash used in operations in 1999 compared to 1998 
resulted primarily from increases in inventories and decreases in accrued 
expenses, offset partially by decreases in accounts receivable. Magcorp is 
increasing inventory levels in 1999 to accommodate decreases in production 
that are planned to take place during the period of conversion to new 
electrolytic cell technology discussed below. The increase in inventories is 
also attributable to increased volumes on hand of recycled die cast magnesium 
to be processed by third parties or already processed by third parties. Cash 
flow has also been adversely affected by reduced operating income 
attributable to lower sales volume and pricing from increased import 
competition in both the magnesium and steel operations. 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 $3.3 million for the three-month period ended 
January 31, 1999. Capital expenditures are budgeted at approximately $20 
million for 1999, $35 million for 2000 and $17 million for 2001. Of these 
projected capital expenditure amounts, an estimated total of $40 to $45 
million is related to new electrolytic cell technology that is expected to 
improve manufacturing efficiencies and ensure compliance with future 
environmental standards. Prototype work continues on the electrolytic cell 
conversion program. Assuming the successful completion of prototype work by 
mid-1999, the conversion of the remaining cells is expected to take place 
over a period of two to three years. As a result, the associated cost 
reductions and related manufacturing efficiencies are not expected to be 
realized in the Company's operating results until 2001.

                                       8
<PAGE>

The declaration and payment of dividends by the Company are restricted by the 
Company's long-term debt agreements, which generally allow dividends on a 
cumulative basis up to 50% of consolidated net income earned since the 
issuance of the Senior Notes. Based on profitability and after taking into 
account the Company's prospects and liquidity needs, the Company plans to pay 
quarterly dividends to the extent allowed by the Company's long-term debt 
agreements. Management anticipates that existing cash balances and cash 
generated from operations and availability under its revolving credit 
facilities will be sufficient to finance the Company's liquidity needs for 
the foreseeable future.

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.

YEAR 2000 BUSINESS MATTERS

Many information technology (IT) and process control systems used in the 
current business environment were designed to use only two digits in the date 
field and thus may not function properly in the Year 2000 and after. This 
could result in system failures or in miscalculations causing disruption of 
operations, including, but not limited to, an inability to process 
transactions, to send and receive electronic data, or to engage in routine 
business activities and operations. Management has initiated projects to 
prepare the Company's IT and process control systems to be Year 2000 
compliant. The projects consist of four phases: evaluation, renovation, 
testing and implementation. The Company expects to both replace some systems 
and upgrade others. Projected funds to cover remaining remediation costs as 
incurred are expected to come from operations.

For IT systems, the evaluation phase is complete. IT projects since 1994 have 
been planned with Year 2000 compliance in mind, and no other IT projects have 
been deferred to accommodate Year 2000 costs. Replacement of mainframe-based 
IT systems began in 1994 and as a result, the renovation phase is 
approximately 95% complete. The Company anticipates completion of renovation, 
testing and implementation of its IT systems by July 1999. Since Year 
2000-related replacements began in 1994, the Company has expensed 
approximately $1.1 million in IT maintenance or modification costs and 
capitalized approximately $700,000. Remaining IT modification costs, all 
expected to be expensed, are estimated to be less than $50,000.

The Company's IT and non-IT systems are not materially interdependent. 
Process control and other non-IT systems are being evaluated individually and 
may require replacement software, reprogramming or other corrective actions. 
Completion status of non-IT systems is estimated to be as follows: 
evaluation-100%; renovation-95%; testing-95%; and implementation-90%. The 
Company anticipates completion of renovation, testing and implementation of 
its process control systems by July 1999. Total remaining costs for all 
non-IT phases combined are estimated not to exceed $25,000.

The Year 2000 issue is a potentially significant issue for most companies, 
with implications that cannot be anticipated or predicted with any degree of 
certainty. The Company is communicating with third parties material to the 
Company's operations, including electric and natural gas utility companies, 
to determine the extent of the Company's vulnerability to the failure of 
third parties to remediate their own Year 2000 issues. The Company will use 
information learned from this process in developing its contingency plans to 
mitigate the effect of suppliers that will not be Year 2000 ready on a timely 
basis. The Company is presently dependent on a single source for certain of 
its energy and raw materials needs. If certain vendors are unable to supply 
the energy or raw materials on a timely basis in 2000, it could result in the 
Company being unable to operate or require the Company to operate at a 
reduced level. In addition, the lack of accurate and timely Year 2000 
information from suppliers of automation and process control systems and 
components, or suppliers' inability to provide Year 2000 ready replacement 
components, could result in the Company being unable to operate, or require 
the Company to operate at a reduced level, in 2000. There can be no assurance 
that third parties material to the Company's operations will be Year 2000 
compliant, or that their failure to be compliant will not have a material 
adverse effect on the Company's operations.

                                        9
<PAGE>

The Company intends to make the modifications necessary to mitigate the risk 
of disruption to its operations. The remaining costs of this project and its 
timely completion are dependent upon numerous assumptions about future 
events, including availability of certain resources, third party remediation 
plans, and other factors, many of which are beyond the Company's control. 
Contingency plans are being developed as part of the project, but a timetable 
for completion has not been established.

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 Environmental Protection Agency have 
visited Magcorp's facility in preparation for the process of establishing 
NESHAPS for chlorine and hydrogen chloride emissions, which have been 
previously unregulated. 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 November 2000, 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. 
Assuming the successful completion of prototype work by mid-1999, the 
conversion of the remaining cells is expected to take place over a period of 
two to three 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 $40 to $45 million of its 
capital expenditure budget for 1999, 2000 and 2001, 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 $4.7 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 Division 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 intends to conduct additional 
sampling to verify that there are limited accumulations of these compounds in 
the wastewater area. An air emissions test is being planned to verify the 
suspected insignificance of any dioxins in air emissions from the facility. 
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>

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; and successful completion of planned installation of new 
technology and major equipment failures. 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)






         March 12, 1999                       /s/    Ira Leon Rennert
------------------------------              ----------------------------
Date                                        Ira Leon Rennert
                                            Chairman of the Board and
                                            Principal Executive Officer






         March 12, 1999                       /s/    Roger L. Fay
------------------------------              ----------------------------
Date                                        Roger L. Fay
                                            Vice President - Finance
                                            Principal Financial and
                                            Accounting Officer

                                      12