Last checked at 7 Aug 2019 14:53
Q2 EBITDA WEAKER THAN EXPECTED
Released: August 7, 2019
14:45 London, 16:45 Helsinki, 7 August 2019 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
Q2 EBITDA WEAKER THAN EXPECTED
Stock Exchange Release
Afarak Group Plc´s ("Afarak" or the "Company") announcement dated 12 June 2019, provided an operational update on the performance of the FerroAlloys segment. The irregular supply of electricity and associated high costs has remained a major difficulty to achieving reliable, profitable performance at the Mogale smelter in South Africa. These site and country-specific factors have been exacerbated by unfavourable macro conditions such as sustained weak ferrochrome prices, influenced by US-China trade uncertainties.
The Company has already taken steps to address the operational under-performance of the Mogale smelter and continues to implement further efficiency measures.
In line with recent performance, the Company’s financial performance will be adversely impacted by the challenges faced at Mogale. Accordingly, the Company expects that EBITDA for the second quarter will be approximately EUR -8 million.
The Mogale smelter will be tested for impairment and a negative result requiring a write-down could have a material impact on results for the second quarter.
The acquisition of the joint venture partner’s share of Synergy Africa will positively impact results for the second quarter as a result of change in control.
The management continue to work hard to turn around the operational performance of the Mogale smelter and will keep its future viability under review.
Afarak will publish its interim report for the second quarter of 2019 on 23 August 2019.
Helsinki, August 7, 2019
Afarak Group PlcBoard of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com Jean Paul Fabri, PR Manager, +356 2122 1566, jp.fabri@afarak.comFinancial reports and other investor information are available on the Company's website: www.afarak.com.Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
Distribution:NASDAQ Helsinki London Stock Exchange Main mediawww.afarak.com