Afarak Group Plc Afarak Group : 3rd Quarter Results

 
TIDMAFAGR 
 
   07:00 London, 09:00 Helsinki, 11 November 2016 - Afarak Group Plc 
("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR) Interim Report 
 
   AFARAK GROUP PLC'S UNAUDITED INTERIM REPORT FOR 1 JULY - 30 SEPTEMBER 
2016 
 
 
 
   Q3 HIGHLIGHTS (July-September 2016): 
 
   Afarak displayed resilience in the face of a challenging quarter and is 
well-positioned to benefit from the current market upswing. 
 
   Health, safety & environment 
 
 
   -- One worker, Nelson Maurison Msimango, succumbed to grievous injuries 
      sustained followed at accident at Mogale plant 
 
 
   Investor highlights 
 
 
   -- Capital redemption of EUR 2.6 (0.0) million approved and paid during the 
      quarter 
 
 
   Financial highlights 
 
 
   -- Revenue decreased by 35.4% to EUR 28.9 (Q3/2015: 44.8) million 
 
   -- EBITDA was EUR -2.8 (Q3/2015: 1.3) million and the EBITDA margin was 
      -9.8% (Q3/2015: 2.8%) EBIT was EUR -4.5 (Q3/2015: -0.7) million and the 
      EBIT margin was -15.7% (Q3/2015: -1.5%) 
 
   -- Profit for the period from continuing operations totalled EUR -3.2 
      (Q3/2015: -1.0) million 
 
   -- Cash flow from operations was EUR -5.5 (Q3/2015: 9.9) million and liquid 
      funds at 30 September was EUR 7.0 (30 September 2015: 22.3) (30 June 
      2016: 13.2) million 
 
 
   Operational highlights 
 
 
   -- Processed material sold decreased by 11.7% to 18,023 (Q3/2015: 20,419) 
      tonnes 
 
   -- Production of processed material decreased by 4.4% to 18,489 (Q3/2015: 
      19,348) tonnes 
 
   -- Tonnage mined decreased by 64.2% to 45,487 (Q3/2015: 127,004) tonnes 
 
 
 
 
KEY FIGURES (EUR                                                          FY 
million)             Q3/16   Q3/15  Change   Q1-Q3/16  Q1-Q3/15  Change   2015 
Revenue                28.9   44.8   -35.4%     109.2     138.5  -21.2%  187.7 
EBITDA                 -2.8    1.3  -326.0%       1.2      13.5  -91.0%   17.2 
EBITDA margin         -9.8%   2.8%               1.1%      9.8%           9.2% 
EBIT                   -4.5   -0.7               -3.7       8.1            9.9 
EBIT margin          -15.7%  -1.5%              -3.4%      5.8%           5.3% 
Earnings before 
 taxes                 -4.2   -2.0               -4.6       6.1            6.5 
Earnings margin      -14.6%  -4.5%              -4.2%      4.4%           3.5% 
Profit from 
 continuing 
 operations            -3.2   -1.0               -4.5       7.0            7.8 
Profit from 
 discontinued 
 operations             1.0      0                1.5         0            0.8 
Profit                 -2.2   -1.0               -3.0       7.0            8.5 
Earnings per share, 
 basic, EUR           -0.01   0.00              -0.01      0.03           0.03 
 
 
   Commenting on the third quarter results, Alistair Ruiters, CEO, said: 
 
   "The company endured a very challenging quarter.  It was extremely 
painful to deal with the loss of one of our colleagues, Nelson Maurison 
Msimango, who passed away following a fatal accident at our Mogale 
plant.  We are continuing with our efforts to enhance health and safety 
procedures at our plants. 
 
   Markets remained subdued as prices for many of our products continued to 
slide accompanied by tapered demand.   With prices gravitating downwards, 
our sales volumes in the speciality alloy segment were hit hard.  Our 
mining and production volumes were lower due to safety stoppages at our 
mines and due to the closure of Mogale Alloys plant following the 
fatality.  In response, Afarak focused its efforts on prudent working 
capital management, the procurement of strategic raw materials at 
competitive prices and debt collection.  Our sales of materials, 
particularly charge chrome, remained satisfactory despite the 
seasonality associated with weak demand in the third quarter. 
 
   We are seeing a recovery in prices. Benchmark prices for charge chrome 
have accelerated and demand is gaining traction. This improved market 
sentiment together with our strong managerial and production 
capabilities should further support our efforts to generate value for 
our shareholders." 
 
   Disclosure procedure 
 
   Afarak follows the disclosure procedure enabled by Disclosure obligation 
of the issuer (7/2013) published by the Finnish Financial Supervision 
Authority, and hereby publishes its Q3/2016 unaudited interim report 
enclosed to this stock exchange release. The Interim Report is attached 
to this release and is also available on the Company's website at 
www.afarak.com. 
 
   Investor Conference Call 
 
   Management will host an investor conference call in English on 11 
November 2016 at 14.00 Finnish time, 12.00 UK time. Please dial-in at 
least 10 minutes beforehand, quoting the reference: 38313. 
 
   Finnish number [phone] 
 
   UK number [phone] 
 
 
 
   AFARAK GROUP PLC 
 
   Alistair Ruiters 
 
   CEO 
 
 
 
   For additional information, please contact: 
 
 
 
   Afarak Group Plc 
 
   Alistair Ruiters, CEO, [phone], [e-mail] 
 
   Melvin Grima, Finance Director, [phone], [e-mail] 
 
   Jean Paul Fabri, PR & Communications Manager, [phone], 
[e-mail] 
 
   Financial reports and other investor information are available on the 
Company's website: www.afarak.com. 
 
 
 
   Afarak Group is a chrome mining and minerals 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 media 
 
   www.afarak.com 
 
   The information contained within this announcement is deemed by the 
Company to constitute inside information as stipulated under the Market 
Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of 
this announcement via Regulatory Information Service ('RIS'), this 
inside information is now considered to be in the public domain. 
 
 
 
 
 
   Q3 RESULTS EN: http://hugin.info/143997/R/2056265/770192.pdf 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Afarak Group via Globenewswire 
 
 
  http://www.afarakgroup.com 
 

(END) Dow Jones Newswires

November 11, 2016 02:00 ET (07:00 GMT)

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