Afarak Group Plc Q2 Ebitda Weaker Than Expected

 
TIDMAFAGR 
 
   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 Plc 
 
   Board of Directors 
 
   For additional information, please contact: 
 
   Guy Konsbruck, CEO, [phone], [e-mail] 
https://www.globenewswire.com/Tracker?data=NetAm7Wo9WukQVEOs-j34sKSQR7VDaT-sB0TK00PjqDC-jbYGf4z7oCvFoQ6caP_S90stdEzPVPvbbSJ5HQP1mM69veFO7YL0_lsDyI6a08irEiyXgKp_A5L_Eqyndxn52Lj80zdepaVGFT_uc1IvOZTx5sQ6r50oyr3JWPuX7h247bxv3QwtgY6HJLBZ990T2aaIvRWOCPOqBEdK9fl-bAltRq8R8WuCjp9klrcXV4O1hr0H3bd_EOD-7jEsnVXMqi892RIdIE4W0bWDst5Ug== 
 
 
   Jean Paul Fabri, PR Manager, [phone], [e-mail] 
https://www.globenewswire.com/Tracker?data=ZTnmwtAUyB53WVtgN3ttAQSeDoBulEAz4FGBSUyhCJo3NR_fuDIvZyh8GRuYX3qqlybhM0aI7QkQ63UZpkjg0QLP3C1Kow0_tQyZ80_f96yg4I7-DmWkLXuNfjUDEfxOHe4Km90mpisenfBOOHCnRrrlC-1QS5uovbCI3D9tGKMM_mRgZj2eTGbkLYkv-pvM8R6N5qQ8NVBNPhKqryPblMlKS1daHFyGg53-8-f3xQy8-qc0FnZ0aT2PH3AY_RFQUAkPOUtCjti90NgFRtOJRA== 
 
 
   Financial 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 media 
 
   www.afarak.com 
 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

August 07, 2019 09:53 ET (13:53 GMT)

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