Afarak, the Finland-based but South Africa-focused miner, saw revenues edge up in the first half of 2023 though higher costs hit earnings.
Revenue rose 3.5% to €95.3 million even though ferrochrome prices were weak during the six months.
The miner said it was cutting output in the second half of the year due to low-priced imports from China and India, but after the drop in the first half, prices seemed “to have found a bottom”.
“We do not expect substantial changes during the second half in that respect.”
Roman Lurf, chief executive, added that its speciality arm segment showed sustainable profitability in the first half with stable demand in its core markets of the US, Europe and Japan, although the global low carbon ferrochrome demand and its market prices have decreased substantially over that period.
“A lot will depend on the central banks' inflation strategy, the recent government policies such as the US Inflation Reduction Act, the EU’s proposed Green Deal and the further development of the present geo-political tensions both in Europe and South-East Asia as well.
“Nevertheless, we are confident about remaining profitable due to being the top-quality low-carbon ferrochrome producer in the global market.
"The ferroalloys segment, based on our mining activity in South Africa, is continuously improving and has been profitable in the first half," he added.
Afarak intends to push on with its Magnochrome refractory project in Serbia, he said, while the planned integration of the LL-resources Group is expected to show the first synergy effects during the final quarter of 2023.
Interim profits were €10.5 million (€24.1 million) with debt at the year-end €3.8 million and cash €19.9 million.