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General mining & base metals

Afarak posts positive earnings in face of ‘very difficult business environment’

Afarak Group PLC (LSE:AFRK) reported a 25% decrease in revenue to €71.4 million for the first half of 2024, compared to €95.4 million in the same period last year.

Group EBITDA came to €4.2 million, representing a 5.9% margin while profit for the period totalled €500,000

Chief executive Guy Konsbruck called the EBITDA outcome “no small achievement in a very difficult business environment”.

He continued: “Higher realised chrome ore prices helped to counterbalance low carbon ferrochrome prices that remained under pressure, mainly due to the presence of massive inventory of Russian material and low-cost imports, especially from India.

“The efficiency of our operations provided some buffer to protect our profitability. Afarak has been for many years now the only Western producer of low carbon ferrochrome, a critical material for the production of the Aerospace, Defense, Automotive, Green energies, and various other industries.”

As of 30 June, Afarak's cash and cash equivalents were €10.1 million.

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