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General mining & base metals

Afarak Group regroups after challenges of 2018

Low ferrochrome prices and problems in South Africa affected 2018

Metals alloys specialist Afarak Group PLC ( LON:AFRK) told shareholders it has regrouped after a difficult year in 2018.

Guy Konsbruck, chief executive, wrote: “The unforeseen challenges in the South African assets were exacerbated by the lower average ferrochrome benchmark prices.

“These factors led to the group posting poor results when compared to the record performance for 2017."

Mogale

Afarak had particular problems with its Mogale plant, which was affected by technical problems including stoppages and low-quality ore.

Corrective measures were taken and a return to growth was management’s objective, he added.

Revenues in 2018 were €194mln compared to €198.8mln in 2017, while the company reported an €18.6mln loss for the year, versus a €6.7mln profit.