Afarak Group's revenue and profits continue to rise
Last updated: 11:44 18 Aug 2023 BST, First published: 09:30 11 Mar 2021 GMT
Snapshot
- Afarak confident it can ride out challenging ferrochrome markets
About the company
Afarak Group PLC is a global vertically-integrated producer of speciality alloys with operations in South Africa, Turkey, Germany, London, Helsinki and Malta.
Recognised as a critical metal producer, Afarak supplies world leading companies in a broad range of industries across the globe.
How it is doing
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.”
Afarak group’s chief executive said the company had enjoyed the best year in its history in 2022, something that enabled the specialist metals producer to repay all of its long-term debt.
Guy Konsbruck added: “Afarak can now count on a strong balance sheet to pursue future growth and diversification opportunities”.
Afarak Group PLC (LSE:AFRK, FRA:V5W) says markets for ferrochrome are starting to pick up and it expects a more stable business environment in the second half of 2021.
Revenues at the miner in the six months to end June rose slightly to €37.3mln (€35.5mln), while losses further reduced with a deficit of €500,000 against a €4.1mln a year ago.