logo-loader
viewAfarak Group PLC

Afarak sees “solid” long-term market prospects despite losses

Management said the company delivered a “good performance given the market circumstances” as it focuses on cost reduction and cash preservation

Afarak Group PLC - Afarak sees “solid” long-term market prospects
The company has operations in South Africa

Afarak Group PLC (LON:AFRK) said it sees “solid” long-term prospects for the stainless steel and ferrochrome industry despite the current soft phase of the market.

The specialist alloy maker said it continues to focus on cost reduction and cash preservation, in the hope production cutbacks will eventually solve the oversupply situation.

READ: Afarak studying Finnish regulator’s imposition of €1.45mln fine

This quarter is expected to remain weak in the ferroalloys segment as the charge chrome benchmark price has dropped by a further 2c to US$102 cents per pound.

In a quarterly update, management said the company delivered a “good performance given the market circumstances”.

In the three months to 30 September, revenue was down 21% year-on-year to €33.6mln, while processed material sold decreased by 15% to 21,554 tonnes.

Losses widened to €16.3mln.

Cash at the end of the period was 34% higher at €8.8mln.

“The business environment in South Africa remains challenging and Afarak, together with other smelting and mining companies, continues to seek support from the government to reduce energy cost; improve energy availability and provide protection from low-cost producers via duties on chrome ore exports,” said chief executive Guy Konsbruck in a release.

Quick facts: Afarak Group PLC

Price: 37.5 GBX

LSE:AFRK
Market: LSE
Market Cap: £88.89 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Afarak Group PLC named herein, including the promotion by the Company of Afarak Group PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Afarak 'resilient' and working to optimise business despite challenging markets

Afarak Group PLC (LON:AFRK) CEO Guy Konsbruck updates Proactive London on operations after what's proven to be a challenging start to the year for the firm. This month the chrome producer said it would shut down some of its production at the Mogale plant after coming under pressure from...

on 20/6/19

2 min read