Afarak Group Plc Q2 Ebitda Weaker Than Expected
07 August 2019 - 11:53PM
UK Regulatory
TIDMAFAGR
Released: August 7, 2019
14:45 London, 16:45 Helsinki, 7 August 2019 - Afarak Group Plc ("Afarak"
or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
Q2 EBITDA WEAKER THAN EXPECTED
Stock Exchange Release
Afarak Group Plc's ("Afarak" or the "Company") announcement dated 12
June 2019, provided an operational update on the performance of the
FerroAlloys segment. The irregular supply of electricity and associated
high costs has remained a major difficulty to achieving reliable,
profitable performance at the Mogale smelter in South Africa. These site
and country-specific factors have been exacerbated by unfavourable macro
conditions such as sustained weak ferrochrome prices, influenced by
US-China trade uncertainties.
The Company has already taken steps to address the operational
under-performance of the Mogale smelter and continues to implement
further efficiency measures.
In line with recent performance, the Company's financial performance
will be adversely impacted by the challenges faced at Mogale.
Accordingly, the Company expects that EBITDA for the second quarter will
be approximately EUR -8 million.
The Mogale smelter will be tested for impairment and a negative result
requiring a write-down could have a material impact on results for the
second quarter.
The acquisition of the joint venture partner's share of Synergy Africa
will positively impact results for the second quarter as a result of
change in control.
The management continue to work hard to turn around the operational
performance of the Mogale smelter and will keep its future viability
under review.
Afarak will publish its interim report for the second quarter of 2019 on
23 August 2019.
Helsinki, August 7, 2019
Afarak Group Plc
Board of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
https://www.globenewswire.com/Tracker?data=NetAm7Wo9WukQVEOs-j34sKSQR7VDaT-sB0TK00PjqDC-jbYGf4z7oCvFoQ6caP_S90stdEzPVPvbbSJ5HQP1mM69veFO7YL0_lsDyI6a08irEiyXgKp_A5L_Eqyndxn52Lj80zdepaVGFT_uc1IvOZTx5sQ6r50oyr3JWPuX7h247bxv3QwtgY6HJLBZ990T2aaIvRWOCPOqBEdK9fl-bAltRq8R8WuCjp9klrcXV4O1hr0H3bd_EOD-7jEsnVXMqi892RIdIE4W0bWDst5Ug==
Jean Paul Fabri, PR Manager, +356 2122 1566, jp.fabri@afarak.com
https://www.globenewswire.com/Tracker?data=ZTnmwtAUyB53WVtgN3ttAQSeDoBulEAz4FGBSUyhCJo3NR_fuDIvZyh8GRuYX3qqlybhM0aI7QkQ63UZpkjg0QLP3C1Kow0_tQyZ80_f96yg4I7-DmWkLXuNfjUDEfxOHe4Km90mpisenfBOOHCnRrrlC-1QS5uovbCI3D9tGKMM_mRgZj2eTGbkLYkv-pvM8R6N5qQ8NVBNPhKqryPblMlKS1daHFyGg53-8-f3xQy8-qc0FnZ0aT2PH3AY_RFQUAkPOUtCjti90NgFRtOJRA==
Financial reports and other investor information are available on the
Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on delivering
sustainable growth with a Speciality Alloys business in southern Europe
and a FerroAlloys business in South Africa. The Company is listed on
NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange
(AFRK).
Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com
(END) Dow Jones Newswires
August 07, 2019 09:53 ET (13:53 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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