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2021-02-26 14:24:27 CET 2021-02-26 14:24:29 CET REGULATED INFORMATION Afarak Group Plc - Financial Statement ReleaseAFARAK GROUP PLC: FINANCIAL STATEMENTS RELEASE 202013:30 London, 15:30 Helsinki, 26 February 2021 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR) AFARAK GROUP PLC: FINANCIAL STATEMENTS RELEASE 2020 Afarak Group has restated its figures for H1 2020 and 2019 due to the loss of control and the end of the consolidation of Afarak Mogale (Pty) Ltd. Afarak Group reclassified Afarak Mogale (Pty) Ltd’s previously reported income statement figures as discontinued operations. There is no change to the previously reported balance sheet figures.
SECOND HALF 2020 HIGHLIGHTS
FULL YEAR 2020 HIGHLIGHTS
MARKET SENTIMENT FOR 2021 Positive news on the vaccines, should trigger a recovery in the demand of Stainless Steel and hence of Chrome, with China as the main contributor. The expectation is based on the tangible signals of recovery from the automotive market. The bottoming of the aerospace industry in 2020, can only lead to a better 2021 in terms of aircrafts orderbooks and number of flights sold. Last but not least, the household and housing market will also play an important role in demand growth. The expectation to the trend has been given by the rise of the European ferro-chrome benchmark to $1.175/lb for Q1 2021 with an increase of 3.1% from the fourth quarter of 2020. The first 2 months of 2021 show improved demand and prices for LC Ferro-Chrome already. CEO GUY KONSBRUCK “During H2/20, the business conditions for the chrome industry have remained weak. Except for China, the pandemic has had a strong grip on all economies, which kept the stainless steel market in a very subdued status. The placement of Mogale into business rescue (and the eventual loss of control in September), and the consequent production stop has caused the company’s dependence on the charge Cr prices to gradually reduce. Our Specialty Alloys segment continued to perform in a more satisfactory way, given the circumstances. Low Carbon ferrochrome prices remained under pressure, and our efforts to right-size the production with the actual demand leads to a lower level of fixed cost absorption and ultimately higher cost of production. In consequence, the Speciality Alloys segment performance was slightly negative. Afarak was forced to substantially reduce the South African Cr Ore output, due to the corona situation, and also due to poor market conditions. The main priorities for Afarak in 2021 are stability and consistency of operational and financial performance, especially to increase the volumes and profitability of the specialty segment.” Helsinki, February 26, 2021 Afarak Group Plc Board of Directors For additional information, please contact: Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@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: Attachment |
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