AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JANUARY...

07:00 London, 09:00 Helsinki, 11 May 2016 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR) Interim Report

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2016

Q1 HIGHLIGHTS (January - March 2016):

- Revenue increased by 0.1% to EUR 40.8 (Q1/2015: 40.7) million
- Processed material sold increased by 20.0% to 26,952 (Q1/2015: 22,466) tonnes
- EBITDA was EUR 3.3 (Q1/2015: 4.6) million and the EBITDA margin was 8.0% (Q1/2015: 11.4%)
- EBIT was EUR 1.7 (Q1/2015: 2.9) million and the EBIT margin was 4.2% (Q1/2015: 7.2%)
- Profit for the period from continuing operations totalled EUR -0.2 (Q1/2015: 2.3) million
- Ferrochrome production increased by 0.7% to 27,631 (Q1/2015: 27,449) tonnes
- Tonnage mined decreased by 58.2% to 45,486 (Q1/2015: 108,773) tonnes
- Cash flow from operations was EUR 7.2 (Q1/2015: -2.7) million and liquid funds at 31 March were
  EUR 21.7 (31 March 2015: 11.5) (31 December 2015: 19.6) million
 

KEY FIGURES (EUR million)	Q1/16	Q1/15	Change	FY2015
Revenue	40.8	40.7	0.1%	187.7
EBITDA	3.3	4.6	-29.4%	17.2
EBITDA margin	8.0%	11.4%		9.2%
EBIT	1.7	2.9		9.9
EBIT margin	4.2%	7.2%		5.3%
Earnings before taxes	0.9	2.7		6.5
Earnings margin	2.1%	6.5%		3.5%
Profit from continuing operations	-0.2	2.3		7.8
Profit from discontinued operations	0.5	0.0		0.8
Profit	0.2	2.3		8.5
Earnings per share, basic, EUR	0.00	0.01		0.03

Commenting on the first quarter results, Alistair Ruiters, CEO, said:


"I am pleased that Afarak has managed to maintain positive EBIT and generate cash in a quarter that witnessed other producers filing for business rescue and with a market characterised by falling prices and weak demand.

Revenue and sales volumes increased considerably in the FerroAlloys segment. Sales volumes decreased in the Speciality segment, due to Afarak's policy not to compromise on price. To mitigate against short term swings in prices Afarak has successfully continued on maintaining long term agreement.

Looking ahead, Afarak continues to strengthen its internal processes and functions. Today we have a streamlined organisation that is actively looking at opportunities that generate cash and increase profits. We are also focused on internal investments and, as the shaking table project has come on stream, we are expecting positive results from this investment. Afarak is committed to achieving long-run sustainability and growth and we are determined to continue creating value for all our stakeholders." 

Disclosure procedure

Afarak follows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority, and hereby publishes its Q1/2016 interim report enclosed to this stock exchange release. The Interim Report is attached to this release and is also available on the Company's website at www.afarak.com.


AFARAK GROUP PLC
Alistair Ruiters
CEO


For additional information, please contact:

Afarak Group Plc
Alistair Ruiters, CEO, [phone], [e-mail]
Melvin Grima, Finance Director, [phone], [e-mail]
Jean Paul Fabri, PR & Communications Manager, [phone], [e-mail]

Financial reports and other investor information are available on the Company's website: www.afarak.com.

Afarak Group is a chrome mining and minerals 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 

AFARA GROUP Q1 Interim Report

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Afarak Group via Globenewswire

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