AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JULY - ...

09:01 London, 09:01 Helsinki, 8 November 2013 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, OMX: AFAGR) Interim Report

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JULY - 30 SEPTEMBER 2013

Q3 HIGHLIGHTS (July-September 2013):

- Revenue increased by 10.7% to EUR 30.8 (Q3/2012: 27.8) million
- Sales from processed products increased by 2.8% to 11,359 (Q3/2012: 11,051) tonnes
- EBITDA was EUR 2.9 (Q3/2012: -2.2) million and the EBITDA margin was 9.4% (Q3/2012: -8.0%)
- EBIT was EUR -3.1 (Q3/2012: -9.0) million
- Profit for the period totalled EUR -1.9 (Q3/2012: -6.1) million
- Production increased by 137.3% to 148,147 (Q3/2012: 62,419) tonnes
- Cash flow from operations was EUR -1.8 (Q3/2012: -2.9) million and liquid funds at 30 September were
 EUR 13.1 (30 September 2012: 39.7) (30 June 2013:17.7) million
- Outlook for 2013 remain unchanged

KEY FIGURES (EUR million)	Q3/13	Q3/12	Change	Q1-Q3/13	Q1-Q3/12	Change	FY/12
Revenue	30.7	27.8	10.4%	93.8	104.4	-10.1%	128.6
EBITDA	2.9	-2.2		13.3	2.5	436.7%	9.2
EBITDA margin	9.4%	-8.0%		14.1%	2.4%		7.2%
EBIT	-3.1	-9.0		-5.1	-17.4		-16.8
EBIT margin	-10.2%	-32.3%		-5.5%	-16.6%		-13.0%
Earnings before taxes	-2.8	-9.3		-8.1	-15.6		-19.6
Earnings margin	-9.1%	-33.5%		-8.6%	-15.0%		-15.2%
Profit	-1.9	-6.1		-3.7	-10.4		-16.6
Earnings per share, basic, EUR	-0.01	-0.02		-0.02	-0.04		-0.06

Commenting on the third quarter results, Danko Koncar, CEO, said:

"I am pleased to report that the positive trend started in H1 has continued, although at a slower pace into the third quarter due to the seasonal market slowdown for the summer period. There has been significant improvement compared to the same period last year and in the third quarter we have managed to achieve an increase over last year's revenue and an improvement in profitability despite difficult market conditions.  This was achieved by focusing on value added speciality products, increase in the sales of ferrochrome, expansion in mining production and lowering our cost base.

Processing volumes improved in the third quarter when compared to the equivalent period last year  as a result of having EWW and Mogale Alloys in full operation during this period.  Despite the fact that the ferrochrome market remains difficult to predict, we have seen some positive growth in that segment and secured a higher margin.

In the longer term I firmly believe that ferrochrome, particularly the speciality and super alloys segment, will again be in high demand. At the same time we are not waiting for the market to change, but are continuously evaluating different initiatives that could strengthen our position and provide new growth opportunities.  A reflection of this is our commitment to investing in the ferroalloy refining and granulation equipment at Mogale Alloys so that part of the current ferrochrome production can be converted to granulated medium carbon ferrochrome.

In addition we have significantly restructured our organisation and the way we work to streamline costs. Our focus remains on generating cash and increasing profits.

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 Q3/2013 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.afarakgroup.com.

Investor Conference Call

Management will host an investor conference call in English on 8 November 2013 at 14:00 Finnish time, 12:00 UK time. Please dial-in at least 10 minutes beforehand, quoting the reference: 44732.  

Finnish number [phone]

UK number [phone]

AFARAK GROUP PLC
Danko Koncar
CEO


For additional information, please contact:

Afarak Group Plc
Danko Koncar, CEO, [phone], [e-mail]

Investec Bank Plc
Jeremy Wrathall, [phone]
George Price, [phone]

Financial reports and other investor information are available on the Company's website: www.afarakgroup.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 ferro alloys business in southern Africa. The Company is listed on NASDAQ OMX Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
www.afarakgroup.com

Distribution:
NASDAQ OMX Helsinki
London Stock Exchange
main media
www.afarakgroup.com

Q3

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Source: Afarak Group via Thomson Reuters ONE

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