Specialist alloy producer Afarak Group’s income decreased by 25.9% year-on-year to €57.1-million for the six months to June 30.
Processed materials offered decreased by 25.9% year-on-year to 11 372 t, whereas tonnage mined decreased by 12.8% to 130 256 t.
The group’s earnings earlier than curiosity, taxes, depreciation and amortisation (Ebitda) for the six months below evaluation was €1.6-million and the Ebitda margin 2.8%.
Internet monetary objects have been negatively impacted by a good worth adjustment of €500 000 on excellent overseas trade ahead contracts as at June 30.
This resulted in a loss for the interval of €700 000, whereas money movement from operations stood at €1.5-million and money and money equivalents at €4.9-million as at June 30.
Afarak expects the demand for standard-grade, low-carbon ferrochrome to enhance after the summer season vacation, owing to the very low inventories of the business at current.
The weak greenback is anticipated to proceed to influence on revenue margins, whereas low-cost imports from Kazakhstan, Türkiye, Brazil and India would proceed to weigh in the marketplace worth growth, the corporate predicts.
It notes that the specialty section may see extra appreciable enhancements in demand.
The South African chrome ore enterprise is predicted to stay secure.
The focus manufacturing within the new Vlaakport mine wash plant is operating easily, Afarak highlights.
The demand for chrome ore in China is constantly rising and costs have just lately began to extend once more after a decline throughout the second quarter, it provides.
“The market situations all through 2026 have been very sophisticated. Whereas the costs of low-carbon ferrochrome have improved in greenback phrases, there was steep decline in consumption, particularly in Europe, particularly as a result of automotive and the oil and fuel sector. The disruptions attributable to the Iran struggle and the Ukraine struggle impacted our buyer base gravely,” CEO Man Konsbruck explains.
“As a consequence, we determined to scale back our low-carbon ferrochrome manufacturing with the intention to match the output and the demand. We anticipate the demand to choose up as of September, particularly if a decision of the Iran battle might be reached shortly.
“Within the meantime, we’re actively pursuing future enterprise alternatives as an try of diversifying our actions and creating new income streams,” he provides.
