https://www.engineeringnews.co.za

Afarak expects to report €8m second-quarter loss

8th August 2019

By: Marleny Arnoldi

Online News Editor

     

Font size: - +

LSE- and Nasdaq-listed specialist alloy producer Afarak on Wednesday warned that its financial performance for the second quarter had been adversely impacted on by the challenges at the Mogale smelter, in South Africa.

Irregular supply of electricity and associated high costs have caused underperformance from the smelter, exacerbated by unfavourable macro conditions such as sustained weak ferrochrome prices and US/China trade uncertainties.

Afarak in June decided to idle the two submerged arc furnaces at the Mogale smelter.

The company expects to report a loss before interest, taxes, depreciation and amortisation for the second quarter of about €8-million.

Afarak will test the smelter for impairment. A negative result requiring a write-down could have a material impact on its financial results, it warned.

However, Afarak said this would be partially offset by the acquisition of the joint venture partner’s share of Synergy Africa.

Afarak will publish its interim results on August 23.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Trotech
Trotech

Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.

VISIT SHOWROOM 
Sika South Africa
Sika South Africa

Sika South Africa is a trusted partner for the nation’s infrastructure, commercial, residential, and industrial sectors.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.048 0.908s - 140pq - 2rq
Subscribe Now