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07 Aug 2019 | 15:04

Afarak warns of second-quarter loss amid smelter woes in South Africa

Afarak Group warned that it expected to post a loss in the second quarter amid a poor operational performance at its Mogale smelter in South Africa.

In June, the company had already said that an irregular supply of electricity and associated high costs had had impacted operations at Magole.

'These site and country-specific factors have been exacerbated by unfavourable macro conditions such as sustained weak ferrochrome prices, influenced by US-China trade uncertainties,' Afarak said on Wednesday.

'The company has already taken steps to address the operational under-performance of the Mogale smelter and continues to implement further efficiency measures,' it added.

Ebitda for the second quarter was expected to be a loss of €8m.

The Mogale smelter would be tested for impairment and a negative result requiring a write-down could have a material impact on results, Afarak added.

At 3:04pm: (LON:AFRK) Afarak Group share price was 0p at 72.5p

Story provided by StockMarketWire.com
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