Afarak issues Q1 profit warning amid lower ferro-chrome prices, higher costs

Afarak has warned it expects to report a loss for the first quarter of 2018, citing a 30% drop in the benchmark price for ferro-chrome, higher raw materials costs and the appreciation of the South African rand.

The London and Helsinki-listed mining and metallurgical group, which operates the Mogale Alloys chrome operation in South Africa, expects to report negative earnings before interest, taxes, depreciation and amortization (Ebitda) of about €1 million ($1.2 million).

“Following a 30% drop in the charge chrome benchmark price from a year earlier on one side, and the significantly increased prices of raw materials, graphite electrodes and ferro-silicon on the other,...

Published

Janie Davies

May 07, 2018

03:15 GMT

London