Slide 1: Results Q3 2016 Investor Call Presentation
RESULTS Q3 2016 Welcome Investor Call Presentation 11 November 2016
Slide 2: Afarak displayed resilience in a challenging quarter
Afarak displayed resilience in the face of a challenging quarter and is well- positioned to benefit from the current market upswing.
Slide 3: Introductory remarks
Introductory remarks • Markets remained subdued as prices for many of our products continued to slide during the quarter accompanied by tepid demand • Afarak focused its efforts on prudent working capital management, the procurement of strategic raw materials at competitive prices and debt collectio
Slide 4: Safety, Health & Sustainable Development
Safety, Health & Sustainable Development 2 injuries caused 1 fatality at loss of time Mogale
Slide 5: Global market overview
Global market overview Q3 Q3 Outlook – Outlook – Demand Price Q4 Q1 Stainless steel Ferrochrome – Speciality Segment Ferrochrome – Ferroalloys Segment Silico Manganese
Slide 6: Group sales (mt)
Group sales (mt) Mining Processing 10,981 18,024 -11.7% -89.4% • Effected by the depletion of • Decision not to compromise on open-cast mine at Mecklenburg selling price led to lower sales of • DMR Section 54 closure for a speciality alloy segment short period at Stellite due to • Increased sales in
Slide 7: Speciality Alloys Segment
Speciality Alloys Segment Production Performance 17,534 mt Revenue €11.4 million +7.9% (€24.5 million)* Mining EBITDA -€0.7 million (€1.4 million) Increase in chromite due to new processing plant at TMS EBIT -€1.4 million Processing (€0.7 million) Higher processing levels of specialised low carbon M
Slide 8: FerroAlloys Segment
FerroAlloys Segment Production Performance 46,442 mt Revenue €17.5 million -64.3% (€20.2 million)* Mining EBITDA -€1.6 million Depletion of open cast mine (€0.7 million) at Mecklenburg and DMR Section 54 closures Processing EBIT -€2.7 million Safety stoppages at plants (-€0.5 million) due to fatalit
Slide 9: Update on Shaking Table project
Update on Shaking Table project • The operation had a great start in terms of plant availability. • Shaking Tables continue to produce good quality product on a consistent basis. • Our target remains of +15,000 tons concentrate at the end of the month
Slide 10: Overview of results
Overview of results € million Q1 2016 Y-o-Y Comments Revenue 28.9 • Lower trading volumes in speciality segment • Lower sales prices in both segments EBITDA -2.8 • Lower margins due to lower sales prices in both segments • Higher energy tariffs & raw EBIT -4.5 material cost in the ferroalloy segment
Slide 11: Looking ahead
Looking ahead • Improved benchmark prices for charge chrome and demand is gaining traction • The improved market sentiment together with our strong managerial and production capabilities should further support our efforts to generate value for our shareholders • Increased business from the US with r
Slide 12: Welcome / Disclaimer
DISCLAIMER This presentation contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “expects”, “intends”, “may”, “will” or “should” or, in each case, their negative or other v