Slide 1: Q2 & H1 2014 Interim Results
Q2 & H1 2014 Interim Results www.afarakgroup.com 14 August 2014 1
Slide 2: Overview
Overview • Processing volumes of ferrochrome continued on a fast pace having both EWW and Mogale Alloys in full operation • Mining production volumes were negatively effected due to the temporary suspension of the Mecklenburg mine and the lockout at the Turkish mines • The Group’s revenue during thi
Slide 3: Group Financial Performance
Group Financial Performance • Revenue was positively affected by increase in sales volumes of our processed material in both segments and the growth in our trading operations • EBITDA reduced during the period mainly due to profit margins remaining low, the increase in production costs and a continu
Slide 4: Sales
Sales • The Group’s processed material sold, were 22,902 (Q2/2014: 10,689) tonnes, an increase of 114.3% compared to the equivalent period in 2014 • This increase is attributable to more demand in both Speciality Alloys and FerroAlloys segments • Average sales prices are improving but have not yet r
Slide 5: Speciality Alloys Performance
Speciality Alloys Performance • Production increased to 22,349 (21,426) tonnes for the second quarter 2014, compared to the equivalent period in 2013 • EWW operated at normal levels during this quarter as maintenance shutdown was scheduled for July 2014 as opposed to June in 2013 • Mining at TMS sto
Slide 6: Speciality Alloys Performance
Speciality Alloys Performance • Revenue increased to EUR 28.9 (18.7) million due to higher sales volumes • EBITDA decreased to EUR 2.7 (3.1) million • Decrease in EBITDA was due to lower sales prices, a weaker US Dollar rate on conversion of revenue and increase in raw material costs (EUR millions)
Slide 7: FerroAlloys Performance
FerroAlloys Performance • Mecklenburg mine was the main driver of reduced mining activity during this quarter as the mine was suspended due to unrest in the local community • Stellite mine operated at normal levels during this quarter • Production at Mogale Alloys continued at normal levels up until
Slide 8: FerroAlloys Performance
FerroAlloys Performance • Revenue for the second quarter improved to EUR 18.4 (Q2:2013 12.7) million compared to the equivalent period in 2013, the increase is a reflection of the improvement in demand for processed material • EBITDA for the second quarter decreased to EUR 1.3 (Q2:2013 3.5) million
Slide 9: FerroAlloys Performance – Joint Venture share of profit
FerroAlloys Performance – Joint Venture share of profit • Afarak’s share of joint ventures revenue for the second quarter decreased to EUR 1.0 (3.4) million compared to the equivalent period in 2013, the decrease in revenue was mainly due to the reduction in sales volumes of the Mecklenburg mine mat
Slide 10: Global Market Review
Global Market Review • Together with the nickel price, the ferrochrome market has also continued to see strong growth in the second quarter of 2014, with increasing demand, and save for China, improved prices compared to the previous quarter especially for the South African Charge Chrome. South Afri
Slide 11: Outlook
Outlook • Afarak still expect its financial performance to be better than 2013 but EBITDA will be lower as Q3 2014 is expected to be weaker as compared to Q3 2013 • The global economic outlook continues showing signs of recovery with western industrial nations issuing positive economic indicators •
Slide 12: Disclaimer
Disclaimer This presentation may contain 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 othe