Slide 1: Q4 2014 Final Results
Q4 2014 Final Results www.afarakgroup.com 16 February 2015 1
Slide 2: Overview
Overview • Full year Revenue increase 27.4% y-o-y • Full year EBIT positive of EUR 1.7 million, from EUR -8.0 million in 2013. EBIT first time positive since entering the mineral business • EBIT negatively effected by EUR 1.6 million due to asset write-downs in our joint venture operation • Full yea
Slide 3: Group Financial Performance
Group Financial Performance • Improvement in full year revenue attributable to increase in sales volumes of processed material in both segments and growth in trading operations • Full year EBITDA decreased mainly due to profit margins remaining low during 2014; the increase in production cost in bot
Slide 4: Sales
Sales • In Q4 the sales from processing, was 23,465 (Q4/2013: 23,593 tonnes, a fractional decrease of 0.5% compared to the equivalent period in 2013. • The Speciality Alloy segment continued the positive trend of 2014, with an increase in sales volumes of 13% when compared to same period in 2013. •
Slide 5: Speciality Alloys Production
Speciality Alloys Production • Production in Q4 decreased to 9,063 (24,051) tonnes for the fourth quarter 2014, compared to the equivalent period in 2013. • The decrease in production was mainly attributable to the decrease in mining activity of our mines in Turkey as the lockout continued through t
Slide 6: Speciality Alloys Performance
Speciality Alloys Performance • Revenue in Q4 increase by 14.0% to EUR 22.6 (19.9) million, this was due to higher sales prices and trading volumes. • EBITDA in Q4 increased to EUR 1.2 (0.5) million, we saw a substantial improvement on last year’s EBITDA. • Full year revenue increased by 31.4% to EU
Slide 7: Ferroalloys Production
Ferroalloys Production • Production in this segment decreased to 86,434 (145,143) tonnes in the fourth quarter of 2014. • This was mainly due to the suspension of the mining operations at Mecklenburg mine, which restarted mining operations in December 2014. • The Stellite mine and Mogale Alloys oper
Slide 8: Ferroalloys Performance
Ferroalloys Performance • Revenue in Q4 decreased to EUR 19.0 (21.9) million, this was due to lower trading volumes • EBITDA in Q4 decreased to EUR -0.4 (0.6) million, this was mainly due to the JV asset write-downs of EURM 1.6 • Full year revenue increased by 22.6 % to EUR 74.8 (61.0) million, this
Slide 9: Ferroalloys Performance – Joint Venture share of profit
Ferroalloys Performance – Joint Venture share of profit • Afarak’s share of joint ventures revenue for Q4 decreased to EUR 0.7 (2.8) million compared to the equivalent period in 2013, representing a decrease of 76.3%. The decrease in revenue was mainly due to the reduction in sales volumes from the
Slide 10: Global Market Review
Global Market Review • The ferrochrome producers had to reduce their prices further for their standard materials, to be able to compete with the Chinese producers which lowered their prices further during the third quarter of 2014. • South African benchmark prices reducing during 2014, producers dis
Slide 11: Outlook for 2015
Outlook for 2015 • The global growth in stainless steel production is expected to lead an increase in demand for chrome products in 2015. • As occurred in 2014 where the chrome industry has not been able to increase chrome product prices it is unclear whether this upswing in prices will occur in 201