AFARAK GROUP: INTERIM REPORT H1 2025

Financial Performance - Revenue increased by 8% to EUR 77.1 million in H1 2025 compared to EUR 71.4 million in H1 2024 [7] - EBITDA improved to EUR 6.9 million with an EBITDA margin of 9.0%, up from EUR 4.2 million and 5.9% respectively in H1 2024 [7] - EBIT rose to EUR 5.9 million, with an EBIT margin of 7.7%, compared to EUR 3.1 million and 4.3% in H1 2024 [7] - Profit for the period reached EUR 2.4 million, a significant increase from EUR 0.5 million in H1 2024 [7] - Earnings per share improved to EUR 0.01 from EUR 0.00 in H1 2024 [7] Operational Highlights - Processed material sold increased by 28.8% to 15,354 tonnes, up from 11,922 tonnes in H1 2024 [7] - Tonnage mined decreased significantly by 20.5% to 149,410 tonnes, down from 187,958 tonnes in H1 2024 [7] - Cash flow from operations stood at EUR 0.1 million, recovering from a negative EUR 5.4 million in H1 2024 [7] - Interest-bearing debt increased to EUR 4.9 million from EUR 4.6 million as of June 30, 2024 [7] Market Outlook - The market for standard grade low carbon ferro-chrome is expected to remain stable with modest upward potential, although weak US dollar and cheap imports may impact prices [4] - The specialty segment may see more substantial improvements in demand and prices [4] - The chrome ore business is anticipated to produce better margins, with plans for increased output in South Africa [5] Strategic Developments - The company successfully completed the sale of its Ilitha and Zeerust mining assets, generating a gain of EUR 2.4 million [7] - A new wash plant and solar energy plant are planned to be commissioned by the end of September at the Vlaakport mine, enhancing production capabilities [5] - The company aims to focus on increasing output from the Mecklenburg mine following the sale of other assets [5] CEO Commentary - The CEO highlighted the improved EBITDA and profit margins achieved in a challenging market environment, despite geopolitical uncertainties and tariff escalations [6]