Rough patch for Afarak

The third quarter of 2016 really sucked for Afarak; luckily the fourth quarter promises some recovery. Revenue fell 35.4% in the third quarter to €29.9-million vs. €44.8-million in the same year-ago period, while EBIT was a €-4.5-million vs. €-0.7-million in the same period. In the first nine months of 2016, revenue fell 21.5% vs. the same 2015 period, while EBIT was a €-3.7-million vs. €8.1-million.

Production in its ferroalloy business, which consists of Mogale Alloys, Vlakpoort, Stellite, Mecklenburg mines fell to 46,442 mt vs. 130,104 mt, down 64.3% from the same 2015 period. The sharp drop was mostly attributed to the depletion of the open cast mining at Mecklenburg which ended in November 2015. Mining at Stellite was also temporarily interrupted. Total output at Mogale Alloys fell though charge chrome production increased during the third quarter of 2016 compared to the same year-ago quarter. In July one of the furnaces at Mogale was switched to charge chrome from silicomanganese.

Production at its  EWW low-carbon ferrochrome smelter increased as it processed more specialized low-carbon ferrochrome.

 

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