What it does
Headquartered in Helsinki, the group runs the Mogale processing plant, along with the Stellite, Mecklenburg and Vlakpoort mines, gaining full control of the mines in the first half of 2019.
Originally named Ruukki, the Finnish company has been mulling a switch of domicile to the UK to help with share illiquidity.
It’s assets in Turkey produce niche low carbon and ultra-low carbon ferrochrome products.
How it’s doing
For 2019, Afarak scaled down mining activity as the industry faced some big bumps in the road, with lower selling prices and a deterioration of the chrome ore and ferrochrome market amid unfavourable operational conditions in South Africa, particularly with power being expensive and irregular. Then coronavirus hit in 2020, and the South African operations were put into a business rescue programme, as mining volumes decreased by more than 50%. The company is currently working through that process.
The company is confident that it can get out of the business rescue in a reasonably short period of time, as the world market prices have recently improved and the cost of production is positively affected by the weakening of the ZAR/USD exchange rate.
- Recovery in ferrochrome price
- Action taken by South African government to improve energy market
- Remedial action at Mogale starts to improve performance
- Completion of share buyback and switch of listing to London
Published at Wed, 10 Jun 2020 08:30:00 +0000-Afarak Group is a significant ferrochrome producer with an international spread of assets