Afarak Group: FINANCIAL STATEMENTS RELEASE 2024

09:30 London 11:30 Helsinki   28 February 2025 – Afarak Group SE (“Afarak” or “the Company”) (LSE: AFRK, NASDAQ: AFAGR)

FINANCIAL STATEMENTS RELEASE 2024

SECOND HALF 2024 HIGHLIGHTS

• Revenue for the second half of 2024 decreased to EUR 57.2 (H2/2023: 58.3) million;
• Speciality Alloys processed material sold increased by 25.2%, to 9,837 (H2/2023: 7,854) tonnes;
• Tonnage mined increased by 3%, to 177,972 (H2/2023: 173,629) tonnes;
• Group’s EBITDA decreased to EUR -1.6 (H2/2023: 1.5) million and the EBITDA margin stood at -2.9% (H2/2023: 2.5%);
• EBIT was EUR -3.2 (H2/2023: 0.6) million and the EBIT margin stood at -5.6% (H2/2023: 1.2%);
• Loss for the period totalled EUR -7.8 (H2/2023: -0.5) million;
• Cash flow from operations during H2 2024 was EUR -0.9 (H2/2023: 1.3) million;
• The interest-bearing debt of the Group reduced to EUR 2.6 (31 December 2023: 3.1) (30 June 2024: 4.6) million;
• Cash and cash equivalents at 31 December totalled EUR 4.0 (31 December 2023: 18.0) (30 June 2024: 10.1) million.

FULL YEAR 2024 HIGHLIGHTS

• The Group revenue was lower compared to prior year EUR 128.6 (FY/2023: 153.7) million;
• Speciality Alloys Processed material sold increased by 5.1%, to 21,759 (FY/2023: 20,709) tonnes;
• Tonnage mined increased by 8.7%, to 365,929 (FY/2023: 336,601) tonnes;
• EBITDA during the year decreased to EUR 2.6 (FY/2023: 16.6) million. EBIT stood at EUR -0.1 (FY/2023: 15.0) million;
• Loss for the full year 2024 totalled EUR -7.2 (FY/2023: 10.0) million.
• A hyperinflation adjustment of 1.9 million is included in the financial expenses with respect to the Turkish entities.

MARKET SENTIMENT FOR Q1/2025

Output of LC FeCr is expected to increase compared to Q4 2024. The low market prices show signs of bottoming out. We continue our efforts to lower our COP and dilute the fix cost via increased production of standard grades. Output of chrome ore is expected to remain at the same level. The market prices have recently begun to improve again.

CEO GUY KONSBRUCK

In an extremely tough year 2024, we generated a positive EBITDA of € 2.6M. The stainless steel demand was historically low, especially in Europe.

The demand for low carbon ferro-chrome suffered from this fact. In addition the price pressure from low cost imports (India, Kazakhstan, Russia and China) weighed heavily on our margins. We have decreased the OPEX by 21.2%, but that wasn’t enough to generate a good result.

The Chrome Ore prices decreased sharply in the second half year, which further impacted the revenues and margins.

Nonetheless, we succeeded in keeping our financial situation stable. The company will follow the new dividend policy and the board intends to decide about the actual dividend allocation at a later stage.

Helsinki, February 28, 2025

Afarak Group SE

Board of Directors

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com

Financial reports and other investor information are available on the Company’s website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com

Attachment

• Afarak_Release_FY 2024_EN_FINAL