Afarak Group — Earnings Release 2020

Apr 30, 2020

National Storage Mechanism | Additional information

16:00 London, 18:00 Helsinki, 30 April 2020 - Afarak Group Plc (“Afarak” or “the Company”) (LSE: AFRK, NASDAQ: AFAGR)

*Production report Q1 2020*

The overall production during the first quarter of 2020 contracted by 42.6% when compared to same period of prior year.

			Q1/2020	Q1/2019	Change	FY 2019
	Group production	mt	76,405	133,217	-42.6%	426,774
	Mining	mt	59,949	109,718	-45.4%	357,557
	Processing	mt	16,456	23,499	-30.0%	69,217
	Speciality Alloys production	mt	27,168	24,439	11.2%	100,765
	Mining	mt	19,105	17,286	10.5%	75,251
	Processing	mt	8,063	7,153	12.7%	25,515
	FerroAlloys production	mt	49,237	108,778	-54.7%	326,008
	Mining	mt	40,844	92,432	-55.8%	282,306
	Processing	mt	8,393	16,346	-48.7%	43,702

Mining

• Afarak Group’s mining activity decreased by 45.4% during the first quarter of 2020 when compared to same period of prior year;
• Contraction in mining activity was mainly attributable to the no mining activity in the Mecklenburg mine and significantly lower mining activity in the Stellite mine;
• Minor activity recorded in Vlakpoort mine and Zeerust mine;
• The Turkish mines maintained efficiency in mining activity results, where it was increased by 10.5% during the quarter when compared to same period in 2019;
• The current Impact of COVID-19 epidemic had a limited effect on Afarak Group mining activity in South Africa since an approval was given by the authorities that we can continue some mining activity in Stellite mine under strict health guidelines.

Processing

• The production of processing activity decreased by 30.0% during the first quarter of 2020 when compared to same period of the prior year;
• The increase in production at EWW processing plant within the Speciality Alloys segment was offset by the lower processing activity at Mogale processing plant within the FerroAlloys segment;
• The production of processed material decreased significantly in the FerroAlloys segment due to Mogale not being in full operation as opposed to same period last year, as both furnaces P2 and P3 were switched off during 2019;
• Following the nation-wide lockdown in South Africa due to the current epidemic COVID-19, an approval was provided by the authorities for Afarak to continue with production.

Helsinki, April 30, 2020

AFARAK GROUP PLC

Board of Directors

For additional information, please contact:

Afarak Group Plc

Guy Konsbruck, CEO, +356 2122 1566, [email protected]

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