Afarak Group — Interim / Quarterly Report 2013

Nov 8, 2013

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JULY - 30 SEPTEMBER 2013

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JULY - 30 SEPTEMBER 2013

09:01 London, 09:01 Helsinki, 8 November 2013 - Afarak Group Plc ("Afarak" or"the Company") (LSE: AFRK, OMX: AFAGR) Interim Report

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JULY - 30 SEPTEMBER 2013

Q3 HIGHLIGHTS (July-September 2013):

• Revenue increased by 10.7% to EUR 30.8 (Q3/2012: 27.8) million
• Sales from processed products increased by 2.8% to 11,359 (Q3/2012: 11,051)
  tonnes
• EBITDA was EUR 2.9 (Q3/2012: -2.2) million and the EBITDA margin was 9.4%
  (Q3/2012: -8.0%)
• EBIT was EUR -3.1 (Q3/2012: -9.0) million
• Profit for the period totalled EUR -1.9 (Q3/2012: -6.1) million
• Production increased by 137.3% to 148,147 (Q3/2012: 62,419) tonnes
• Cash flow from operations was EUR -1.8 (Q3/2012: -2.9) million and liquid
  funds at 30 September were
   EUR 13.1 (30 September 2012: 39.7) (30 June 2013:17.7) million
• Outlook for 2013 remain unchanged

                    +------+             +--------+               +------+
  

  KEY FIGURES (EUR million) | Q3/13| Q3/12 Change|Q1-Q3/13|Q1-Q3/12 Change| FY/12|
  --------------------------+------+-------------+--------+---------------+------+
  Revenue | 30.7| 27.8 10.4%| 93.8| 104.4 -10.1%| 128.6|
  --------------------------+------+-------------+--------+---------------+------+
  EBITDA | 2.9| -2.2  | 13.3| 2.5 436.7%| 9.2|
  | | | | | |
  EBITDA margin | 9.4%| -8.0%  | 14.1%| 2.4%  | 7.2%|
  --------------------------+------+-------------+--------+---------------+------+
  EBIT | -3.1| -9.0  | -5.1| -17.4  | -16.8|
  | | | | | |
  EBIT margin |-10.2%|-32.3%  | -5.5%| -16.6%  |-13.0%|
  --------------------------+------+-------------+--------+---------------+------+
  Earnings before taxes | -2.8| -9.3  | -8.1| -15.6  | -19.6|
  | | | | | |
  Earnings margin | -9.1%|-33.5%  | -8.6%| -15.0%  |-15.2%|
  --------------------------+------+-------------+--------+---------------+------+
  Profit | -1.9| -6.1   | -3.7| -10.4  | -16.6|
  | | | | | |
  Earnings per share, basic,| -0.01| -0.02  | -0.02| -0.04  | -0.06|
  EUR | | | | | |
  --------------------------+------+-------------+--------+---------------+------+

Commenting on the third quarter results, Danko Koncar, CEO, said:"I am pleased to report that the positive trend started in H1 has continued,
although at a slower pace into the third quarter due to the seasonal market
slowdown for the summer period. There has been significant improvement compared
to the same period last year and in the third quarter we have managed to achieve
an increase over last year's revenue and an improvement in profitability despite
difficult market conditions.  This was achieved by focusing on value added
speciality products, increase in the sales of ferrochrome, expansion in mining
production and lowering our cost base.

Processing volumes improved in the third quarter when compared to the equivalent
period last year  as a result of having EWW and Mogale Alloys in full operation
during this period.  Despite the fact that the ferrochrome market remains
difficult to predict, we have seen some positive growth in that segment and
secured a higher margin.

In the longer term I firmly believe that ferrochrome, particularly the
speciality and super alloys segment, will again be in high demand. At the same
time we are not waiting for the market to change, but are continuously
evaluating different initiatives that could strengthen our position and provide
new growth opportunities.  A reflection of this is our commitment to investing
in the ferroalloy refining and granulation equipment at Mogale Alloys so that
part of the current ferrochrome production can be converted to granulated medium
carbon ferrochrome.

In addition we have significantly restructured our organisation and the way we
work to streamline costs. Our focus remains on generating cash and increasing
profits.

Disclosure procedure

Afarak follows the disclosure procedure enabled by Disclosure obligation of the
issuer (7/2013) published by the Finnish Financial Supervision Authority, and
hereby publishes its Q3/2013 interim report enclosed to this stock exchange
release. The Interim Report is attached to this release and is also available on
the Company's website at www.afarakgroup.com.

Investor Conference Call

Management will host an investor conference call in English on 8 November 2013
at 14:00 Finnish time, 12:00 UK time. Please dial-in at least 10 minutes
beforehand, quoting the reference: 44732.

Finnish number +358 (0)800 919 339

UK number +44 (0) 800 22 90 900

AFARAK GROUP PLC
Danko Koncar
CEO

For additional information, please contact:

Afarak Group Plc
Danko Koncar, CEO, +44 (0)20 7376 1175, danko.koncar@afarak.com

Investec Bank Plc
Jeremy Wrathall, +44 (0)20 7597 5970
George Price, +44 (0)20 7597 5970

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

Afarak Group is a chrome mining and minerals producer focused on delivering
sustainable growth with a speciality alloys business in southern Europe and a
ferro alloys business in southern Africa. The Company is listed on NASDAQ OMX
Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
www.afarakgroup.com

Distribution:
NASDAQ OMX Helsinki
London Stock Exchange
main media
www.afarakgroup.com

[HUG#1741719]

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