Afarak negative earnings warning Shop

Mining and mineral Afarak Group Gave a negative earnings warning throughout its 2024 result.

According to recent guidelines, the company estimates the EBITDA of 2024 to be EUR 2.6 million. Net sales are expected to be approximately EUR 128.6 million.

A decrease in EBITDA in the new estimate would mean an 85 % decrease compared to 2023 and a 16.3 % decrease in net sales.

“2024 was weak for the industry of stainless steel, and the signs suggest that 2025 can also become challenging. During 2024, demand for stainless steel, especially in Germany, remained low, and the European market as a whole was subdued, ”the company’s release states.

“On the manufacturing side, we managed to continue to reduce our production costs. We can generally confirm that the demand for low -carbon specialty quality products for specialty products has increased and market prices have shown the direction of the rise. On the other hand, the price situation of standard quality, especially because of imports circulating through Russia through different countries, has strongly influenced our segment coverage. ”

The company expects the chrome market to remain strong. Afarak says it has finished investment decisions that can quickly increase the production of chromium bastards in South Africa.

“In the third and especially in the fourth quarter, the prices of chrome ore decreased unexpectedly and significantly due to the poor economic situation in China. However, since mid -January, this trend has turned, and the market outlook for chrome ore is again more positive. ”