AFARAK GROUP

INTERIM REPORT H1 2020

08:30 London, 10:30 Helsinki, 21 August 2020 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

FINANCIAL INTERIM RELEASE H1 2020

		H1/20	H1/19	2019
Revenue	EUR million	44.9	82.8	144.9
EBITDA	EUR million	-2.8	-12.9	-23.8
EBIT	EUR million	-9.6	-37.7	-63.2
Earnings before taxes	EUR million	-15.6	-31.8	-60.6
Profit	EUR million	-16.1	-29.2	-58.9
Earnings per share	EUR	-0.07	-0.11	-0.23
EBITDA margin	%	-6.3	-15.6	-16.4
EBIT margin	%	-21.3	-45.6	-43.6
Earnings margin	%	-34.7	-38.5	-41.8
Personnel (end of period)		770	1,035	905

FIRST HALF 2020 HIGHLIGHTS

• Revenue decreased by 45.7% to EUR 44.9 (H1/2019: 82.8) million;
• Processed material sold decreased by 46.1% to 23,356 (H1/2019: 43,334) tonnes;
• Tonnage mined decreased by 46.4% to 102,659 (H1/2019: 191,497) tonnes due to lower mining activity at Stellite mine and no mining activity at Mecklenburg mine;
• The Group’s EBITDA increased to EUR -2.8 (H1/2019: -12.9) million and the EBITDA margin was -6.3% (H1/2019: -15.6%);
• An impairment write-down on other long term assets related to Mogale business of EUR 4.7 (H1/2019: 20.8) million;
• EBIT was EUR -9.6 (H1/2019: -37.7) million, with the EBIT margin at -21.3% (H1/2019:           -45.6%);
• Profit for the period totalled EUR -16.1 (H1/2019: -29.2) million;
• Cash flow from operations stood at EUR -2.2 (H1/2019: -5.2) million;
• Net interest-bearing debt after deducting liquid funds amounted to EUR 54.7 (30.2) (31 December 2019: 55.1) million;
• Cash and cash equivalents at 30 June totalled EUR 6.1 (30 June 2019: 6.1) (31 December 2019: 5.4) million.

OUTLOOK FOR THE SECOND HALF OF 2020