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Mining Capital
EPIC: AFRK
Market: LSE:AFRK
FRA:V5W
52-week High/Low: 100.00p / 65.75p
Sector: General Mining
Market Cap: 175.63M
Website: afarak.com

Afarak is a global vertically-integrated ferroalloys producer supplying specialist products to the steel and stainless industries. It is a critical metal producer and supplies specialist products to the world’s leading suppliers in the aerospace and renewable energy industries, medical steel and other applications across the globe. Afarak has established operations in South Africa, Turkey,...

Afarak Group PLC

afarak.com

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Big picture - Why invest in Afarak Group PLC

Afarak Group PLC Snapshot

STRATEGY

Afaraks goal is to create value to all its stakeholders.  Guided by this overarching goal, our strategy is geared towards developping long-term growth opportunities.  This orientation guides our short to medium term strategy and action plans. 

Over the past few years, Afarak has invested heavily in its internal capacity to deliver.  We invested in our people, in technology, processes and systems. 

Today, we are delivering on our promise and we will continue to do so. 

Margin protection

Our focus on offering higher value speciality products allows us to protect our margins.

Operational efficiency

We aim to streamline our processes and systems in order to reap economies of scale thus reducing our operational expenditure.

Strategic investments

Through a strategic investment programme, we continue to develop and implement new technologies to support our long-term strategy and goals.

Zero-Harm

Afarak strives to achieve ‘Zero Harm’ at all of its operations and to provide its employees and contractors with a safe and healthy environment in which to work, develop and grow.

Sustained growth

Our industry insight and knowledge ensures that we have opportunities and projects to contribute to our growth.

Local community development

Afarak makes positive contributions to the local communities in which it operates and built long-term relationships to underpin the sustainability of its business.

  • Speciality Alloys

    TMS was acquired in 2008 from a private company Kermas and its operations consist of open pit and underground mining, as well as ore enrichment facilities equipped with primary and secondary crushing, milling and concentration tables. The production facilities are located in Kavak, in the Eskisehir province, and in Tavas, in the Denizli province. It also holds 27 licences, of which 12 are exploitation licences.

    The annual production capacity is between 100,000 – 120,000 tonnes.

    In 2010 TMS constructed and commissioned a new chromite concentrate beneficiation plant at Kavak. The plant is equipped with triple deck concentration tables which enable the tailings from previous mining operations on site to be re-processed in order to recover the fine ore particles and reduce our waste production.

    TMS produces two chrome ore types: special grade chromite concentrates and lumpy chrome ore.

    The lumpy chrome ore is mainly supplied to stainless steel manufacturers in China and India. The chrome ore is also processed into special grade and highly concentrated chromite concentrate. Following the process the material is delivered to the Group’s processing operations, EWW in Germany, for the production of Low Carbon and Ultralow Carbon Ferrochrome.

    The Turkish chrome ore deposits are significantly smaller in scale than other deposits, including those in South Africa. They are particularly rich in chrome and low in impurties, such as phosphor and sulphur. This make the chrome ore deposits a good choice for EWW’s specialist processing operations and significantly raises the quality of our products.

    EWW – Germany

    EWW is a highly specialised smelting operation producing a range of specialist products, such as specialised Low Carbon and Ultralow Carbon Ferrochrome. The products are sold internationally by Afarak Trading to customers in the automotive, aerospace and power generation industries. Afarak Trading is the Group’s sales and marketing division.
    Processing of the chromite concentrate produced by TMS in Turkey is carried out at EWW Eschweiler-Weisweiler in Germany. EWW has a long history. The processing activities were started in 1917. Afarak acquired EWW and it’s specialty portfolio in 2012.

    GROWTH PROJECTS

    Afarak’s growth strategy is build on two pillars.

    1) Internal development:
    - Increasing mining output in South Africa
    - Adding additional beneficiation steps
    - Developing internal recycling options

    2) M&A:
    - Acquisition of mines/smelters
    - Investment/Cooperation agreements with suppliers

    Short Term Projects
    • New underground shaft in Turkey
    • Installation of a 25 metres highwall in Vlakpoort
    • Open pit mining in Zeerust

    Medium Term Projects
    • Investment evaluation of slag recycling at EWW
    • Commencement of underground operations at Mecklenburg mine in SouthAfrica
    • Commencement of underground operations at Stellite mine in South Africa
     

    Long Term Projects:
    • Investment evaluation of ferrosilico chrome plant at EWW
    • Acquisition of further mining capacity in Turkey and South Africa


    Reserves and Resources

    Ore resource consist of minerals that are legally, economically and technically feasible to extract. Afarak's measured chrome ore reserves are 15.95 million tons in South Africa.  The Turkish reserves include 7.1 million tons and 2.1 of hypothetical reserves, as defined in the Turkish regulations.

    Mineral reserves consist of minerals that are potentially valuable, and for which reasonable prospects exist for eventual economic extraction. Once legal, technical and economical actions and confirmations have been completed, mineral reserves can be classified as ore resource. Afarak's chrome ore reserves in South Africa are 44.86 million tons including measured reserves of 15.95 million tons.
    Furthermore, Afarak's total resources of PGMs are 1.26 million ounces of platinum, palladium plus gold. The total resources of PGMs includes 0.93 million ounces at the Stellite mine.

THE BOARD

Dr. Jelena Manojlovic - Chairperson

 

Jelena Manojlovic has been a member of the Board since 11 July 2008. She is also a member of the Nomination and Remuneration Committee. She is an established university lecturer and organizational consultant and has 35 years’ experience in the human resources field and 20 years’ in management positions in a diverse range of organisations, including the UK’s National Health Service, universities and other companies. She was previously Human Resources Director of Kermas (a major shareholder in the Company). Manojlovic is independent of the Company but through a controlled entity of her husband Danko Koncar, she is dependent on a major shareholder of the Company.

Barry Rourke - Independent Non-Executive Director

 

Barry Rourke was a member of the Afarak Board, the Chairman of the Audit Committee and a member of the Remuneration Committee from April 2010 to February 2013. Previously he was an Audit Partner at PWC's for 17 years from 1984 to 2001 where he specialised in the Oil and Gas and Mining sectors. He currently holds a number of non-executive directorships and positions on the audit committees in other listed companies.

Guy Konsbruck- Executive Non- dependent Director

Guy Konsbruck was appointed as CEO of Afarak in December 2016.  He previously served as an Executive Vice-President of MFC Industrial since 2014.  Before that, he served as CEO of FESIL's global sales companies and was also the co-founder of Luxalloys.  Mr Konsbruck holds an MBA from SHU Fairfield and is a graduate of the Unversité de Strasbourg II.

Thorstein Abrahamsen - Independent Non-Executive Director

Thorstein Abrahamsen is an internationally respected stainless steel and ferro-alloy industry professional. He has served as Chief Executive Officer of various manufacturing companies within stainless steel, ferro-alloy, construction equipment and mining industries. He also served as Vice- President Sales & Distribution of  a global stainless steel production company. Throughout his career he has served on over 30 boards including  chairmanships of ferro- alloy and steel trading & marketing companies around the world. He is currently chairman of construction industry company, a board member and partner of a management consultancy company and two investments companies. 

 

Major shareholders at 31 August 2018
  Change from previous month
    Shares % of shares Shares %
1. Nordea Bank Ab (Publ), Suomen Sivuliike
(Nominee Registered)
153,765,682 58.46 -341,681 -0.22
2. Hino Resources Co. Ltd  36,991,903 14.06 0 0
3. Joensuun Kauppa ja Kone Oy  12,757,240 4.85 0 0
4. Hanwa Company Limited  9,000,000 3.42 0 0
5. Kankaala Markku Olavi  6,797,690 2.58 0 0
6. Hukkanen Esa Veikko  3,570,872 1.36 -10,500 -0.29
7. Afarak Group Plc  2,854,161 1.09 0 0
8. Suokas Petri Kristian  1,482,410 0.56 0 0
9. OP Life Assurance Company Ltd  1,236,159 0.47 -14,000 -1.12
10. Clearstream Banking S.A.
(Nominee Registered)
1,098,563 0.42 -17,351 -1.55
11. Kakkonen Kari Heikki Ilmari  970,000 0.37 0 0
12. Taloustieto Incrementum Ky  856,207 0.33 0 0
13. Lemmetti Juhani  770,122 0.29 0 0
14. Ollikainen Pekka  589,766 0.22 -6,910 -1.16
15. Japak Oy  549,528 0.21 0 0
16. Danske Bank AS Helsinki Branch
(Nominee Registered)
538,435 0.20 +20 +0.00
17. Hyttinen Tomi Jukka Kristian  533,000 0.20 0 0
18. Fennia Life Insurance Company Ltd  512,991 0.20 +48,691 +10.49
19. Nieminen Jorma Juhani  370,000 0.14 +10,000 +2.78
20. Virkki Risto Anton  350,000 0.13 0 0
21. Aj Elite Value Hedge Sr  349,580 0.13 0 0
22. Pakarinen Janne  332,545 0.13 0 0
23. Kivimaa Antti  325,000 0.12 0 0
24. Euroclear Bank Sa/Nv
(Nominee Registered)
313,591 0.12 0 0
25. Nikander Mikael Arvo Benjamin  308,744 0.12 -10,383 -3.25
26. Hartikainen Arto Ensio  300,000 0.11 0 0
27. Keranto Timo Juhani  299,500 0.11 0 0
28. Skandinaviska Enskilda Banken AB
(Nominee Registered)
279,662 0.11 -11,389 -3.91
29. Rainio Group Oy  278,000 0.11 0 0
30. Simula Aarne Esa Sakari  247,000 0.09 0 0
31. Karhulahti Veikko Kalevi  203,387 0.08 0 0
32. Kankaala Timo  185,000 0.07 +55,000 +42.31
33. JSH Capital Oy   177,650 0.07 0 0
34. Parkkinen Veli-Matti  164,000 0.06 0 0
35. Oy Novatum Ab  162,933 0.06 +20,000 +13.99
36. Nojomaa Timo  151,384

Investor Relations

[email protected]

Afarak Group Oyj

Unioninkatu 20-22
00130 Helsinki
Tel: +358 50 372 1130 
Fax: +358 10 440 7001

[email protected]

Invoices

Afarak Group Plc

PL 215
00063 
Laskunet
Finland

Sales

[email protected]

Afarak Malta & Afarak Trading Limited

2nd Floor, Europa Centre

John Lopez Street

Floriana FRN 1400

Malta

Tel: +356 2122 1566 / +356 2703 0462
Fax +356 2122 1438

Afarak South Africa (Pty) Ltd


4th Floor
267 West Street

Centurion
South Africa
Tel: +27 11 668 3800 / Fax: +27 11 668 3899

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