REG-AFARAK GROUP: INTERIM REPORT H1 2025

Afarak SEAnnouncement

15/08/2025 07:00

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07:00 London, 09:00 Helsinki, 15 August 2025 - Afarak Group SE ("Afarak" or
"the Company") (LSE: AFRK, NASDAQ: AFAGR)

FINANCIAL INTERIM RELEASE H1 2025

                                         H1/25  H1/ 24  2024   
 Revenue                    EUR million  77.1   71.4    128.6  
 EBITDA                     EUR million  6.9    4.2     2.6    
 EBIT                       EUR million  5.9    3.1     -0.1   
 Earnings before taxes      EUR million  3.4    1.9     -5.3   
 Profit                     EUR million  2.4    0.5     -7.2   
 Earnings per share         EUR          0.01   0.00    -0.03  
 EBITDA margin                           9.0%   5.9%    2.0%   
 EBIT margin                             7.7%   4.3%    -0.1%  
 Earnings margin                         4.5%   2.6%    -4.1%  
 Personnel (end of period)               613    588     602    
                                                               
                                                               

FIRST HALF 2025 HIGHLIGHTS
* Revenue increased by 8% to EUR 77.1 (H1/2024: 71.4) million;
* Afarak successfully completed the sale of its Ilitha and Zeerust mining
assets in South Africa, generating a gain of EUR 2.4 million;
* Processed material sold increased by 28.8% to 15,354 (H1/2024: 11,922)
tonnes;
* Tonnage mined decreased significantly by 20.5% to 149,410 (H1/2024: 187,958)
tonnes;
* The Group’s EBITDA was EUR 6.9 (H1/2024: 4.2) million and the EBITDA
margin was 9% (H1/2024: 5.9%);
* EBIT was EUR 5.9 (H1/2024: 3.1) million, with the EBIT margin at 7.7%
(H1/2024: 4.3%);
* Profit for the period totalled EUR 2.4 (H1/2024: 0.5) million;
* Cash flow from operations stood at EUR 0.1 (H1/2024: -5.4) million;
* The interest-bearing debt amounted to EUR 4.9 (30 June 2024: 4.6) (31
December 2024: 2.6) million;
* Cash and cash equivalents at 30 June totalled EUR 5.8 (30 June 2024: 10.1)
(31 December 2024: 3.9) million.
OUTLOOK FOR THE SECOND HALF OF 2025

The market for standard grade low carbon ferro-chrome is expected to be stable
throughout the year with some modest upwards potential. The weak US$ could
easily wipe out any price increases, and cheap imports especially from
Kazakhstan, and in a lesser way from Turkey and India/China will continue to
weigh on the market price development. The specialty segment may be seeing
more substantial improvements in demand and prices.

The chrome ore business, on the other hand, is expected to produce better
margins. We have been finalizing investment decisions that will enable us to
swiftly increase the output of chrome ore concentrates in South Africa. A new
wash plant is planned to be commissioned by end of September in our Vlaakport
mine, together with a solar energy plant which will make us independent from
the grid there and allow us to produce on steady and regular basis
concentrates with high quality ratios. The Mecklenburg mine is also expected
to increase output substantially. By selling Ilitha and Zeerust, our South
African team is now able to focus fully on these two assets.

CEO Mr. Guy Konsbruck

Afarak managed to present substantially improved EBITDA and profit margins
compared to H1/2024 in an extremely competitive and complicated market. The
tariff escalation between USA and Europe, the geopolitical uncertainties did
not support a positive evolution of the business environment.

Internally, unexpected boulder zones caused set-backs in the mining operations
in Mecklenburg, which entailed a low production of Chrome ore. Hence, we could
not achieve the expected results in that segment.

The fact that 80% of our sales happen in the USD currency which has strongly
devaluated, added another adverse condition to this picture. Under the light
of all the above, we can be satisfied with the results of H1/2025. Afarak has
been for many years now the only Western producer of low carbon ferro-chrome,
a critical material for production for Aerospace, Defense, Automotive, Green
energies, and various other industries.

Helsinki, August 15, 2025

Afarak Group SE

Board of Directors

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com

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

Attachment
*     Afarak Group Interim release H1 2025 EN
(https://ml-eu.globenewswire.com/Resource/Download/b334eca7-38a3-45b7-ad9b-e6df47a3c1b4)