Afarak notes high ferrochrome, chrome ore prices of Q1 not sustainable

Shares in Afarak fell almost 11% as it said warned the high price levels for ferrochrome and chrome ore seen Q1 have not been sustainable over the longer term.

"We still expect improved performance in Q2 2017 compared to a year earlier, although subdued, when compared to Q1 2017 numbers," the company said.

Afarak posted first-quarter EBITDA of €12.7m, from €3.3m in the same three-month period a year ago. Revenue was €56.7m, from €40.8m. Profit was €4.2m, from €0.2m.

Chief executive Guy Konsbruck said, looking ahead, the volatility of the market remained a key risk and Afarak should not expect record performances on a quarterly basis.

"Afarak has had a very strong start to the year," he added, further noting the particularly higher ferrochrome and ore prices.

"However, this bullish market has already started to dampen and prices have reversed trends towards the end of quarter one, going into the second quarter."

At 11:57 BST, shares in Afarak were down 10.81% to 82.5p each.