On Wednesday the chrome producer said it would shut down some of its production at the Mogale plant after coming under pressure from falling ferrochrome prices and rising energy costs in South Africa.
The group has decided to halt the use of two submerged arc furnaces at its Mogale smelter.
In a Thursday statement, Afarak said it expects the temporary shut-down to keep losses from Mogale operations “contained”.
“However, due to several variables affecting the financial outcome of this shut-down, it is impossible to quantify the effect,” it said.
“The results will be seen during second half of the year 2019.”
Afarak insisted that the changes in the production “do not affect the buy-back or its financing”
In late 2018, Afarak announced that it would offer shareholders €1.015 per share to buy back its stock after investors voted in favour of the proposal at an extraordinary general meeting.