Elkem Company Overview and Financials
Summary of key risk factors
An investment in the Company, thus the Offer Shares, involves inherent risk. Prospective investors should carefully consider the risk factors contained in this presentation before making an investment decision.
The risks and uncertainties described below are the assumed most relevant risk factors for the Company's operations. However, these risk factors are not the only risk factors relevant to the Company. Additional risks presented in the financial reports made public by the Company, and risks not presently known to the
Company, or that the Company currently deems immaterial may also impair the Company's business operations and adversely affect the price of the Company's shares and/or the Company's financial position. If any such risks should actually occur, the Company's business, financial position and operating results could
be materially and adversely affected. Prospective investors should carefully consider the risk factors set out below. Prospective investors are strongly encouraged to consult his or her own advisors as to the suitability of an investment in the shares of the Company. An investment in the Company is suitable only for
investors who understand the risks associated with this type of investment and who can afford to lose all or part of their investment.
Additional descriptions of risks related to Elkem is, inter alia, presented in its annual and interim financial reports, as well as its prospectus dated 9 March 2018, that are publicly available. Further descriptions of the risks related to Elkem is also included on page 39 to 46 in this presentation.
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The silicon-based advanced materials and chemical industries, including the production and sale of silicones, silicon-based materials, foundry products and carbon, has been in the past, and may be in the future, subject to economic downturns, market disruptions and fluctuations in market price and demand which
could lead to volatility in the Group's revenues.
The silicon-based advanced materials and chemical industries are cyclical and Elkem may be materially and adversely impacted by the general economic cycle.
The outbreak of Covid-19 has had and may in the future have significant negative effects on the Group.
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Any decrease in the availability, or increase in the cost, of raw materials or transportation could materially and adversely impact Elkem's business and results of operations.
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The business of the Group is particularly sensitive to increases in electricity costs which could materially and adversely increase operating costs.
The costs of complying with changing environmental, health and safety laws could negatively impact Elkem's financial results.
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Costs of compliance with emissions-related laws, including climate change laws and regulations, could adversely affect Elkem's operations and performance.
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Elkem's operations are subject to the inherent hazards, disruptions to its business and other risks associated with silicones and metals manufacturing and the associated chemical production processes, as well as mining, which in turn could result in materially increased expenses and decreased production levels.
The Group operates a global business with worldwide operations and the Group is subject to a variety of country, regulatory and political risks, particularly in connection with its operations in emerging markets, which may materially and adversely impact its operations or materially and adversely affect an investment in
Elkem.
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Future issuances of Shares or other securities could dilute the holdings of shareholders and could materially affect the price of the Shares.
The Group may require additional capital in the future in order to execute its commercialization and growth strategy or for other purposes.
Elkem
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