We argue that the current valuation reflects too high short-term expectations and on the contrary the negative development of market prices point to weakening earnings. In our view, the current premium valuation to book value would require a double digit return on equity, which we do not expect the company to reach in the short-term. We urge investors to focus on the company’s long-term growth initiatives.

We have continued to clarify the dispute between Afarak’s owners. We have concluded that we cannot reliably evaluate the matter’s potential juridical consequences or its outcome. In this exceptional matter, the share’s price may not be tied to the company’s fundamental value. We will continue research on Afarak and we will continue to evaluate the company’s operations. However, we do not see it justifiable nor do we have the required information to be able to take stance on the dispute or evaluate the matters consequences.