Adjusted turnover of €809m in Q3 2024

Paris, 24 October 2024, 7:15 a.m.

PRESS RELEASE

Eramet: Adjusted turnover of €809m in Q3 2024

• Adjusted turnover¹ of €809m, down 17% versus Q3 2023, reflecting a negative volume effect (-43%), partly offset by a positive price effect (+26%)
• Decrease in volumes sold for the Group’s main mining activities, except mineral sands:
  • Depressed market conditions for carbon steel in China in Q3, leading to a decline in sales of manganese ore (-37% vs. Q3 2023)
  • Timing of issuance by the Indonesian Authorities of the nickel ore sales permit for 2024, which significantly restricted nickel ore volumes sold in Q3 (-83%)
  • Good operational performance in Senegal, with an increase in zircon and ilmenite volumes sold² (+88% and +34%, respectively)
• Significant volatility in selling prices over the quarter:
  • Strong decline in manganese ore prices to around $4.0/dmtu currently (-56% vs. end-July), with an average quarterly index remaining above Q3 2023
  • Stability in prices for nickel ore sold in Indonesia, the decline of the LME being offset by a high level of local premiums, resulting from supply restrictions
• Regaining full ownership of Centenario, a key strategic asset for Eramet's sustainable development in lithium, a critical metal for the energy transition; impact of $699 million on the Group's net debt (press release of 24/10/2024³)
• Suspension of the Battery Recycling project, pending a solid and sustainable economic model in Europe
• Market conditions remain depressed in Q4 2024 and are expected to continue weighing on prices, notably for manganese
  • Volumes targets revised for 2024 (press release of 15/10/2024³):
    • Sales of high-grade manganese ore: between 6.0 and 6.5 Mt, including around 0.7 Mt of internal sales, factoring in the decline in Q3 sales
    • Nickel ore sales in Indonesia: 32 Mwmt, including 3 Mwmt of internal sales and a third of the volume being limonite, according to the revised sales permit for the year
    • Production of lithium carbonate: around 1 kt-LCE, scheduled to start in the coming weeks in Argentina
• Adjusted EBITDA¹ in H2 expected to be above that of H1, considering the market environment and based on the above production and sales volume targets
• Action plan aimed at preserving cash:
  • Reduction in capex financed by the Group⁴, revised downwards between €450m and €500m in 2024 (a decrease of €250m and €100m compared to the targets communicated end-February and end-July respectively)
  • Optimisation of WCR, particularly inventories by adjusting production as closely as possible to match demand
  • Strict cost control in all of our activities, with the temporary suspension of manganese ore production in Gabon notably enabling better cost control in a difficult market environment