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
