Eramet: Turnover up 34% in Q3 2022

News
  • Turnover of €1.3bn, up 34% from Q3 2021, including a +6% volume effect, a +17% price effect and a +11% currency effect
  • Continued Group debt reduction with a very high level of liquidity
  • Very good operational performance of the Group’s main mining activities in Q3 2022, with a very favourable positioning in the 1st quartile of the cash cost curve of the industry:
  • +15% in manganese ore volumes sold externally in Gabon
  • +9% in nickel ore volumes produced in Indonesia and +23% sold externally

 

  • Start of a trend reversal for selling prices
  • Input costs to remain at high levels, albeit with a downward trend in freight and reductant prices; focus on costs control, strengthened by productivity actions
  • Optimisation of manganese alloys production in order to adjust to demand and energy prices
  • Launch of a study to significantly increase lithium production capacity in Argentina
  • Outlook 2022:
  • Production volume targets confirmed or revised up, except at SLN, with a positive intrinsic performance over the year
  • Acceleration of the selling prices decline in Q4:
    - Strong decrease in manganese alloys invoiced selling prices
    - Manganese ore price index at $4.4/dmtu on average over the last three weeks, reflecting the level expected in Q4 and leading to an average price of approximately $6/dmtu over the year
    - Ferronickel price at a level well below the LME nickel price, with the latter expected at $25,000/t for the year according to the consensus
  • In a persisting inflationary context and factoring in the decreasing selling prices, forecast EBITDA revised slightly down to around €1.5bn for 2022 (versus around €1.6bn previously)

Christel BORIES

Eramet Group Chair and Chief Executive Officer

We achieved a further increase in our production and sales in the third quarter thanks to our targeted and value-accretive investments, as well as our constant productivity efforts. 

In a price environment which is still volatile and in an inflationary context, we remain focused on our cost control, the cash generation and we continue our deleveraging. 

More solid, Eramet continues to implement its strategy. To meet the strong demand in metals for the energy transition, the Group is mobilising its resources and stepping up its projects: in Argentina with a target to double lithium production capacity, in Indonesia with our battery-grade nickel and cobalt project and in France with studies on geothermal lithium extraction. 

As a player in a responsible and sustainable mining industry, we are firmly positioned to serve buoyant markets with long-term growth.

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