Key information about Eramet's 2018 annual results.
- Sales up 5% over 2018 to €3,825m1 in a context of rising metal prices and favourable markets for mineral sands.
- New operating records for the Mining and Metals division2, confirming the Group's ambitions: 4.3 million tonnes of manganese ore produced, 1.2 million tonnes of nickel ore exported out of New Caledonia in 2018, 7743 thousand tonnes of mineral sands concentrate produced.
- EBITDA at €843m1, in line with the guidance provided. Second year of strong value creation with a 22% ROCE.
- High current operating income, at €581m1, with contrasting performances by activity notably production difficulties in Nickel activity, and an unfavourable market environment in the main sectors of the High Performance Alloys division4.
- Net income - Group share at €53m1, including a non-current provision of €65m to factor in the cost of the quality process review within the High Performance Alloys division.
- Net debt of €717m1, gearing5 of 38%, reflecting the acquisition of TiZir.
- Dividend payment to shareholders in respect of the 2018 financial year: an amount of €0.60 per share maintaining a 30% pay-out ratio will be submitted for approval at the General Shareholders’ meeting on 23 May, 2019.
- A key milestone in 2019 for the major growth projects of the Group: Organic growth in manganese ore with a production target of 4.5 million tonnes as of 2019 and decision expected to increase volumes by end-2023 to 7 Mt. / Expected decision to be made on the lithium project in Argentina reflecting the acceleration of the diversification strategy in metals for the energy transition.
- Intrinsic growth and productivity gains in 2019, offsetting the current deterioration in market conditions, thereby resulting in forecast EBITDA close to that of 20186.
1 Consolidated performance indicators; see Financial glossary in Appendix
2 Manganese, nickel, mineral sands and lithium
3 TiZir at 100%
4 Aubert & Duval and Erasteel
5 Net debt-to-equity ratio
6 Assuming market conditions of January 2019