Eramet: Record year with EBITDA above €1.5bn and very strong deleveraging

News

 

  • EBITDA1 at €1.5bn and Adjusted EBITDA[i],[ii]at €1.9bn (+58%), including the proportional contribution of Weda Bay:

    • Intrinsic performance of €180m, driven by strong growth in volumes in Gabon and Indonesia: 7.5 Mt (+7%) of manganese ore in Moanda, 21.1 Mwmt (x 2) of nickel ore in Weda Bay
    • High price levels in H1 for all of the Group’s markets, combined with a favourable €/$ currency effect
    • New record year for manganese alloys in a very favourable price environment in H1 and with a good control of rising energy and reductant costs
    • Record increase in Free Cash-Flow (FCF) to €824m (+57%) and continued Group deleveraging with net debt of €344m and leverage of 0.2x

     

 

  • Net income, Group share at €740m
  • Significant progress in CSR, particularly regarding climate, biodiversity and safety, with one of the lowest accident rates in the sector
  • Finalisation of Eramet’s repositioning, with the planned completion at end-March of the divestment of Aubert & Duval and the receipt of an exclusive put option agreement for Erasteel
  • Solid fundamentals enabling to accelerate on growth projects in metals for the energy transition: lithium, nickel-cobalt and longer-term, battery recycling
  • Proposal of a dividend of €3.5 per share (+40%), in line with the Group’s capital allocation policy which priorities deleveraging and growth projects

 

  • 2023 outlook  which is in line with a less buoyant and inflationary macroeconomic context:

     

    • Ore volumes up: more than 30 Mwmt of nickel ore in Indonesia and more than 7.5 Mt of manganese ore in Gabon
    • Average prices expected to decline compared to 2022, notably for manganese alloys
    • Energy and reductant costs to remain at a high level
    • Group adjusted EBITDA expected at around €1.2bn in 2023, including the proportional contribution of Weda Bay

     

Christel Bories Portrait

Christel BORIES

Présidente-Directrice Générale du Groupe

 Eramet achieved a record year in 2022, with further increases in our mining productions. The price environment was very favourable in the first half, before a strong slowdown in the second, in a context of inflation and significantly rising energy prices. The year ended also marks the fi-nalisation of our strategic repositioning and the acceleration of our deleveraging.

Eramet now has solid operating assets and the financial resources required to develop its ambi-tious and promising projects, whether in lithium in Argentina and France, nickel-cobalt in Indone-sia, or battery recycling in France. These medium-term strong growth projects position us as a leading player in mining and metals for the energy transition.

In 2023, in an uncertain economic environment, we remain focused on the strict control of our cash, delivering excellence in our operational management and making good progress in our priority projects.

Driven by the commitment of our employees worldwide, we are firmly focused on responsible mining and our ambition is to provide efficient and sustainable solutions to meet the essential challenges of economic development and the energy transition.
 

1 In accordance with the IFRS 5 standard – “Non-current assets held for sale and discontinued operations”. See reconciliation tables in Appendix 1
1,2 Definition of adjusted EBITDA, the Group’s new Alternative Performance Indicator, presented in the financial glossary in Appendix 9  

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