Eramet: EBITDA at €982m , continued Group deleveraging in first-half 2022
High price levels for all of the Group’s markets, in particular for manganese alloys (from +45% to +70% in Europe vs. H1 2021) and high-grade manganese ore (+34%), combined with a favourable €/$ currency effect.
Strong growth in volumes, continued development plans:
+16% of manganese ore produced and transported in Gabon (vs. H1 2021)
+31% of exported volumes of nickel ore from New Caledonia
+33% of nickel ore produced in Weda Bay
In the new Eramet scope, excluding operations sold or in the process of being sold:
Group half-year EBITDA more than tripled to €982m
Very strong increase in Free Cash-Flow (FCF) to €429m, including €86m linked to the sale of Sandouville in February
Continued Group debt reduction with leverage of 0.4x
Net income, Group share at €677m
Construction of the lithium plant in Argentina started, in line with the initial schedule
Continued studies as part of the partnership with BASF for the production of battery-grade nickel and cobalt
Signing of the Share Purchase Agreement for Aubert & Duval in June; completion expected by the end of the year, marking the refocusing on Mining and Metals activities
Production volume targets confirmed, except SLN
Favourable seasonality in H2, leading to a positive intrinsic performance over the year
Prices expected to decline in H2: Significant trend reversal in H2 for manganese alloys invoiced selling prices, as expected Consensus for average manganese ore prices at $6.4/dmtu for the year ($6/dmtu in H2) and LME nickel prices at $25,600/t ($24,500/t in H2); ferronickel price at a level well below the LME nickel price
Input costs to remain at high levels
Strongly negative impact of all external factors in H2
In an inflationary context which remains uncertain, and based on the consensus of the abovementioned prices, forecast EBITDA revised up to around €1.6bn in 2022
Eramet group Chair and CEO
We achieved a very good first half-year, characterised by an increase in our production volumes in a particularly favourable price environment.
We enter the second semester by strengthening our mobilisation on operational excellence and cash optimisation, in a more uncertain macroeconomic context.
Eramet continues to refocus itself on a portfolio of competitive and cash-generating mining and metallurgical assets and now has a more solid financial structure.
This strengthened position enables us to support our future growth, supported by an increasingly exemplary approach to social responsibility
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