Eramet confirms its resilience and successfully delivers on its strategic roadmap
Paris, 19 February 2025, 6:30 p.m.
*PRESS RELEASE *
*Eramet confirms its resilience and successfully delivers on its strategic roadmap*
· *Start of lithium production in Argentina at year-end *and *regaining full ownership* of this world-class strategic asset, essential for the energy transition
· *Operational performance *of the main mining activities *constrained* in 2024:
· 30.3 Mwmt of nickel ore sold at Weda Bay in Indonesia (-9% vs. 2023), due to the authorisations obtained being significantly below the environmental permit and the mining plan previously validated by the Indonesian Authorities
· 5.5 Mt of manganese ore sold (-7%), factoring in the closure of the high-grade ore market in China in Q3 (-37% vs. Q3 2023)
· *Mixed price environment*: decline in nickel ore selling prices in Indonesia; significant volatility in manganese ore selling prices, albeit leading to an increase on average for the year
· *Neutralization of SLN's impact* on the Group's financial performance, following *financing agreements with the French State*
· *Adjusted EBITDA (excluding SLN)*^1 at* €814m*, down 11% in 2024 (vs. 2023); positive intrinsic performance (+€135m), supported by productivity and mix improvement actions
· *Net Income, Group share (excluding SLN)*^1 positive at *€144m*
· *Adjusted Free Cash-Flow*^1 of *-€308m *owing to continued growth capex; adjusted leverage^1 of 1.8x after regaining full ownership of Centenario in Argentina (€663m)
· *Implementation of the CSR roadmap –* *“Act for positive mining” – *with a completion rate of *94%* for the first year
· *Outlook for 2025 *set against the background of *an unstable market environment*, notably that of steel in China. Market consensus to date around $4.5/dmtu in 2025 for manganese ore, down from 2024
· *Targets for 2025 focused on the productivity of operations*:
· Manganese ore transported: between *6.7* and *7.2 Mt*, with the FOB cash cost^2* between $2.0 and $2.2/dmtu*, an improvement vs. 2024
· Nickel ore sold externally: *29 Mwmt*, with a planned decrease in the grade in mined zones and an increase in haulage costs at the mine
· Lithium carbonate produced: *between 10 and 13 kt-LCE*, with a gradual ramp-up over the year, both in volume and quality
· Continued *productivity actions *with gains expected to be higher than those of 2024
· *Controlled capex plan in 2025: *between *€400m* and *€450m*^3, down from 2024
· *Maintaining a rigorous capital allocation policy*, focusing primarily on deleveraging
· *Proposal for a dividend* of *€1.5* per share in respect of 2024, in line with 2023
*Christel Bories, *Eramet group Chair and CEO:
2024 was a difficult year, notably marked by a still unfavourable market environment and constraints on our production volumes, but we were able to respond by adapting our production and controlling our costs. We were also able to seize the opportunities presented by this low point in the economic cycle by regaining full ownership of our lithium assets in Argentina, where we successfully started production at the Centenario plant.
The strategy and transformation we have implemented over the last eight years are paying off: Today, Eramet is a much more financially robust mining and metals company, with world-class mining assets, recognised for its commitments to responsible mining and now well positioned to take advantage of the boom in metals linked to the energy transition.
In 2025, against an unstable and complex economic and geopolitical backdrop, we will remain focused on ramping up Centenario and on the operational performance of each of our sites, while continuing our actions to promote responsible mining through our “Act for Positive Mining” roadmap.
In view of the progress achieved with all of our teams, I know that we will be able to overcome these new challenges. It is therefore with confidence that I will hand over my executive functions to our new Chief Executive Officer, Paulo Castellari, on 27 May, and that I will continue to support the Group’s strategic transformation as Chairwoman.
· *CSR commitments*
Safety
The Group’s safety performance continued to improve over the year. As a result, the TRIR^4 was 0.7 (-29% vs. 2023), significantly better than the target set in the new CSR roadmap (<1.0). Nevertheless, the Group mourns the deaths of four subcontractors at PT Weda Bay Nickel (“PT WBN”) in 2024, in a helicopter accident and an accident during exploration work.
The Group reaffirms that the safety of its employees and subcontractors remains the Company’s top priority.
“Act for Positive Mining” roadmap
At the start of 2024, Eramet launched its *“Act for Positive Mining” roadmap,* confirming the CSR commitment initiated in 2018 for the 2024-2026 period, while instilling a stronger ambition for this new period. *For 2024, the Group’s CSR performance amounted to 94% *of the annual target (see Appendix 8), impacted by:
· The Group’s safety results: roadmap safety performance at 0 in 2024, despite a record TRIR, factoring in the two accidents which the Group mourns at PT WBN,
· The Group’s carbon intensity and mining activities: the decrease in mining volumes in Gabon and New Caledonia in 2024 unfavourably impacted the KPI for CO[2 ]emissions (scopes 1 & 2) per tonne of outgoing product, with the most carbon-intensive volumes from pyrometallurgical plants.
*Notable successes for other indicators:*
· Implementation of a common global social protection base, Eramet Global Care^5, with the signature in June of an initial agreement with all social partners as part of the transnational employee representation body, the Eramet Global Forum, created in 2023,
· Continued efforts in Diversity & Inclusion (“D&I”), particularly the increased representation of women with 28.1% female managers at the end of 2024 across all sites; as well as progress in efforts to develop all of the Group’s employees, with close to 80% of them (including all categories) benefitting from a personal development interview throughout the year,
· Success of the contributive programme “Eramet Beyond” aiming to diversify the economic activities of the Group’s operating regions to extend beyond mining activities: the programme supported 1,847 additional jobs, notably through the “Women for Future” and “Terre d’Ako” programmes, and assisted 271 young people in regions where the Group operates via secondary school and higher education scholarships,
· Progress in the commitment to scope 3 with 62% (in terms of scope 3 emissions) of the value chain engaged in decarbonisation trajectories that are compatible with the Paris Agreement,
· Decarbonation of metallurgical activities: first tests using bio-reducers in manganese alloys production and launch of a partnership with LanzaTech to capture and utilise CO[2 ](“CCU”) at the Porsgrunn facility in Norway, in the production of ethanol,
· IRMA: continued implementation of the IRMA standards at the mining sites, with 4 sites engaged in the process, including a first independent audit which is being finalised in Senegal at the Grande Côte Opérations (“GCO”) site, while the PT WBN, Eramine and Comilog sites are also engaged in the independent audit process,
· After Act4nature International in July this year, the quality of Eramet's commitments to biodiversity was confirmed by the international association Business for Nature as part of its “It's Now for Nature” campaign.
Extra-financial ratings
In 2024, the Group’s ESG performance continued to be recognised by international rating agencies. This year, Eramet obtained an *A- score for the CDP Climate Change rating *and a *B score for the CDP Water Security rating*, an improvement vs. last year (B and C scores respectively).
Eramet was also awarded:
· an A rating by MSCI for the fourth consecutive year,
· a B- score by ISS ESG, placing the Company above average in the mining sector and retaining its “Prime” status,
· a 30.9 score by Sustainalytics (the lower the score, the better the performance),
· a 69/100 score by Moody’s, an improvement of 3 points on the previous assessment.
· *Financial ratings and financing*
In Q3 2024, following the buy-back of Tsingshan’s minority interest in Eramine and given the deterioration in the geopolitical situation and in the Group’s underlying markets, Moody’s and Fitch revised Eramet’s long-term credit ratings to Ba3 and BB respectively, with negative outlooks.
In 2024, Eramet pursued its strategy of proactively managing its debt profile with an extension of the average maturity which is now 3.2 years:
· on the one hand, by extending the Term Loan by 1 year (€500m maturing in January 2028), as well as almost all of the RCF (€915m maturing in 2029, with the remaining €20m maturing in 2028),
· on the other hand, by successfully completing the issuance of a bond for €500m; this second series of sustainability-linked bonds, with maturity in November 2029 and an annual coupon of 6.5%, was combined with the repurchase of the bond issue due in 2025 for an amount of €300m.
The Group confirms its capital allocation policy, focusing primarily on deleveraging, to maintain adjusted leverage below 1x on average through the cycle.Eramet's Board of Directors met on 19 February 2025, chaired by Christel Bories, and approved the financial statements for the 2024 financial year^6 which will be submitted for approval at the Shareholders’ General Meeting on 27 May 2025.
· *Eramet group key figures *
Effective from 2024, the Group’s key performance indicators are presented *excluding SLN*, since the New Caledonian entity no longer impacts the Group’s financial and economic performance. Reconciliation tables in accordance with IFRS accounts are presented in Appendix 1.
*Millions of euros*^*1* *2024* *2023*^*2* *Chg. (€m)* *Chg.*^*3 **(%)*
*Adjusted turnover (excluding SLN)*^*4* *3,377* *3,618* *-241* *-7%*
Turnover 2,933 3,251 -318 -10%
*Adjusted EBITDA (excluding SLN)*^*4* *814* *910* *-96* *-11%*
EBITDA 371 347 24 +7%
Current Operating Income (excluding SLN)^4 281 291 -10 -3%
Net Income, Group share 14 109 -95 -87%
*Net Income, Group share (excluding SLN)*^*4* *144* *358* *-214* *-60%*
Group Free Cash-Flow -669 -243 -426 n.a.
*Adjusted Free Cash-Flow*^*4,5* *-308* *78* *-386* *n.a.*
*Millions of euros*^*1* *31/12/24* *31/12/23*^*2* *Chg. (€m)* *Chg.*^*3 **(%)*
*Net debt (Net cash)* *1,297* * 614* * 683* *+111%*
Shareholders’ equity 2,139 1,994 * 145* *+7%*
*Adjusted leverage*^*4** (Restated net debt*^*6**-to-adjusted EBITDA ratio, excluding SLN)* *1.8x* *0.7x* *n.a.* *+1.1 pts*
Leverage (Net debt-to-EBITDA ratio) 3.5x 1.8x n.a. +1.7 pts
*Gearing (Net debt-to-Shareholders’ equity ratio)* *61%* *31%* *n.a.* *+30 pts*
Gearing within the meaning of bank covenants^7 57% 13% n.a. +44 pts
*ROCE* *(COI/capital employed*^*8** for the previous year)* * 3%* *4%* *n.a.* *-1 pts *
^1 Data rounded to the nearest million.
^2 Excluding Aubert & Duval and Erasteel, which in accordance with the IFRS 5 standard, are presented as operations in the process of being sold in 2023.
^3 Data rounded to higher or lower %.
^4 Definitions in financial glossary in Appendix 10.
^5 Net of Tsingshan’s capital contributions to the Centenario project (€104m in 2024 and €321m in 2023) and financing granted by the French State to SLN for 2024 as a quasi-equity instrument (€257m in 2024, including interest accrued over the period).
^6 Restated for SLN’s net cash position on 31 December 2024 (€138m); as a result, consolidated net debt was €1,435m in the calculation of adjusted leverage.
^7 Net debt-to-Shareholders’ equity ratio, excluding IFRS 16 impact.
^8 Total shareholders' equity, net financial debt, site restoration provisions, restructuring and other social risks, less long-term investments, excluding PT WBN capital employed.
N.B. 1: all the commented figures for FY 2024 and FY 2023 correspond to figures in accordance with the IFRS 5 standard as presented in the Group’s consolidated financial statements, unless otherwise specified.
N.B. 2: all the changes in FY 2024 are commented with respect to FY 2023, unless otherwise specified. “H1” corresponds to the first half of the year, “H2” to the second half and “Q1, Q2, Q3, Q4” to the quarters.
*Adjusted turnover (excluding SLN)*^1 amounted to *€3,377m *in 2024, down 7% (-5% at constant scope and exchange rates^7, with a marginal currency effect). The price effect was negative (-3%), with the decline in prices for nickel and mineral sands activities partly offset by an increase in prices for the manganese activity. The volume effect was also negative (-2%), mainly reflecting the decrease in manganese ore volumes sold.
*Adjusted EBITDA (excluding SLN)*^1 amounted to *€814m*, down 11%, mainly reflecting:
· A *positive intrinsic performance* of +*€135m*, factoring in a better grade at GCO (+€45m), the Group’s productivity gains (+€33m), a favourable mix/grade effect at PT WBN (+€71m) and procurement gains (+€13m), partly offset by an increase in fixed costs (-€12m) and a negative volume effect at Comilog (-€11m),
· The *negative impact of external factors* of -*€222m*, resulting from an unfavourable price effect (-€89m), the closure of the manganese high-grade ore market in Q3 (volume impact of -€75m) and higher freight cost (-€28m), partly offset by a decrease in input costs (+€105m). The volume and grade impact linked to PT WBN’s operating permit (-€187m) was largely fully offset by higher premiums on nickel ore prices (+€112m).
Net income, Group share for the year was €14m, including the share of income in PT WBN (€166m) as well as losses related to SLN (-€130m). *Net income, Group share (excluding SLN)*^1 totalled* €144m*, down €214m, considering the decline in EBITDA and the non-recurrence of non-cash net accounting income, linked to the exchange rate and inflation in Argentina for 2023 (c.€120m).
Capex accounted for €602m, including the share of the Lithium project financed by Tsingshan. *Capex financed by the Group*^8 amounted to *€497m *and include *€348m* in growth capex, mainly in Gabon (€165m) and Argentina (€143m); current capex totalled *€149m *(-41% vs. 2023).
*Adjusted Free Cash-Flow*^1 (“Adjusted FCF”) totalled *-€308m*. It included the dividends received from Weda Bay (€114m), which were limited due to declining nickel prices and the low level of external ore sales, as well as Tsingshan’s capital contributions to the Centenario project (€104m) and financing received by the French State to cover SLN’s losses in respect of 2024 (€257m).
As a reminder, the agreement signed in April 2024 with the French State enabled SLN’s existing debt to the State (€260m on 31 December 2023) to be converted into undated fixed rate subordinated bonds (Titres Subordonnés à Durée Indéterminée – “TSDI”), which are akin to equity. The same treatment was applied to other “TSDI” subscribed by the State in 2024, representing €395m to ensure financing for SLN in 2024 and the first part of 2025.
The* Group’s net debt* was *€1,297m *on 31 December 2024, after disbursement related to the buy-back of Tsingshan’s interest in the Centenario project (€663m) and dividends paid to Eramet’s shareholders (-€43m) and Comilog minority shareholders (-€39m) in respect of the 2023 financial year. *Restated for SLN’s net cash position on 31 December* (€138m), the Group’s net debt was *€1,435m*. As a result, the *adjusted leverage ratio*^1 was *1.8x*, factoring in Eramet regaining full ownership of Centenario.
A proposal to pay out a *dividend *of* €1.5 per share* in respect of the 2024 financial year will be made at the Shareholders’ General Meeting on 27 May 2025, reflecting the Group’s commitment to continue remunerating its shareholders and its confidence in the future, including low cycle periods.
As of 31 December 2024, Eramet’s* liquidity*, including undrawn credit lines, remains high at *€2.2bn*.
· *Key figures by activity*^*9*
*Millions of euros*^1 *2024* *2023* *Chg. *
*(€m)* *Chg.*^*2*
*(%)*
*Manganese* Turnover 2,025 1,978 47 +2%
EBITDA 563 499 64 +13%
*Nickel *(excluding SLN) Adjusted turnover (excluding SLN)^3 636 751 -115 -15%
Adjusted EBITDA (excluding SLN)^3 266 429 -163 -38%
*Mineral Sands* Turnover 311 275 36 +13%
EBITDA 120 105 15 +14%
*Lithium* Turnover n.a. n.a.
EBITDA -26 -17 -9 n.a.
^1 Data rounded to the nearest million.
^2 Data rounded to higher or lower %.
^3 See definition in the financial glossary in Appendix 10.
*Manganese*
*EBITDA for the Manganese activity was €563m in 2024, up 13% year-on-year. *
*Ore volumes sold externally were down -7% over the year, with a strong decline in Q3 versus Q2 (-20%), factoring in the downturn in the Chinese market which significantly weighed on demand for high-grade manganese leading to a 3-week suspension of production in Q4 at the Moanda mine, in order to limit the market imbalance.*
*However, EBITDA for the manganese ore activity was slightly up to €455m (+3%), with the decrease in volumes sold more than offset by the increase in average realised selling prices (+9% vs. 2023), albeit below the increase of the 44% CIF China index (+15%) reflecting the weak level of sales in Q3.*
*EBITDA for the manganese alloys activity strongly increased to €108m (+96%), reflecting the significant decrease in input costs, combined with rising selling prices over the year.*
*Manganese ore* *2024* *2023* *Chg. * *Chg. (%)*
Turnover - €m^1 1,124 1,089 +35 +3%
*EBITDA - €m*^2 *455* *443* *+12* *+3%*
*Manganese ore and sinter transportation - Mt * *6.1* *6.6* * -0.5* *-8%*
External manganese ore sales - Mt 5.5 5.9 -0.4 -7%
*FOB cash cost (new definition) - $/dmtu*^3 *2.2 * *2.0* *+0.2* *+12%*
*Manganese alloys* *2024* *2023* *Chg. * *Chg. (%)*
Turnover - €m 901 889 +12 +1%
*EBITDA - €m* *108* *55* *+53* *+96%*
*Alloys sales - kt * *632* *640* * -8* *-1%*
o/w refined alloys - % 54 53 +1 pts +2%
^1 Turnover linked to external sales of manganese ore only, including €66m linked to Setrag transport activity other than Comilog's ore (vs. €55m in 2023).
^2 Includes €43m linked to Setrag transport activity other than Comilog’s ore (€17m in 2023)
^3 Definition updated (see Financial glossary in Appendix 10), now excluding mining taxes and royalties (non-controllable), which account for 6% of FOB turnover.
Market trends^10& prices^11
*Global production of carbon steel*, the main end-product for manganese, was 1,883 Mt in 2024, almost stable year-on-year (-1%).
China, which accounts for more than half of global steel production, posted a limited decline of around 2%, albeit with a decline of 10% in H2 versus H1. Production in North America also posted a decline of 2% for the year, while Europe ended the year with a 1% increase compared to an historically low 2023. India continued to outperform, with a 6% increase in production.
*Manganese ore consumption declined significantly in 2024* *(-6%)* to reach 19.6 Mt-Mn, impacted in H2 by the decline in steel production and the consumption of ore stocks in China. Global manganese ore production also declined significantly in 2024 to 18.8 Mt-Mn (-9%), reflecting the decrease in volumes from Australia (-64%, impacted by Cyclone Megan in March) and from Gabon (-11%, following the suspension in production in Moanda in Q4), which was partly offset by the Q2 and Q3 inflow of semi-carbonated ore from South Africa (+13%) which represented nearly 50% of seaborne production in 2024.
As a result, the manganese supply/demand balance was again in deficit at year-end. Chinese port ore inventories strongly decreased in Q4 2024, reaching 5.2 Mt at end-December (vs. 5.9 Mt at end-September), equivalent to 8 weeks of consumption.
The *price index (CRU) for manganese ore (CIF China 44%)* averaged $5.5/dmtu in 2024, up 15% from 2023. This trend reflects a strong increase between April and July, with a peak at $9/dmtu, following the prolonged shutdown of a mine in Australia, but masks the decline in prices from mid-August (averaging $4.1/dmtu in Q4 2024, i.e., -44% vs. Q3) due to the downturn in the market, notably in China.
The* price index (CRU) for refined alloys in* Europe (MC Ferromanganese) averaged a slight increase of 2% versus 2023, while the price index for standard alloys (Silicomanganese) was up by 13%, in line with those of ore.
Activities
In Gabon, the volumes of *ore* produced and transported were down 8% over the year (-53% and -37% respectively in Q4 2024 vs. Q4 2023), while volumes sold externally in 2024 decreased by 7%.
The strong decline in carbon steel production in China during the summer led to a significant decrease in manganese ore purchases by Chinese manganese alloys producers, concurrent with a sudden increase in the supply of semi-carbonated ore, mainly produced in South Africa. This situation resulted in a major market imbalance which significantly weighed on the Group’s sales, as well as leading to the suspension of production at the Moanda mine for 3 weeks in Q4, in order to control stocks and transportation. Loading difficulties at the port also had a negative impact on ore shipments and sales at the end of the year.
The FOB cash cost^2 of manganese ore activity was $2.2/dmtu, up 12% on 2023, mainly reflecting the decrease in volumes sold. It should be noted that Comilog's FOB cash cost definition was updated to exclude mining taxes and royalties (paid to the Gabonese State), which are considered to be non-controllable, and were $0.2/dmtu in 2024 (stable vs. 2023).
Conversely, sea transport costs per tonne were up 11% to $1.0/dmtu compared to 2023, due to the increase in freight rates.
Manganese *alloys* production was stable, in line with the “value over volume” strategy implemented to adapt to market conditions. Manganese alloys sales were also almost stable (-1%), with a slightly more favourable mix versus 2023 (54% of refined alloys).
The manganese alloys margin improved year-on-year, reflecting increased selling prices as well as the marked decline in the cost incurred for reductants, notably metallurgical coke. The impact of rising manganese ore prices was limited over the year owing to the optimization of manganese ore purchases (outside of price soaring periods).
Outlook
Global carbon steel production is expected to remain stable in 2025, with a decrease in Chinese production, offset by an increase for the rest of the world. In particular, India, where Eramet has a strong business footprint, is expected to continue posting a significant increase in its production thanks to new installed capacity, infrastructure investments from the State and continued growth in demand from other steel-consuming sectors.
As a result, demand for manganese ore should also remain stable over the year. Manganese ore supply is expected to decline in H1, with the expectation of a slight deficit versus demand in the first half of 2025.
The market consensus, which is currently set around $4.5/dmtu on average for 2025, with a lower H1 than H2, reflects a decline of close to 19% in the manganese ore price index (CIF China 44%) compared with 2024. This decline, calculated on the basis of Eramet’s average realised selling prices in 2024, is still less marked, given the low volumes of high-grade ore sold at a time when prices were high.
Demand for alloys should be relatively stable in 2025, as should supply. However, flows could be significantly disrupted by new protectionist measures (particularly in Europe and the United States). Alloys selling prices are expected to decline in 2025.
Production at the Moanda mine, with its capacity above 8 Mt, will be adjusted according to market conditions and *transported ore* volumes should reach between 6.7 Mt and 7.2 Mt in 2025. The FOB cash cost^1 is expected to decrease from 2024, between $2.0 and $2.2/dmtu.
The last tranche of investments aiming to sustain the mine’s production capacity and strengthening that of transport is estimated at around €130m in 2025. It will also enable an improvement in operational efficiency.
Factoring in the restart of the furnace at the Dunkirk plant in early January, *alloys* production and sales should increase over the year.
*Nickel – PT Weda Bay Nickel (“PT WBN”)*
*Adjusted EBITDA (excluding SLN)*^*1 **for the Nickel activity amounted to €266m in 2024 (-38% vs. 2023). *
*Production and sales for PT WBN nickel ore were constrained by the operating permit (“RKAB”) granted in October for 2024 (and covering the next two years), leading to a 9% decline in volumes sold compared to 2023.*
*As a result, PT WBN’s share of EBITDA (excluding the off-take contract) was €271m over the year, down by 36%. This change reflects the decrease in volumes sold as well as the strong decline in the price index for nickel ore (“HPM”), based on the LME, which was partly offset by premiums in Indonesia’s domestic market as a result of permit restrictions.*
*Nickel ore* *2024* *2023* *Chg. * *Chg. (%)*
PT WBN (38.7%)^1 share of turnover - €m 498 573 -75 -13%
*PT WBN (38.7%) share of EBITDA - €m* *271* *425* * -154* *-36%*
*Nickel ore external sales (100%) - Mwmt* *30.3* *33.2* * -2.9* *-9%*
o/w Saprolite - Mwmt 28.5 32.1 -3.6 -11%
o/w Limonite - Mwmt 1.8 1.0 +0.8 +75%
*Nickel Pig Iron (NPI)* *2024* *2023* *Chg. * *Chg. (%)*
Off-take turnover - €m 138 178 -40 -23%
*Off-take EBITDA - €m* *5* *8* * -3* *-38%*
NPI production (100%) - kt 30.5 33.4 -2.9 -9%
NPI sales (43% off-take) - kt 12.4 14.3 -1.9 -13%
*Support functions* *2024* *2023* *Chg. * *Chg. (%)*
EBITDA^2 -10 -4 -6 n.a.
^1 Excluding NPI off-take.
^2 Supervision costs for the Indonesian entity.
Market trends^12& prices
*Global stainless-steel production*, which is the largest end-market for nickel, increased by 6% to 61.5 Mt in 2024.
Production in China, which accounts for more than 60% of the global supply, saw growth of 6% versus 2023, driven by the Q4 2024 performance and record exports (+7% vs. Q4 2023). Production in the rest of the world was also up by 6%, driven by strong growth in Indonesia (+15%), despite an unfavourable macroeconomic environment, notably in Europe.
Global demand for primary nickel was up by 5% from 2023, at 3.3 Mt, mainly benefitting from a recovery in demand for stainless-steel (+6%), while demand for nickel batteries significantly slowed down (+3% vs. 2023), notably in China.
Parallel to this, global primary nickel production increased by 4% in 2024, reaching 3.4 Mt. Growth in the NPI^13 supply (+17%) and the ramp-up in new projects, notably HPAL^14 (+34%) in Indonesia, were only partly offset by the decline in NPI production in China (-9%) as well as traditional ferronickel production (-11%).
The balance of the nickel market (classes I and II^15) remained in surplus in 2024. Visible nickel inventories at the LME and SHFE^16 significantly increased over the year, notably in Q4 2024, to reach nearly 200 kt-Ni at end-December, factoring in the LME’s approval of new nickel metal producers, particularly from China, since end-2023.
In 2024, the *LME* price average (price of class I nickel) was $16,818/t, strongly declining from 2023 (-22%), and reflecting the predominantly sell-side positioning of market players due to the current oversupply and the increase in inventories.
The average for the *NPI*^17 price index as sold at Weda Bay was $12,051/t, also down significantly from 2023 (-16%).
*In Indonesia, *the official *domestic price index for high-grade nickel ore* (“HPM Nickel”, the FOB monthly price floor, as established by the government) averaged $38/wmt over the year for a grade of 1.8% and $33/wmt for a grade of 1.6%^18, each declining by 26% versus 2023. The HPM Nickel index followed nickel price trends at the LME, with the price formula (see Appendix 4) indexed to the London-based exchange, with a lag of around 1 month. Considering the Indonesian government’s restrictions on produced volumes as well as unfavourable weather conditions in H2, domestic nickel ore supply remained under pressure in Indonesia, resulting in premiums on the HPM Nickel price floor (more than 50% in H2 2024).
Activities
PT WBN’s mining operations were constrained by the RKAB granted by the Ministry of Mines, limiting annual production and sales for the 2024-2026 period.
As a result, external ore sales (at the other plants on the industrial site) were limited to 30.3 Mwmt (at 100%), including 28.5 Mwmt of saprolite and 1.8 Mwmt of limonite, and were down 9% on 2023. The decrease in average grade of deposits was offset by a very favourable mix (no sales of low-grade saprolite versus 2023). Average moisture was slightly below that of the communicated HPM index.
Against this background of domestic supply restrictions, PT WBN benefitted from significant premiums for high-grade ore compared to the price floor index established by the government (HPM), notably in Q4 (close to 50%), which partly offset the decrease in volumes sold.
Production costs at the mine increased significantly versus 2023, mainly factoring in the longer haulage distances, as anticipated.
Production at the PT WBN NPI plant decreased by 9% in 2024, penalised by the scheduled maintenance of a furnace, as well as flooding impacting ore transportation at the plant in Q3. As part of the off-take contract (trading activity), sales were down 13%.
In 2024, PT WBN’s contribution to Group FCF was limited to €114m in dividends, in connection with the low level of external nickel ore sales over the period.
Outlook
Demand for primary nickel is expected to increase more slowly in 2025 (c.+4%), since growth in stainless-steel consumption in China could be limited to 1% considering the significant surplus in the domestic market and the potential slowdown in exports due to the development of protectionist measures in the rest of the world.
Primary nickel production is expected to increase moderately (c.+3%) with a slowdown in NPI production in Indonesia, factoring in the Indonesian government’s determination to control the current oversupply in order to support prices.
The nickel market’s surplus is expected to continue into 2025, albeit marginally declining.
For 2025, the consensus for LME nickel prices currently stands at around $16,450/t, representing a decline of close to 3% from 2024.
Factoring in the “RKAB” issued last October for the 2024-2026 period, PT WBN’s *nickel ore* production and sales volumes will be limited to 32 Mwmt in 2025 (including 3 Mwmt internally to the NPI plant). As a result, the 2025 volume target for external marketable nickel ore is 29 Mwmt, with a very favourable mix for saprolite. In line with the mining plan, the average grade of nickel ore sold should still decrease slightly, while the average moisture content is expected to increase more significantly.
Considering the local context, PT WBN should continue benefitting from higher premiums (of around 30%) compared to the nickel ore price floor index sold locally (HPM).
Haulage costs should increase again.
With its partner, Tsingshan, the Group is still working to increase the mine’s capacity to around 60 Mwmt per year, including around two thirds in saprolite ore and around one third in limonite ore, in accordance with the Environmental Impact Analysis (AMDAL^19) and the new long-term mining plan (“Feasibility Study)” validated by the Indonesian authorities in summer 2024.
*Mineral Sands*
*EBITDA for the Mineral Sands activities was up 35% vs. 2023 (at comparable scope, excluding ETI) reflecting the increase in selling volumes, mainly linked to a better grade of mined zone, in a context of declining prices.*
*Mineral Sands* *2024* *2023* *Chg. * *Chg. (%)*
*Turnover - €m* *311* *275* +36 +13%
*EBITDA - €m* *120* *105* +15 +14%
*Mineral Sands production - kt* *883* *628* +255 +41%
Ilmenite sales – kt^1 561 298 +263 +88%
Zircon sales - kt 66 48 +18 +38%
^1 Including, since Q4 2023, the volumes linked to the long-term supply contract signed with ETI, which is considered an external customer following the sale of the Norwegian subsidiary to INEOS at end-September 2023.
Market trends & prices^20
Global demand for zircon stagnated in 2024 versus 2023. Inflation and the weakness of real estate activity around the world led to a decline in demand for ceramics, particularly in China, which was partly offset by rising demand from the chemicals industry. In parallel, global zircon production slightly decreased, with a decline in production at some of the historical players, which was offset by increased production in China from imported heavy mineral concentrates. However, the market remained in surplus, which weighed on prices.
In 2024, *zircon* *premium *prices stood at $1,893/t FOB, down 7%.
Global demand for TiO[2 ]pigments^21, the main end-market for titanium-based products^22, was up year-on-year, supported by the growth in Chinese production, driven by exports.
The market price for *ilmenite (chloride)*, as produced by Grande Côte Operations (“GCO”) was $299/t FOB in 2024, down 6%, resulting from the increased ilmenite supply, particularly in China.
Activities
In Senegal, mineral sands production was up 41% from 2023. This progress reflects the strong increase in the average heavy mineral grade of the mined zone as well as the improved equipment availability over the year.
Ilmenite volumes produced were up 35%, in line with the trend for mineral sands production. Ilmenite external sales increased by 34% (at comparable scope, including volumes linked to the long-term supply contract signed with ETI^23, which from now on is considered an external customer).
Zircon volumes produced increased by 41% year-on-year, with volumes sold up 38%.
Outlook
Demand for zircon could increase again in 2025, notably driven by an improvement in the construction sector in the United States and Europe. However, the market should remain in surplus due to the production ramp-up of new projects, therefore sustaining the pressure on prices.
Demand for ilmenite is also expected to increase for 2025 thanks to a better economic situation, which will benefit demand for pigments. However, pigment production in China is uncertain owing to the heavy dependence on exports, both in the form of finished products and material consumed by the manufacturing industry. Exports of Chinese pigments as such are subject to anti-dumping measures by the European Union, which could lead to an increase in demand from Western producers. However, the ilmenite supply should remain in surplus given the ramp-up in new projects, with lower average price levels in 2025.
In Senegal, *mineral sands *production in 2025 is expected to rise to more than 900 kt-HMC, continuing to benefit from a high grade in the mined zones. An investment (around €50m in 2025) is underway to increase production capacity and support the decarbonation of operations.
*Lithium*
*On 24 December, Eramet announced it had delivered its first lithium carbonate (“LCE”) production at its Centenario plant which was recently commissioned in Argentina. The teams are now focused on ramping up the plant’s capacity to 24,000 kt-LCE/year.*
*Lithium* *2024* *2023* *Chg. * *Chg. (%)*
*Turnover - €m* ** ** ** *n.a.*
*EBITDA - €m* *-26* *-17* *n.a.* *n.a.*
Lithium carbonate production - kt-LCE n.a. n.a. n.a. n.a.
*Lithium carbonate sales - kt-LCE* *n.a.* *n.a.* *n.a.* *n.a.*
Market trends & prices^24
Lithium carbonate prices (battery-grade, CIF Asia) averaged $12,500/t-LCE in 2024, down 68%, with a price of around $10,500/t-LCE at end-2024. This decline is due to a higher increase in supply than demand, despite the latter remaining strong, particularly in China, where electric vehicles have accounted for more than 50% of monthly sales since August.
To date, China remains the main market for lithium carbonate sales. The price indices correspond to the two categories of lithium (battery- and technical-grade). However, realised prices may be lower, with a discount varying according to the quality of the product and linked to refining costs.
Activities
In Argentina, during October, the Group announced it had regained full ownership of its flagship Lithium business, buying back its partner’s 49.9% interest for $699m (€663m) in their joint-venture, Eramine, which owns the entire deposit and the Centenario plant, as well as the Arizaro deposit.
Following the start of production at end-December the teams are now focused on ramping up the plant’s production, both in terms of volumes and the quality of carbonate.
At full capacity, the Ex-Works^1 cash cost should be positioned in the first quartile of the industry cash cost curve. It is now estimated at around $5,000/t-LCE (value at end-2024) factoring in the high local inflation over the last two years. At full capacity, annual EBITDA remains estimated between $210m and $315m^25, based on a long-term price scenario between $15,000 and $20,000/t-LCE.
In 2024, the amount of growth capex financed by Eramet totalled €143m. Overall, the amount of investment for this first plant is expected to total around $900m.
Prior to Eramet’s buy-back of its interest, Tsingshan will have contributed $619m to financing the project^26 via capital injection.
Outlook
Growth in demand for lithium is expected to be driven by an acceleration in electric vehicle sales, particularly in China, where the penetration rate for monthly sales should be above 55%. Sustained growth should also be observed in Europe, where automobile manufacturers are expected to offer new electric and plug-in hybrid models accessible to a greater number of consumers, against the backdrop of new European standards aimed at limiting CO[2] emissions.
Growth in demand for lithium is also expected to be driven by the wide-scale deployment of stationary energy storage systems (ESS), concurrently with the roll-out of new renewable energy capacity. China is still the main market, followed by the United States. The robust development in stationary energy storage should boost demand for LFP chemical cathodes, which already dominate the sector.
The price decline observed in 2024 forced several lithium rock concentrate producers to cut or even halt their production, temporarily reducing the market supply. However, new sites are expected to start in 2025 (lithium rock in Africa, brine in China and Argentina). Supply should therefore remain in surplus for 2025, with prices still under pressure. The market consensus (battery-grade CIF Asia lithium carbonate) currently averages around $10,900/t-LCE in 2025.
Following the start of production at end-December 2024, the Centenario plant should reach its full capacity of 24,000 t/year in a 12-month period. As a result, produced volumes of *lithium carbonate* are expected to total between 10 and 13 kt-LCE over the year. Selling prices will depend on the quality of lithium carbonate which will be produced during the ramp-up phase.
Investments for the current Centenario plant are expected to be around €80m in 2025, including €20m in current capex.
Following the takeover of full ownership of Centenario, the Group is currently re-evaluating the scope and optimal calendar of future capacity expansion phases. The long-term potential of the deposit is estimated at above 75,000 t-LCE today.
*Strategic projects for the energy transition *
Class I nickel in Indonesia
After conducting an in-depth assessment in 2024, June saw Eramet and BASF decide against investing in their joint project to develop and build a nickel-cobalt-refining plant (HPAL) at Weda Bay, Indonesia. Nevertheless, Eramet is still continuing to investigate opportunities to participate in the nickel electric vehicle battery value chain in Indonesia, in order to capitalise on the vast resources of the Weda Bay mine. The Group is also investigating opportunities to explore and develop other nickel resources.
Battery recycling
In October 2024, the Group announced the suspension of its Battery Recycling Project in France. This decision was made in response to major uncertainties about the supply of raw materials to the plant, and about recycling sales and off-take opportunities for the metallic salts, due to the lack of ramp-up in Europe of battery factories and their components (precursors and materials for cathodes).
Convinced of the need to develop a circular economy for critical metals, Eramet will pursue its studies of the market fundamentals required to make such a project competitive.
Ageli
In partnership with Électricité de Strasbourg (ÉS), Eramet announced, in January 2023, their continued collaboration with a view to jointly studying the development and industrialisation of a low-carbon lithium carbonate extraction and refining process using geothermal brine in Alsace, France. A pre-feasibility study is now underway, aimed at determining the available mineral resources as well as the process, engineering and permit requirements. A final investment decision (“FID”) could be made within three years, subject to the industrial and financial robustness of the project.
Growth opportunities for lithium in Chile
Following the end-2023 acquisition of mining concessions covering a cluster of lithium salars in the Atacama region, the Group is working to develop future partnerships with the Chilean State and private companies owning lithium exploration and mining rights. Parallel to this, Eramet is pursuing its strategy to develop in lithium by continuing to secure access to potential resources in Chile and has therefore signed farm-in agreements to conduct exploration activities in other northern regions of the country.
· *Outlook *
In 2025, trade tensions could escalate and weigh on global growth, particularly with the introduction of new tariff increases on exports to the United States.
In China, despite 2024 being buoyed by significant industrial production and exports, the construction crisis persists, and domestic demand remains weak. Stimulating the latter through extensive programmes to support consumption could prove essential to sustaining the economy.
Demand across all the underlying markets for the Group’s products thus remains subdued at the start of this year, which is reflected in prices stabilising at a low level, awaiting a rebound in demand, notably from China.
The* average price consensus*^27 and *exchange rate*^28 for 2025 are currently:
· around *$4.5/dmtu* for manganese ore (CIF China 44%),
· c.*$16,450/t* for LME nickel,
· c.*$10,900/t-LCE* for lithium carbonate (battery-grade, CIF Asia),
· *1.04* for the €/$ exchange rate.
Manganese alloys selling prices are expected to decline in 2025. However, protectionist measures under consideration from the United States and the European Union could generate volatility in different regions of the world.
Domestic prices for nickel ore sold in Indonesia are indexed to the LME and change accordingly. They should continue to benefit from higher premiums on the HPM index in 2025.
*Sensitivities of adjusted EBITDA (excluding SLN) *to the price of metals and to the exchange rate are presented in Appendix 6.
In 2025, freight rates should decline, following an expected decrease in demand. However, uncertainties remain over the situation in the Red Sea which could limit this decline. Energy costs are expected to rise in 2025.
· *Guidance*
The *volume and cash cost targets for 2025* are presented in the table below.
*Activities* *Indicator* *2025 guidance*
*Manganese ore* Transported volumes 6.7-7.2 Mt
FOB^1,2 cash cost $2.0-2.2/dmtu
*Nickel ore* Volumes sold, o/w: 32 Mwmt
Externally 29 Mwmt^3
Internally 3 Mwmt
*Lithium carbonate* Produced and sold volumes 10-13 kt-LCE
*Mineral Sands* Produced volumes > 900 kt-HMC
^1 Definitions in the financial glossary in Appendix 10.
^2 For an exchange rate of $/€1.04.
^3 With a very favourable mix for saprolites.
In this difficult market environment, the Group will remain focused on the *productivity of its operations *with gains expected at least higher those of 2024.
In addition, the amount of* investments*^3 in 2025 is estimated *between* *€400m and €450m*, of which:
· *Current capex*: between €150m and €200m, excluding SLN’s capex (financed by the French State);
· *Growth capex*: around €250m, including around €130m which is notably aimed at sustaining the mine’s production capacity and strengthening that of transport for ore in Gabon, around €50m to support organic growth and decarbonation in Senegal and around €60m allocated to ramping up production at the Centenario plant in Argentina.
*Calendar*
19.02.2025: Presentation of 2024 annual results
A live Internet webcast of the 2024 annual results presentation will take place on Thursday 20 February 2025 at 9:30 a.m. (Paris time), on our website: www.eramet.com. Presentation material will be available at the time of the webcast.
24.04.2025: Publication of 2025 first-quarter turnover
*ABOUT ERAMET*
Eramet transforms the Earth’s mineral resources to provide sustainable and responsible solutions to the growth of the industry and to the challenges of the energy transition.
Its employees are committed to this through their civic and contributory approach in all the countries where the mining and metallurgical group is present.
Manganese, nickel, mineral sands and lithium: Eramet recovers and develops metals that are essential to the construction of a more sustainable world.
As a privileged partner of its industrial clients, the Group contributes to making robust and resistant infrastructures and constructions, more efficient means of mobility, safer health tools and more efficient telecommunications devices.
Fully committed to the era of metals, Eramet’s ambition is to become a reference for the responsible transformation of the Earth’s mineral resources for living well together.
www.eramet.com
*INVESTOR CONTACT*
*Director of Investor Relations*
*Sandrine Nourry-Dabi*
T. +33 1 45 38 37 02
sandrine.nourrydabi@eramet.com *PRESS CONTACT*
*Media Relations Manager*
*Fanny Mounier*
T. +33 7 65 26 46 83
fanny.mounier@eramet.com
*Appendix 1: Reconciliation of turnover, adjusted EBITDA and net income, Group share (excluding SLN)*
*Millions of euros* *2024* *2023* *Chg. (€m)* *Chg. (%)*
*Turnover – published financial statements* *2,933* *3,251* *-318* *-10%*
Share of PT WBN (38.7% - excluding off-take contract) 498 573 -75 -13%
*Adjusted turnover* *3,431* *3,824* *-393* *-10%*
Turnover excluded from SLN^1 54 206 -152 -74%
*Adjusted turnover (excluding SLN)*^2 *3,377* *3,618* -241 -7%
^1 Turnover linked to the sale of nickel ore and others; turnover from the sale of SLN’s ferronickel which is booked under “Eramet S.A.”.
^2 Definitions in the financial glossary in Appendix 10.
*Millions of euros* *2024* *2023* *Chg. (€m)* *Chg. (%)*
*EBITDA* *371* *347* *+24* *+7%*
Share of PT WBN (38.7%) 271 425 -154 -36%
*Adjusted EBITDA* *642* *772* *-130* *-17%*
EBITDA excluded from SLN^1 -171 -138 -33 n.a.
*Adjusted EBITDA (excluding SLN)*^2 *814* *910* *-96* *-11%*
^1 EBITDA generated under “SLN” corresponding to the sale of ferronickel to Eramet S.A. and external ore sales and others; the trading margin on the sale of SLN’s ferronickel was booked under “Eramet S.A.”.
^2 Definitions in the financial glossary in Appendix 10.
*Millions of euros* *2024* *2023* *Chg. (€m)* *Chg. (%)*
*Current Operating Income * *97* *127* *-30* *-24%*
o/w SLN -184 -164 -20 n.a.
*Current Operating Income (excluding SLN)*^1 *281* *291* *-10* *-3%*
^1 Definition in the financial glossary in Appendix 10.
*Millions of euros* *2024* *2023* *Chg. (€m)* *Chg. (%)*
*Net Income, Group share* *14* *109* *-95* *-87%*
o/w SLN -130 -249 +119 n.a.
*Net Income, Group share (excluding SLN)*^1 *144* *358* *-214* *-60%*
^1 Definition in the financial glossary in Appendix 10.
*Millions of euros* *2024* *2023*
*Free Cash-Flow* *-669* *-243*
Retreated from the following items:
(+) Capital injection from Tsingshan in the Centenario project 104 321
(+) Financing granted by the French State to SLN (TSDI)^1 257
*Adjusted Free Cash-Flow*^*2* *-308* *78*
^1 Financing provided to cover cash requirements for the current year.
^2 Definition in the financial glossary in Appendix 10.
*Appendix 2: Quarterly turnover *
*Millions of euros*^*1* *Q4*
* 2024* *Q3*
*2024* *Q2 *
*2024* *Q1 *
*2024* *Q4 *
*2023* *Q3 *
*2023* *Q2 *
*2023* *Q1 *
*2023*
*Manganese* *460* *569* *548* *448* *504* *528* *505* *440*
Manganese ore activity^2 224 338 308 254 288 330 262 209
Manganese alloys activity^2 236 231 241 193 216 198 244 231
*Adjusted nickel (excluding SLN)*^*3* *287* *64* *147* *138* *180* *172* *183* *216*
*Mineral Sands * *95* *75* *89* *52* *84* *55* *93* *44*
GCO 95 75 89 52 72 48 79 40
Intra-group eliminations^4 1 -11 -16 -12
ETI 11 18 31 16
*Lithium* ** ** ** ** ** ** ** **
Holding, elim. and others^5 93 96 113 105 131 180 128 175
*Eramet group adjusted (excluding SLN)* *935* *804* *897* *743* *899* *935* *909* *875*
SLN turnover^6 14 5 16 18 44 45 48 69
*Eramet group published financial statements* *697* *784* *797* *655* *803* *845* *828* *775*
^1 Data rounded to the nearest million.
^2 See definition in the financial glossary in Appendix 10.
^3 Adjusted turnover restated for Q1 2023, following update of indicator definition.
^4 Turnover for the sale of ilmenite produced by GCO at ETI.
^5 Mainly includes turnover from the sale of SLN’s ferronickel since it is booked under “Eramet S.A.”; SLN’s turnover linked to the sale of nickel ore and others was excluded from the figures presented.
^6 SLN’s turnover linked to the sale of nickel ore and others.
*Appendix 3: Productions and shipments * *H2 2024* *Q4 2024* *Q3 2024* *H1 2024* *Q2 2024* *Q1 2024* *FY 2024* *FY 2023*
*Manganese* * * * * * * * * * * * * * * * *
Manganese ore and sinter production (Mt) 3,282 1,237 2,045 3,521 1,595 1,926 6,803 7,409
Manganese ore and sinter transportation (Mt) 2,918 1,099 1,819 3,197 1,559 1,638 6,115 6,623
External manganese ore sales (Mt) 2,570 1,418 1,152 2,911 1,445 1,466 5,481 5,879
Manganese alloys production (kt) 311 145 166 324 170 154 635 635
Manganese alloys sales (kt) 310 167 143 322 173 149 632 640
*Nickel*
Marketable nickel ore production – PT WBN (100% basis – kwmt)^1 15,327 13,886 1,441 16,705 7,820 8,885 32,032 19,134
Nickel ore external sales – PT WBN (100% basis – kwmt) 18,233 16,843 1,390 12,061 5,982 6,079 30,294 33,156
o/w Saprolite (kwmt) 17,783 16,393 1,390 10,715 5,236 5,479 28,498 32,128
o/w Limonite (kwmt) 450 450 1,346 746 600 1,796 1,027
NPI production – PT WBN (100% basis – kt-Ni content) 16.5 9.1 7.4 14.0 6.6 7.4 30.5 33.4
NPI sales – PT WBN – Eramet off-take 43% (kt-Ni content) 6.6 3.2 3.4 5.8 2.9 2.8 12.4 14.3
*Mineral Sands*
Mineral Sands production (kt) 476 226 250 407 215 192 883 628
Ilmenite production (kt) 316 172 144 254 138 116 570 421
Zircon production (kt) 36 19 17 32 18 14 68 48
Ilmenite sales^2 (kt) 320 195 125 241 166 75 561 298
Zircon sales (kt) 37 22 15 29 16 13 66 48
*Lithium*
Lithium carbonate production
(kt-LCE)
Lithium carbonate sales
(kt-LCE)
^1 With the approval of a new feasibility study (long-term mining plan) during summer 2024, certain nickel-poor ores, which were considered as waste rock and not recognised in official ore production, are now classified as ores and recorded in production.
^2 Including, since Q4 2023, the volumes linked to the long-term supply contract signed with ETI, which is considered an external customer following the sale of the Norwegian subsidiary to INEOS at end-September 2023.
*Appendix 4: Price and index *
*Q4 2024* *H2 2024* *H1 2024* *FY 2024* *Q4 2023* *H2 2023* *H1 2023* *FY 2023* *Chg. H2 2024 – H1 2024* *Chg. 2024 – 2023*
*Manganese*
Mn CIF China 44% ($/dmtu)^1 4.08 5.68 5.38 5.53 4.27 4.39 5.22 4.80 +5% +15%
Ferromanganese MC – Europe (€/t)^1 1,499 1,597 1,523 1,560 1,350 1,389 1,682 1,535 +5% +2%
Silicomanganese – Europe (€/t)^1 1,000 1,113 1,171 1,142 934 920 1,100 1,010 -5% +13%
*Nickel*
Ni LME ($/t)^2 16,005 16,130 17,506 16,818 17,191 18,766 24,236 21,501 -8% -22%
Ni LME ($/lb)^2 7.26 7.32 7.94 7.63 7.80 8.51 10.99 9.75 -8% -22%
SMM NPI Index ($/t)^3 12,178 12,243 11,858 12,051 12,576 13,218 15,368 14,293 +3% -16%
HPM^4 Nickel prices 1.6%/35% ($/wmt) 32 33 33 33 37 39 50 45 -2% -26%
HPM^4 Nickel prices 1.8%/35% ($/wmt) 36 37 38 38 42 44 57 51 -2% -26%
*Mineral Sands* * * * * * * * * * * * * * *
Zircon ($/t)^5 1,850 1,870 1,915 1,893 1,900 1,975 2,100 2,038 -2% -7%
Chloride ilmenite ($/t)^6 295 298 300 299 300 308 325 316 -1% -6%
*Lithium* * * * * * * * * * * * * * *
Lithium carbonate, battery-grade, CIF Asia ($/t LCE)^7 10,735 11,170 13,902 12,514 20,266 27,047 52,835 39,787 -20% -68%
^1 Half-year average market prices (based on monthly Index CRU prices), Eramet calculation and analysis.
^2 LME (London Metal Exchange) prices.
^3 SMM NPI 8-12%.
^4 Official index for domestic nickel ore prices in Indonesia.
^5 Market and Eramet analysis (premium zircon).
^6 Market and Eramet analysis.
^7 Lithium carbonate price index: Fastmarkets – battery-grade spot price CIF Asia. Figures updated for H1 2023 and H1 2024 due to the recognition of daily vs. weekly data previously (immaterial impact).
*Price floor (HPM) = HMA x Nickel ore grade (%Ni) x Correction factor x [1 – nickel ore moisture (%H*[*2*]*O)] in $/wmt*
· HPM: nickel ore price floor, derived from “Harga Patokan Mineral” in Indonesian
· HMA: nickel ore price benchmark, derived from “Harga Mineral Acuan” in Indonesian, which is equivalent to the average LME cash nickel price with a lag of around 1 month in $/nickel tonnes.
· Correction factor = 20% - 1% x [(1.9% - Nickel ore grade (%Ni)) x 100]
*Appendix 5: Performance indicators *
*Millions of euros*^*1* * * *2024* *2023* *Chg. (€m)* *Chg.*^*2 **(%)*
*Manganese* Turnover 2,025 1,978 47 +2%
* * *EBITDA* *563* *499* *64* *+13%*
* * *FCF* *101* *-39* *140* *n.a.*
Manganese ore activity^3 Turnover 1,124 1,089 35 +3% EBITDA 455 443 12 +3%
* * FCF 94 -32 126 n.a.
Manganese alloys activity^3 Turnover 901 889 12 +1% EBITDA 108 55 53 +96%
* * FCF 7 -7 14 n.a.
*Nickel (excluding SLN)* Adjusted turnover^3
(excluding SLN) 636 751 -115 -15%
* * Turnover 597 994 -397 -40%
* * *Adjusted EBITDA*^*3*
*(excluding SLN)* *266* *429* *-163* *-38%* EBITDA -163 -120 -43 n.a.
* * *Adjusted FCF*^3 *111* *220* *-109* *-49%*
*Mineral Sands* Turnover 311 275 36 +13%
* * *EBITDA* *120* *105* *15* *+14%*
* * *FCF* *40* *16* *24* *+150%*
*Lithium* Turnover n.a.
* * *EBITDA* *-26* *-17* *-9* *n.a.*
* * *Adjusted FCF*^3 *-216* *-160* *-56* *n.a.*
*Holding, elim. and others* Adjusted turnover^3,4
(excluding SLN) 405 613 -208 -34%
* * *Adjusted EBITDA*^*3*
*(excluding SLN)* *-110* *-107* *-3* *n.a.*
* * *Adjusted FCF* *-344* *42* *-386* *n.a.*
*Group Total (excluding SLN)* Adjusted turnover^3
(excluding SLN) 3,377 3,618 -241 -7%
* * Turnover 2,933 3,251 -318 -10% *Adjusted EBITDA*^*3*
*(excluding SLN)* *814* *910* *-96* *-11%*
* * EBITDA 371 347 24 +7%
* * *Adjusted FCF*^3 *-308* *78* *-386* *n.a.*
^1 Data rounded to the nearest million.
^2 Data rounded to higher or lower %.
^3 See definition in the financial glossary in Appendix 10.
^4 Mainly includes turnover from the sale of SLN’s ferronickel since it is booked under “Eramet S.A.”; SLN’s turnover linked to the sale of nickel ore and others was excluded from the figures presented.
*Appendix 6: Sensitivities of Group adjusted EBITDA (excluding SLN)*
*Sensitivities* *Change* *Adjusted EBITDA impact (excl. SLN)*
*Manganese ore prices *
(CIF China 44%) +$1/dmtu c.€255m
*Manganese alloys prices * +$100/t c.€70m
*Nickel ore prices* (HPM Nickel) – Weda Bay +$10/wmt c.€110m
*Lithium prices* (lithium carbonate, battery-grade, CIF Asia) +$1,000/t-LCE c.€10m
*Exchange rate * -$/€0.1 c.€180m
*Oil price per barrel* (Brent) +$10/bbl c.€0m
^1 For an exchange rate of $/€1.04.
*Appendix 7: Performance indicators*
*Operational performance by division*
*Millions d'euros* *Mn* *Ni* *Sm* *Li* Holding, elim. & others *Total of continuing operations excl. SLN* SLN *Total of continuing operations * HPA& elims *Total *
*continuing & discontinued operations*
*Exercice 2024*
Turnover 2,025 138 311 405 *2,879* 54 *2,933* *2,933*
EBITDA 563 -5 120 -26 -110 *542* -171 *371* *371*
Current Operating Income 354 -5 87 -26 -128 *281* -184 *97* *97*
Net cash flow generated by operating activities 364 -202 110 -99 -293 *-121* -4 *-125* *-125*
Industrial investments (intangible assets and PPE) 273 28 59 327 11 *698* -12 *687* *687*
Free Cash-Flow 101 98 40 -320 -371 *-453* -216 *-669* *-669*
*Exercice 2023*
Turnover 1,978 179 275 613 *3,044* 206 *3,251* 346 *3,597*
EBITDA 499 4 105 -17 -107 *485* -138 *347* -1 *346*
Current Operating Income 361 4 62 -17 -118 *291* -164 *127* -5 *121*
Net cash flow generated by operating activities 328 -18 81 62 -211 *242* -1 *241* -69 *172*
Industrial investments (intangible assets and PPE) 378 38 65 226 17 *724* -18 *706* 26 *732*
Free Cash-Flow -39 253 16 -481 118 *-134* -109 *-243* -102 *-345*
*Turnover and investments by region*
*Millions of euros* *France* *Europe* *North America* *China* *Other Asia* *Oceania* *Africa* *South America* *Total*
*Turnover *
(sales destination)
*Financial year 2024* * 34 * * 764 * * 52 * * 696 * * 855 * * 24 * * 100 * * 408 * *2,933 *
Financial year 2023 43 663 403 1,011 944 71 75 41 3,251
*Industrial investments *
(intangible assets and PPE)
*FY 2024* * 32 * * 34 * * 3 * * * * 1 * * 15 * * 274 * * 328 * * 687 *
FY 2023 35 69 29 19 327 227 706
*Consolidated performance indicators – Income statement*
*In millions of euros* *2024* *2023*
*Turnover* *2,933* *3,251*
*EBITDA* *371* *347*
Amortisation and depreciation of non-current assets -248 -240
Provisions for liabilities and charges -27 20
*Current Operating Income* *97* *127*
(Impairment of assets)/reversals -13 -218
Other operating income and expenses -32 -102
*Operating income* *51* *-193*
Financial income (loss)^1 -175 -2
Share of income from associates 166 295
Income taxes -94 -88
*Net Income from continuing operations* *-52* *12*
Net Income from discontinued operations^2 6
*Net Income for the period* *-52* *18*
- Attributable to non-controlling interests -66 -91
- Attributable to Group share 14 109
Basic earnings per share (in euros) 0.50 3.80
^1 In 2023, excluding hyperinflation in Argentina, net financial expense would have amounted to -€119m.
^2 In 2023, in accordance with the IFRS 5 standard – “Non-current assets held for sale and discontinued operations”, the Erasteel and Aubert & Duval CGUs are presented as operations in the process of being sold (“discontinued”).
*Consolidated performance indicators – Net financial debt flow table*
*In millions of euros* *2024* *2023*
*Operating activities*
EBITDA 371 347
Cash impact of items below EBITDA -311 -179
*Cash flow from operations* * 60 * * 168 *
Change in WCR -186 73
*Net cash flow generated by operating operations (A)* *-126* * 241 *
*Investing activities*
Industrial investments -687 -706
Other investment cash flows 144 222
*Net cash flows from investing activities of continuing operations (B)* *-543* *-484*
*Net cash flows from financing activities of continuing operations*^*1* * 14 * * 124 *
Impact of fluctuations in exchange rates and others -22 -8
Acquisition of IFRS 16 rights of use -6 -10
*Change in the net financial debt of continuing operations before taking into account flows with discontinued operations* *-683* *-137*
Net cash flow from continuing operations carried out with discontinued operations -133
*Variation de l'endettement financier net des activités poursuivies * *-683* *-270*
Change in net financial debt of discontinued operations before taking into account flows with continuing operations -102
Net cash flow from discontinued operations carried out with continuing operations 133
*Change in net financial debt of discontinued operations*^2 * * * 31 *
*(Increase)/Decrease in net financial debt* *-683* *-239*
*Opening (net financial debt) of continuing operations* *-614* *-344*
*Opening (net financial debt) of discontinued operations* * * *-31*
*Closing (net financial debt) of continuing operations* *-1,297* *-614*
*Closing (Net financial debt) of discontinued operations* * * * *
*Free Cash-Flow (A) + (B)* *-669* *-243*
^1 Includes €656m for the impact of “TSDI” (SLN) offset by €663m corresponding to the buy-back of Eramine shares.
^2 In 2023, in accordance with the IFRS 5 standard – “Non-current assets held for sale and discontinued operations”, the Erasteel and Aubert & Duval CGUs are presented as operations in the process of being sold (“discontinued”).
*Consolidated performance indicators – Balance sheet*
*In millions of euros* *31/12/2024* *31/12/2023*
*Non-current assets* *3,943* *3,231*
Inventories 692 619
Customers 217 221
Suppliers -384 -445
*Simplified Working Capital Requirements (WCR)* *525* *395*
Other items of WCR -78 -41
*Total Working Capital Requirements (WCR)* *447* *354*
*Derivatives* *-8* *15*
*TOTAL ASSETS* *4,382* *3,600*
*In millions of euros* *31/12/2024* *31/12/2023*
Shareholders’ equity – Group share 1,441 1,600
Non-controlling interests 698 394
*Shareholders’ equity* *2,139* *1,994*
Cash and cash equivalents and other current financial assets -927 -1,613
Loans 2,224 2,227
*Net financial debt* *1,297* *614*
Net financial debt/shareholders’ equity (gearing) 61% 31%
*Employee-related liabilities and provisions* *789* *810*
*Net deferred tax* *157* *182*
*Derivatives* ** **
*TOTAL LIABILITIES* *4,382* *3,600*
*Appendix 8: Act for Positive Mining new CSR roadmap targets*
*2026 targets* *2024 achievements*
*CARE FOR PEOPLE* *2035 *
*commitment: *
*100%*
*of our *
*subsidiaries have D&I l