Third quarter 2019 sales

News

Eramet: Sales of €895m in third-quarter 2019, in a mixed price environment

  • Q3 2019 sales of €895m, down 6% on Q3 2018, mainly due to an unfavourable price environment in Manganese activity and the impact of bringing quality processes into conformity at Aubert & Duval
  • New quarterly production records for manganese ore and nickel ore
  • Mixed price environment in Q3: manganese ore prices down -17% and LME nickel prices up +18%, and before the positive impact of an appreciating US dollar versus the euro
  • Highly favourable momentum in Nickel activities:
    • Decisive breakthrough in SLN's rescue plan: compared to the 1st semester, cash cost down to USD 5.76/lb in Q3 2019, particularly due to the record level of ore export volumes
    • Sandouville's recovery confirmed: target to achieve break-even EBITDA after Q4 maintenance shutdown
    • Acceleration of Weda Bay Nickel: construction ahead of schedule with a start-up planned as early as H1 2020, for highly competitive NPI production1
  • 2019 targets confirmed: production of 4.5 Mt of manganese ore, 720 kt of mineral sands and exports of 1.5 Mt of nickel ore
  • Factoring in expected productivity gains in the 2nd half of the year, and with the assumption of market conditions of September 20192, more mixed than at mid-year, forecast EBITDA for H2 should be significantly above that of H1, nonetheless leading to full year EBITDA below those of 2018. However, the market and price environment has been particularly volatile in the last weeks.
1 NPI: Nickel Pig Iron, low-grade nickel ferroalloys ;  2 In particular, the monthly average September manganese ore price came out at USD 5.49/dmtu and nickel prices at USD 8.02/lb (USD 17,673/t)

Verbatim Christel Bories - Q3 2019 sales