Eramet: 1st quarter 2021 turnover

Eramet: Q1 2021 turnover up 8%, driven by the strong growth of the Mining and Metals division

News
  • Consolidated turnover of €838m in Q1 2021, up 8% versus Q1 2020, driven by the strong growth in the Mining and Metals division (+18%) of which +9% in volume and +9% in price (in €), and despite a decline in sales for the High-Performance Alloys division.
  • Very good operating performance of historic mining activities, in a quarter with traditionally unfavourable seasonality:
  • 1.5 Mt in manganese ore produced (+17% vs. Q1 2020) in Gabon.
  • 1.1 Mwmt of ore produced in New Caledonia (+14%) and 433 kwmt in exports (+31%), despite societal and weather disruptions.
  • Exceptional progress in mining operations in Weda Bay in Indonesia with 3.0 Mwmt of nickel ore produced; strong cash contribution expected for the Group in 2021.
  • Strong increase in metal prices in euro1: manganese ore (+7%), ferronickel (+30%).
  • Impact of the aerospace crisis on the High-Performance Alloys division, with a decline of 27% in sales for Aubert & Duval (“A&D”), compared with Q1 2020 which was still little impacted by the pandemic.
  • Maintained actions to strictly control costs and cash, which remain high.
  • 2021 Outlook:
  • Markets: continuation in Q2 of the good momentum in the beginning of the year.
  • Strategic transformation: as part of the strategic review of A&D, Eramet received an offer for a takeover with which it did not proceed; the sale of this asset remains the Group’s preferred option in time.
  • Operations: operating targets are confirmed.

Christel BORIES

Eramet Group Chair and Chief Executive Officer

The start of the year confirms our path to transformation for profitable growth. The strong growth momentum in our mining activities produced the expected results: in the first quarter, our operating performance continued to make progress, in a favourable price environment. Our turnover grew significantly versus the same period for 2020, which was still hardly affected by the pandemic.

In early 2021, we remain focused on the protection of our employees, the control of our cash position and the implementation of our strategic roadmap.

Our A&D subsidiary is still strongly impacted by the profound crisis in the aerospace sector and we are adapting the structures. The sale of this asset remains the Group’s preferred option in time. In our mining activities, the organic growth of our productions and the development in metals of the energy transition are a source of strong value creation in the short and medium term.

In a pandemic which still calls for the utmost vigilance, I commend the continued efforts of our committed teams to achieve our company project.