• Adjusted turnover[i] of €809m, down 17% versus Q3 2023, reflecting a negative volume effect (‑43%), partly offset by a positive price effect (+26%)
  • Decrease in volumes sold for the Group’s main mining activities, except mineral sands:
    • Depressed market conditions for carbon steel in China in Q3, leading to a decline in sales of manganese ore (-37% vs. Q3 2023)
    • Timing of issuance by the Indonesian Authorities of the nickel ore sales permit for 2024, which significantly restricted nickel ore volumes sold in Q3 (-83%)
    • Good operational performance in Senegal, with an increase in zircon and ilmenite volumes sold[ii] (+88% and +34%, respectively)
  • Significant volatility in selling prices over the quarter:
    • Strong decline in manganese ore prices to around $4.0/dmtu currently (-56% vs. end-July), with an average quarterly index remaining above Q3 2023
    • Stability in prices for nickel ore sold in Indonesia, the decline of the LME being offset by a high level of local premiums, resulting from supply restrictions
  • Regaining full ownership of Centenario, a key strategic asset for Eramet’s sustainable development in lithium, a critical metal for the energy transition; impact of $699 million on the Group’s net debt (press release of 24/10/2024[iii])
  • Suspension of the Battery Recycling project, pending a solid and sustainable economic model in Europe
  • Market conditions remain depressed in Q4 2024 and are expected to continue weighing on prices, notably for manganese
  • Volumes targets revised for 2024 (press release of 15/10/20243):
  • Sales of high-grade manganese ore: between 0 and 6.5 Mt, including around 0.7 Mt of internal sales, factoring in the decline in Q3 sales
  • Nickel ore sales in Indonesia: 32 Mwmt, including 3 Mwmt of internal sales and a third of the volume being limonite, according to the revised sales permit for the year
  • Production of lithium carbonate: around 1 kt-LCE, scheduled to start in the coming weeks in Argentina
  • Adjusted EBITDA1 in H2 expected to be above that of H1, considering the market environment and based on the above production and sales volume targets
  • Action plan aimed at preserving cash:
    • Reduction in capex financed by the Group[iv], revised downwards between €450m and €500m in 2024 (a decrease of €250m and €100m compared to the targets communicated end-February and end-July respectively)
    • Optimisation of WCR, particularly inventories by adjusting production as closely as possible to match demand
    • Strict cost control in all of our activities, with the temporary suspension of manganese ore production in Gabon notably enabling better cost control in a difficult market environment

[i] Definitions for adjusted turnover and adjusted EBITDA are presented in the financial glossary in Appendix 5

[ii] At comparable scope (sale of ETI at end-September 2023), i.e., a total of 93 kt in Q3 2023, of which 35 kt is internal sales to ETI

[iii] Publications and press releases – Eramet

[iv] Net of capital contributions by Tsingshan (Centenario project) and the French State (SLN)

In the third quarter, the manganese market faced a sudden downturn, with a very strong decline in demand from China.

Faced with this situation, which was compounded by the unexpected restriction to our annual permit to produce nickel in Indonesia, we responded very quickly and engaged a rigorous plan to manage our cash, with a reduction in our investments, and strict control of our WCR and our costs.

Despite this context, building on a more robust financial base, we are stepping up the implementation of our strategic roadmap. As a result, we have taken the opportunity to regain full ownership of our lithium assets in Centenario, in Argentina, one of the most promising salars worldwide.

By demonstrating stringent discipline in the Group’s capital allocation, we continue to develop our high-quality assets’ portfolio with a strong potential for value creation in the medium and long-term and are fully mobilised to address the challenges of our markets.

Christel Bories
Eramet group Chair and CEO