- Adjusted turnover[i] of €761m (-19%) reflecting, as expected, a strong negative price effect (-24%), while the positive volume effect is limited (+2%), penalised by the decline in SLN volumes sold
- Good operational performance of the Group’s main mining activities compared to the unfavourable comparison base of Q1 2023:
- +27% in manganese ore volumes sold from Gabon
- +52% in nickel ore volumes produced in Indonesia, but -17% in volumes sold, reflecting the absence of sales of low-grade saprolites over the quarter, whose commercialization permit for 2024 is under assessment by the Indonesian government
- +52% in zircon volumes and +36% in ilmenite[ii] sold from Senegal
- Strong decline in selling prices compared to Q1 2023
- Neutralization of SLN’s debt in the Group’s consolidated accounts[iii]
- Group mineral resources revised upwards on 1 January 2024[iv]:
- +52% at 15.1 Mt-LCE in Argentina
- +19% at 2,193 Mwmt of nickel in Indonesia
- 2024 outlook set, as expected, against the background of a lacklustre market environment, albeit with improved price levels at the start of Q2
- Given the prolonged halt in exports of high-grade ore from Australia, high-grade manganese ore prices should significantly increase, with a substantial impact on Eramet’s financial performance in 2024 (a $1/dmtu price variation on average over the year corresponds to a €255m impact on the Group’s adjusted EBITDA[v])
- Volume growth targets confirmed in 2024 for the Group’s main mining activities:
- Manganese ore transported in Gabon: between 7.0 and 7.7 Mt
- Marketable nickel ore at Weda Bay: between 40 and 50 Mwmt, depending on the schedule for approvals, of which a third is limonites
- Lithium carbonate produced at Centenario: between 5 and 7 kt-LCE
- Financial performance in H1 2024 expected to be significantly below that of H2 2024, given the unfavourable seasonality and the price scenario
Continued strict cost control and confirmation of the controlled capex plan including the continuation of growth projects (of around €700m to €750m[vi] financed by the Group in 2024)
[i] Definitions for adjusted turnover and adjusted EBITDA are presented in the financial glossary in Appendix 5
[ii] At comparable scope, i.e., a total of 55 kt in Q1 2023, including 35 kt of internal sales to ETI
[iii] Conversion of the existing debt of SLN into undated fixed-rate subordinated bonds (“TSDI” – Titres Subordonnées à Durée Indéterminée), an instrument akin to equity
[iv] Total mineral resources (“inferred”, “indicated” and “measured”) for nickel and drainable for lithium as of January 1, 2024, see section 1.3 of the 2023 Universal Registration Document entitled “Exploration results, mineral resources and ore reserves”
[v] See Appendix 4 Sensitivities of Group adjusted EBITDA
[vi] Excluding Tsingshan’s capital contributions to the Centenario project