In This Article:
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Adjusted EBITDA: EUR247 million, including a negative contribution of EUR109 million from SLN.
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Net Income: Negative EUR41 million, with EUR72 million negative impact from SLN.
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Net Debt: Increased by EUR97 million to EUR711 million, leverage of 1.
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Cash Flow: Negative free cash flow of EUR521 million; economic free cash flow adjusted for SLN and partner financing.
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Manganese Ore Production: Increased by 33% in Gabon.
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Nickel Ore Production: Increased by 40% in Weda Bay.
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CapEx Guidance: Reduced to EUR550-600 million from EUR700-750 million.
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Debt Maturity: Extended to four years with strong liquidity of EUR2.8 billion.
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Illustrative Adjusted EBITDA for 2024: Expected between EUR1.2 billion and EUR1.3 billion.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eramet SA (ERMAY) reported a strong operational performance with significant production increases: 33% in manganese ore in Gabon and 40% in nickel ore production in Weda Bay.
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The company has commissioned its first lithium plant in Argentina, with production expected to start in November 2024, positioning it as the first European company to produce battery-grade lithium carbonate at an industrial scale.
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Eramet SA (ERMAY) has maintained a robust balance sheet with a limited increase in net debt despite a challenging pricing environment and significant investments.
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The company has launched a new CSR roadmap, 'Act for Positive Mining,' focusing on safety and employee social protection, achieving a frequency rate of 0.8, which is a 20% improvement over the previous year.
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Eramet SA (ERMAY) has extended its debt maturity by another year, maintaining strong liquidity with a robust balance sheet, enabling confidence in future growth potential.
Negative Points
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The company faced a challenging pricing environment, particularly in nickel, which negatively impacted its financial performance.
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Eramet SA (ERMAY) reported a negative cash flow for the period due to low Weda Bay dividend distribution, sustained CapEx, and higher working capital requirements.
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The SLN operations contributed negatively to the adjusted EBITDA by EUR109 million, significantly impacting the company's financials.
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The company experienced delays in obtaining permits for low-grade saprolite ore sales in Indonesia, affecting external sales.
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The lithium market is currently experiencing low prices, which could impact future profitability despite the company's strong cost position.