French mining and metals giant Eramet posts strong H1 results
(Kitco News) - Eramet, a French multinational mining and metallurgy company, today reported a strong increase in group EBITDA to €293m in H1 2021, which is 144% higher than in H1 2020 (€120m). Eramet also posted positive free cash-flow of €111m, with reduction in net debt to €1.2bn as of 30 June 2021. The group’s net income was €53m.
The company said that activities of the Mining and Metals division benefitted from positive market momentum in H1 2021 with strong demand driven by the rebound in global economic growth, resulting in overall higher price levels. Over the half-year, the division posted turnover up 15% and EBITDA up more than 60% to €337m.
The Manganese Business Unit (BU) continued to record excellent operating performance in H1 2021, notably with an increase in ore production by 13%. Nickel BU turnover stood at €515m in H1 2021 (+41%), including €108m from the trading activity of nickel ferroalloys produced at Weda Bay (off-take contract) which continues to ramp up.
The Mineral Sands BU posted stable H1 2021 turnover at €138m, factoring in a negative €/$ currency effect, which offset the favourable price effect. EBITDA was up by 6% to €47m, reflecting the good operating performance offset in part by an increase in the cost of inputs, particularly the cost of energy.
Eramet said that its mining production targets are maintained in Gabon and New Caledonia and revised upwards in Indonesia: 7 Mt of manganese ore production in 2021; 3.5 Mwmt in nickel ore exports; Weda Bay production to 12 Mwmt.
Chair and CEO Christel Bories said, “We achieved a promising first half-year, driven by good operating performance and an overall high price environment. We remained focused on cash generation and, thanks to progress made in all our businesses, our debt decreased at end-June. Building on this momentum, we enter with confidence the second semester with very good prospects, both in terms of results and cash generation.”