Eramet revised its forecast 2022 EBITDA from €1.6bn (US$1.6 billion) to €1.5bn due to persistent inflation and decreasing selling prices.
The company reported its Q3 today. Eramet is a manganese, nickel, mineral sands, lithium, and cobalt miner.
The company still beat sales from the year prior. Turnover was €1.3bn (US$1.3 billion), up 34% from Q3 2021 due to a 6% volume effect, a 17% price effect and a +11% currency effect.
Looking to the next quarter the company flagged an accelerating price declines, expecting a strong decrease in manganese alloys and ferronickel price at a level "...well below the LME nickel price, with the latter expected at $25,000/t for the year according to the consensus."
The company noted declines in China and European markets.
"The climate of geopolitical and macroeconomic uncertainties continues to weigh on all of the Group’s markets, with a weakening of demand and prices which continues to a greater or lesser extent, depending on markets and regions," wrote the company.
Input costs should come down for Eramet.
"The costs of freight and reducing agents should continue their trend reversal, while electricity and gas prices are expected to remain at very high levels in a context of an energy crisis in Europe."
