Substantial growth in mining activities, EBITDA declined significantly in first-half 2020 owing to prices and aerospace crisis.
Home
News
Eramet : 2020 half-year results
Share
Newsof July's 29 2020
To view the webcast about Eramet's 2019 full-year results, click on the following link: https://edge.media-server.com/mmc/p/kzwxuawk/lan/en
Raw material sales prices adversely affected: -22% for manganese ore, -10% for ferronickel.
Brutal and deep impact of aerospace crisis on results for the High-Performance Alloys division, with cash consumption of €156m during the period at Aubert & Duval.
Acceleration of portfolio review of least performing assets, all options being considered, including possible Aubert & Duval divestment.
Resilient mining activities, in the context of a crisis of unprecedented scale, with an excellent operating performance, thereby confirming the success of the Group's organic growth strategy:
- Increase in manganese ore volumes: 2.8 Mt produced, +31% vs. H1 2019 .
- Increase in nickel ore volumes at SLN: 2.2 Mwmt produced (+12%) and 1.1 Mwmt exported (+120%).
- Successful start-up of four production lines at Weda Bay.
Sharp decline in EBITDA to €120m owing to the decline in raw material prices and the aerospace crisis at Aubert & Duval, despite intrinsic progress of more than €120m.
Negative net income, Group share of -€623m impacted by a non-recurring expense of €459m, mainly due to crisis, of which €197m for Aubert & Duval asset impairment and €142m related to the mothballing of lithium project.
High cash level at €1.9bn, with strengthened cash control plan measures, and before proceeds from the sale of the TTI plant, subject to ongoing regulatory approvals
Net debt of €1.5bn, corresponding to a gearing of 113%, before impairment; suspension of calculation of Covenants granted for June and December 2020
Christel BORIES
Eramet Chairman and CEO
The Covid-19 health crisis has put our industries to the test, profoundly impacting our ecosystems. Above all, it has led to the biggest crisis ever seen in the aerospace sector. Against this background, we have strengthened our cash preservation measures and speeded up the review of our asset portfolio.
We still must overcome a highly volatile and uncertain market environment for all sectors of activity.
I want to pay tribute to the incredible commitment of our employees who have been responsive and resourceful in ensuring optimal business continuity while stringently complying with health protection protocol.
We have pursued our organic growth strategy in mining activities as well as the optimization of our operations in order to bounce back as soon as the global outlook and markets improve.
Read the press release
Attachments
Original document
Permalink
Disclaimer
Eramet SA published this content on 29 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2020 17:00:11 UTC
Eramet, a global mining and metallurgical group, is a key player in the extraction and valorisation of metals (manganese, nickel, mineral sands) and the elaboration and transformation of alloys with a high added value (high-speed steels, high-performance steels, superalloys, aluminium and titanium alloys).
The group supports the energy transition by developing activities with high growth potential. These include lithium extraction and refining, and recycling.
Eramet positions itself as the privileged partner of its customers in sectors that include carbon and stainless steel, aerospace, pigments, energy, and new battery generations.
Building on its operating excellence, the quality of its investments and the expertise of its employees, the group leverages an industrial, managerial and societal model that is virtuous and value-accretive.
Net sales break down by family of products mainly between manganese (60.8%), nickel (30.6%), and mineralized sands (8.5%).
Net sales are distributed geographically as follows: France (1.3%), Europe (20.4%), China (31.1%), Asia (29%), North America (12.4%), Africa (2.3%), Oceania (2.2%) and South America (1.3%).
ERAMET 
