Eramet Posts Strong H1 Results
French multinational mining and metallurgy company Eramet has reported a strong increase in group EBITDA to EUR 293 million in H1 2021, which is 144% higher than in H1 2020. The group’s net income was EUR 53 million. 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.”
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.
The Manganese Business Unit continued to record excellent operating performance in H1 2021, notably with an increase in ore production by 13%. Nickel BU turnover stood at EUR 515 million 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 EUR 138 million, 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.