PARIS (Reuters) - French mining group Eramet on Wednesday said it will trim spending and boost productivity gains this year as it still faces unfavourable metal markets that helped push down its 2024
Eramet Plans Cost Reductions Amid Weak Market Conditions
PARIS (Reuters) - French mining group Eramet on Wednesday said it will trim spending and boost productivity gains this year as it still faces unfavourable metal markets that helped push down its 2024 profits.
Eramet recorded adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 814 million euros ($847.29 million) in 2024, down 11% from the previous year, it said in a results statement.
The earnings exclude Eramet's New Caledonian nickel subsidiary SLN, which is being propped up by French government loans.
Low prices, notably due to sluggish Chinese demand, combined with production cuts at Eramet's flagship manganese and nickel mines weighed on its full-year performance, the company said.
Faced with low prices and still subdued demand in China at the start of this year, the group was focused on reducing its net debt, which rose to 1.8 times adjusted EBITDA at the end of 2024 from 0.7 time a year earlier, Chief Financial Officer Nicolas Carre told reporters on a call.
The group is targeting capital investment of 400 million to 450 million euros this year, compared with 497 million in 2024, and expects productivity gains to be higher than last year.
The rise in debt last year was partly due to Eramet's buying Chinese partner Tsingshan's share of their lithium joint venture in Argentina.
Eramet's Centenario facility, which started production in December, is expected to produce 10,000 to 13,000 metric tons of lithium carbonate equivalent in 2025 and reach its nominal annual capacity rate of 24,000 tons at the end of this year, Chairwoman and CEO Christel Bories said during the call.
Eramet has limited direct exposure to potential U.S. tariffs but could be affected by a reshuffling in trade from China, she said.
An end to the war in Ukraine, as sought by U.S. President Donald Trump through talks with Russia, should not have a major impact on the nickel market as Russian supply has already shifted towards China, she added.
($1 = 0.9607 euros)
(Reporting by Gus Trompiz; Editing by Leslie Adler)
