PARIS, Dec 4 (Reuters) - Eramet aims to deliver more manganese from Gabon and lithium from Argentina as part of efforts to strengthen its finances, which have been hit by falling profits and rising
Eramet's Plan to Boost Manganese and Lithium Production
PARIS, Dec 4 (Reuters) - Eramet aims to deliver more manganese from Gabon and lithium from Argentina as part of efforts to strengthen its finances, which have been hit by falling profits and rising debt, the French mining group said on Thursday.
The company, pressured by weak metal prices, production setbacks and the buyout of its lithium partner in Argentina, had pledged additional measures in early December after trimming capital expenditure.
Eramet aims to generate a boost to core EBITDA (earnings before interest, tax, depreciation and amortisation) of between 130 million euros and 170 million euros ($151.52 million to $198.14 million) within two years, supported by rail infrastructure improvements in Gabon to expand volumes of transported ore, it said in a statement.
On top of the EBITDA target, the firm may also get a profit boost from the ramp-up of its lithium production in Argentina, with capacity expected to be reached by the end of 2026, it said.
Eramet has obtained a waiver on a December 2025 debt ratio covenant from its lending group, ensuring availability of its currently undrawn credit facility of 935 million euros, it said.
Efficiency steps including on capex should boost free cashflow by 60 million to 70 million euros by year-end, Eramet said, adding it was evaluating all strategic and financial options to accelerate its performance and deleveraging efforts.
Eramet, which confirmed 2025 volume targets, said it expected its markets to remain pressured by slowing Chinese industrial demand and global economic uncertainty, though conditions should show signs of stabilising in 2026 as supply and demand gradually rebalance.
($1 = 0.8580 euros)
(Reporting by Gus Trompiz and Louise Heavens)
