Finance

Miner Eramet plans capital increase, asset sales after dire year

Published by Global Banking & Finance Review

Posted on February 18, 2026

1 min read

· Last updated: April 3, 2026

Add as preferred source on Google
Global Banking & Finance Awards 2026 — Call for Entries

PARIS, Feb 18 (Reuters) - French mining group Eramet will launch a 500 million euro ($590.40 million) capital increase and consider selling stakes in some activities in 2026 after a slump in earnings

Eramet to raise €500m, weigh stake sales in 2026 after earnings slump

Asset Stakes Under Review

€500m Capital Increase Plan

Eramet’s 2026 Capital Actions and Governance Update

PARIS, Feb 18 (Reuters) - French mining group Eramet will launch a 500 million euro ($590.40 million) capital increase and consider selling stakes in some activities in 2026 after a slump in earnings and a jump in debt last year, it said on Wednesday.

Core Metals: Nickel, Manganese, Lithium

Finance Chief Suspended

CEO Paulo Castellari Fired

Leadership Turmoil at the Top

The nickel, manganese and lithium producer unveiled the measures as it also faces a management crisis following the firing of former CEO Paulo Castellari and the suspension of finance chief Abel Martins-Alexandre within a few days earlier this month.

Exchange Rate Used ($1 = €0.8469)

($1 = 0.8469 euros)

(Reporting by Gus Trompiz; Editing by Joe Bavier)

Key Takeaways

  • Eramet plans an equity raise of around €500m in 2026 with backing from reference shareholders.
  • The group will review assets with potential monetisation or stake sales to bolster the balance sheet.
  • Weak 2025 performance drove leverage higher; liquidity remains strong and dividends are suspended for two years.
  • Governance turmoil includes the Feb 1, 2026 ouster of CEO Paulo Castellari and the suspension of CFO Abel Martins-Alexandre.
  • Management will focus on the ReSolution performance program, cost controls and capex rationalisation in 2026.

References

Frequently Asked Questions

What is a capital increase?
A capital increase is when a company issues new shares to raise money. Proceeds can fund operations, reduce debt, or support investments. Existing shareholders may be offered rights to buy new shares, which dilutes ownership if they do not participate.
What is a stake sale?
A stake sale is the sale of part of a company’s ownership interest in a subsidiary, joint venture, or asset. It can generate cash, reduce exposure to certain activities, and realign the portfolio without selling the entire business.
What is an earnings slump?
An earnings slump refers to a significant decline in a company’s profit compared with prior periods. It often results from weaker prices, higher costs, operational issues, or adverse market conditions and can pressure cash flow and leverage ratios.
What is net debt?
Net debt measures a company’s total borrowings minus its cash and cash equivalents. It indicates how much debt would remain if available cash were used to repay obligations. Higher net debt can reduce financial flexibility and increase risk.
What is an exchange rate?
An exchange rate is the price of one currency expressed in another currency. It determines how much of a foreign currency you receive for a unit of your domestic currency and affects reported revenues, costs, and financial results for international companies.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category