Eramet Sa · EURONEXT:ERA
Eramet Sa — Investor Presentation (January 2025)
29 slides from Eramet Sa's investor presentation, January 2025
Slide 1: Investor Presentation January 2025
INVESTOR PRESENTATION January 2025 1 ERAMET – INVESTOR PRESENTATION – JAN. 2025
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation including any information on Eramet’s plans or future financial or operating performance and any other statements that express management’s expectations or estimates of future performance, constitute forward-looking statements. Such state
Slide 3: Summary
Summary 01 02 03 04 Eramet at a glance Business update Strategic roadmap Conclusion & update outlook 05 Appendices 3 ERAMET – INVESTOR PRESENTATION – JAN. 2025
Slide 4: Eramet at a glance
Eramet at a glance 01
Slide 5: A global pure-play Metals & Mining Company
A global pure-play Metals & Mining Company Four businesses FY 2023 performance Manganese Nickel €3.8bn 52% 41% Adjusted EBITDA1 €772m of sales of sales 2023 Group Adjusted Mineral sands Lithium turnover 7% 1st lithium production FCF generation2 €78m of sales end-December 2024 Leverage3 0.8x 2023 Adj
Slide 6: Operating in manganese, nickel, mineral sands & ramping-up lithium
Operating in manganese, nickel, mineral sands & ramping-up lithium MANGANESE NICKEL MINERAL SANDS LITHIUM In operation In operation In operation Operating soon ASSETS ASSETS ASSETS ASSETS Ore – Moanda (Gabon) Weda Bay (Indonesia) GCO (Senegal) Centenario (Argentina) World’s largest manganese mine Wo
Slide 7: A world-class mining portfolio, with ambitious mid-term production targets
A world-class mining portfolio, with ambitious mid-term production targets Long-life, high-grade, scalable deposits, with a 1st quartile cost curve positioning, hence profitable at low commodity price levels Moanda GABON Weda Bay INDONESIA GCO SENEGAL Centenario ARGENTINA CAMEROON 22 MAURITANIA Weda
Slide 8: Eramet capital allocation policy
Eramet capital allocation policy 01 02 03 Balance sheet Capex Dividend ▪ Maintain adjusted leverage ▪ Disciplined investment policy ▪ Reward shareholders for their below 1x on average through the ▪ Deliver organic growth with very long-term commitment cycle quick payback and attractive ▪ Return valu
Slide 9: A strategy tailored to the new era of metals
A strategy tailored to the new era of metals Two strategic axes aligned with global macro-trends, supported by an ambitious CSR roadmap GROW IN METALS supporting global SUSTAINABLY DEVELOP CRITICAL economic development METALS for the energy transition RESILIENT MARKETS FAST-GROWING MARKETS Manganese
Slide 10: A CSR commitment and performance recognized by leading ESG rating agencies
A CSR commitment and performance recognized by leading ESG rating agencies 10 ERAMET – INVESTOR PRESENTATION – JAN. 2025
Slide 11: Business update
Business update 02
Slide 12: Overall low-cycle price environment; Mn high-grade ore price index sharply down
Overall low-cycle price environment; Mn high-grade ore price index sharply down since end-July (c.$4/dmtu on average in Dec.) 25 Manganese ore (CIF China 44% - CRU) Nickel ore 12m YoY H2 vs H1 Dec. Mn variation variation Dec. Mn ore +15% +5% MC FeMn +2% +5% SiMn +13% -5% SLN nickel ore (CIF China 1.
Slide 13: 9m production up YoY, but sales impacted by depressed market conditions
9m production up YoY, but sales (and the overall activity) impacted by depressed market conditions for Mn & delays in permitting for Ni in Indonesia; GCO printing a record year Manganese Nickel Mineral sands Production Production1 5.6Mt 13.3Mwmt GCO +16% vs. 9M 2023 Weda Bay +11% vs. 9M 2023 Ore (or
Slide 14: Strategic roadmap update
Strategic roadmap update O3 | |
Slide 15: Eramet regained full ownership in its flagship Lithium business in Argentina
3 Eramet regained full ownership in its flagship Lithium business in Argentina in October Li Transaction highlights Asset perimeter Buy-out of Tsingshan’s interest (49.9%) in Eramet’s subsidiary in Argentina, hosting the Centenario-Ratones and Arizaro lithium brine deposits Centenario-Ratones and Ar
Slide 16: Eramet deploys its capital to consolidate exposure to a world-class asset
3 Eramet deploys its capital to consolidate exposure to a world-class asset expected to create significant value Li Reinforced exposure Transaction executed Regaining full control 1 to a Tier-1 asset 2 at the right time 3 and optionality World-class Counter-cyclical transaction Lithium asset 100% ow
Slide 17: First extraction plant start-up to continue development of lithium activities
3 Eramet will leverage on the start-up of the first extraction plant to continue the development of its lithium activities Li Phase 1: first lithium production Highly disciplined in contemplating 1 achieved end of December 2024 2 future growth in Centenario and beyond 1st plant inaugurated in July 2
Slide 18: Weda Bay: world's largest nickel mine supplying an extensive industrial park
Weda Bay: world’s largest nickel mine supplying an extensive industrial park 28 (IWIP3) of NPI & HPAL plants Ni Weda Bay mine… …supplying IWIP4 ▪ Partnership with Tsingshan (38.7% Eramet) ▪ World-class deposit operated since October 2019 80Mwmt Ni ore demand ▪ 30-year contract of work (COW) ▪ 1st qu
Slide 19: Conclusion & outlook
Conclusion & outlook 04
Slide 20: 2024 volumes sold revised down; -€250m reduction in Capex
2024 volumes sold revised down for the Group’s main mining activities ; -€250m reduction in Capex financed by the Group for the year (vs. end-February target) 2024 volume guidance (October update) 2024 Capex guidance (October update) 6.6 Mt 6.5-7.0Mt €450-500m3 6.0-6.5Mt 25 Vs. 7.0-7.5Mt transported
Slide 21: Adjusted EBITDA in H2 expected above H1
Adjusted EBITDA in H2 expected above H1, considering market environment & volumes Demand across all underlying markets of the Group to remain weak in Q4 Uncertain situation in China, following the accouncement of substantial economic support measures to restore consumer & investor confidence China’s
Slide 22: Appendices
Appendices GQ 6 \ J
Slide 23: Our new ambitious CSR roadmap
Our new ambitious CSR roadmap Responsible mining is part of the solutions to support the energy transition 3 AREAS Care for people Trusted partner Transform our FOR ACTION TRANSLATED for nature value chain INTO 10 AMBITIONS 1 Take care of health and 4 Control & optimize water 7 Reduce the CO2 FOR 20
Slide 24: Lithium demand forecast & lithium carbonate historical price
3 Lithium demand forecast & lithium carbonate historical price Li Lithium demand forecast1 Lithium carbonate price (CIF Asia)3 Mt-LCE2 $kt-LCE2 8 90 2024-2029 2024-2034 7 CAGR +21% +16% 80 x1.5 Batteries +25% +16% 70 6 Others +4% +3% 60 5 x1.8 50 4 40 $10.3k/t-LCE 3 x2.1 30 on 03/01/2025 2 20 Consen
Slide 25: Centenario 1st plant: attractive profitability underpinned by first quartile cost position
3 Centenario 1st plant: an attractive profitability underpinned by first quartile cost position Li Illustrative cash cost curve of the lithium industry1 Expected (2025, Eramet internal estimates) strong resilience Cash cost2, k$/t LCE CIF China through-the-cycle Current long-term price forecast (mar
Slide 26: SLN's cash needs: no impact on Eramet's balance sheet
SLN’s cash needs: no impact on Eramet’s balance sheet thanks to financing from the French State Eramet not financing SLN anymore Following signature of the agreement in April 2024: €354m H1 2024 SLN’s cash Conversion of the French State’s existing loans to consumption neutralized SLN (€260m as of De
Slide 27: Rating actions – Update end-October 2024
Rating actions – Update end-October 2024 Ba3 BB Outlook negative Outlook negative 1 Increase in leverage following the $699m buy-out of Tsingshan interest in Centenario 2 Challenging market environment, with lower prices and demand prospects in the short-term 3 Evolution in country risk assessment 2
Slide 28: Shareholding at 30 November 2024
Shareholding at 30 November, 2024 STCPI2 Sorame + CEIR (Duval Family) 4% 37.1% Number of shares issued APE1 27.1% 28,755,047 Other float 31.8% 1. APE (Agence des Participations de l’Etat): French State 2. STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the Ne
Slide 29: Contacts
Contacts Head of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com Senior Analyst Fabien PONT fabien.pont@eramet.com