Eramet Sa · EURONEXT:ERA
Eramet Sa — Debt Investor Presentation (March 2025)
50 slides from Eramet Sa's debt investor presentation, March 2025
Slide 1: Credit Update
Credit Update March 2025 Sandrine NOURRY-DABI, Head of IR Philippe BERNEUR, Group Treasurer 1 ERAMET – CREDIT UPDATE – MARCH 2025
Slide 2: Contents
Contents 01 02 03 Eramet at a glance Finance policy FY2024 financial performance 04 05 Conclusion & 2025 Appendices Outlook 2 ERAMET – CREDIT UPDATE – MARCH 2025
Slide 3: Eramet at a glance
Eramet at a glance 01
Slide 4: Eramet: a global pure-play Metals & Mining Company
Eramet: a global pure-play Metals & Mining Company Four businesses FY 2024 performance Manganese Nickel €3.4bn 60% 31%2 Adjusted EBITDA €814m of sales of sales (excl. SLN)1 2024 Group Adjusted Mineral sands Lithium Adjusted FCF turnover 9% 1st lithium production generation1 -€308m (excl. SLN)1 of sa
Slide 5: Operating in manganese, nickel, mineral sands & ramping-up in lithium
Operating in manganese, nickel, mineral sands & ramping-up in lithium MANGANESE NICKEL MINERAL SANDS LITHIUM In operation In operation In operation In ramp-up ASSETS ASSETS ASSETS ASSETS Ore – Moanda (Gabon) Weda Bay (Indonesia) GCO (Senegal) Centenario (Argentina) World’s largest HGO manganese mine
Slide 6: A world-class mining portfolio
A world-class mining portfolio 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 Bay 25 Libreville GABON 28 INDONESIA Ti Dio
Slide 7: Moanda mine: a leading asset in manganese market, profitable at low commodity prices
25 Moanda mine: a leading asset in manganese market, profitable at low commodity prices Mn FY 2025 manganese ore cost curve CIF (simplified)1 For illustrative purpose High-grade (>40%) Medium-grade (30-40%) Low-grade (<30%) 8 OPPORTUNISTIC 6 Cash cost, $/dmtu LOW-GRADE Current Market consensus 2025
Slide 8: Weda Bay mine: world's largest nickel mine supplying an extensive industrial park
Weda Bay mine: world’s largest nickel mine supplying an extensive industrial 28 park (IWIP) of NPI & HPAL plants Ni Weda Bay mine PT Weda Bay Industrial Park (IWIP)4 ▪ Publication of the AMDAL1 decree in July 2024 and of the Feasibility Study1 in August, enabling PT WBN to target a 80Mwmt Ni ore dem
Slide 9: Centenario DLE plant: an attractive profitability underpinned by first quartile cost position
Centenario DLE plant: an attractive profitability 3 underpinned by first quartile cost position Li Illustrative cash cost curve CIF for the lithium industry1 Expected (2026, Benchmark Mineral Intelligence) strong resilience Cash cost, k$/t LCE CIF Asia 15 through-the-cycle Current 2026 market consen
Slide 10: A strategy tailored to energy transition
A strategy tailored to energy transition Two strategic axes aligned with global macro-trends, supported by an ambitious CSR roadmap & focused on operational excellence GROW IN METALS supporting global SUSTAINABLY DEVELOP CRITICAL economic development METALS for the energy transition RESILIENT MARKET
Slide 11: Growing in lithium to become the 1st European company to produce battery-grade lithium carbonate
Growing in lithium to become the 1st European company to produce battery-grade lithium carbonate at industrial scale Full ownership of Centenario 1st lithium produced, regained in October now focusing on ramp-up €663m1 net cash-out December 2024 Buy-out of Tsingshan’s interest 1st lithium produced a
Slide 12: SLN: no more impact on Eramet's balance sheet thanks to financing from the French State
SLN: no more impact on Eramet’s balance sheet thanks to financing from the French State Following agreement signed in April 2024: In €m Conversion of French State’s existing 354 loans to SLN (€260m as of Dec. 31st, 2 2 1 614 2023) into undated (deeply) subordinated bonds (“TSDI”1) 260 -257 257 “TSDI
Slide 13: Long-term committed reference shareholders onboard since 1999
Long-term committed reference shareholders onboard since 1999 French State1 27.1% Free float 31.8% STCPI2 Number of shares 4.0% issued 28,755,0473 Duval family SORAME + CEIR 37.1% 1. APE (Agence des Participations de l’Etat): French State 2. STCPI (Société Territoriale Calédonienne de Participation
Slide 14: A CSR commitment and performance recognized by leading ESG rating agencies
A CSR commitment and performance recognized by leading ESG rating agencies ➔ ➔ 1. Lower is better 14 ERAMET – CREDIT UPDATE – MARCH 2025
Slide 15: Financial policy
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Slide 16: 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 17: Diversified debt structure and robust liquidity
Diversified debt structure and robust liquidity Debt maturity as of 31 Dec 2024 (in €m) Group financial liquidity (€m) Prepay Li 795 Undrawn line: RCF & term loan & Prepay Li Bank and operating debt (inc. overdrafts) 16 Available cash 44 Term Loan 2,989 2,830 Eramet bonds 225 566 Impact IFRS 16 (non
Slide 18: FY 2024 financial performance
FY 2024 financial performance 03
Slide 19: 2024 financial performance
2024 financial performance €m 2024 2023 Adjusted turnover (excl. SLN)1 3,377 3,618 Sales 2,933 3,251 Adjusted EBITDA (excl. SLN)1 814 910 EBITDA 371 347 Current operating income (excl. SLN)1 281 291 Net income – Group share 14 109 Net income – Group share (excl. SLN)1 144 358 €m 31/12/2024 31/12/202
Slide 20: Still challenging market environment in 2024, in a context of a downcycle
Still challenging market environment in 2024, in a context of a downcycle with prices reaching historical lows end-2024 25 28 High volatility in Mn prices1 Depressed Ni prices1 Mn throughout the year Ni NPI SMM 8-12% LME Nickel Mn ore McFeMn Var YoY Var YoY SiMn HPM 1.8% +2% -22% +13% -16% +15% -26%
Slide 21: HGO market closure in Q3: low volumes sold by Eramet, when prices surged
25 HGO market closure in Q3: low volumes sold by Eramet, when prices surged Mn $/dmtu Manganese ore prices & stocks evolution1 Mwmt 10 HGO market closure Weak level of Group’ 9 HGO sales in Q3, due 8 to HGO market closure GEMCO 7 issue As a result: 6 5 2024 average realised 4 selling prices of Mn or
Slide 22: Mixed sales in 2024: constrained by market conditions for manganese & nickel permit issues
Mixed sales in 2024: constrained by market conditions for manganese & nickel permit issues in Indonesia; record year for mineral sands Manganese Nickel Mineral sands Production Production limited to 6.8Mt 32.0Mwmt GCO -8% vs. 2023 PT Weda Bay o/w 3Mwmt of internal consumption for NPI production Ore
Slide 23: Overall depressed price environment & constrained volumes weighing on performance
Overall depressed price environment & constrained volumes weighing on performance In €m 23 -9 2023 Ajd. 22 4 -89 EBITDA 45 -15 3 (excl. SLN) 71 -11 5 -75 2024 Ajd. EBITDA 1 2 -23 138 6 (excl. SLN) -75 77 -37 -271 7 8 910 +€135m -€222m 425 Intrinsic performance External factors 814 -171 371 347 2023
Slide 24: €348m growth capex funded by Eramet in 2024 to sustain and drive growth
€348m growth capex funded by Eramet in 2024 to sustain and drive growth in manganese & lithium Stringent management of current capex (-c.€60m), in particular Cash capex (excl.SLN)1 (€m) in Manganese ore business 1 898 Impact of change in scope, following the sale of ETI in 2023 (-c.€40m) Lithium pro
Slide 25: Increase in net debt driven by Centenario's buy-back & continued growth capex
Increase in net debt driven by Centenario’s buy-back & continued growth capex In €m Adjusted FCF -€308m FCF -€669m -164 -354 371 -614 1 260 -602 114 -121 -1,297 104 -1,435 -138 2 257 -128 -663 3 4 5 4 -82 -29 138 2023 Conversion 2023 EBITDA Change Cash capex Weda Bay Cost of Tax paid Other cash Fren
Slide 26: Conclusion & 2025 outlook
Conclusion & 2025 outlook 04
Slide 27: Focus on efficiency in all operations to overcome a still challenging context
Focus on efficiency in all operations to overcome a still challenging context, while ramping up Centenario & further unlocking value of our Tier-one mining assets Macro trends & prices Uncertainty over the recovery in China against a backdrop of Adjusting to market signals & creating value through g
Slide 28: 2025 guidances: limited volume growth, higher productivity and strict capex control
2025 guidances: limited volume growth, higher productivity and strict capex control 2025 volume & cash cost guidance 2025 capex guidance 6.7-7.2Mt €400-450m2 6.1 Cash cost FOB (excl. tax & 25 royalties) $2.0-2.2/dmtu Mn Transported 2024 2025F manganese ore Actual Guidance 30 29 • Favourable mix 28 •
Slide 29: Building on our successful transformation: strengthening our asset base
Building on our successful transformation: strengthening our asset base 2017-2024 2025 focus Major transformation Level-up Repositioned Eramet as a pure M&M player Become best operator: creating value through operational performance Opened 2 major deposits Unlocked Tier-one assets value through Beco
Slide 30: ERAMET – CREDIT UPDATE – MARCH 2025
30 ERAMET – CREDIT UPDATE – MARCH 2025
Slide 31: Q&A
Q&A “ transformation of the Earth’s mineral Become a reference for the responsible resources, for living well together ”
Slide 32: Appendices
Appendices 05
Slide 33: Our ambitious 2024-2026 CSR roadmap
Our ambitious 2024-2026 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
Slide 34: Group Adjusted EBITDA (excl. SLN) sensitivity to market prices
Group Adjusted EBITDA (excl. SLN) sensitivity to market prices Annual impact Sensitivities Change on Adjusted EBITDA Manganese ore prices (CIF China 44%)1 +$1/dmtu c.€255m Manganese alloys prices1 +$100/t c.€70m Nickel ore prices (HPM nickel) – Weda Bay1 +$10/wmt c.€110m Lithium prices (lithium carb
Slide 35: Key figures
Key figures 2024 Holding company, Total from Total from eliminations, operations SLN operations In €m Manganese Nickel Mineral sands Lithium restatements Continuing standalone1 continuing and other entities (excl. SLN) (incl. SLN) Sales 2,025 138 311 0 405 2,879 54 2,933 EBITDA 563 -5 120 -26 -110 5
Slide 36: Cash-flow table
Cash-flow table €m 2024 2023 Operating activities EBITDA 371 347 Cash impact of below EBITDA items -311 -179 Cash-flow from operations 60 168 Change in WCR -186 73 Net cash generated by operating activities (1) -126 241 Investing activities Industrial investments -687 -706 Other investment flows 144
Slide 37: 2024 Adjusted FCF by activity
2024 Adjusted FCF by activity Adj. FCF 101 Alloys 111 Adj. FCF Adj. FCF 7 Ore 40 -216 -344 -308 94 257 245 French State’s SLN -€308m financing Tsingshan’s financing 104 French Adjusted FCF State’s SLN 257 financing Tsingshan’s net of: financing 104 ▪ TSDI subscribed by the French Manganese Nickel Mi
Slide 38: 2024 operating WCR
2024 operating WCR Operating WCR1 (€m) 565 526 395 616 619 692 Cash consumption in 2024 mainly driven by: 323 221 217 ▪ Higher inventory in Mn ore & Mn alloys activities due to market conditions, despite 3-weeks mine production -374 -384 halt in Q4 -445 ▪ Lower trade payables in Ni due to lower acti
Slide 39: Bond maturities
Bond maturities Amount as at Initial €m Currency 31/12/2024 Maturity date Coupon (in m) May 2023 bond issue € 500 May 2028 7.00% May 2024 bond issue € 500 November 2029 6.50% 39 ERAMET – CREDIT UPDATE – MARCH 2025
Slide 40: Centenario Lithium
Centenario Lithium 1 2 3 Brine Preparation Direct Lithium Extraction Membrane Separation Remove suspended material; Capture Lithium Purify, concentrate Lithium adjust pH and Recover water 1 2 Water Treatment Plant 5 4 3 Camp 6 4 Forced Evaporation Pilot Plant Concentrate Lithium and Recover water 5
Slide 41: Centenario start of production: a key milestone achieved
3 Centenario start of production: a key milestone achieved to diversify the Group into metals for the energy transition Li First lithium production achieved, now Highly disciplined in assessing future 1 ramping up 2 growth in Centenario and beyond DLE plant inaugurated July 2024 Optimal scope and ti
Slide 42: Global lithium demand remaining strong in 2024, driven by EV sales and ESS deployment
3 Global lithium demand remaining strong in 2024, driven by EV sales and ESS deployment ; yet still low prices due to currently oversupplied market Li Global EV sales increased by 25% in 2024 vs. 2023, o/w + 40% in China Lithium demand forecast1 Lithium carbonate price (CIF Asia)3 Mt-LCE2 8 $kt-LCE2
Slide 43: 2024 Global carbon steel & Mn ore production
25 2024 Global carbon steel & Mn ore production Mn Global carbon steel production (Mt) Global manganese ore production - Mn content (Mt)1 Carbon Steel: ▪ China down -2% YoY, benefiting from favorable 1,898 1,883 20.7 comparison basis vs. 2023; 18.8 real estate crisis continuing to 5.0 weight 4.7 54%
Slide 44: HGO market closure in Q3: consumption of ore has fallen sharply
25 HGO market closure in Q3: consumption of ore has fallen sharply at the time massive SCO volumes reached China Mn Carbon steel Carbon steel production1 Mn ore supply & demand1 production Drop in Chinese Massive SCO Mt production Mt-Mn volumes • At a historical low level -12% +11% in 2024 (-1% vs 2
Slide 45: Manganese ore & alloys CRU index price trends
25 Manganese ore & alloys (refined & standards in Europe) CRU index price trends Mn Monthly change in manganese ore prices1 Monthly change in manganese alloys prices2 $/dmtu Mwmt €/t 9 24 vs. 23 = +15% 4,000 8 3,500 7 3,000 6 2,500 24 vs. 23 = +2% 5 2,000 4 1,500 3 2 1,000 1 500 24 vs. 23 = +13% 0 0
Slide 46: 2024 Global stainless steel production and global primary Ni production & demand
28 2024 Global Stainsless steel production and global primary Ni production & demand Ni Global stainless-steel Global primary nickel Global primary nickel production (Mt)1 production (kt)1 demand (kt) (excl. recycling) 61.5 3,409 3,319 Stainless Steel global 57.8 3,266 3,168 production up 6% YoY dri
Slide 47: LME & nickel ore historical price
28 LME & nickel ore historical price Ni Monthly change in nickel ore prices in Monthly change in nickel LME prices Indonesia2 k$/t kt $/wmt 35 350 80 30 300 70 60 25 250 50 20 200 40 15 150 24 vs. 23 = -22% 30 10 100 20 5 50 10 24 vs. 23 = -26% 0 0 0 2019 2020 2021 2022 2023 2024 2021 2022 2023 2024
Slide 48: Zircon premium & chloride ilmenite historical price
22 40 Zircon premium & chloride ilmenite historical price Ti Zr Monthly premium zircon FOB prices1 Monthly chloride ilmenite FOB prices1,2 $/t $/t 400 2,400 350 24 vs. 23 = -6% 2,000 300 1,600 24 vs. 23 = -7% 250 1,200 0 2019 2020 2021 2022 2023 2024 2022 2023 2024 Zircon Chloride ilmenite price Zir
Slide 49: Building a pipeline of future growth options in energy transition metals
Building a pipeline of future growth options in energy transition metals Main projects Growth Geothermal Class 1 nickel in EV Battery opportunities for lithium in France Indonesia recycling lithium in Chile Mining concessions acquired In 2023, Eramet and In June, after an in-depth In June, Eramet an
Slide 50: Contacts
Contacts Director of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com Director of Financing & Treasury Philippe BERNEUR philippe.berneur@eramet.com