Eramet S.a.

Eramet reported H1 turnover up 8%. Adjusted EBITDA reached EUR 276 million, up 45% year over year. Adjusted free cash flow was EUR 7 million, versus a negative outflow last year. Net income group share was minus EUR 146 million, reflecting an impairment test in Senegal triggered by the fire and lower structural prices. CapEx was EUR 100 million, down from EUR 215 million last year, and net debt excluding SLN cash remained stable at EUR 2 billion. Liquidity at end-June was EUR 1.3 billion, down from EUR 1.5 billion at December, and net leverage improved to 4.5x. For H2, management confirmed volume and CapEx guidance; full-year CapEx guidance remains EUR 250 million to EUR 290 million, and the company reiterated its plan for a EUR 500 million capital increase in Q4.

Christel Bories framed H1 as evidence that the group has “brought back the situation under control” after a difficult 2025, emphasizing stronger execution, better safety, and improved cash generation. She highlighted lithium as a successful strategic bet, the railway turnaround in Gabon, and the need to complete the funding plan to strengthen the balance sheet. Her tone was cautiously optimistic but disciplined, repeatedly stressing that H2 execution remains critical, especially on Weda Bay safety, Senegal recovery, and the capital increase.

Simon Henochsberg said the 45% EBITDA increase was driven entirely by intrinsic performance, with roughly two-thirds from volumes and the rest from cost savings, while external factors such as freight, inflation, and a weaker dollar offset some pricing benefits. He cited a negative EUR 32 million inventory depreciation in Gabon, CapEx of EUR 100 million versus EUR 215 million last year, stable net debt at EUR 2 billion, and liquidity of EUR 1.3 billion at June 30. He also said the RCF remains fully drawn and will likely stay that way until the funding plan is executed, starting with the capital increase.

Analysts focused on the Gabon inventory write-down, Weda Bay’s limited permit, CapEx flexibility, asset monetization, the mineral sands impairment, and the fully drawn RCF. Management clarified that the Gabon issue was inventory depreciation, not reserve depreciation, due to a revised mining plan that prioritizes higher-value ore and slows destocking of fines. On Weda Bay, they said the permit outlook remains uncertain and volume allocation is unknown, while on asset sales they said multiple options are being considered but they do not want a “fire sale.” On mineral sands, they said the mine life is now around 15 years and reserves were reduced from 14 million-15 million tonnes of heavy mineral to 12 million tonnes, and they declined to comment on the book valuation.