Eramet S.a.

Turnover increased 8% in H1. Adjusted EBITDA reached EUR 276 million, up 45% year over year. Adjusted free cash flow was positive at EUR 7 million, versus a big cash burn last year. Net income group share was minus EUR 146 million, driven by the Senegal impairment after the fire and lower structural prices. CapEx fell to EUR 100 million from EUR 215 million last year, a 53% reduction. Net debt, excluding SLN cash, remained stable at EUR 2 billion; leverage improved to 4.5x and gearing stayed at 125% under bank covenants. Management said H2 guidance is confirmed for volumes and CapEx, with full-year CapEx still guided at EUR 250 million to EUR 290 million. The EUR 500 million capital increase is targeted for Q4, and management expects one or more minority-stake disposals by year-end.

Christel Bories framed H1 as evidence that the group has brought the situation back under control after a difficult start to 2025. Her tone was cautiously optimistic: she highlighted stronger execution, better cash generation, and a management team focused on discipline. She emphasized that the priorities for H2 are safety, especially at Weda Bay, full ramp-up of Centenario, continued railway improvement in Gabon, recovery in Senegal, and completing the funding plan.

Simon Henochsberg stressed that the H1 EBITDA improvement was driven entirely by intrinsic performance, with roughly two-thirds from higher volumes and the rest from cost savings. He cited a negative EUR 32 million one-off from inventory depreciation in Gabon and a negative EUR 47 million external impact from higher costs, freight, inflation, weaker dollar, and Weda Bay permitting limits. He also pointed to strict cash discipline: CapEx of EUR 100 million, liquidity of EUR 1.3 billion at end-June, net debt stable at EUR 2 billion, and the RCF still fully drawn until the funding plan is executed.

Analysts focused on why Gabon inventory was written down, how to model Weda Bay given permit uncertainty, how much of the lower CapEx is structural versus deferred, and what asset monetization could look like. Management clarified that the Gabon charge was an inventory depreciation on manganese fines, not a reserve write-down, and said the revised mining plan means fines will be destocked more slowly. On Weda Bay, management said it is still waiting for a revised permit, has no precise timing or volume visibility, and is operating with a contracted model that can flex costs but must preserve restart capability. On asset sales, management said several options remain open but it will avoid a fire sale and disclose only when there is something concrete to announce.