Eramet, the mining group, has revised its forecasts for the year 2023 in light of the worsening market conditions. However, the company is optimistic about remaining profitable and preserving its fundamentals. The company will present its growth strategy and potential mining assets and deposits, including the world’s largest nickel mine at Weda Bay in Indonesia, during its Investor Day on November 13. Eramet is currently facing a less buoyant economic climate and the absence of a recovery in China, which has resulted in a 26% decline in third-quarter sales. Despite the challenges, Eramet’s management remains positive about the Group’s future profitability. The brokerage firm Portzamparc, for example, forecasts a profit of 229 million euros after 735 million in 2022.
Eramet’s balance sheet is stronger than at the end of previous cycles, following the disposal of non-strategic and cyclical assets such as Aubert et Duval in alloys and Erasteel. The latest transaction, the sale of the Eramet Titanium site in Norway to Ineos for an enterprise value of 225 million euros, highlights the undervaluation of the Group’s assets and will enable further debt reduction.
The mining group will pursue its diversification investments, particularly in Argentina, where the Centenario plant will start producing lithium in the second quarter of 2024. The company anticipates a return to growth in sales and earnings next year, particularly with a further surge in nickel production at Weda Bay.
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