Financial Highlights: A Closer Look at Q3
Eramet has announced its Q3 2023 adjusted turnover of EUR 980 million, marking a 26% decrease compared to the same period in 2022. This decline is primarily attributed to a considerable drop in selling prices, which saw a 27% decrease year-on-year. However, it wasn’t all downward trends, as mining operations experienced a 7% increase in volumes.
Operational Success Amidst Challenges
Despite the financial downturn, the quarter witnessed remarkable operational achievements. The Weda Bay mine in Indonesia, for instance, reported exceptional growth with an 184% increase in volumes of nickel ore sold, hitting 8.3 million wet metric tons. Similarly, Gabon set a production record of 2.1 million tons, up by 4%, with transported volumes remaining stable.
Cost-efficiency measures were evident with a noted reduction in fixed costs. However, the selling prices, especially for manganese, continued their significant decline, which has been a point of concern.
Corporate Movements: Sales and Forecasts
In terms of strategic moves, the sale of the Eramet Titanium & Iron in Norway positively impacted the group’s cash position by approximately EUR 200 million. Looking ahead, Eramet projects its 2023 adjusted EBITDA at around EUR 800 million, adjusting to market realities including a downward shift in manganese ore prices and a revised volume target for nickel ore.
Eramet’s Adaptability in Focus
Christel Bories, Eramet’s Chair and CEO, emphasized the company’s resilience and adaptive strategies amidst challenging economic conditions. The focus remains on operational excellence, cost management, and progressing development projects, including an upcoming lithium carbonate production initiative in Argentina and a commitment to recycling lithium-ion batteries in partnership with Suez.
Safety and CSR: Maintaining Commitments
On the CSR front, the company reported a stable safety record, despite regrettable accidents, and continued its engagement in various community and transparency initiatives. These include the launch of an online traceability platform in Senegal, designed to offer reliable product information, and the continuation of its “Femmes d’Avenir” program, supporting female entrepreneurs in Africa.
Eramet will delve deeper into its strategic vision during its first Capital Markets Day on November 13, providing insights into its role as a responsible miner and its diversified assets portfolio.
Market Trends and Price Dynamics
The global steel production landscape, a critical factor for manganese demand, saw a modest 2% rise in Q3 2023. However, manganese ore prices experienced pressure, indicating market challenges. Despite these, Eramet’s operational strategies and development projects underline its preparedness to navigate current market fluctuations and future demands.
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