Paris, 24 April 2025, 7:30 a.m.

PRESS RELEASE

Eramet: Stability in Q1 2025 turnover

  • Adjusted turnover1 of €742m, stable versus Q1 2024, reflecting a negative volume/mix effect (-5%), offset by positive price (+3%) and currency (+3%) effects
  • Increase in nickel ore production in Indonesia (+3% vs. Q1 2024); temporary destocking of the plants at the Weda Bay industrial park at the start of the year, weighing on sales (-11%)
  • Operational and logistics difficulties encountered since end-2024 at the port of Owendo in Gabon, combined with a social movement in March, leading to a decline in manganese ore volumes sold (-15%)
  • Solid operational performance for mineral sands with growth in ilmenite (+68%) and zircon (+32%) volumes sold
  • First sales of lithium carbonate produced in Argentina, confirming the operation at industrial scale of the direct extraction process ("DLE”) developed by Eramet
  • Market environment remains very uncertain:
    • Decrease in selling prices over Q1, except for manganese ore with a gradual rebound in the price index at around $5.0/dmtu2 at end-March
    • Macroeconomic situation weighing on the Group's end-markets, particularly the steel industry in China as well as exchange rate trends; to date, the market consensus averaged around $4.7/dmtu3 in 2025 for manganese ore
  • 2025 volume and cash cost targets maintained:
    • Transported manganese ore: between 6.7 and 7.2 Mt, with a FOB cash cost4 between $2.0 and $2.2/dmtu,
    • Nickel ore sold externally: 29 Mwmt, in line with the permit delivered
    • Lithium carbonate produced: between 10 and 13 kt-LCE, with a gradual ramp-up over the year
  • Controlled capex plan in 2025 reiterated: between €400m and €450m5
Christel Bories, Eramet group Chair and CEO:

The first quarter turned out to be more difficult than expected, with a highly uncertain market context marked by strong commercial and geopolitical tensions weighing on our markets.

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In this disrupted environment, we achieved a mixed operating performance, with sales remaining stable compared with last year.

We continued to ramp up our Centenario plant in Argentina and sold our first tonnes of lithium. This success confirms the efficiency of our direct extraction technology, with a very promising carbonate quality.

Despite this complicated and volatile context, we are maintaining our operating targets for 2025. To achieve them, we must remain focused on the operational performance of each of our sites, cost control, and the rigorous management of our investments and cash. 

  • CSR commitments
Safety

The Group's safety performance continued to improve in Q1 2025. As a result, the TRIR6 was 0.6 at the Group level (-30% vs. Q1 2024 and -14% vs. 2024), significantly better than the target set in the CSR roadmap (<1.0). Over the quarter, zero accidents were reported for manganese alloys, mineral sands and PT Weda Bay Nickel ("PT WBN”) activities.

Reporting

Early April saw Eramet publish its first-ever "Sustainability Report” as part of its Universal Registration Document, in compliance with the CSRD (Corporate Sustainability Reporting Directive).

Today, Eramet also discloses its economic contribution in its main operating regions for a total of €2.7bn in 2024, as well as its Financial Transparency Report over the past year.

Environment

At the end of February, Eramet launched eraLow, its brand for manganese alloys with a low CO2 footprint, thus offering steelmakers a quick-win solution to accelerate the decarbonisation of their products. eraLow products are guaranteed below 1.9t CO2 / t of alloy for scope 1 and 2 emissions, significantly improving performance compared to the global industry average estimated at 3.9t CO2 / t of alloy7.

Societal

On the back of two years implementing its Eramet Beyond for Contributive Impacts programme, the Group issued in April its first Activity Report, outlining its actionable achievements through contributions to the economy and society. Since 2022, the programme's 11 active projects have supported and generated 2,800 permanent jobs with a focus on three priorities - namely, economic diversification, reduced inequality and environmental resilience.

IRMA

On 25 March, the Initiative for Responsible Mining Assurance (IRMA) held a forum on responsible mining at Eramet's Paris headquarters. During a morning of talks, experts from the mining sector gathered, along with IRMA representatives, French corporations, investors, start-ups and NGOs with the aim of discussing changes in mining practices.

The Group continues implementing the IRMA standards at its mining sites, with all of them engaged in the process of conducting a self-assessment and a first independent audit being finalised at Eramet Grande Côté ("EGC”). The PT WBN, Eramine and Comilog sites are getting prepared to begin independent auditing, which is set to be scheduled for end-2026.

Extra-financial rating

At the end of February, ISS ESG revised Eramet's rating to C+, versus B- for 5 years (2020). Eramet still places in the first decile of mining industry companies.

  • Eramet group adjusted turnover by activity
Effective from 2024, the Group's key performance indicators are presented excluding SLN, since the New Caledonian entity no longer impacts the Group's financial and economic performance. Reconciliation tables in accordance with IFRS accounts are presented in Appendix 1.

Millions of euros1Q1

2025

Q1

2024

Chg.1

(€m)

Chg.6

(%)

Manganese45744892%
Manganese ore activity2,3 250254-4-2%
Manganese alloys activity2 207193147%
Adjusted nickel (excluding SLN)2,4 114138-24-18%
Share of PT WBN (38.7% - excluding off-take contract)73106-33-31%
Weda Bay (trading activity, off-take contract) 4132927%
Mineral Sands68521630%
Lithium000n.a.
Holding and eliminations5103105-2-2%
Eramet group adjusted (excluding SLN)2,4742743-10%
1 Data rounded to the nearest million.

2 See definition in Appendix 7.

3 Turnover linked to external sales of manganese ore only, including €17m linked to Setrag transport activity other than Comilog's ore in Q1 2025 (€17m in Q1 2024).

4 Adjusted turnover restated for Q1 2024, following update of indicator definition.

5 Mainly includes turnover from the sale of SLN's ferronickel since it is booked under "Eramet S.A.”; SLN's turnover linked to the sale of nickel ore and others was excluded from the figures presented.

6 Data rounded to higher or lower %.

N.B. 1: all the commented figures for Q1 2025 and Q1 2024 correspond to figures as presented in the Group's consolidated financial statements, unless otherwise specified.

N.B. 2: all the commented changes in Q1 2025 are calculated with respect to Q1 2024, unless otherwise specified.

N.B. 3: mentions of Q1, Q2, Q3 and Q4 refer to the four quarters of the financial year; mentions of H1 and H2 refer to the two half-years.

The Group's adjusted turnover1, including the proportional contribution of PT WBN, and excluding SLN, amounted to €742m in Q1 2025, stable versus Q1 2024 (-3% at constant scope and exchange rates8, with +3% of currency effect). This stability reflects on the one hand, a negative volume effect for mining activities in Gabon and in Indonesia, partly offset by the increased volumes in Senegal, and on the other, a positive price effect linked to the sales of manganese ore and alloys.

Manganese

The continued operational and logistics difficulties encountered at the port of Owendo at end-2024, combined with a now resolved social movement, did not enable operations under normal conditions in Q1 2025, thereby limiting the volumes of manganese ore sold externally to 1.2 Mt (-15%).

In Q1 2025, turnover of the Manganese activities increased by 2% to €457m:

  • Sales for the manganese ore activity were slightly down by 2%, with the decline in volumes sold externally partly offset by an increase in realised selling prices and a favourable currency effect,
  • Sales for the manganese alloys activity were up +7%, reflecting a positive price impact.
Manganese oreQ1 2025Q1 2024Chg. Chg. (%)
Turnover - €m1250254 -4-2%
Manganese ore and sinter transportation - Mt 1.41.6 -0.2-15%
External manganese ore sales - Mt 1.21.5 -0.3-15%
FOB cash cost (excl. export duties) - $/dmtu22.4 2.2 +0.2+7%
Manganese alloysQ1 2025Q1 2024Chg. Chg.

(%)

Turnover - €m207193+14+7%
Alloys sales - kt 14914900%
o/w refined alloys (%)53%54%-1 pt-2%
1 Turnover linked to external sales of manganese ore only, including €17m linked to Setrag transport activity other than Comilog's ore (vs. €17m in Q1 2024).

2 Definition updated (see financial glossary in Appendix 7), now excluding mining taxes and royalties (non-controllable), which account for 6% of FOB turnover.

Market trends9 & prices10

Global production of carbon steel, the main end-product for manganese, was 480 Mt in Q1 2025, stable vs. Q1 2024.

China, which accounts for more than half of global steel production, also posted a slight increase of nearly 1%. Production in North America was almost stable while Europe was down by 1%. India continued to outperform, with an 8% increase in production for Q1 2025.

Manganese ore consumption reached 5.0 Mt in Q1 2025, up 1% (+6% vs. Q4 2024, in line with seasonality), driven by production and replenished manganese alloys inventories, notably in China. Parallel to this, global manganese ore supply was stable at 4.6 Mt. The decrease in volumes from Australia (-80%, impacted by Cyclone Megan at end-March 2024) was partly offset by increased volumes from Gabon (+13%) and South Africa (+3%), which still accounted for nearly 50% of seaborne production in Q1 2025.

As a result, the manganese supply/demand balance was in deficit in Q1 2025 and Chinese port ore inventories strongly decreased, reaching 3.7 Mt at end-March (vs. 5.2 Mt at end-December 2024), equivalent to around 5 weeks of consumption.

The price index (CRU) for manganese ore (CIF China 44%) averaged $4.6/dmtu in Q1 2025, an increase of 8% (+13% vs. Q4 2024), reflecting a supply deficit over the quarter.

The price index (CRU) for refined alloys in Europe (MC Ferromanganese) averaged €1,487/t, up by 5%, reflecting on the one hand, an increase in manganese ore prices and, on the other, the limited regional supply combined with expectations of potential protectionist measures for ferroalloys imported into Europe (in the context of EU Safeguard Measures). The price index for standard alloys (Silicomanganese) returned to the already sustained level of Q1 2024.

Activities

In Gabon, the logistics difficulties in loading encountered at the port of Owendo at end-2024 persisted in Q1 2025, negatively impacting shipments and sales of manganese ore. Coupled with a social movement in March, which is now resolved, this situation did not enable operations under normal conditions, weighing on external sales, down 15% from Q1 2024.

Produced and transported volumes were adjusted to this situation, reaching 1.8 Mt (-7% vs. a record level in Q1 2024) and 1.4 Mt (-15%), respectively.

The FOB cash cost4 for manganese ore activity averaged $2.4/dmtu over the quarter, up 7% from Q1 2024, mainly reflecting the decrease in volumes sold, which was partly offset by a favourable currency effect. Mining taxes and royalties came out to $0.2/dmtu, up from Q1 2024, in connection with the increase in selling prices. Conversely, sea transport costs per tonne were significantly down to $0.7/dmtu (-32%), mainly reflecting the decrease in freight rates versus the high levels in Q1 2024 which was then impacted by the situation in the Red Sea.

Manganese alloys production slightly increased to 162 kt (+5%), due to the restart of production in Dunkirk following refurbishment of the furnace. Manganese alloys sales were stable at 149 kt, with a slightly less favourable mix.

Outlook

Global carbon steel production is expected to remain stable in 2025, with a decrease in Chinese production, offset by an increase for the rest of the world. In particular, India, where Eramet has a strong business footprint, is expected to continue posting a significant increase in its production thanks to new installed capacity, infrastructure investments from the State and continued growth in demand from other steel-consuming sectors. However, this could change considering the trade tensions.

Supply is expected to continue declining in H1, still slightly in deficit versus demand, before increasing again in H2 with the anticipated return to the market of a major Australian producer. Note that manganese ore imports are tax-exempt in the United States.

The market consensus, which is currently set around $4.7/dmtu on average for 20253, could change given the uncertain context.

Demand for manganese alloys should be relatively stable in 2025, as should supply. However, flows could be disrupted by uncertainty surrounding protectionist measures (particularly in Europe and the United States). Alloys selling prices are expected to decline in 2025.

As disclosed at the end of February, transported ore volumes are set to be between 6.7 Mt and 7.2 Mt in 2025. Given the unfavourable trends in the consensus for the €/$ exchange rate, the FOB cash cost4 is now expected to be in the upper range of guidance for 2025 (between $2.0 and $2.2/dmtu).

With respect to alloys, factoring in the restart of the furnace at the Dunkirk plant in early January, production and sales are still expected to increase over the year.

Nickel

In Indonesia, nickel ore production reached 9.2 Mwmt11 in Q1 2025, up by more than 3 %, reflecting the solid operational performance of the Weda Bay mine.

However, external ore sales volumes decreased (-11%), factoring in the temporary destocking of the plants at the IWIP industrial park at the start of the year. The plants had secured large external ore supplies at end-2024, due to delays in revised RKAB12 approval.

In Q1 2025, adjusted turnover1 for the Nickel activity was down 18% to €114m:

  • The share of turnover for PT WBN (excluding the off-take contract) was down 31%, mainly reflecting lower volumes and an unfavourable mix effect; sales prices were down slightly, the fall in the LME and the lower grade being partly offset by the high level of local ore premiums resulting from limited supply,
  • The volumes of nickel ferroalloys sold (off-take contract on PT WBN plant production) were up 39%.
Nickel oreQ1 2025Q1 2024Chg. Chg.

(%)

PT WBN (38.7%)1 share of turnover - €m73106 -33-31%
Nickel ore external sales (100%) - Mwmt5.46.1 -0.7-11%
o/w Saprolite - (Mwmt)3.85.5 -1.7-31%
o/w Limonite - (Mwmt)1.60.61.0+174%
Nickel ferroalloysQ1 2025Q1 2024Chg. Chg. (%)
Off-take turnover - €m4132+9+27%
NPI production (100%) - kt9.17.4+1.7+23%
NPI sales (43% off-take) - kt 3.92.8+1.1+39%
1 Excluding nickel ferroalloys off-take.

Market trends13 & prices

Global stainless-steel production, which is the largest end-market for nickel, increased by nearly 4% to 14.9 Mt in Q1 2025 versus Q1 2024.

Production in China, which accounts for more than 60% of the global supply, saw growth of nearly 6%, still driven by its exports. Production in the rest of the world was down by 1%, factoring in an unfavourable macroeconomic environment, particularly in Europe.

Global demand for primary nickel was up 4% at 0.8 Mt-Ni, driven by demand for batteries which increased by 9% while that for stainless-steel (which still accounts for more than 60% of demand) posted a moderate increase of 2%.

In parallel, global primary nickel production increased by 8% to 0.9 Mt-Ni. Growth in the NPI14 supply (+9%) and the ramp-up in new projects, notably HPAL15 (+81%) in Indonesia were partly offset by the decline in NPI production in China (-9%) as well as traditional ferronickel production (-9%).

The nickel supply/demand balance (class I and II16) therefore remained in surplus over the quarter. Visible nickel inventories at the LME and SHFE17 amounted to 237 kt-Ni at end-March (vs. 199 kt at end-December), equivalent to around 4 weeks of consumption.

In Q1 2025, the LME price average (price of class I nickel) was $15,569/t, down 6% (-3% vs. Q4 2024), reflecting a market still in surplus.

The average for the NPI price index18 (class II nickel) as sold at Weda Bay was also down by 6%, averaging $11,963/t.

In Indonesia, the official domestic price index for high-grade nickel ore ("HPM Nickel”19) was $34/wmt for a grade of 1.8% and $27/wmt for a grade of 1.6%20, each declining by 5%. Considering the Indonesian government's restrictions on produced volumes, domestic nickel ore supply remained under pressure, resulting in high premiums on the HPM Nickel price floor for the calculation of sales prices in Q1 2025, in line with H2 2024.

Activities

PT WBN's mining operations remain constrained by the RKAB granted by the Ministry of Mines for the 2024-2026 period.

External nickel ore sales21, limited to 29 Mwmt (at 100%) over 2025, totalled 5.4 Mwmt in Q1 2025 (-11% vs. Q1 2024). Volumes of saprolite sold accounted for 3.8 Mwmt, down 31%, with delays in obtaining the RKAB leading to the PT Indonesia Weda Bay Industrial Park (IWIP) plants importing more ore in Q4 2024, resulting in increased inventories at the end of the year and a sudden destocking in early 2025. Limonite volumes accounted for 1.6 Mwmt, a strong increase (+174%), reflecting the high local demand to support the ramp-up in HPAL industrial capacity at the IWIP site. Internal consumption for the NPI plant reached 0.8 Mwmt in Q1 2025.

As expected, and in line with the mining plan, nickel ore sold externally saw its average grade strongly decrease and its average moisture content increase versus Q1 2024, negatively impacting the reference price floor (HPM Nickel). PT WBN, however, continued to benefit in Q1 2025 from significant premiums (close to 50% versus HPM Nickel), against the background of domestic supply restrictions.

As also anticipated, production costs at the mine increased vs. Q1 2024, mainly factoring in the longer haulage distances.

Production at the PT WBN NPI plant increased by 23% in Q1 2025 to 9.1 kt-Ni, benefitting from favourable comparatives owing to the scheduled maintenance of a furnace in Q1 2024. As part of the off-take contract (trading activity), NPI sales stood at 3.9 kt-Ni, up by 39%.

Outlook

In 2025, primary nickel consumption is expected to reach 3.5 Mt-Ni, representing a

4% increase on 2024. Stainless-steel production in China will remain the main driver of this growth.

Primary nickel supply is expected to increase to 3.6 Mt-Ni in 2025, up 3%. HPAL production should reach 369 kt-Ni, increasing by 20%. Conversely, growth in production for NPI (Nickel Pig Iron) projects is expected to slow due to constraints linked to ore.

The nickel market should remain in slight surplus for the fourth consecutive year.

For 2025, the market consensus for LME nickel prices currently stands at around $15,900/t, representing a decline of more than 5% from 2024.

Factoring in the "RKAB” issued last October for the 2024-2026 period, PT WBN's nickel ore production and sales volumes are limited to 32 Mwmt in 2025 (including 3 Mwmt consumed internally by the NPI plant). Thus, the 2025 volume target for external marketable nickel ore is 29 Mwmt, with a very favourable mix for saprolite.

In addition, the Indonesian's Ministry of Mineral Resources and Energy recently announced an increase in the royalties paid by nickel producers. The law will enter into force on 26 April and the royalties, which previously corresponded to a fixed % of sales, will now be calculated using a variable % based on nickel prices at the LME22. The increase in HPM Nickel index premiums should partly offset the impact on the performance of PT WBN in 2025 of this change in regulations, estimated at less than $20m23 at the current consensus price for Eramet share (38.7%).

Today, Weda Bay mine is only able to partly meet the ore demand from the IWIP industrial park, which is expected to be above 80 Mwmt in 2025 (including around 25% in limonite ore), notably driven by growing demand from HPAL plants at the park. With its partner, Tsingshan, the Group is still working to obtain the permits needed to increase the mine's capacity to around 60 Mwmt per year, including around two thirds in saprolite ore and around one third in limonite ore, in accordance with the Environmental Impact Analysis (AMDAL24) and the new long-term mining Plan ("Feasibility Study”) validated by the Indonesian authorities in summer 2024.

Mineral Sands

The Mineral Sands activity turnover increased by 30% to €68m in Q1 2025, reflecting an increase in production volumes, mainly linked to a higher-grade ore zone, in a context of declining prices.

Mineral SandsQ1 2025Q1 2024Chg. Chg.

(%)

Turnover - €m6852+16+30%
Mineral Sands production - kt236192+44+23%
Ilmenite sales1 - kt 12675+51+68%
Zircon sales - kt 1713+4+32%
1 Including, since Q4 2023, the volumes linked to the long-term supply contract signed with ETI, which is considered an external customer following the sale of the Norwegian subsidiary to INEOS at end-September 2023.

Market trends & prices 25

Global demand for zircon was slightly down year-on-year. Macroeconomic uncertainty and the weakness of real estate activity around the world, particularly in China, weighed on demand for ceramics, which was partly offset by rising demand from the chemicals and refractories industries. Parallel to this, global zircon production was up in Q1 2025, reflecting the increased production in China from imported heavy mineral concentrates. The market therefore remained in surplus, sustaining the pressure on prices.

As a result, in Q1 2025, zircon premium prices stood at $1,800/t FOB, down 5%.

Global demand for TiO2 pigments26, the main end-market for titanium-based products27, was down over the quarter. Supply slightly decreased over the period, but the market remained in surplus.

The market price for ilmenite (chloride), as produced by EGC was $287/t FOB in Q1 2025, down 4%, resulting from the increased ilmenite supply, particularly in China.

Activities

In Senegal, operations continued to post good performances. At EGC, mineral sands production increased by 23% over the quarter, to 236 kt, versus the already high levels of Q1 2024. As expected, this progress reflects an increase in the average grade of the mined zone.

Ilmenite volumes produced were up 13% to 130 kt, aligning with trends for mineral sands production. Ilmenite external sales reached 126 kt, up 68%28. This significant increase was due to higher demand in Q1 2025, particularly from American and Chinese customers, with expectations of an announced increase in tariffs.

Zircon volumes produced increased by 14% to 16 kt. Volumes sold were up 32%.

Outlook

Considering the macroeconomic environment, demand for mineral sands markets is uncertain and restricts the outlook for growth in the short term.

The zircon and ilmenite markets are expected to remain in surplus for 2025, owing to the ramp-up in the production of new projects, and demand which could remain stable due to the impact of US tariffs on manufacturing output, notably in China. Prices are set to remain under pressure.

Mineral sands production in 2025 is still expected to rise to more than 900 kt-HMC, continuing to benefit from a high grade in the mined zones.

In addition, the previously announced production capacity expansion project is on schedule for commissioning in early 2026.

Lithium

In Q1 2025, in Centenario (Argentina), Eramet continued the start of production for the Direct Lithium Extraction ("DLE”) plant, confirming that the DLE process developed by the Group operates at industrial scale.

Whilst the core DLE technology has ramped up well, the plant's production was limited by the Forced Evaporation unit supplier's delay in commissioning the equipment.

LithiumQ1 2025Q1 2024Chg. Chg. (%)
Turnover - €m00n.a.n.a.
Lithium carbonate production - t-LCE4400n.a.n.a.
Lithium carbonate sales - t-LCE400n.a.n.a.
Market trends & prices29

To date, China is the main market for lithium carbonate, considering the strong increase in electric vehicle domestic sales over the past years, which continued in Q1 2025 (47% penetration rate). All the key players in lithium-ion battery production are now located in China, with fast-growing production capacities.

The Shanghai Metals Market ("SMM”) publishes the benchmark index for battery-grade carbonate prices in the Chinese market (Incoterm EXW China). This index averaged $9,371/t in Q1 2025 (-26% vs. Q1 2024), reflecting the current surplus. However, realised selling prices on that market include a discount vs. the index, varying according to the level of impurities in the lithium, and corresponding to the potential processing costs required by the product from technical- to battery-grade.

Furthermore, the benchmark index published by Fastmarkets for battery-grade lithium carbonate prices in the Asian market (CIF Asia, Japan, Korea), averaged $9,809/t-LCE over the quarter, down by 30% vs. Q1 2024.

Activities

On December 24th, 2024, Centenario plant achieved first lithium carbonate production in Argentina. Since then, the teams have made progressive improvements in the start-up of the plant. The first Direct Lithium Extraction ("DLE”) units in operation have been operating close to their nominal yield and throughput. This confirms that Eramet's industry leading DLE technology is working effectively at an industrial scale to produce lithium carbonate.

However, the start-up of a major equipment of the concentration process (Forced Evaporation), which is key to unlocking the full plant's design capacity, has been delayed by a technical issue.

Production reached 440 tons in Q1 2025, with a product quality demonstrating lithium carbonate purity greater than 99.5%, supporting strong confidence to be able to reach battery-grade purity level once all plant's units are in operation (notably the boron extraction unit, scheduled to be commissioned in Q2).

First lithium carbonate sales were concluded mostly with CAM makers in China and first containers were shipped in March. First sales have been priced based on the China market price for Battery-grade lithium carbonate less a processing fee to refine the industrial and technical grade initial product to battery grade.

Outlook

Growth in demand for lithium is expected to continue be driven by growth in electric vehicle ("EV”) sales, particularly in China, where the sales penetration rate should be above 55% in 2025. Growth in EV sales for Rest of W