Eramet experienced a 10% decrease in turnover in the third quarter of 2025, with positive volume effects but negative price and currency effects. The company faced logistics challenges in transporting manganese ore. Despite a challenging market environment, Eramet maintained activity and launched an improvement program to enhance financial resilience and operational performance.

Eramet’s CEO, Paulo Castellari, emphasized the importance of safety, operational excellence, and financial resilience. The company initiated actions to strengthen cash generation and improve processes. Eramet launched an operational review to boost performance and create value, focusing on safety, operational excellence, productivity, and financial resilience to ensure sustained cash flow.

Tragically, a subcontractor of PT Weda Bay Nickel died in a road accident in August. Despite this, Eramet’s safety results remained in line with its CSR roadmap. The company continues its commitment to local development through initiatives in Gabon, Argentina, and Indonesia. Sustainalytics revised Eramet’s quarterly rating, while Moody’s and Fitch downgraded the company’s credit ratings due to operational challenges and macroeconomic uncertainty. Credit rating agencies have given negative outlooks to Eramet Group’s credit ratings due to short-term balance sheet pressures. The new management team is focused on improving operational and financial performance to strengthen cash generation and the balance sheet. The Group requested a waiver from lenders to comply with its gearing covenant by 2025.

Eramet Group’s adjusted turnover, excluding SLN, was €720m in Q3 2025, down 10% from Q3 2024. This decrease was primarily due to declining selling prices, especially for manganese and nickel ore at PT WBN, partially offset by increased volumes sold. Manganese ore transportation in Gabon declined by 13% in Q3 2025.

In Q3 2025, turnover for Manganese activities decreased to €421m (-26%). Revenue for manganese ore activity was down 35% due to lower selling prices and an unfavorable currency effect. Revenue for manganese alloys activity dropped by 13% due to an unfavorable price and mix effect.

Global production of carbon steel was stable in Q3 2025, with Chinese production remaining flat and India’s production growing by 12%. Manganese ore consumption increased by 8% globally, driven by sustained manganese alloys production, particularly in China. Manganese ore production globally decreased by 1% in Q3 2025.

The global ore supply/demand balance remained in slight surplus for Q3 2025, with Chinese port ore inventories totaling 4.6 Mt at the end of September. The price index for manganese ore averaged $4.3/dmtu in Q3 2025, down 40% from Q3 2024. Prices for refined alloys in Europe also saw a decline. In Gabon, production at the Moanda mine decreased by 8% in Q3 2025. Manganese ore volumes reached 1.6 Mt in the quarter, down 13% due to rail transport issues in Gabon. Sales of manganese ore externally rose by 8%, with FOB cash cost averaging $2.3/dmtu. Manganese alloys production increased to 174 kt. Global steel production is expected to decline in Q4 2025.

In Indonesia, nickel ore production increased to 12.3 Mwmt, with external sales volumes reaching 9.3 Mwmt. Adjusted turnover for the Nickel activity was up to €142m. Global stainless-steel production rose by nearly 2%. Global demand for primary nickel increased by 5%, while primary nickel production was up 3%.

The LME price average for class I nickel in Q3 2025 was $15,011/t, down 8%. The NPI price index for class II nickel averaged $11,520/t, down 6%. In Indonesia, the official domestic price index for high-grade nickel ore declined by 13%. PT WBN in Indonesia is under investigation by local authorities for compliance with forestry regulations. In Q3 2025, PT WBN saw a significant increase in external ore sales, totaling 9.3 Mwmt, driven by demand from HPAL plants. The average grade for nickel ore sold decreased, but PT WBN continued to benefit from high-grade saprolite prices. NPI plant production reached 9.4 kt-Ni, up 28% from Q3 2024.

Looking ahead, demand for primary nickel is expected to rise in Q4 2025, with stable battery demand. The nickel market is projected to remain in surplus for the fourth consecutive year. Market consensus for LME nickel prices is around $15,400/t for Q4 2025.

PT WBN aims to reach the volume target for externally marketable nickel ore in 2025. The average grade for nickel ore sold in Q4 is expected to remain stable. Haulage costs may increase, but production costs are expected to stay steady.

In Q3 2025, Mineral Sands activity turnover decreased by 32%, reflecting price pressure and lower ilmenite volumes sold. Zircon demand was sluggish, leading to a decline in prices. Global demand for TiO2 pigments decreased, impacting the ilmenite market price. EGC operations in Senegal saw solid performance despite a slight decrease in mineral sands production. In Q3 2025, EGC saw a decline in zircon production due to shipment postponement, with sales of 17 kt. The mineral sands market is expected to remain oversupplied, affecting prices for ilmenite and zircon. Eramet’s lithium production in Argentina ramped up, with sales and production figures for Q3 2025 showing growth.

Global EV sales surged in Q3 2025, with China leading the growth at +12%. Lithium demand rose to 385 kt-LCE, driven by EV sales and energy storage systems. The lithium market remained in surplus, pressuring prices despite a reduced surplus compared to Q2 2025. Eramet’s Centenario plant in Argentina continued to ramp up lithium carbonate production.

The global economy showed resilience despite U.S.-triggered trade tensions. China experienced a slight slowdown in Q3, prompting talks of further stimulus measures. Europe faced challenges from U.S. tariffs and competition. This macroeconomic environment is expected to impact demand and prices across Eramet’s markets.

Eramet’s outlook for Q4 2025 includes continued ramp-up of the Centenario plant and lithium carbonate production. Global lithium supply is expected to increase, maintaining market surplus and price pressure. The average price consensus for Q4 2025 stands at approximately $8,800/t LCE for lithium carbonate. Adjusted EBITDA sensitivities to metal prices and exchange rate are outlined in the appendix. Sea freight rates soared in Q3 due to vessel supply constraints, but uncertainties remain with ongoing trade negotiations and tensions in the Middle East. Costs for reductants and energy are expected to increase by year-end. Eramet adjusted its 2025 volume and cash cost targets for manganese ore. Capex for 2025 is revised downwards to €400m-€425m. Quarterly financial results will be published in February 2026. Eramet focuses on sustainable mining and metallurgy to support the industry’s growth and energy transition challenges. The company’s employees are dedicated to responsible practices globally. Eramet specializes in manganese, nickel, mineral sands, and lithium production, contributing to the development of a sustainable world. The company aims to be a leader in responsible mineral resource transformation. Eramet’s adjusted turnover for 2025 was €2,372 million, excluding SLN. Production and sales figures for manganese, nickel, mineral sands, and lithium show strong performance in Q3 2025. SLN’s mining production in New Caledonia increased by 15% in Q3 2025 compared to the same period in 2024. In Q3 2025, SLN’s nickel ore exports were constrained at 116 kwmt due to the impact of certain mining site closures from riots in H1 2024. Nickel ore prices averaged $80/wmt, up 7% from Q3 2024, while ferronickel production increased by 18% year-on-year to 9.2 kt-Ni.

The cash cost of ferronickel production averaged $8.4/lb in Q3 2025, down from $8.7/lb in the same period in 2024. The spot price of ferronickel as produced by SLN was set above prices for NPI. Adjusted turnover for Eramet included PT Weda Bay Nickel’s contribution, with an off-take agreement for nickel ferroalloys production (NPI) in place with Tsingshan.

Adjusted EBITDA for Eramet included PT Weda Bay Nickel’s proportional EBITDA, while excluding SLN’s EBITDA. Current Operating Income and Net Income were restated to exclude SLN’s financial results. Adjusted leverage was defined as consolidated net debt over adjusted EBITDA, with a future adjustment for significant joint ventures.

Manganese ore activity includes Comilog’s mining activities, while manganese alloys activity involves plants that transform manganese ore into manganese alloys. Turnover at constant scope and exchange rates adjusts for changes in scope and exchange rate fluctuations. Adjusted turnover excludes SLN’s sales of nickel ore but includes ferronickel trading. Eramet announces cash cost definitions for various minerals including manganese ore, lithium carbonate, and SLN. The cash costs cover all production and overhead expenses impacting EBITDA, excluding certain costs like sea transport and marketing expenses. The report also includes footnotes with definitions and financial data for reference, with a consensus EUR/USD rate for 2025 and details of market data estimates.

Read more at GlobeNewswire.: Turnover down in third quarter 2025