Eramet: Third-quarter 2020 turnover stable, the sales of the Mining
and Metals division offset the impact of the profound aerospace
crisis
Paris, 28 October 2020, 7:30 a.m.
PRESS RELEASE
Eramet: Third-quarter 2020 turnover
stable, the sales of the Mining and Metals division offset the
impact of the profound aerospace crisis
- Sales of €850m (-5% on third-quarter
2019)
- Significant decline in Aubert & Duval
sales: -18% from 2019, -34% over two years
- Excellent production and sales performance from mining
activities, driven by the rebound in Chinese steel
production in a disrupted market environment:
- Increase in Q3 20 manganese ore volumes produced (+15%) and
sold (+65%)
- Increase in nickel ore volumes produced (+20%) and exported
(+6%), leading to a significant improvement in SLN cash cost to
$5.24/lb in the third quarter
- Swift ramp-up in nickel ferroalloys production at Weda Bay,
with 13 kt Ni since its launch in May
- Increase in mineral sands production (+13%), at a pace of 730
kt per year
- Raw material sales prices sharply down
overall: -26% for manganese ore and -17% for ferronickel;
conversely, very strong growth in the price of nickel ore
(+35%)
- 2020 Outlook:
- Manganese ore production target raised to 5.8 Mt (+22% vs
2019)
- Opening of new mining plateau in Gabon in October, enabling
gradual ramp-up in production towards a capacity of 7 Mt in
manganese ore by 2022
- Nickel ore exports confirmed at 2.5 Mwmt (+54% vs 2019)
- Factoring in the operational improvements, in particular the
increased mining production, forecast EBITDA is
expected to strongly improve in the second half of 2020 compared to
the first half. Nevertheless, it will be significantly lower on a
full-year basis.
Christel Bories, Eramet Group Chairman and
CEO:
" We achieved a remarkable third-quarter
performance in terms of mining production in a still very volatile
economic environment.
Our mining activities pursue their successful
growth momentum, specifically in Gabon, which reported a manganese
ore production at a pace of more than 6 Mt per year. In New
Caledonia, growth in nickel ore exports took on a new dimension, up
by nearly 60%. However, SLN remains fragile and the success of its
rescue plan is now more crucial than ever; we are counting on the
commitment of all stakeholders.
The High-Performance Alloys division was
adversely affected by the collapse of air transport and its impact
across the aerospace supply chain. Drastic cost adjustment measures
have been taken. Moreover, with respect to its strategic review,
the Group is seeking for the best solutions for Aubert &
Duval’s activity, a strategic company for the sector; all options
being considered.
All the Group’s teams manage business as closely
as possible to their markets and customers and remain fully focused
on preserving cash. "
Safety and preventive measures to face
the pandemic
The Group remains fully committed to ensuring
safety in the workplace. At end-September 2020, the total
recordable injury rate (TRIR1) was 4.1 year to date, steadily down
-24% from 2019.
Regular reviews are conducted regarding the
health protocol, implemented on all of the Group’s sites, in an
effort to anticipate pandemic developments and to comply with the
recommendations of local authorities. Under these circumstances,
all our activities operated without any disruptions in Q3 2020.
Eramet group’s sales by
activity
|
(Millions of euros)1 |
Q3 2020 |
Q3 2019 |
Change2 (%) |
9m 2020 |
9m 2019 |
Change2 (%) |
| MINING &
METALS DIVISION |
|
|
|
|
|
|
|
Manganese BU |
|
420 |
427 |
-2% |
1,259 |
1,331 |
-5% |
|
Nickel BU |
|
216 |
216 |
- |
582 |
562 |
+4% |
|
Mineral Sands BU |
63 |
62 |
+2% |
202 |
201 |
+0% |
|
Division total |
699 |
705 |
-1% |
2,043 |
2,094 |
-2% |
|
HIGH-PERFORMANCE ALLOYS DIVISION |
|
|
|
|
|
A&D and Erasteel |
|
154 |
192 |
-20% |
499 |
615 |
-19% |
|
HOLDING COMPANY & ELIMINATIONS |
(3) |
(2) |
n/a |
(5) |
(6) |
n/a |
|
ERAMET GROUP |
850 |
895 |
-5% |
2,537 |
2,703 |
-6% |
1 Data rounded up to
nearest million.2 Data rounded up to higher or lower %.
N.B.: all changes in third-quarter 2020 (“Q3
2020”) performance are calculated in relation to third-quarter 2019
(“Q3 2019”), unless otherwise indicated. Similarly, year-to-date
changes relating to the first nine months of the year (“9m 2020”)
are calculated in relation to the previous year
(“9m 2019”).
The Group's Q3 2020 sales totalled €850m, down
-5%. Currency effects came to -3%, owing to the weakening of the US
dollar against the euro. At constant scope and exchange rates2,
sales were down by -2%, mainly due to the impact of the aerospace
crisis on activity at Aubert & Duval.
At 30 September 2020, the Group’s cash position
remains high.
A dividend of €8m was paid out in October to
Comilog’s minority shareholders for the 2019 financial
year.
Mining & Metals
Division
Manganese BU
Ore production in Gabon achieved a pace
of more than 6Mt per year in Q3 2020, with ore volume sales up
nearly +65%. Alloys volumes produced and sold were down, reflecting
the downturn in the steel sector. Despite a decline versus both Q3
2019 and H1 2020, ore prices levelled off at $4.2/dmtu on average
over the quarter.
Manganese BU sales, which accounted for slightly
over 49% of the Group’s total consolidated sales, came to €420m,
down very slightly (-1.6%) versus Q3 2020. Growth in ore sale
volumes offset price declines and the contraction in alloys
sales.
Market trends & prices
In Q3 2020, global production of carbon steel,
the main end-market for manganese, was up +0.9%3 ending at 475Mt.
Production in China, which represents c.57% of global production,
grew significantly (+9.6%3), mainly driven by the construction of
infrastructure to kick-start the economy. Record-breaking highs
were set in Q3. As for the rest of the world, production slowed
considerably (-9.6%3), owing to the decline in demand in Europe
(-20.8%3) and North America (- 22.5%3), which were hard hit by
the health crisis.
During the first nine months of the year, carbon
steel production reached 1.36 bn tonnes, down - 3.8%3 on the
same period in 2019.
Despite the contraction in demand, global
manganese ore production increased by +8.3% in Q3, boosted by solid
Q2 price levels and the increased contribution from South Africa,
following mine closures in Q2. The supply/demand balance thus
remained in surplus with Chinese port ore inventories totalling
6.6Mt4 at end-September 2020 (equivalent to approximately 11.5
weeks’ consumption versus 9 weeks’ consumption at end-June
2020).
The average CIF China 44% manganese ore price
stood at approximately $4.2/dmtu5 in Q3 2020, down c.-26%6,7 from
Q3 2019 ($5.7/dmtu6).
In Q3 2020, manganese alloy prices in Europe
recorded a marked decline, particularly for refined alloys
(medium-carbon ferromanganese at approximately €1,306/t6,
representing -12% from Q3 2019) but also for standard alloys
(silicomanganese at approximately €863/t6, i.e. -10%).
Activities
In Gabon, Comilog’s manganese ore production was
up +15% to 1.5Mt in Q3 2020 (4.3Mt year to date at end-September).
Transported ore volumes also increased (+24%), in line with the
record level delivered in Q2 2020. The mine’s and logistics’ good
performance reflects operational improvement achieved. The latter,
together with lower internal sales (to the Group’s manganese alloys
plants), led to an increase in external ore sales volumes of nearly
65%, ending at 1.5Mt in Q3 20 (3.9Mt year to date at
end-September).
Quarterly production at manganese alloys plants
continued to adapt to demand in a market affected by the sharp
slowdown in steel production in Europe and the United States. This
drove a -16% drop in production in Q3 2020 (511kt year to date at
end-September). However, sales volumes decreased more moderately to
162kt (-8%) over the same period.
Electrolysis activity used to produce metal
manganese in Gabon was definitively stopped in Q3. The
silico-manganese production activity is maintained.
Outlook
Taking account of the good end-September
performance, and thanks to the roll-out of the optimised, modular
manganese ore growth programme, the 2020 target is again raised to
5.8Mt of volumes produced (i.e. more than +20% versus 2019).
The opening of the new Okouma plateau in
October, and its start of production according to a modular and
flexible approach should enable a gradual ramp up with a targeted
capacity of 7 Mt in manganese ore by 2022.
Capital expenditure is estimated at
approximately €85m in 2020 to support this highly profitable growth
with a quick payback.
With respect to carbon steel production, a
continued strong activity in China, and a beginning of restart in
the rest of the world is expected in Q4 2020, albeit with
disparities in growth between geographies.
Nickel BU
The Nickel BU markets were strongly
affected by the sharp slowdown in the stainless steel industry over
the first nine months of the year, coupled with declining LME
nickel prices. Nonetheless, nickel ore export growth, both driven
by volumes and a substantial price increase, enabled the BU to post
stable turnover in Q3 2020.
SLN Q3 2020 sales were up slightly (+1%) to
€194m. Sandouville’s plant sales remained affected by the loss of
value-added markets in light of the pandemic, and decreased by -5%,
at €22m.
Market trends & prices
The stainless steel industry (2/3 of world
nickel demand) experiences a historic shock in 2020 with global
production down by -7.6%8 to 35.9Mt over the first nine months of
the year, despite a marginal drop in Q3 2020 (-1.6%8) thanks to
China. Chinese production, accounting for nearly 65% of global
output, recorded a substantial growth in Q3 2020 (+6.9%8),
influenced by government stimuli to support infrastructure,
transportation and construction. Conversely, the rest of the world
saw a very sharp decline over the period (-14.2%8). Indonesia
posted growth of 19.0%3 in Q3 2020, following the unprecedented
decline in H1 volumes.
Demand for primary nickel thus showed signs of
recovery in Q3 2020, with an increase of +1.2%8.
Global primary nickel production stood stable at
0.6 Mt8 in Q3 2020, bolstered by continued growth in nickel
ferroalloys production in Indonesia (+52.9%8), offsetting the
decline in traditional production.
On the basis of a nickel supply/demand balance
with a strong surplus in H1 2020, breakeven was almost achieved in
Q3. Nickel stocks at the LME9 and SHFE9 slightly increased compared
with end-June (+1.2%), standing at 266 kt at end-September 2020.
They now equal 8 weeks’ consumption10, which is still a low
level.
In Q3 2020, the average LME price was $6.45/lb
($14,213/t), down on Q3 2019 (-9%11), but up sharply from H1 2020
(+14%). Ferronickel prices decreased by -16.5% in Q3 2020. They
did, however, show improvement (+22%) on H1 2020. Given the upturn
in demand for stainless steel, quarterly ferronickel sales prices
were at a lower discount versus the LME than in H1.
Conversely, the average for nickel ore prices
(1.8% CIF China) came out at $81.1/wmt12, up significantly (+35%)
versus an average of $60.2/wmt12 in Q3 2019. This is attributable
to the effective ban on nickel ore exports from Indonesia since
January 2020, which constrains supply to China. Nickel ore stocks
in Chinese ports13, slightly up from end-June, totalled 8.8 Mwmt at
end-September 2020, corresponding to approximately 8 weeks’
consumption.
Activities
In New Caledonia, SLN’s Q3 2020
mining production rose +20% to 1.6Mwmt14 (3.8Mwmt year to date at
end-September, up +15%).
Q3 2020 low-grade nickel ore exports ended at
0.6 Mwmt, up +6% on Q3 2019. Based on September’s figure, annual
exports grow at a pace of more than 3.5Mwmt per year. Nine-month
total volumes of exported ore were 1.7Mwmt year to date (+61% from
the same period in 2019).
Q3 2020 ferronickel production jumped +15% to
13kt (+5% to 37kt year to date over a nine-month period). Q3 2020
sales volumes also rose +10% to 13kt (+9% to 39kt year to date at
end-September).
The increase in nickel ore exports and the
positive impact of external factors resulted in a significantly
improved cash cost. The latter averaged $5.24/lb in Q3 2020, down
from $5.65/lb in H1 2020 and $5.76/lb in Q3 2019. Cash cost should
continue to improve in Q4, mainly thanks to the considerable
increase in ore prices. To date, ore prices recorded an additional
upswing of more than +20% from the Q3 average15.
Achieving all the objectives of the rescue plan
remains a necessary condition for the sustainability of SLN, in
particular obtaining the authorisation from the government of
New-Caledonia to export an additional 2Mwmt of low-grade ore
(increasing from 4Mwmt to 6Mwmt of annual exports).
In Normandy,
after being particularly affected by the health crisis in H1, the
Sandouville plant saw its production and sales fell again in Q3
2020 compared with Q3 2019, notably due to the technical stop of
production in July, in a still-deteriorated market environment.
In Indonesia, the fast ramp-up of the mining
operations and of the low-grade nickel ferroalloys production is a
success. Since its opening in October 2019, the mine has produced
close to 2.3Mwmt of ore. Chinese customers purchased an initial
load from Eramet offtake agreement, which was shipped in September.
The plant is now operating at optimised capacity (35 kt Ni per
year). Year to date production volumes amounted to 13 kt Ni at
end-September, with a highly competitive production cash cost.
Outlook
SLN’s nickel ore export volume target is
confirmed at 2.5Mwmt. Similarly, ferronickel production at the
Doniambo plant should reach nearly 50kt in 2020.
2020 production at the Weda Bay Nickel mine and
plant is expected to deliver respectively more than 2.5Mwmt and
20kt of low-grade nickel ferroalloys (Ni content).
Stainless steel production (and thus demand for
nickel in stainless steel) should remain sustained in the coming
months, thanks to the various recovery plans for the global
economy, especially in China.
Mineral Sands BU
The Mineral Sands BU reported Q3 2020
sales up +1.6% to €63m, faced with an unfavourable market
environment.
In a deteriorated price environment, Grande Côte
(GCO) sales in Senegal fell -21% to €27m, while those of the TTI
plant in Norway increased by +32% to €37m on the low level recorded
in Q3 2019.
Market trends & prices
Ceramics, the main end-product for zircon16,
were hard hit by the pandemic. Moreover, industrial demand for
zircon was still low in all sectors and geographies. Global demand
for zircon was down in Q3 2020 but showed a slight rebound on Q2
2020.
Despite a decrease in production from main
producers, the zircon supply/demand balance should thus be in
surplus in 2020. The subsequent average zircon price increased to
$1,320/t17 in Q3 2020. It was down by -3% on H1 2020 and
-17%18 from Q3 2019.
Global demand for TiO2 pigments, the main
end-market for titanium-based products19,20, also saw a sharp
slowdown in H1 2020, notably impacted by the pandemic (construction
industry shut down for several weeks, automotive sector declining).
Demand improved in Q3 2020. At the same time, the titanium-based
products supply should also decrease in 2020, allowing the
supply/demand balance for titanium-based products to show a very
slight surplus in 2020.
The average price of high value-added CP21
titanium dioxide slag fell by -3% to $770/t22 in Q3 2020
versus H1 2020. At the same time, it drove a +1%18 increase
compared to Q3 2019. Improving demand for TiO2 pigments observed in
Q3 2020, mainly in China, has indeed driven demand for
sulphate-grade titanium dioxide slag.
Activities
In Senegal, mineral sands
production23 grew +13% to 183kt in Q3 2020 (+3% to 554kt year to
date at end-September), reflecting the good operational
performance. Q3 2020 zircon sales volumes dropped -5% to 13 kt,
owing to logistics shipping delays recorded in Q4.
In Norway, quarterly titanium
slag production ran at a normal level, up +40% to 52kt, factoring
in the low Q3 2019 comparative basis. Sales volumes also increased
by 49% to 51kt.
Outlook
The annual 2020 target for mineral sands
production amounts to 730kt, in line with 2019.
The agreement for the sale of TiZir’s Norwegian
plant to Tronox remains subject to the satisfaction of regulatory
approvals. This process is currently underway.
Mineral sands markets are closely correlated to
global GDP, as the use of pigments and ceramics is linked to the
dynamics of urbanisation and modernisation of economies. In the
coming months, the various stimulus packages should sustain demand
for mineral sands.
High-Performance Alloys
division
The collapse of the aerospace sector and
the steep downturn in the automotive sector continued to weigh
heavily on the High-Performance Alloys division in Q3 2020. The
division’s sales were down -20% to €154m (-36% over two
years).
Aubert & Duval’s (“A&D”)24 sales
declined by -18% to €122m over the period, while Erasteel’s sales
were down -26% to €32m.
Market trends & prices
The aerospace sector, which represents
approximately 70% of A&D’s sales, is very hard hit by the
Covid-19 crisis, with an extremely marked slowdown in air
transport. The impacts on the aerospace supply chain are of an
unprecedented scale. Boeing has reported that the market will
require a ten-year recovery period following the pandemic.
Commercial aircraft deliveries have reached an
all-time low this year, and the outlook from industry analysts
points to a possible further deterioration in the coming months. In
particular, at end-September, Airbus announced that it had
delivered 341 aircraft since the beginning of the year. This
accounts for a near -40% reduction compared with the same period in
2019 (571 aircraft deliveries).
The defence, energy and nuclear markets are
stable, particularly thanks to public investment programs.
The automotive industry, which accounts for
nearly half of Erasteel’s sales, remained very depressed over the
quarter, with the exception of a marked rebound in China.
Activities
In this context, A&D’s aerospace turnover
amounted to €81m. Sales fell by -31% in Q3 2020 and -21% year to
date over the first nine months of the year, compared with an
already low level in the previous year, representing -37% over two
years.
Excluding the aerospace sector, sales
significantly increased (+31%), notably those of disks for
land-based turbines.
Over the quarter, A&D adjusted the level of
production site by site thanks to labour measures in force. Thus,
the objective is to aim for a level of activity adjusted to the
order book for each product line, workshop by workshop.
The French government approved a request for a
long-term part-time work agreement (“APLD”), effective 1 October.
It should allow to significantly reduce working hours over the next
six months.
Erasteel’s production and sales were also
penalised by the continuing depressed market environment.
Production set-up was also thoroughly adjusted to meet customers’
needs.
Outlook
Based on low 2019 comparatives, the drop in
A&D’s 2020 sales could amount to approximately - 15%. Over
two years, this decline should reach almost -34% in total.
Aircraft manufacturers continue to adjust their
production rate to demand. The impacts could be deeper and more
extended for the wide-body aircraft.
A return to 2019 activity levels in the
aerospace sector is forecasted for 2025.
The rebound could take place as early as next
year for the automotive sector.
Against this new backdrop, the Group is
continuing the strategic review of A&D. All options are being
considered, including a divestment. The top priority is to find the
best solutions for the subsidiary’s activity, a strategic company
for the aerospace sector.
Outlook
In the second half of the year, the level of
manganese ore and nickel ore production, together with related
operational improvements, should further improve the Group's
intrinsic performance.
Forecast EBITDA is expected to strongly improve
in the second half of 2020 compared to the first half.
Nevertheless, it will be significantly lower on a full-year
basis.
As a result of the global crisis, the market and
price environment are still however particularly uncertain and
volatile.
Calendar
16/02/2021: Publication of 2020 annual results
26/04/2021: Publication of 2021 first-quarter sales
ABOUT ERAMET
Eramet, a global mining and metallurgical group,
is a key player in the extraction and valorisation of metals
(manganese, nickel, mineral sands) and the elaboration and
transformation of alloys with a high added value (high-speed
steels, high-performance steels, superalloys, aluminium and
titanium alloys).
The Group supports the energy transition by
developing activities with high growth potential. These include
lithium extraction and refining, and recycling.
Eramet positions itself as the privileged
partner of its customers in sectors that include carbon and
stainless steel, aerospace, pigments, energy, and new battery
generations.
Building on its operating excellence, the
quality of its investments and the expertise of its employees, the
Group leverages an industrial, managerial and societal model that
is virtuous and value-accretive. As a contributive corporate
citizen, Eramet strives for a sustainable and responsible
industry.
Eramet employs around 13,000 people in more than
20 countries, with sales of approximately €4 billion in 2019.
For further information, go to www.eramet.com
| INVESTOR
CONTACT Executive VP Strategy and Innovation -
Investor Relations Philippe GundermannT.
+33 1 45 38 42 78 Investor Relations Manager
Sandrine Nourry-DabiT. +33 1 45 38 37 02
|
PRESS
CONTACT Communications Director
Pauline Briand T. +33 1 45 38 31 76
pauline.briand@eramet.com Image 7
Marie ArtznerT. +33 1 53 70 74 31 | M. +33 6 75 74
31 73martzner@image7.fr |
APPENDICES
Appendix 1: Sales
|
In millions of euros (€ million)1 |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
|
MINING & METALS DIVISION |
|
|
|
|
|
|
|
|
Manganese BU |
420 |
480 |
359 |
434 |
427 |
470 |
434 |
|
Nickel BU |
216 |
215 |
151 |
216 |
216 |
182 |
164 |
|
Mineral Sands BU |
63 |
69 |
70 |
85 |
62 |
80 |
59 |
|
HIGH-PERFORMANCE ALLOYS DIVISION |
|
|
|
|
|
|
|
|
A&D and Erasteel |
154 |
149 |
196 |
232 |
192 |
206 |
217 |
|
GROUP |
|
|
|
|
|
|
|
|
Holding company & eliminations |
(3) |
0 |
(2) |
1 |
(2) |
(3) |
(1) |
|
Eramet group published IFRS financial
statements2 |
850 |
913 |
774 |
968 |
895 |
935 |
873 |
1 Data rounded up to
the nearest million.2 Application of IFRS standard 11 “Joint
Arrangements”.
Appendix 2: Productions and
shipments
|
In thousands of tonnes |
Q3 2020 |
Q2 2020 |
Q1 2020 |
Q4 2019 |
Q3 2019 |
Q2 2019 |
Q1 2019 |
9m 2020 |
9m 2019 |
| |
|
|
|
|
|
|
|
|
|
|
MANGANESE BU |
|
|
|
|
|
|
|
|
|
|
Manganese ore and sinter production |
1,537 |
1,475 |
1,288 |
1,309 |
1,340 |
1,112 |
1,004 |
4,300 |
3,456 |
|
Manganese ore and sinter
transportation1 |
1,615 |
1,620 |
1,242 |
1,306 |
1,303 |
1,022 |
996 |
4,478 |
3,321 |
|
External manganese ore sales |
1,492 |
1,418 |
1,000 |
1,322 |
911 |
861 |
776 |
3,910 |
2,548 |
|
Manganese alloys production |
170 |
146 |
196 |
163 |
201 |
185 |
191 |
511 |
577 |
|
Manganese alloys sales |
162 |
165 |
181 |
190 |
175 |
193 |
175 |
508 |
543 |
| |
|
|
|
|
|
|
|
|
|
|
NICKEL BU |
|
Nickel ore production (in thousands of wet
metric tonnes) |
|
|
|
|
|
|
|
|
|
|
SLN |
1,603 |
1,286 |
918 |
1,356 |
1,331 |
1,096 |
872 |
3,806 |
3,299 |
|
Weda Bay Nickel (100%) |
579 |
827 |
397 |
470 |
0 |
0 |
0 |
1,803 |
0 |
|
Ferronickel production - SLN |
12.8 |
11.7 |
12.1 |
12.5 |
11.1 |
11.6 |
12.2 |
36.6 |
34.9 |
|
Low grade nickel ferroalloys production - Weda Bay
Nickel (kt of Ni content – 100%) |
8.4 |
4.5 |
0 |
0 |
0 |
0 |
0 |
12.9 |
0 |
|
Nickel ore sales (in thousands of wet metric
tonnes) |
589 |
760 |
331 |
578 |
556 |
254 |
235 |
1,680 |
1,045 |
|
SLN |
|
Weda Bay Nickel (100%) |
182 |
0 |
0 |
0 |
0 |
0 |
0 |
182 |
0 |
|
Ferronickel sales - SLN |
12.8 |
14.3 |
11.6 |
11.4 |
11.6 |
12.0 |
12.0 |
38.7 |
35.6 |
|
Low grade nickel ferroalloys production - Weda Bay
Nickel/Off-take Eramet (kt of Ni content – 100%) |
0.8 |
0 |
0 |
0 |
0 |
0 |
0 |
0.8 |
0 |
|
Nickel salts and high purity nickel
production |
1.6 |
2.2 |
1.5 |
0.8 |
2 |
2.3 |
1.8 |
5.2 |
6.1 |
|
Nickel salts and high purity nickel
sales |
1.3 |
2.1 |
1.6 |
1.1 |
1.6 |
2.4 |
1.6 |
5.0 |
5.6 |
| |
|
|
|
|
|
|
|
|
|
|
MINERAL SANDS BU |
|
Mineral Sands production |
183 |
183 |
188 |
195 |
162 |
207 |
171 |
554 |
540 |
|
Zircon production |
14 |
15 |
14 |
15 |
12 |
16 |
15 |
43 |
43 |
|
Titanium dioxide slag production |
52 |
50 |
48 |
51 |
37 |
48 |
53 |
150 |
138 |
|
Zircon sales |
13 |
16 |
17 |
15 |
14 |
16 |
13 |
46 |
43 |
|
Titanium dioxide slag sales |
51 |
48 |
52 |
49 |
34 |
58 |
39 |
150 |
131 |
1 Produced and
transported
Appendix 3: Price and index
|
|
Q3 2020 |
H1 2020 |
H2 2019 |
Q3 2019 |
H1 2019 |
Chg. Q3 2020/Q3 20196 |
Chg.Q3 2020/H1 20206 |
| |
|
|
|
|
|
|
|
|
MANGANESE BU |
|
Mn CIF China 44% (USD/dmtu)1 |
4.21 |
4.98 |
4.85 |
5.66 |
6.42 |
-25.7% |
-15.5% |
|
Ferromanganese MC - Europe (EUR/t) 1 |
1,306 |
1,422 |
1,417 |
1,479 |
1,551 |
-11.7% |
-8.1% |
|
Silico-manganese - Europe (EUR/t) 1 |
863 |
949 |
921 |
955 |
976 |
-9.6% |
-9.1% |
| |
|
|
|
|
|
|
|
|
NICKEL BU |
|
Ni LME (USD/lb)2 |
6.45 |
5.65 |
7.03 |
7.08 |
5.59 |
-8.9% |
14.1% |
|
Ni LME (USD/t) 2 |
14,213 |
12,455 |
15,489 |
15,606 |
12,315 |
-8.9% |
14.1% |
|
Ni ore CIF China 1.8% (USD/wmt)3 |
81.1 |
68.5 |
66.3 |
60.2 |
50.7 |
34.7% |
18.4% |
| |
|
|
|
|
|
|
|
|
MINERAL SANDS BU |
|
Zircon (USD/t) 4 |
1,320 |
1,355 |
1,565 |
1,585 |
1,585 |
-16.7% |
-2.6% |
|
CP grade titanium dioxide (USD/t) 5 |
770 |
798 |
758 |
761 |
746 |
1.2% |
-3.4% |
1 Quarterly average
for market prices, Eramet calculations and analysis2 LME (London
Metal Exchange) prices3 CNFEOL (China FerroAlloy Online), “Other
mining countries” in Q3 2020 and SMM (Shanghai Metals Market)
“Philippines” in 2019 and H1 20204 TZMI, Eramet analysis (premium
zircon)5 Market analysis, Eramet analysis6 Eramet calculation
(based on CRU monthly price index for manganese ore and alloys
only), rounded to the nearest decimal
Appendix 4: Financial
glossary
Consolidated performance indicators
The consolidated performance indicators used for
the financial reporting of the Group’s results and economic
performance and presented in this document are restated data from
the Group’s reporting and are monitored by the Executive
Committee.
Sales at constant scope and exchange rates
Sales at constant scope and exchange rates
corresponds to sales adjusted for the impact of the changes in
scope and the fluctuations in the exchange rate from one year to
the next.
The scope effect is calculated as follows: for
the companies acquired during the financial year, by eliminating
the sales for the current period and for the companies acquired
during the previous period by integrating, in the previous period,
the full-year sales; for the companies sold, by eliminating the
sales during the period considered and during the previous
comparable period.
The exchange rate effect is calculated by
applying the exchange rates of the previous year to the sales for
the year under review.
EBITDA (“Earnings before interest,
taxes, depreciation and amortisation”)
Earnings before financial revenue and other
operating expenses and income, income tax, contingencies and loss
provision, and amortisation and impairment of property, plant and
equipment and tangible and intangible assets.
SLN’s cash-cost
SLN’s cash-cost is defined as all production and
fixed costs (R&D including exploration geology, administrative
expenses, logistical and commercial expenses), net of by-products
credits and local services, which cover all the stages of
industrial development of the finished product until delivery to
the end customer and which impact the EBITDA in the company's
financial statements, over tonnage sold.
SLN break-even cost
The break-even cost of SLN is defined as SLN’s
cash-cost as defined above, plus capex (projected capex for the
current year versus the projected tonnage for the current year)
non-recurring income and charges and financial expenses (recognised
in SLN’s corporate financial statements).
Appendix 5: Sensitivities of Group EBITDA
|
Sensitivities |
Change |
Impact on EBITDA (+/-) |
|
Manganese ore prices (CIF China 44%) |
+$1/dmtu |
c.€185m1 |
|
Manganese alloy prices |
+$100/t |
c.€60m1 |
|
Nickel prices (LME) |
+$1/lb |
c.€100m1 |
|
Nickel ore prices (CIF China 1.8%) |
+$10/wmt |
c.€20m1 |
|
Exchange rates |
-$/€0.1 |
c.€145m |
|
Oil price per barrel (Brent) |
+$10/bbl |
c.€(20)m1 |
1 For an exchange rate of $/€1.13
1 TRIR (total recordable injury
rate) = number of lost time and recordable injury
accidents for 1 million hours worked (employees and
subcontractors)2 See Financial glossary in Appendix 43 Eramet
forecasts based on World Steel Association (WSA) production data 4
Source: CNFEOL (China FerroAlloy Online)5 Quarterly average market
prices, Eramet calculations and analysis6 Manganese ore: CRU CIF
China 44% spot price; Manganese alloys: CRU Western Europe spot
price
7 Adjusted for unfavourable currency effects (appreciation of
the euro versus the US dollar), the decline in price in euros was
-29% on a comparable quarterly basis 8 International Stainless
Steel forum (ISSF) and Eramet estimations
9 LME: London Metal Exchange; SHFE: Shanghai Futures Exchange10
Including producers’ stocks11 Restated for the favourable currency
effect, the price increase in euros was 13% on a comparable
quarterly basis12 CIF China price 1.8% “Other mining countries” in
Q3 2020 (CNFEOL) and “Philippines” in 2019 and H1 2020 (SMM)13
Stocks excluding Inland China (Mysteel 12 ports)
14 Mwmt: millions of wet metric tonnes; kwmt: thousands of wet
metric tonnes
15 1.8% CIF China prices “Other mining countries” (CNFEOL)16
c.50% of Zircon’s end-products.17 Source Zircon premium:
FerroAlloyNet.com, Eramet analysis
18 Given the favourable currency effect, price increases in
zircon and CP grade titanium dioxide slag were down -21% and -4%
respectively on a comparable quarterly basis 19 Titanium dioxide
slag, ilmenite, leucoxene and rutile
20 c.90% of titanium-based end-products21 For the manufacture of
chloride pigments (“CP slag”)
22 Source: Market consulting, Eramet analysis 23
Zircon and titanium ore (ilmenite, leucoxene and rutile)24 Aubert
& Duval, EHA and others
Eramet (EU:ERA)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Eramet (EU:ERA)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
