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Eramet (ERAFP: Ba2/BB): 1H24 Results

CREDIT UPDATE
  • Bonds are stable despite the equity opening weaker (-7.8%)
  • The group is positive on Manganese numbers improving as the delay from prices rises to invoiced income will feed through into H2 results.
  • Guidance is for H2 to be significantly better than H1.
  • I think we have to be a little sceptical about full year numbers given the decline in industrial metals everywhere - it's not so easy to see prices for Manganese but Tradingeconomics has the price peaking in June at 42 CNY/mtu and falling to 34.25 now.
  • The French state support for New Caledonia saw a total of €220m of aid this year (140 Q1 +80 Q2)
  • Operational output: Manganese +33% volumes ("returning to normal"); +40% Nickel in Indonesia; +33% Mineral Sands
  • Revenue €1,674m -12%
  • Adj EBITDA €247m -27%
  • EBITDA €102m +10%
  • FCF €-521m further fall from -120m H1
  • Net Debt €771 +16% increase
  • Increase in leverage by 0.2x

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