PARIS (Agefi-Dow Jones)–The mining group Eramet announced on Wednesday that it is aiming for a further increase in its gross operating surplus (Ebitda) in 2022, after doubling this result in 2021 under the effect of a strong growth in its production and the good trend in sales prices.
After two years without paying a dividend, Eramet also intends to propose to the general meeting of May 31 to distribute a dividend of 2.5 euros per share for the 2021 financial year.
The company forecasts an Ebitda of around 1.2 billion euros in 2022, as well as an increase in its production of manganese ore in Gabon to 7.5 million tonnes. The group has also set a nickel ore production target of 15 million wet tons (Mth) in Indonesia and more than 4 Mth of nickel ore exports in New Caledonia.
Over the whole of last year, Eramet’s gross operating surplus (Ebitda) stood at 1.05 billion euros, against 516 million euros the previous year, an increase 104%, said Eramet.
Eramet’s turnover amounted to 3.67 billion euros, up 31% over one year. “This growth was mainly driven by the manganese alloys activity which benefited from a very favorable price environment combined with an improvement in the product mix, as well as by the very good operating performance of the manganese ore activity and the nickel ferroalloy trading activity produced at Weda Bay,” the group said in a statement.
Production of manganese ore in Gabon increased by 21% to 7 million tonnes last year, while exports of nickel ore in New Caledonia increased by 17% to almost 3 Mth.
Net income group share for the 2021 financial year amounted to 298 million euros, compared to a loss of 675 million euros in 2020.
According to the consensus achieved by FactSet, analysts were expecting an average net profit of 331 million euros, for an Ebitda of 983 million euros and a turnover of 4.4 billion euros.
Free cash flow amounted to 526 million euros, compared to a cash flow of 116 million euros in 2020 restated for the activities being sold in 2021, Aubert & Duval, Sandouville, and Erasteel.
The group’s net debt was reduced to 936 million euros at December 31, 2021, a reduction of more than 440 million euros due to the group’s strong cash generation, despite a negative free cash flow of 125 million euros from activities sold or in the process of being sold.
-Francois Berthon, Agefi-Dow Jones; +33 1 41 27 47 93; [email protected] ed: ECH
ERAMET FINANCIAL RELEASES:
http://www.eramet.com/espace-investors
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February 23, 2022 13:14 ET (18:14 GMT)