PRESS RELEASE
Eramet: strong turnover momentum in Q1 2026 driven by a solid operational performance
Strong quarterly improvement in the Group accident frequency rate, however with a fatal accident to report in January
Adjusted turnover1 of €840m, up 13% versus Q1 2025:
Positive volume/mix effect (+15%), notably driven by an increase in sales of manganese ore (+10%) and nickel ore (+54%, with a less favourable mix), compared to lower comparatives in Q1 2025
Positive price effect (+7%), but more than offset by an unfavourable currency effect (-9%)
Solid operational performance in rail transport in Gabon (+16% in transported ore volumes), while progressing on the railway renovation
Continued ramp-up in lithium production at Centenario, with a nameplate capacity of close to 80% on average in March, in line with the targets
Gradual and partial restart of installations in Senegal from end-April, thanks to the strong mobilisation of Eramet Grande Côte ("EGC") teams following the fire in February
Request for an upward permit revision currently being submitted by PT Weda Bay Nickel ("PT WBN"), following the approval of an initial RKAB limited to 12 Mwmt of nickel ore for 2026 which production will be achieved by mid-May; the mine is preparing to be placed on Care and Maintenance in May, pending this revision
Favourable price environment over the quarter, particularly for manganese ore (+ 8% for the CIF China 44% price index) and lithium (>2x for the battery-grade lithium carbonate price index in China)
Progress on the funding plan:
Initial impact of the ReSolution programme, notably with productivity and purchasing gains posted over the quarter
Waiver2 unanimously obtained from the banking pool on the June and December 2026 gearing covenant
Validation by the Board of Directors of the resolutions to be submitted to shareholders at the AGM of 27 May, enabling the roll-out of a €500m capital increase in H2 2026
Uncertain economic environment, particularly linked to the war in the Middle East, with an inflationary effect on prices (selling prices and input costs, including energy and freight)
2026 targets
Transported manganese ore: confirmed between 6.4 and 6.8 Mt with a FOB cash cost3 still between $2.4 and $2.6/dmtu4
Nickel ore sold externally: limited to 9 Mwmt on the basis of the initial 12 Mwmt RKAB, with a request for an upward revision currently being submitted; target achieved in mid-April, while the remainder of production is dedicated to production continuity at the Joint Venture's NPI production plant
Lithium carbonate produced: confirmed between 17 and 20 kt-LCE, with a nameplate capacity close to 100% at end-2026
Mineral Sands: suspended, pending a more accurate assessment of the solutions under review and the schedule to restart production at the EGC site; the Group expects to communicate on its HMC5 production target within the coming weeks
Controlled capex: confirmed between €250m and €290m6 in 2026, down 30% to 40% vs. 2025
Christel Bories, Eramet group Chair and CEO:This first quarter confirmed the Group's ability to adapt and mobilise to meet its targets, despite the uncertainties.
Our turnover significantly increased, driven by the ramp-up in our Lithium activity in Argentina and the rise in volumes of transported manganese ore in Gabon. The favourable price momentum was largely offset by the fall in the US dollar and rising input costs.
Thanks to our robust technology and a successful ramp-up, our world-class lithium asset in Argentina, started to contribute to our results. In Senegal, in two months, our teams succeeded in managing the effects of the fire that broke out at our mineral sands extraction unit and in providing a technical solution enabling the start of a gradual and partial restart of installations from end-April.
Parallel to this, with the support of our reference shareholders, we made progress in executing our funding plan, notably by submitting the necessary resolutions for a vote on a capital increase at our next General Meeting. We are also working closely with the Board of Directors to appoint a new Chief Executive Officer as soon as possible.
In a disrupted macroeconomic environment, our teams are fully mobilised and focused on our priorities: safety, operational performance and cash management. I am confident in the momentum we have gained and our ability to overcome our challenges by leveraging our exceptional mining assets.
Plan to enhance cash generation and strengthen the balance sheet
With the support of its Board of Directors, Eramet implemented a comprehensive funding plan in February, aimed at improving cash generation and strengthening the balance sheet.
This plan is built on three pillars and aims to gradually enable the normalisation of the Group's credit ratios (gearing and leverage), while securing its liquidity and access to the bond market. In the medium term, this enhanced financial flexibility will enable Eramet to seize new growth opportunities.
Performance improvement and cash generation
The solid operational performance of rail transport in Gabon (+16% in rail transported ore volumes vs. Q1 2025) is the result of efforts to secure operations and investments to debottleneck transport capacity which are ongoing. Overall, productivity gains and cost reductions were posted under the ReSolution programme. Capex reduction is under control.
Strategic review of assets with monetisation options
Eramet launched a strategic review of its portfolio, seeking to monetise targeted assets which could materialise in agreements signed with strategic partners by end-2026. Several options are under consideration, particularly minority stakes in some of the Group's business activities.
Planned equity base strengthening
At the time of publishing its 2025 annual results in February, the Group announced its intention to strengthen its equity base by around €500m in 2026. The representatives of the reference shareholders approved this plan at the Board of Directors meeting on 18 February 2026 and committed to vote in favour of the resolutions necessary for its implementation.
These resolutions were published in the Universal Registration Document ("URD") and approved by the Board of Directors on 2 April 2026. These resolutions will be voted on at an Annual General Meeting scheduled for 27 May. In particular, these include an authorisation granted to the Board of Directors to increase the Company's share capital by issuing ordinary shares, while maintaining shareholders' pre-emptive subscription rights, up to a maximum amount of €500m.
This transaction is planned in H2, once the necessary preparations are completed and subject to market conditions at the time of its launch. In this context, discussions may be held with potential investors who could participate in the planned capital increase and help to support the Group's long-term growth.
In addition, as part of discussions with its banking pool, Eramet unanimously obtained from its lenders in respect with of the "RCF" (Revolving Credit Facility) and the Term Loan, a waiver on the June and December 2026 gearing covenants, confirming lenders' confidence in the execution of the funding plan.
CSR commitments
Safety
The Group's safety performance was mixed in Q1 2026. The TRIFR7 was 0.3 at the Group level (vs. 0.6 in Q1 2025), remaining significantly below the limit set in the CSR roadmap for 2026 (<1.0).
Two major accidents occurred over the period:
Eramet mourns a fatal accident that occurred on 22 January at PT WBN during a maintenance operation. The Group immediately implemented targeted action plans, in collaboration with the majority partner of the Indonesian Joint Venture ("JV");
On 22 February, a fire broke out in a Wet Concentration Plant ("WCP"8) at the EGC site. No casualties or injuries were reported.
Decarbonisation
Until 2025, Eramet based its climate targets on the Science-Based Targets initiative ("SBTi") framework. 2026 saw the Group achieve a further milestone, by publishing an Alternative Decarbonization Framework in its "URD" in collaboration with the I Care consultancy firm. This Framework is tailored to the specific characteristics of the mining and metals industry, reviewed by several leading organisations and can be accessed via the Group's website9.
This framework, which now represents the benchmark for assessing the Group's targets against the Paris Agreement scenarios, is intended to be shared across the entire industry. On this basis, Eramet published new decarbonisation targets: a 42% reduction in Scope 1 & 2 emissions by 2035 versus 2023, aligned with a 1.5°C trajectory for the Group excluding SLN10.
Societal
In Senegal, since the temporary suspension of its activities and in line with its societal commitments as validated by its IRMA 50 score, EGC has continued to engage in regular dialogue with local stakeholders, with the support of existing consultation bodies to closely monitor the situation and its impact on the local area. Against this background, priority community initiatives are being continued, in an effort to minimise the economic and social impact on the affected communities.
Extra-financial rating
Eramet's ISS ESG rating was upgraded to B- in March, versus C+ previously, placing the Group in the first decile of mining industry companies. In early 2026, EcoVadis also increased its rating to 73/100, compared to 68/100 in its previous assessment.
Eramet group adjusted turnover by activity
Millions of euros1
Q12026
Q1 2025
Chg.1 (€m)
Chg.5 (%)
Manganese
464
457
+7
+2%
Manganese ore activity2,3
271
250
+21
+8%
Manganese alloys activity2
193
207
-15
-7%
Adjusted Nickel (excluding SLN)2
163
114
+49
+43%
Share of PT WBN (38.7% - excluding off-take contract)
116
73
+43
+59%
Weda Bay (trading activity, off-take contract)
47
41
+6
+15%
Mineral Sands
39
68
-29
-42%
Lithium
57
0
+57
n.a.
Holding and eliminations4
117
104
+13
+12%
Eramet group adjusted2
840
742
+98
+13%
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 2026 (€17m in Q1 2025).4 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.5 Data rounded to higher or lower %.
N.B. 1: all the commented figures for Q1 2026 and Q1 2025 correspond to figures as presented in the Group's consolidated financial statements, unless otherwise specified.
N.B. 2: all the commented changes in Q1 2026 are calculated with respect to Q1 2025, 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 amounted to €840m in Q1 2026, up 13 % versus Q1 2025 (+22% at constant scope11 and exchange rates, with -9% of currency effect). This increase reflects a positive price effect combined with a favourable volume effect for all activities, except for mineral sands which were penalised by volumes sold against a backdrop of declining prices.
Manganese
In Q1 2026, the solid mining and rail performance in Gabon enabled the transportation of 1.6 Mt of manganese ore (+16% vs. Q1 2025).
Turnover of the Manganese activities was €464m (+2%) for the period:
Ore: turnover up 8%, driven by rising volumes sold externally and a higher average selling price (+8%), notably driven by the increase in sea freight, but offset by an unfavourable currency effect (-11%);
Alloys: turnover down 7%, penalised by an unfavourable mix and currency effect, which was partly offset by the increase in volume sold.
Manganese ore
Q1 2026
Q1 2025
Chg.
Chg.(%)
Turnover, €m1
271
250
+21
+8%
Manganese ore and sinter transportation, Mt
1.6
1.4
+0.2
+16%
External manganese ore sales, Mt
1.4
1.2
+0.1
+10%
FOB cash cost2 (excl. export duties), $/dmtu
2.5
2.4
+0.1
+5%
Manganese alloys
Q1 2026
Q1 2025
Chg.
Chg. (%)
Turnover, €m
193
207
-15
-7%
Alloys sales, kt
158
149
+9
+6%
o/w refined alloys (%)
49%
53%
-4 pts
-8%
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 2025).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 trends12 & prices13
Global production of carbon steel, the main end-product for manganese, was 473 Mt in Q1 2026, down by 2% from Q1 2025.
China, which accounts for more than half of global steel production, was down by nearly 4%. Conversely, India continued to see an increase in production (+9%), which was also the case in North America (+3%), benefitting from the protectionist measures introduced. Europe posted a further decline of 3%, faced with continued declining demand and continuing pressure from imports.
Manganese ore consumption for Q1 2026 reached 5.1 Mt-Mn, up 2% year-on-year, reflecting rising demand from India. In parallel, manganese ore production increased by 13% to 5.3 Mt-Mn, with limited growth for high-grade ore. Production from South Africa, which still accounts for nearly 50% of seaborne production, continued to post record levels (+22%). Gabon also saw volumes up by 4%, in line with the increase in shipments from Comilog over the quarter.
As a result, the manganese ore supply/demand balance was in surplus in Q1 2026, with a more balanced scenario for high-grade (vs. semi-carbonated) ore. Chinese port ore inventories rose to 5.2 Mt at end-March (vs. 4.6 Mt at end-December 2025), representing the equivalent of around 10 weeks of consumption.
The price index (CRU) for manganese ore (CIF China 44%) averaged $5.0/dmtu in Q1 2026, up 8% vs. Q1 2025 (+11% vs. Q4 2025), boosted by demand that remained strong among manganese alloys producers and mounting pressure on freight costs since early 2026.
The price index (CRU) for refined alloys in Europe (MC Ferromanganese) averaged €1,523/t, up 2% (+14% vs. Q4 2025), driven by a temporary rise in prices following the introduction of the CBAM ("Carbon Border Adjustment Mechanism") in Europe. The price index for standard alloys (Silicomanganese) averaged €1,126/t, up 4% (+11% vs. Q4 2025), bolstered by the formal adoption of safeguard measures by the European Union ("EU"). However, US prices are an exception, continuing to face competitive pressure from Indian imports, affecting both standard and refined alloys.
Activities
In Gabon, mining and rail activities delivered a solid performance in Q1 2026, compared to a Q1 2025 disrupted by logistics challenges at the port of Owendo.
The strong operational performance of Setrag enabled the transportation of 1.6 Mt of ore over the quarter (+16% vs. Q1 2025). This momentum, observed both for Comilog flows and for other railway users, reflects tangible progress in terms of safety, traffic and maintenance. Works to modernise the Transgabonese railway are also actively ongoing.
Production is aligned at 1.6 Mt (-11% vs. Q1 2025). Volumes sold externally totalled 1.4 Mt over the quarter (+10% vs. Q1 2025).
The FOB cash cost3 for manganese ore activity averaged $2.5/dmtu over the quarter, up 5% from Q1 2025, reflecting an unfavourable currency effect, which was partly offset by rising volumes. Mining taxes and royalties came out to $0.2/dmtu, stable from Q1 2025. Sea transport costs per tonne were significantly up to $0.9/dmtu (+15%), reflecting the recent increase in freight and fuel rates in connection with the geopolitical situation in the Middle East.
Manganese alloys production slightly increased to 168 kt (4%). Parallel to this, manganese alloys sales were up 6% to 158 kt, with an unfavourable mix notably reflecting the increased volumes of commodities sold in the United States and the rest of the world.
Outlook
Global carbon steel production is expected to moderately increase in 2026, with a less significant decline in Chinese production than in 2025, offset by an increase for the rest of the world, particularly in India where Eramet has a strong business footprint.
As a result, demand for manganese ore should slightly increase in 2026, driven by growth in alloys production in India and the rest of the world, while demand in China is set to remain under pressure. Subject to fuel availability, supply is also expected to remain higher in 2026 than in 2025, driven by continued strong production in South Africa and normalised production levels in Australia.
The market consensus is still set around $5.0/dmtu14 on average for 2026, representing an increase of close to 10% in the manganese ore price index (CIF China 44%) compared with 2025.
As disclosed at the end of February, transported ore volumes are set to be between 6.4 Mt and 6.8 Mt in 2026. The FOB cash cost3 is still expected to be between $2.4 and $2.6/dmtu, with the favourable impact of increased volumes versus 2025 largely offset by an unfavourable currency effect15.
Manganese alloys sales are expected to increase over the year. The activity's cost base should be impacted from end-Q2 by the recent rise in manganese ore and freight prices, in connection with geopolitical tensions in the Middle East. These cost increases were reflected in the manganese alloys margin with a lag of around 3 months, factoring in the management of inventories and supplies.
Nickel
In Q1 2026, external sales for nickel ore in Indonesia reached 8.3 Mwmt, up 54% from Q1 2025 which was penalised by the destocking of the plants at the Indonesia Weda Bay Industrial Park ("IWIP"), ending 2024 with high inventories.
Adjusted turnover1 for the Nickel activity was €163m (+43%) over the period:
The share of turnover for PT WBN (excluding the off-take contract) was up 59%, reflecting higher volumes as well as sales prices, which were driven by the LME ("London Metal Exchange") and the high level of ore premiums, resulting from the limited supply in the Halmahera region;
The volumes of nickel ferroalloys sold (off-take contract on PT WBN plant production) were near stable.
Nickel ore
Q1 2026
Q1 2025
Chg.
Chg. (%)
PT WBN (38.7%)1 share of turnover, €m
116
73
+43
+59%
Nickel ore external sales (100%), Mwmt
8.3
5.4
+2.9
+54%
o/w Saprolite, Mwmt
4.8
3.8
+1.0
+27%
o/w Limonite, Mwmt
3.6
1.6
+1.9
+118%
Nickel ferroalloys
Q1 2026
Q1 2025
Chg.
Chg. (%)
Off-take turnover, €m
47
41
+6
+15%
NPI production (100%), kt
9.0
9.1
-0.1
-1%
NPI sales (43% off-take), kt
3.8
3.9
-0.1
-2%
1 Excluding nickel ferroalloys off-take.
Market trends16 & prices
Global stainless-steel production, which is the largest end-market for nickel, increased by nearly 4% to 15.7 Mt in Q1 2026 versus Q1 2025.
Production in China, which accounts for more than 60% of the global supply, saw growth of nearly 5%, still driven by exports and domestic consumption.
Global demand for primary nickel rose 3% to 0.9 Mt-Ni, supported by demand for stainless-steel (65% of current demand), with moderate growth of 2% against a background of production increasingly directed towards lower-nickel-content grades. Demand for batteries posted a more sustained increase of 7%, as did other applications, notably driven by the energy and aerospace industries.
At the same time, global primary nickel production was down 3% to 0.9 Mt-Ni, resulting from the combined impact of a significant decline in NPI production17 in China (-19%), the decrease in traditional ferronickel production (-4%), and a marginal decline in the production of NPI and nickel intermediates in Indonesia (-1% and -2%), reflecting pressures on local nickel ore supply caused by mining quota restrictions.
However, the supply/demand balance (class I and II18) remained in slight surplus for the quarter. Visible nickel inventories at the LME and SHFE19 amounted to 347 kt-Ni at end-March (vs. 301 kt at end-December), equivalent to around 5 weeks of consumption.
In Q1 2026, the LME price average (price of class I nickel) was $17,362/t, up 12% (+17% vs. Q4 2025), reflecting the current uncertainty surrounding Indonesian ore supply.
The average for the NPI price index20 (class II nickel) as sold at Weda Bay also increased by 12% (+18% vs. Q4 2025), averaging $13,446/t.
In Indonesia, the market price for nickel ore was reflected in the SMM 1.6% CIF, which factors in both the regulatory price floor ("HPM Nickel"21) and the premium applied to the latter. In Q1 2026, this index was $62/wmt, up 32% year-on-year and 18% from Q4 2025. This increase reflects the combined effect of a rising HPM (to $30/wmt for 1.6% saprolite22, i.e. a 13% increase from Q4 2025, in line with rising nickel prices on the LME) and premiums that remained high over the quarter, exceeding 100% of the HPM for saprolite, in a context of domestic nickel ore supply that remained under pressure. Limonite prices also trended upwards.
Activities
Over the period, in Indonesia, PT WBN obtained an initial RKAB for an annual production and sales volume of 12 Mwmt in nickel ore in 2026 (of which 3 Mwmt was sold internally). This permit represents a decrease of more than 70% versus the RKAB for 2025 (32 Mwmt initially granted, then revised upwards to 42 Mwmt in July of the same year).
In Q1 2026, external ore sales23 totalled 8.3 Mwmt (+54% vs. Q1 2025). External saprolite sales totalled 4.8 Mwmt, up 27%, with Q1 2025 volumes penalised by destocking in the plants in the IWIP ("Indonesia Weda Bay Industrial Park") at the start of the year. The average nickel grade for the quarter was 1.5% (vs. 1.6% in Q1 2025). Limonite sales accounted for 3.6 Mwmt, up significantly (2.2x) and propelled by growing demand from the IWIP HPAL ("High-Pressure Acid Leach") plants. Internal consumption for the NPI plant represented 1.0 Mwmt over the quarter.
PT WBN continued to benefit from significant premiums (more than 100% over the quarter vs. the HPM Nickel Index) for its high-grade saprolite selling prices, against the background of domestic supply restrictions.
As expected, production costs at the mine considerably increased year-on-year, given the increase in the strip ratio and rising energy prices, the effects of which began to materialise in March.
Production at the NPI plant amounted to 9.0 kt-Ni over the quarter (-1% vs. Q1 2025). As part of the offtake contract (trading activity), NPI sales stood at 3.8 kt-Ni (-2% vs. Q1 2025).
Outlook
Primary nickel demand is expected to increase in 2026, driven in particular by stainless steel production in China and India, as well as nickel consumption in other end-use sectors. However, uncertainties remain around the growth in nickel supply, given the limitation of mining permits in Indonesia, as well as sulphur supply difficulties and rising sulphur prices affecting HPAL plants.
The nickel market started the 2026 financial year in surplus but could gradually rebalance.
For 2026, the market consensus for LME nickel prices currently stands at around $16,700/t-Ni14, up around 10% vs. 2025, and could be revised upward depending on how the situation evolves.
In Indonesia, a request for an upward revision of the initial RKAB obtained for 2026 is currently being submitted with the relevant authorities24. This request has been initiated through the usual process and is consistent with the mine's production capacity and the levels authorised in previous years. While supporting the Indonesian authorities' policy intended to achieve a sustainable rebalancing of the nickel market, PT WBN aims to better meet the growing demand from the IWIP industrial park, with its ore needs (estimated at more than 100 Mwmt per year) remaining significantly above the volumes currently authorised. Pending the approval of this revision, and to meet its legal requirements, PT WBN will place its operations in Care and Maintenance in May. Consequently, the Joint Venture ("JV") will suspend its commercial operations with IWIP. PT WBN's NPI plant, meanwhile, will continue to operate as normal, using its ore stocks.
PT WBN will make every effort to limit the social impact of these adaptations and support local communities throughout this period, working closely with local authorities, its subcontractors, customers and other stakeholders.
As previously disclosed, production costs per tonne of ore are expected to increase compared to 2025, subject to authorised volumes and mining plan adjustment costs, as well as the significant rise in fuel prices which directly impacts costs for its mining subcontractors.
Moreover, the Indonesian government has recently revised the formula used to calculate the reference price for nickel ore (HPM), with changes taking effect in mid-April. In addition to nickel content, the new formula now factors in the value of other metals contained in the ore (such as cobalt). This reform reflects the country's authorities' ambition to better reflect the actual economic value of the nickel ore and to apply royalties based on a higher price.
The impacts of the revised HPM formula vary depending on the ...
