查看配图：Eramet targets debt reset with lithium, nickel salesEramet’s Centenario-Ratones lithium plant in Argentina’s Salta province. Credit: Eramet
Eramet (Euronext Paris: ERA) is seeking buyers for lithium and nickel stakes as it targets adjusted free cash flow this year and rebuilds the financial capacity to fund growth.
Investors have expressed interest in a minority stake in Argentina’s Centenario-Ratones, about 300 km west of the provincial capital of Salta, and a substantial part of Eramet’s 38.7% interest in Weda Bay Nickel in Indonesia, the company said Monday.
“We are fully aware that their realization first requires restoring our balance sheet,” Chair and CEO Christel Bories said in a release, referring to Eramet’s growth prospects. “All our teams are fully mobilized to ensure the successful implementation of these actions, which will enable Eramet to enter a new chapter in its history, with a restored financial structure and the necessary resources to seize its growth opportunities.”
Eramet aims to cut its adjusted debt-to-earnings ratio below three by year-end, from 5.5 at the end of 2025, helped by a €500-million (C$787 million) rights issue, spending restraint and operating improvements. The proposed stake sales would support the longer-term improvement but neither is expected to generate proceeds before year-end.
The company forecasts adjusted earnings before interest, taxes, depreciation and amortization of €540 million – €610 million this year, up from €372 million in 2025. Capital spending is to fall to between €250 million and €290 million, from €412 million last year.
Eramet shares closed little changed at €37.14 (C$58.43) in Paris on Monday. They’ve dropped about 30% over the past 12 months.
Costly expansion
The turnaround follows a costly push into lithium. Eramet paid $699 million (C$986.5 million) in October 2024 to buy Chinese partner Tsingshan’s 49.9% interest in Centenario, using available cash. It is now seeking another minority investor in the same business.
Benchmark lithium carbonate and nickel prices fell 17% and 10%, respectively, in 2025. Weaker manganese prices, adverse exchange rates, Indonesian permit restrictions and operating problems compounded the pressure, cutting Eramet’s adjusted earnings by 54%.
Adjusted free cash flow was negative €481 million in 2025 and net debt climbed to €1.94 billion from €1.30 billion a year earlier. Eramet obtained a lender waiver after exceeding its debt-to-equity covenant, then fully drew its €935-million revolving credit facility in January as a precaution.
Some recovery is underway. Adjusted free cash flow reached €7 million in the first half of 2026. But a February fire disrupted mineral sands production in Senegal, while Weda Bay resumed mining only in September after four months of suspension linked to permit limits.
State backing
The rights issue, first proposed in February, would make the French state Eramet’s largest shareholder. Under an agreement disclosed last month, the state’s investment agency would maintain its existing 27.1% share and buy some or all of Sorame-CEIR’s subscription rights. France framed the increased investment as a way to secure critical metals supplies.
Eramet has separately agreed to sell its undeveloped Arizaro lithium concessions in Argentina for $71 million, with closing expected by year-end. It hasn’t disclosed prospective investors or valuations for the Centenario and Weda Bay stakes.
The ReSolution improvement program targets productivity gains, procurement savings and lower fixed costs. Eramet has also committed to withholding dividends until its adjusted debt-to-earnings ratio falls below one.
Growth tests
Centenario reached its full production rate last month. Eramet is targeting 20,000–24,000 tonnes of lithium carbonate in 2027, allowing for maintenance shutdowns.
A potential $350-million expansion would add 11,000 tonnes of annual capacity to the existing 24,000-tonne plant, partly funded by operating cash. A construction decision could come by the end of 2027. Eramet plans to seek tax and other incentives under Argentina’s RIGI investment regime.
At Weda Bay, nickel ore sales to outside customers in 2027 are expected to be broadly in line with the past two years, subject to annual Indonesian approvals. Eramet gave no decision timetable.
In Gabon, it targets 6.8 million to 7.3 million tonnes of manganese ore transported next year and is studying a $40-million manganese oxide plant. The proposed 60,000-tonne-a-year facility has no announced investment decision or start-up date.