ERAMET S.A. (ERMAF) Q2 2023 Earnings Call Transcript

ERAMET S.A. (OTCPK:ERMAF) Q2 2023 Earnings Conference Call July 27, 2023 4:30 AM ET

Company Participants

Christel Bories – Chair & CEO

Nicolas Carre – CFO

Conference Call Participants

Nicolas Montel – Portzamparc

Julien Onillon – Stifel

Maxime Kogge – ODDO BHF

Christel Bories

Good morning, everyone. And thank you for being with us for this Half Year Results Presentation. I know it’s busy period with a lot of results released from many companies the same day. So thank you for being with us.

Clearly, after a very good performance and record financial results in 2022, we have experienced a much more challenging first semester in 2023. And the first reason for this difficult semester, and by far, the main one has been the deteriorated market environment, with very sharp reduction in our commodity prices. And as you can see, on this slide, we have experienced significant drop mainly in our manganese alloys businesses with almost minus 50% on our price, minus 23%, on the manganese ore price index, and more than 30% for the ferronickel just to name the main ones.

Overall, the price impact for the semester has been higher than €720 million, which is huge. And if we take into account the high level of inflation that we have experienced in our activities, and still high cost of some key inputs, like the reductant. The overall external impact on our account has been as high as €750 million, and represent about 90% of the drop off our EBITDA.

The second reason for this difficult start of the year has been the significant logistical incident that we have experienced in our manganese activity in Gabon. It started with a big landslide end of 2022, the end of December resulting from major seizure [ph] of more than 7.5 on the Richter scale. And it

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