Eramet: Revenue Up by 13%, but Fire in Senegal Takes a Toll
Eramet reported an adjusted revenue of €840M in the first quarter of 2026, up by 13%, driven by the successful ramp-up of its lithium plant in Argentina and strong performance in railway transportation in Gabon. However, this operational progress is overshadowed by a fire on February 22 in Senegal that halted the production of mineralized sands, and by financing issues forcing the group to raise €500M in capital in 2026.
Financial Performance Overview
The group's adjusted revenue reached €840M in Q1 2026, up 13% from Q1 2025, which is a 22% increase on a like-for-like and currency-neutral basis. This growth reflects positive price effects and favorable volume effects across most activities. The lithium activity contributed with a revenue of €57M, reflecting increased sales volumes in a context of high prices. The Centenario plant in Argentina achieved close to 80% of its nominal capacity in March, producing 3,720 t-LCE during the quarter. Manganese activity stood at €464M (+2%), driven by solid performance in mining and railway activities in Gabon: 1.6 Mt of ore transported represents a 16% increase from Q1 2025. Nickel activity reported €163M (+43%), with external ore sales reaching 8.3 Mth in Indonesia, up by 54%. However, the mineralized sands division fell to €39M (-42%), directly affected by the February 22 fire.
Impact of the Fire in Senegal
Eramet's Grande Côte mineral sands extraction unit in Senegal was struck by a fire on February 22, 2026, damaging the wet concentration plant (WCP). Operations were gradually halted at the beginning of April after depleting available stocks. The production volumes of mineralized sands dropped by 49% for the quarter. Limited sales and the decrease in zircon prices (to $1,500/t FOB, down 17% versus Q1 2025) exacerbated the impact: the activity's revenue was €39M, down by 42%. However, a gradual and partial restart of the facilities is planned from the end of April using technical solutions involving the dry extraction unit. The group achieved an IRMA 50 score in February 2026 and maintains its priority community projects. Investments of €30M aimed at increasing capacity and supporting decarbonization will largely be maintained in 2026 as they were contractually committed before the fire.
Financing Plan and Strategic Adjustments
Eramet has implemented a detailed financing plan aimed at normalizing its credit ratios and securing its liquidity. The group plans a capital increase of about €500M in 2026, with resolutions to be voted on at the General Meeting on May 27. This operation will be carried out in the second half of the year, once the preparation phase is completed and subject to market conditions. The reference shareholders' representatives have committed to voting in favor of the resolutions. The group also obtained a waiver from lenders on the gearing covenant for June and December 2026, confirming their confidence in the execution of the plan. In Indonesia, PT Weda Bay Nickel obtained an initial RKAB for 12 Mth of annual production in 2026, representing a decrease of over 70% compared to the RKAB 2025 (32 Mth revised to 42 Mth in July). Facing this quota restriction, the joint venture will put its mining operations in Care and Maintenance in May, suspending its commercial operations with the IWIP industrial park, although the NPI plant will continue its activities based on its stocks. The group has also launched a strategic review of its portfolio aimed at targeted asset monetization through partnership agreements by the end of 2026, including minority stakes.
