Eramet, the French mining company, said that it aims to increase its manganese and lithium deliveries from Gabon, as well as from Argentina, in order to improve its finances which has been affected by declining profits and increasing debt.

Early December, the company had promised additional measures after cutting capital expenditure. It was under pressure from low metal prices, production delays and the purchase of its lithium partner, in Argentina.

Eramet said it aims to boost core EBITDA in Gabon by between 130 and 170 millions euros (between $151.52 and $198.14) in the next two years. This will be supported by improvements to rail infrastructure in Gabon, which are expected to increase volumes of ore transported, according to a company statement.

The firm said that, in addition to the EBITDA goal, it may also benefit from the expansion of its lithium production capacity in Argentina. This is expected to reach by the end 2026.

Eramet said it had obtained a waiver from its lending group on a debt ratio covenant for December 2025, which ensures the availability of its credit facility, currently undrawn, of 935 millions euros.

Eramet stated that efficiency measures, including capex, should boost free cashflow from 60 to 70 millions of euros by the end of the year. It added that it was evaluating its strategic and financial options in order to accelerate performance and deleveraging.

Eramet confirmed volume targets for 2025 and said that it expects its markets to be under pressure from the slowing Chinese industrial market and global economic uncertainty. However, conditions should stabilize in 2026, as supply and demand slowly rebalance.

(source: Reuters)