[ferro-alloys.com]Sales up 5% over 2018 to €3,825m in a context of rising metal prices and favourable markets for mineral sands.

New operating records for the Mining and Metals division, confirming the Group's ambitions:

o 4.3 million tonnes of manganese ore produced,

o 1.2 million tonnes of nickel ore exported out of New Caledonia in 2018,

o 774 thousand tonnes of mineral sands concentrate produced.

EBITDA at €843m, in line with the guidance provided. Second year of strong value creation with a 22% ROCE.

High current operating income, at €581m1, with contrasting performances by activity notably production difficulties in Nickel activity, and an unfavourable market environment in the main sectors of the High Performance Alloys division

Net income - Group share at €53m, including a non-current provision of €65m to factor in the cost of the quality process review within the High Performance Alloys division.

Net debt of €717m, gearing of 38%, reflecting the acquisition of TiZir.

A key milestone in 2019 for the major growth projects of the Group:

o Organic growth in manganese ore with a production target of 4.5 million tonnes as of 2019 and decision expected to increase volumes by end-2023 to 7 Mt,

o Expected decision to be made on the lithium project in Argentina reflecting the

acceleration of the diversification strategy in metals for the energy transition.

Intrinsic growth and productivity gains in 2019, offsetting the current deterioration in market conditions, thereby resulting in forecast EBITDA close to that of 2018.

Key figures by activity

Manganese BU sales (excluding Mineral Sands activity), which account for approximately 49% of consolidated sales, grew 2% to €1,857m in 2018 versus 2017. Despite the resilience of ore prices, current operating income declined 3% to €699m, penalised by the squeeze effect on manganese alloys’margins.

2018 was particularly difficult in terms of productivity for Nickel activity given the disrupted social and societal context in New Caledonia, and an underperforming Sandouville plant.

Sales amounted to €738m, up 15% versus 2017, and the BU’s current operating income was -€111m.SLN posted a COI of -€64m, up sharply (+€31m), driven mainly by the rise in nickel prices and growth in exported ore volumes. The Sandouville plant’s performance once again weighed heavily on results, with a loss of €57m.

In 2018, TiZir (on a full annual basis) posted a strong increase in sales of €272m.

(+31%) versus 2017, in a highly favourable price environment, and a current operating income of €45m up 36%. During full consolidation of TiZir, a €10m19 accounting adjustment of inventory value was booked in the balance sheet, reducing H2 sales’ margins by the same amount.

In 2018, Eramet actively pursued the development of its lithium deposit in Argentina.

Since its discovery at the start of the decade, geological work has increased resources to 9.9 Mt LCE

Sales for the High-Performance Alloys division were down 6% at €1,020m and the division's current operating income recorded a loss of €8m, down €40m versus 2017, reflecting contrasting business trends. Erasteel’s current operating income grew to €4m in a favourable raw materials price environment,while Aubert & Duval recorded a loss of €12m.

(Eramet Official)

• [Editor:Íõ¿É]