Eramet SA · EURONEXT:ERA
Eramet SA — Investor Presentation (May 2022)
35 slides from Eramet SA's investor presentation, May 2022
Slide 1: Eramet Group Presentation
Eramet Group Presentation MAY 2022
Slide 2: Our purpose, our reason for acting
Our purpose, our reason for acting « Become a reference for the responsible transformation of the Earth’s mineral resources, for living well together » Our purpose sets a course. Conveying both our DNA and our collective ambition, it fuels our vision and the daily actions of all employees and stakeh
Slide 3: Eramet at a glance
Eramet at a glance
Slide 4: A global pure player in Mining & Metals
A global pure player in Mining & Metals Refocused on 4 M&M activities Strong financials results Mineral Sands BU in 2021 Lithium BU 9% (in development) Li Nickel BU 29% Sales1 €3.7bn EBITDA1 62% Manganese BU > €1bn Employees Long term and stable shareholders c. 8,500 STCPI4 4% Leverage2 SORAME 5 APE
Slide 5: Operations in manganese, nickel, mineral sands; development in lithium
Operations in manganese, nickel, mineral sands Development in lithium, nickel & cobalt, EV batteries recycling 1 Li Mineral Sands Lithium BU Manganese BU Nickel BU (in development) BU Applications Pigments and Batteries: Energy Steels used for Stainless steel and storage for electric titanium metal
Slide 6: Long life world class deposits on the first quartile of the cost curve
Long life world class deposits positioned on the first quartile of the mining industry cost curve SENEGAL NEW CALEDONIA Diogo Area, Kouaoua, Népoui, Mineral Sands Poum, Tiébaghi,Thio, 18.9 Mt reserves Nickel 3.6 Mt reserves ARGENTINA INDONESIA Salar de Centenario-Ratones, Weda Bay, Lithium Nickel 1.
Slide 7: A committed, contributive and recognised corporate citizen
A committed, contributive and recognised corporate citizen 1 2 3 Societal Reducing engagement Contributing to energy/climate embedded in the communities' lives footprint strategic vision Our Purpose drives our License to operate: Validation of the Group's ways of working Partnering with the CO2 emis
Slide 8: ESG performance recognised by leading agencies
ESG performance recognised by leading agencies 2021 CDP Climate 2021 Vigeo change Score 66/100: Advanced Score B (B in 2020) level (vs 66/100 in 2019) Among leading Sector rank: 3/44 companies in the sector 2021 Sustainalytics 2020 ISS ESG Overall score B-, prime status Risk rating score improvement
Slide 9: A future leading player in the new age of metals
A future leading player in the new age of metals… Pure player in Mining and Metals contributing to a sustainable future Grow in metals supporting Develop critical metals for global economic development energy transition Resilient markets Fast-growing markets MANGANESE ORE & ALLOYS LITHIUM NICKEL NIC
Slide 10: A portfolio contributing to the battle for climate change
A portfolio contributing to the battle for climate change Greener product offering World class assets, providing the highest metal contents at lower carbon contents CO2 reduction targets SBTi certified Perfectly positioned to benefit from booming metal requirement for energy transition 28 27 3 Ni Co
Slide 11: Grow in metals supporting global economic development
Grow in metals supporting global economic development
Slide 12: Manganese main growth drivers: carbon steel and China
Manganese main growth drivers: carbon steel (90% of global production) and China Manganese ore Manganese alloys 1 “Low-grade local” ore Standard < 30% Mn content Manganese Ore > High-Carbon FeMn Average 0.4 t of Mn content (6 to 8% carbon) per tonne of ore “Medium-grade” ore > Standard SiMn > 30% bu
Slide 13: Manganese BU key features (1/2)
Manganese BU key features (1/2) Reserves Industrial set-up Reserves’ lifetime > 20 years in Gabon Gabon: Moanda, world’s leading high-grade (44%) manganese ore mine Operated for 50 years > Operated by Comilog, > Highly competitive cash cost > Ore transportation to Libreville port (600 km of 2021 pro
Slide 14: Manganese BU key features (2/2)
Manganese BU key features (2/2) Market Share Key Players Key Consumers Mn ore Mn alloys 1st global producer of high-grade Mn ore 1st global producer of Privat refined Mn alloys Main market for Mn Alloys: Europe and North America 14 Eramet – Group presentation, May 2022
Slide 15: Nickel main growth drivers: stainless steel and batteries
Nickel main growth drivers: stainless steel and batteries Nickel ore 1 Sulfide-type ore (Canada, Russia), 26% of global production Extraction of Ni ore > Nickel combined with several other valuable metals in order to… > to be transformed in nickel concentrate (Project) Laterite-type ore (New Caledon
Slide 16: Nickel BU key features (1/2)
Nickel BU key features (1/2) Reserves Industrial set-up Indonesia (PT Weda Bay): world class deposit, largest nickel Reserves’ lifetime > 25 years for mine, 1 ferroalloys1 plant (NPI) both New Caledonia and Indonesia > First-tier mine Operated for ~130 years in New Caledonia and since 2019 in New Ca
Slide 17: Nickel BU key features (2/2)
Nickel BU key features (2/2) Market Share Key Players Key Consumers 4th high grade ferronickel producer worldwide 1st source of high grade seaborne ore (exports from New-Caledonia) 17 Eramet – Group presentation, May 2022
Slide 18: Mineral Sands main growth drivers: ceramics and pigments market
Mineral Sands main growth drivers: ceramics and pigments market Zircon key features Titanium dioxide key features Dredge or Dredge 1 open pit mining mining followed followed by by mineral 1 mineral separation Titanium separation minerals (rutile, ilmenite, 2 2 leucoxene) Midstream : micronisation or
Slide 19: Mineral Sands BU key features (1/2)
Mineral Sands BU key features (1/2) Reserves Industrial set-up Senegal (GCO): world’s largest single dredge mineral sands Reserves’ lifetime > 20 operation years in Senegal (Zircon & > Ore rail transportation from mine to Dakar port operated by GCO Titanium ore1) Norway (TTI): 1 metallurgical plant
Slide 20: Mineral Sands BU key features (2/2)
Mineral Sands BU key features (2/2) Market Share Key Players 4th global producer of zircon 4th global producer of titanium feedstock 20 Eramet – Group presentation, May 2022
Slide 21: Develop metals for energy transition
Develop metals for energy transition
Slide 22: Lithium main growth drivers: energy storage
Lithium main growth drivers: energy storage, including Li-on EV battery 1 Key Features Extraction from salar brines or from lithiniferous minerals Energy storage market: (spodumene) in order to… > Mainly driven by environmental regulations, EV sales and mobility development 2 …be transformed Li-ion
Slide 23: Lithium BU (in development) key features (1/2)
Lithium BU (in development) key features (1/2) Reserves Industrial set-up Reserves’ lifetime > 40 years in Argentina (LCE1) Argentina: majority share of 50.1% for Eramet, > Pilot plant operating in real conditions since December 2019 Market Share > First large-scale and sustainable lithium industria
Slide 24: Lithium BU (in development) key features (2/2)
Lithium BU (in development) key features (2/2) Direct Lithium Extraction (DLE) process Use of an active solid to extract and concentrate the lithium: competitive process developed by Eramet ~90% lithium recovery yield > much higher than traditional evaporation process 1 week lead time > vs. 18 month
Slide 25: Battery-grade Ni/Co project co-developed with BASF in Indonesia
Battery-grade Ni/Co project co-developed with BASF in Indonesia: study phase to be completed in 2022 Production of nickel-cobalt for the manufacturing for Li-ion batteries Partnership with BASF since 2020: > Evaluation of hydro-metallurgical plant development, incl. a high-pressure acid leaching (“H
Slide 26: Entering pre-industrialization studies for the battery recycling project
Entering pre-industrialization studies for the battery recycling project Major progress in the Li-ion battery recycling project An innovative closed-loop process fully piloted in 2020-2021 within Eramet Research & Innovation Center Developing our partnership with SUEZ to produce “black mass” (a meta
Slide 27: Eramet Ideas
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Slide 28: Eramet Ideas: a European center of excellence in mining and metallurgy
Eramet Ideas*: a European center of excellence in mining, extractive metallurgy and circular economy Open innovation approach Our Partners Leadership / partnership in European projects Innovation Council of worldwide academic experts Open innovation challenge High-level R&D infrastructure in Trappes
Slide 29: Appendices
Appendices
Slide 30: A longtime player; shareholding structure
A longtime player Partnership signed for restarting the construction of the lithium plant in Argentina Closing of the sale of the Sandouville (France) hydrometallurgical plant to Sibanye-Stillwater Successful start-up and ramp-up of the Weda Bay Nickel nickel ferroalloy production plant Start-up of
Slide 31: A global geographic footprint
A global geographic footprint FRANCE NORWAY Dunkerque Kvinesdal, Porsgrunn, Sauda Tyssedal EUROPE PROJECT MINING SITE PROCESSING Manganese Nickel ASIA- Mineral sands OCEANIA Lithium AMÉRIQUES AMERICAS AFRIQUE AFRICA UNITED STATES NEW Marietta CALEDONIA Kouaoua, Népoui, ARGENTINA CAMEROON SENEGAL Pou
Slide 32: Key partnerships with host countries and territories
Key partnerships with host countries and territories Eramet associates the main countries and territories where it operates Gabon New-Caledonia Senegal Nippon Steel French 2 Others France State Senegalese State 7% 10% Gabonese 10%3 State 29% 64% STCPI1 34% 56% Eramet Eramet 90% Eramet Indonesia4 Arg
Slide 33: 2021 Group turnover by sales destination
2021 Group turnover1 by sales destination Others France 6% 7% 18% 43% NA 2021 Group Turnover Asia €3.7bn Europe 26% 1 Application of IFRS 5 i.e. excl. Discontinued operations at 31 December 2021 33 Eramet – Group presentation, May 2022 (Aubert & Duval, Erasteel, Sandouville)
Slide 34: 2021 Group turnover by end market
2021 Group turnover1 by end market Other Mineral Sands Other 2 Pigment 2% Stainless Steel 5% Ceramics 5% 3% 2% 10% 6% Stainless Steel 29% 21% 29% 48% 6% 19% 62% 54% Carbon Steel 1 Application of IFRS 5 i.e. excl. Discontinued operations at 31 December 2021 34 Eramet – Group presentation, May 2022 (A
Slide 35: Director of Investor Relations
Director of Investor Relations Sandrine NOURRY-DABI [email protected]