Eramet Group detailed Presentation - 2021 BofA Global Metals, Mining & Steel Conference
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Eramet Group detailed Presentation 2021 BofA Global Metals, Mining & Steel Conference 18-20 MAY 2021
A global leading mining and metallurgical Group
2 divisions with global leading positions 2020 KPIs
High-Performance Mining and Metals
Alloys Division Erasteel
4%
Division
19% 81%
Aubert & Duval Sales
15%
€3.6bn
€3,553m
Mineral Sands BU Manganese BU
8% 48% EBITDA
€398m
Nickel BU
25%
13,129
Long term and stable shareholders Employees in
20 countries
Other float
32.1% SORAME
36.9%
+ CEIR (Duval
Family)
€1.6bn
1.3%
4.0%
Market capitalisation end-April 2021
BRGM3
STCPI2
25.6%
APE1 (French state)
1 APE(Agence des Participations de l’Etat)
2 STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New
2 Eramet – Group presentation, May 2021 Caledonian provinces
3 BRGM (Bureau de Recherches Géologiques et Minières): the French Geological Survey Office
A committed, contributive and recognized corporate citizen
1 Societal engagement aligned with strategic vision
A 2018-2023 CSR roadmap to structure and set the pace for our action plans
Aligned with the United Nations’ Sustainable Development Goals
2 Contributing to the communities in which sites are located
First risk of the Mining and Metals sector: license to operate. Eramet’s DNA has always been to partner with the main
countries and territories where it operates
Beyond mining operation, the Group contributes to the local development and preserve the environment
2 Reducing energy/climate footprint
On-track to achieve our 2023 reduction target in products CO2 intensity1 (-26% vs 2018 ref)
New climate targets set in 2020 > -40% Reduction target in absolute CO2 emissions (vs 2019)
> Carbon neutrality (scopes 1 and 2)
3 Continued improvement in extra-financial rating
1 CO tonnes per tonne of outgoing product
2
2 Non-precious metals
3 Eramet – Group presentation, May 2021 3 Climate Disclosure Project (CDP)
4 Ranking in the Climate Change survey
Eramet group’s overwiew
Key partnerships with host countries and territories
Eramet associates the main countries and territories where it operates
Gabon New-Caledonia Senegal Indonesia
Around 29% of STCPI holds 34% of 10% of Grande Côte Eramet holds a
Comilog’s share SLN’s share capital Opérations’s3 share 43% stake in in
capital is owned by the STCPI holds around capital is owned by Strand Minerals
Gabonese Republic 4% of Eramet’s share the Republic of Pte. Ltd, the
capital Senegal holding company
which owns 90% of
PT Weda Bay
Nickel
Others Nippon Steel French
2
France State Senegalese State Tsingshan
7%
Gabonese 10% 10%
State 29%
43% Eramet
64% STCPI1 34% 56% Eramet 57%
Eramet
90% Eramet
Long-term relationship reinforced by the significant contribution to the local economies
#2 private employer in Gabon and main private employer in New Caledonia
Sensitive & responsible for social and environmental related matters
1 STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by
the New Caledonian provinces
5 Eramet – Group presentation, May 2021 2 1 share
3 TiZir’s operations in Senegal
A longtime player
Successful start-up and ramp-up of the Weda Bay
Nickel nickel ferroalloy production plant
Start-up of the Centernario pilot site (lithium project)
100% of TiZir owned by Eramet (OPA on MDL)
Launch of EcoTitanium
Sale of ERACHEM and Bear Metallurgical Corporation
Sale of Eurotungstene
Inauguration of Moanda Metallurgical Complex (2014)
Weda Bay Nickel
Creation of MKAD for the closed-die forging of parts for aeronautics (2015)
partnership
in Indonesia
Diversification into manganese alloys
and titanium dioxide through the acquisition of Tinfos
Transfer of the 26% stake held by the French
State to FSI Equation (which became APE)
Diversification of activities
The Duval family becomes Creation of Eramine Sudamerica (lithium
Shareholding structure
shareholder of Eramet, through project in Argentina)
the contribution of Aubert & Duval
Diversification into ilmenite
Listing of Eramet and zircon production
through TiZir in Senegal
Acquisition of Weda Bay Nickel
Société Le Nickel was incorporated to (nickel project) in Indonesia
operate nickel mines in New Caledonia
Le Nickel became SLN, Diversification into forged and closed-die
with Elf Aquitaine (French forged parts, following the contribution of
government) holding a 50% stake Aubert & Duval to Eramet
The stake held by the Diversification into manganese,
French state in SLN with the acquisition of a 61% stake Manganese
increased to 70% of COMILOG in Gabon
Nickel
Creation
Mineral Sands
of Eramet-SLN
(Sandouville) Lithium
Acquisition of Erasteel (diversification
Group
into the production of high-speed steel)
Alloys
1880 1974 1983 1985 1989-91 1994 1995-97 1999 2006 2008-09 2011 2012 2014-15 2016-17 2018 2019 2020
6 Eramet – Group presentation, May 2021
A global geographic footprint
FRANCE
12 sites 3 sites
2 sites 1site
1site
1site
3 sites
EUROPE
1site
Manganese
Nickel
Mineral sands
AFRICA Lithium
AMERICAS Erasteel
Aubert & Duval
ASIA-
OCEANIA 2020 Group turnover
GABON (by sales destination)
UNITED STATES
Others
1site 1site Moanda France
7%
ARGENTINA SENEGAL CHINA NEW 5%
USA 19% 46%
CALEDONIA Asia
1 site 1site
Salar de Centenario- 1site 24%
Ratones Diogo area INDIA Kouaoua, Europe
Népoui,
1site
Poum, Thio,
Thiébaghi
INDONESIA
7 Eramet – Group presentation, May 2021 Weda Bay
Two main divisions; five business units
Eramet Group Innovation, Research
Marketing and Development (incl.
Mining and Metals Eramet Ideas)
High Performance
Services2
Division Alloys Division
Li
Manganese Nickel Mineral Sands Lithium Aubert & Erasteel
BU BU BU (project mothballed) Duval
> Sales: > Sales: > Sales:
> Sales: > Sales:
€1,699m €539m €142m
€905m €276m
> EBITDA: > EBITDA: > EBITDA:
> EBITDA: > EBITDA:
€442m €-87m - €32m
€21m €91m
> FCF: > FCF: > FCF:
> FCF: €1m > FCF: €68m1
€285m - €153m - €21m
> Headcount: > Headcount:
> Headcount: > Headcount: > Headcount:
c.2,350 c.1,000
c.4,300 c.3,900 c.850
1 o/w GCO (€45m incl. BU Holding FCF, excl.TiZir bond interest charge ) and TTI (€23m)
8 Eramet – Group presentation, May 2021 2 Legalentity housing the sales and support functions of the Mining and Metals Division, as from 1
January 2021
Steels represent c.70% of Eramet sales
Recycling Other (Chemical
High-speed steels, Toolings & Specialities and Foundry)
Others Stainless Steel
4% 0% 3% 2%
Energy & Defense 2%
3%
Aerospace
10%
Steels: 68%
Other Mineral Sands 2%
4%
Pigment 4% 15%
6%
21%
8% 48% 48%
2% 6%
Ceramics 19% 43% Carbon Steel
25%
Other Nickel 3%
23%
Stainless Steel
9 Eramet – Group presentation, May 2021
Mining & Metals Division Key Features
A diversified Mining and Metals Division with significant
resources and highly competitive mines
Manganese BU Nickel BU Mineral Sands BU
Gabon: 107 Mt resources of New Caledonia: 19.4 Mt resources of Senegal (Zircon & Ilmenite): 32.1 Mt
manganese content nickel content resources (HMC)
Resources
Resources’ lifetime > 40 years Indonesia: 9.3 Mt resources of nickel Resources’ lifetime > 30 years
content
Operated for 50 years Resources’ lifetime ~ 50 years Operated since 2014
Operated for ~130 years (NC)
Lithium BU (project in Argentina): 10 Mt drainable resources (LCE1) – currently mothballed
Industrial set-up
Gabon: highly competitive New Caledonia: highly competitive Senegal: world’s largest single
manganese mine with very mines and 1 pyro metallurgical plant: dredge mineral sands operation
high-grade ore (44%) Indonesia: a world-class deposit and Norway: 1 metallurgical plant
Europe, USA, Gabon: 6 1 low-grade nickel ferroalloys2 plant
pyro-metallurgical plants Normandy (France): high purity nickel
refinery
New-Caledonia: 5.4 Mwmt of nickel
2020 Key figures
5.8 Mt manganese ore c.760 kt of HMC3 produced
ore produced o/w 2.5 Mwmt exported;
produced
48 kt of ferronickel produced
Indonesia: 3.4 Mwmt of nickel ore c.200 kt of titanium dioxide slag
c.700 kt manganese alloys produced
produced ; c.24 kt-Ni of low-grade
produced
nickel ferroalloys produced
1 Lithium Carbonate Equivalent
2 43% owned by Eramet in a joint-venture with Tsingshan, the leading global
11 Eramet – Group presentation, May 2021 producer of stainless steel
3 Heavy Minerals Concentrate (HM sands content)High seasonality in mining operations, strengthened by organic
growth
High seasonality of key mining
operations...
3-yrs average ore production (Mwmt) …and increasing share of mining
business in Eramet’s portfolio
+17% +35%
Ore production volumes (100 basis)
2.70 2.70
150
149
140
2.30
130
+3% 127
2.00 120 113
0.37 0.38
110
114
H1 H2 H1 H2 H1 H2 100
0
Mn ore Ni ore Mineral 2016 2017 2018 2019 2020
(Comilog) (SLN) Sands
(GCO)
12 Eramet – Group presentation, May 2021Steel (carbon and stainless) accounts for c. 70%
of Eramet’s end-markets
Manganese BU Nickel BU Mineral Sands BU
2nd global producer of high-grade Mn 1st high grade ferronickel producer 4th global producer of zircon
ore worldwide
Market share
4th global producer of titanium
1st source of quality ore (exports from
1st source of Mn seaborne (Moanda New-Caledonia)
feedstock
mine)
1st global producer of refined Mn alloys
Carbon steel Others Others TiO2 pigment
Main applications
14% 89%
Batteries 30%
8%
90% Nickel
Zircon 50% CP Slag
base 8%
10%
Chemistry
alloys 70% 20% 5%
and other Stainless 6%
application steel Chemicals Ceramics Others Titanium
metal
13 Eramet – Group presentation, May 2021Manganese main growth drivers: carbon steel
(90% of global production) and China
Manganese key features
3 types of manganese ore
1 > “Low-grade local” ore: < 30% of manganese content
Manganese Ore > “Medium-grade” ore: > 30% but < 43%
Average 0.4 t of Mn content > “Rich” / “High-grade” ore: > 43%
per tonne of ore
Two manganese alloys families
> Standard
2 • High carbon ferromanganese (6 to 8% carbon)
• Standard silicomanganese (< 1.5 to 2% carbon)
Manganese Alloys
Average 1.8 t of Mn ore per > Refined
tonne of alloy • Of which medium carbon ferromanganese (< 1.5
to 2% carbon)
No futures market: OTC (over-the-counter)
3 negotiation
Carbon steel 90% Carbon steel > CRU index: bi-weekly
Average 10 kg of alloy per > Metal Bulletin index: weekly
Manganese makes tonne of steel
steel harder, more (7 kg of Mn content per 10%
elastic and more tonne of steel) Others
China: 57 % of global carbon steel production in
wear-resistant.
Widely used in the chemistry batteries, 2020
construction and fertiliser and paint
automotive sectors. pigments and other
metallurgical applications
14 Eramet – Group presentation, May 2021Manganese BU: a first class competitiveness
thanks to excellent mining operation
Manganese BU key features
A highly competitive manganese mine
in Gabon (Moanda), operated by Comilog
> High-grade oxyde ore 44%
> First quartile cash cost
Two units of local transformation in
Gabon, CIM and CMM, for high grade
manganese production and manganese
alloys
5 pyrometallurgical industrial plants in
the USA and in Europe (1 in France, 3 in Main customers Main competitors
Norway)
Ore transportation in Gabon operated by a
100% owned railway company (600 km
of track)
15 Eramet – Group presentation, May 2021Nickel main growth drivers: stainless steel
and batteries
1 Nickel key features
Extraction of ore in Two main types of nickel ore
order to… > Sulfide-type ore (nickel combined with
several other valuable metals) as in
Canada, Russia to be transformed in nickel
concentrate
2
> Laterite-type ore as in New-Caledonia
…be transformed in and Indonesia to be transformed into
nickel ferroalloys1… ferronickel, NPI (“Nickel Pig Iron”) or nickel
2
Ferronickel metal
23% Ni …or in pure nickel
NPI salts2…
10 / 15% Ni 1 tonne of 300 series (stainless steel)
contains 80 kg of nickel
70% 3
Nickel is traded on the LME index (pure
Stainless metal)
steel
…to satisfy mainly the
Mass & surface resistance to stainless market
oxidation; ductility; high demand 8% Nickel China : 61 % of global stainless steel
base
melting point; electrical
alloys
production in 2020
resistance; catalytic properties 8%
Widely used in transport, Batteries
construction, hygiene and 14%
health Others
1 Ferronickel and NPI through pyrometallurgical process
16 Eramet – Group presentation, May 2021 2 Nickel salt and nickel metal through hydrometallurgical processNickel BU: a key transformation underway
Nickel BU key features
Successful implementation of new
business model in New Caledonia
> 5 main operated mines and one
pyrometallurgical plant
> High-grade ferronickel (23% Ni) and nickel
ore exported (1.7 to 1.9 % Ni)
Weda Bay nickel mine and low-grade
ferroalloys plant already achieved great
successes
> 3.4 Mwmt of nickel ore produced in 2020,
already at a pace of 6 Mwmt/year
> 23.5 kt-Ni of nickel ferroalloys produced in
2020 thanks to quick ramp-up Main customers Main competitors
First-tier mine and low-grade ferroalloys
production position
Ramp-up of the high purity nickel refinery
in Sandouville, France
> Production of nickel salts and high-purity
nickel (total capacity of 15 kt)
17 Eramet – Group presentation, May 2021Mineral Sands growth drivers: ceramics and
pigments market
Zircon key features Titanium dioxide key features
Long Term pricing agreement1 (spot prices in China only)
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
Midstream 3
chemistry
(optional):
titanium slag
/ synthetic
rutile 89%
30%
Foundry/Refractory
Finished
50% Downstream:
products
pigments and
Ceramics titanium metal TiO2 pigment
20%
6%
5% Titanium
Chemicals
Others metal
18 Eramet – Group presentation, May 2021 1LT agreements between buyers and sellers, on a yearly or half-year basis
mainly; not exchange traded , no published price indexMineral Sands BU: operations integrated from the
mine in Senegal to the beneficiation plant in Norway
Mineral Sands BU key features
TiZir Senegal (GCO):
> Extraction of heavy mineral (mineral raw
materials which contain heavy minerals
concentrated).
> Production of ilmenite (titanium-iron oxide),
leucoxene, rutile and zircon
Ore rail transportation from the mine to the
port of Dakar operated by TiZir Main competitors
TiZir Norway (TTI): Transformation of ilmenite
(metallurgical valorization) into titanium slag and
pig iron
19 Eramet – Group presentation, May 2021Major projects able to deliver long-term sustainable supply of
key battery materials: Nickel, Cobalt and Lithium
Ongoing mining operations
Nickel-cobalt : Joint development with BASF at the Weda Bay mine in Indonesia
Nickel & Cobalt sulphates dedicated to cathode-active-material
production for li-ion batteries.
BASF and Eramet study the feasibility of nickel-cobalt production
for electric batteries from the Weda Bay mine in Indonesia.
The project targets a start-up of a hydrometallurgical plant and refinery
in the mid-2020s.
Target production volumes : 42 kt of Nickel and 5 kt of Cobalt per year.
Pilot plant
Lithium: A world class deposit in Argentina Salar of Centenario Ratones, Argentina
10 Mt LCE* of drainable resources (> 50 years) located in the Salta region.
Battery grade lithium carbonate, with a 1st quartile cash-cost position
among the best in the industry
Project mothballed in April 2020 in the context of the global economic crisis.
An innovative process developed by Eramet
Technology based on an active solid to extract and concentrate the lithium
from brine resources
Yield of 90%, superior to the traditional evaporation process, and
confirmed by the pilot operations on site in real conditions since end 2019
Optimized water consumption thanks to recycling
20 Eramet – Group presentation, May 2021 * LCE = Lithium Carbonate EquivalentEuropean projects dedicated to the battery value chain
An innovative closed-loop CO2-free lithium
process for li-ion batteries from European natural
recycling geothermal resources
A European partnership A European consortium
An innovative technology based on a direct
lithium extraction process developed by
2 phases Eramet for its Centenario Project in Argentina
• 2020-2021: R&D, pilot tests and initial
studies A process adapted to the specificities of the
geothermal European resources
• 2022-2024: 1st industrial development
(continuous piloting phase) Successful piloting tests end 2020 in real
conditions in Alsace, France
Objective: 15% market-share by 2030
Studies and larger scale pilots continuing in
2021 to demonstrate project feasibility
21 Eramet – Group presentation, May 2021High Performance Alloys Division Key Features
A High Performance Alloys Division with
unique know-how dedicated to strategic industries
Aubert & Duval Erasteel
2nd high-power closed-die forged parts 1st in powder metallurgy high speed steel
Market share
producer worldwide (cutting and cold tools)
A world leader in: A world player in conventional high speed steels
> high performance steels, superalloys and
titanium
> large closed-die forgings
Aerospace High-speed 92%
13%
steels, Tooling &
Energy & Defence
Specialities
Others 19% 2020 Sales 2020 Sales
Main applications
€539m Recycling
€142m
68%
8%
Long products Forged products
High-speed Recycling1
Closed-die steels
forged parts
23 Eramet – Group presentation, May 2021 1 Catalysts, metal oxides and batteriesA comprehensive industrial set up with unique tools
16 industrial sites located in:
Europe (France, Sweden, Spain) Main competitors
Asia (China, India)
US
Main customers
11 industrial
sites in France
24 Eramet – Group presentation, May 2021R&D Innovation
Eramet Ideas*, centre of excellence in mining, extractive
metallurgy, alloys processing and recycling
Open innovation approach
Leadership / partnership in European projects
Collaboration with universities, industrials, start-ups on
Our partners
new technologies
Creation of a shared laboratory with CNRS,
« LILAB », to research metals of the energy transition
High-level R&D infrastructure in Trappes, near Paris
More than 60 years of experience
Laboratories, piloting halls
High performance observation tools
Our main collaborative projects 150 1st
experts, microscope in Europe
ReLieve : developement of an innovative process to engineers and equipped with QEMSCAN
recycle lithium batteries used in electric vehicles technicians mineralogy software
SOLSA : improvement of the efficiency of mining
exploration by combining technologies (sonic drilling,
analytical equipment, IT)
GO-4-0 : recovery of by-products from the steel and
manganese metallurgy industries
26 Eramet – Group presentation, May 2021 * Eramet Ideas : Innovation, Development, Engineering for Advanced SolutionsDirector of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com
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