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    Eramet lithium and nickel stake sales: leverage, capex and output lens for mine planners

    November 10, 2026|

    Reviewed by Joe Ashwell

    Eramet lithium and nickel stake sales: leverage, capex and output lens for mine planners

    First reported on MINING.com

    30 Second Briefing

    Eramet is seeking buyers for a minority stake in its Centenario-Ratones lithium operation in Salta, Argentina and part of its 38.7% interest in Indonesia’s Weda Bay Nickel as it works to cut its adjusted debt-to-earnings ratio from 5.5 to below 3 by year-end, backed by a €500-million rights issue and capex reduced to €250–290 million. Centenario has just reached full production, with 2027 output targeted at 20,000–24,000 tonnes of lithium carbonate and a potential $350-million, 11,000‑tonne expansion under study. In parallel, Eramet is planning 6.8–7.3 million tonnes of manganese ore movements from Gabon in 2027 and evaluating a 60,000‑tonne‑per‑year manganese oxide plant, while committing to suspend dividends until leverage falls below 1.

    Technical Brief

    • Eramet paid $699 million in October 2024 to acquire Tsingshan’s 49.9% Centenario stake outright.
    • Benchmark lithium carbonate and nickel prices fell 17% and 10% respectively in 2025, compressing margins.
    • Adjusted EBITDA dropped to €372 million in 2025, with adjusted free cash flow at negative €481 million.
    • Net debt rose to €1.94 billion in 2025, forcing full drawdown of a €935‑million revolving facility.
    • A lender waiver was required after breaching debt‑to‑equity covenants, indicating tight headroom for further project debt.
    • Mineral sands output in Senegal was disrupted by a February 2026 fire, impacting group cash generation.
    • Weda Bay mining was suspended for four months in 2026 due to Indonesian permit limits before September restart.
    • The ReSolution programme targets productivity, procurement and fixed‑cost reductions, effectively a portfolio‑wide operating cost reset.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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