Core Insights - Eramet has achieved A- scores for both Climate Change and Water Security in the 2025 disclosure cycle of the Carbon Disclosure Project (CDP), indicating strong environmental performance and transparency [2][3][9] Group 1: Environmental Performance - The recognition from CDP distinguishes Eramet among nearly 20,000 companies assessed in 2025, highlighting its commitment to environmental issues and sustainability [3] - Eramet's improvement in Water Security, moving from a B score in 2024 to an A- score in 2025, reflects significant advancements in sustainable water management [9] - The company has established water balances for all its sites, enhancing the quality and accuracy of data collected regarding water consumption [4] Group 2: Strategic Alignment - The results affirm the robustness of Eramet's environmental strategy, which is aligned with the Group's CSR roadmap "Act for Positive Mining" [3][5] - Continuous progress in environmental management, governance, and data quality is essential for maintaining high performance levels [5] Group 3: Industry Context - In 2025, over 640 financial institutions requested environmental data through CDP, representing more than a quarter of global institutional assets, indicating the growing importance of environmental transparency for investors [7] - CDP scores serve as a benchmark for extra-financial performance and are linked to long-term value creation, with companies on the CDP A List outperforming market peers by 6% in stock market performance over the past decade [10]

Report Industry Investment Rating The report does not provide an industry investment rating. Core Viewpoints of the Report - In 2026, supply and demand of lithium carbonate will both grow at a high - speed. The growth in energy storage will support the price of lithium carbonate to fluctuate in a relatively strong range. The demand growth rate will exceed the supply growth rate, and the oversupply volume will slightly decrease compared to 2025. It is expected that the price of lithium carbonate will remain volatile between 100,000 - 150,000 yuan [2][3]. - The risk points are the accelerated production of upstream mines and the demand growth rate falling short of expectations [4]. Summary According to the Table of Contents 1. 2025 Market Review (1) Lithium Carbonate Futures Market Trend - In 2025, the lithium carbonate market showed a trend of first declining and then rising. From January to May, due to the panic of the tariff war and the oversupply, the price dropped below 60,000 yuan. From June to July, influenced by the "anti - involution" policy and the price approaching the cost line, the price rose to 70,000 - 80,000 yuan. On August 8, concerns about supply contraction caused the price to hit the daily limit, and then it gradually fell back. From October to November, due to increased energy storage demand and decreased mica ore supply, the price returned to 100,000 yuan. In December, the price continued to rise and finally closed at around 120,000 yuan. The annual increase of the main lithium carbonate futures contract was 55%, and the price fluctuation range was 99%. The trading volume and open interest reached record highs [7][8][9]. (2) Lithium Carbonate Spot and Basis - Spot prices: The price of battery - grade lithium carbonate rose from 75,000 yuan at the beginning of 2025 to 112,000 yuan at the end, with a 49% increase. The price of lithium hydroxide rose from 70,000 yuan/ton to 102,000 yuan, with a 46% increase. The price difference between lithium carbonate and lithium hydroxide widened from about 5,000 yuan at the beginning to 11,000 yuan at the end, indicating stronger downstream demand for lithium carbonate. - Basis: The main basis once expanded to - 10,000 yuan/ton or lower, setting a record since listing. The correlation between futures and spot prices was strong, but when futures prices rose rapidly, the increase in the SMM spot average price was relatively small [14][19]. (3) Price Trends in the Upstream and Downstream of the Lithium Carbonate Industry Chain - In 2025, prices in the upstream and downstream of the lithium carbonate industry chain generally increased. Cobalt - lithium oxide had a growth rate of over 170% due to the sharp rise in cobalt prices. Lithium hexafluorophosphate had a growth rate of over 160% due to limited supply in the phosphochemical industry and unexpected demand. The price of upstream lithium ore increased by 82%. The growth rates of intermediate raw materials such as lithium carbonate and lithium hydroxide were over 55%. The growth rates of downstream battery cathode materials such as lithium iron phosphate and ternary materials were about 35% [20]. 2. Lithium Carbonate Supply Analysis (1) Domestic Lithium Carbonate Supply Analysis - Salt lake lithium extraction: It is expected that the output in 2026 will reach 276,000 tons, an increase of 98,000 tons compared to 2025, with a nearly 55% increase. The largest output increments come from the Chaerhan Salt Lake of Salt Lake Co., Ltd., the Laguo Co Salt Lake of Zijin Mining, and the Mami Cuo Salt Lake of Zangge Mining. In the future, the output growth will mainly come from Tibetan salt lakes, with an increment of 41,000 tons in 2026, accounting for over 40% of the total increment [23]. - Mica ore lithium extraction: The output in 2026 is expected to be 232,000 tons, an increase of 90,000 tons compared to 2025, a 63% year - on - year increase. The increments mainly come from the resumption of production at the Jiangxi Jianxiawo Mine, the increased production at the Qiankeng Lithium Mine, and the commissioning of mica mines in Inner Mongolia and Hunan [27]. - Spodumene lithium extraction: The output in 2026 is expected to be 86,000 tons, an increase of 33,000 tons, a 62% year - on - year increase. The main increments come from the Dahongliutan Lithium Mine of Xinjiang Nonferrous Metals, the Jiada Lithium Mine of Dazhong Mining, and the Lijiagou Spodumene Mine [34]. - Overall, in 2025, although the output of mica - produced lithium carbonate decreased, the increase in salt lake and spodumene output led to a 20% increase in domestic lithium carbonate output. In 2026, due to the significant increase in capacity at the salt lake and mica ends, the domestic lithium carbonate output is expected to reach 594,000 tons, a 59% increase [37]. (2) Overseas Lithium Carbonate Supply Analysis - South American salt lakes: The lithium carbonate output in 2026 is expected to be 517,000 tons, an increase of 64,000 tons, a 14% year - on - year increase. The increments mainly come from the Atacama Salt Lake of SQM, the Centenario - Ratones Salt Lake of Eramet, and the 3Q Salt Lake of Zijin Mining [39]. - Australian spodumene mines: The output of Australian mines is expected to increase slightly by 17,000 tons in 2026, reaching 492,000 tons. The increase mainly comes from the Greenbushes, Pilgangoora, and Holland mines, while the Wodgina and Marion mines will reduce production [45]. - African spodumene mines: The output in 2025 was estimated to be 211,000 tons, an 82% year - on - year increase compared to 2024. It is expected to reach 349,000 tons in 2026, an increase of 138,000 tons, a nearly 40% year - on - year increase. The main increments in 2026 come from the Goulamina Mine of Ganfeng Lithium, the Bikita Mine of Zhongke Resources, the Arcadia Mine of Huayou Cobalt, and the Manono Mine of Zijin Mining [49]. - American spodumene mines: The output in 2026 is expected to be 75,000 tons, an increase of 2,000 tons. The Grota do Cirilo Mine in Brazil is expected to fully increase its capacity in Q1 2026, and the NAL Mine of North American Lithium is expected to maintain its output [56]. - Overall overseas supply: From 2025 to 2026, the overseas supply growth rates were 25% and 18% respectively. In 2026, the overseas new lithium carbonate output was 222,000 tons, with a total output of 1.434 million tons [61]. (3) Global Lithium Carbonate Supply and Cost Analysis - Global supply: In 2025, the global lithium carbonate output was estimated to be 1.67 million tons, a 24% year - on - year increase. In 2026, it will reach 2.13 million tons, a 28% year - on - year increase. The domestic supply will increase by 220,000 tons, and the overseas supply will increase by 220,000 tons [62]. - Global cost: The global lithium carbonate cash cost is estimated to be 55,000 yuan/ton at the 80% cash cost line. Considering a depreciation cost of 5,000 yuan/ton, the production cost is expected to be 60,000 yuan/ton [67][68]. 3. Lithium Carbonate Demand Analysis (1) Power Battery Demand Analysis - In 2025, from January to November, China's new - energy vehicle production and sales increased by 31.4% and 31.2% respectively. It is expected that the sales volume in 2025 will be 16.6 million, a 29% year - on - year increase. In 2026, due to the reduction of new - energy vehicle purchase tax incentives in China and the expiration of tax credits in the US, the sales growth rates in these two countries will decline. However, Europe and other regions are expected to maintain high demand. It is estimated that the global new - energy vehicle sales growth rate in 2026 will be 22%, and the global power battery installation growth rate may reach 28% [71][73]. (2) Energy Storage Battery Demand Analysis - In 2025, the new - energy power generation installed capacity in China increased significantly. After the end of the mandatory energy storage allocation policy, the domestic new - energy storage market first declined and then rose. In the first half of 2025, the cumulative installed capacity of new - energy storage in China reached 101.3 GW, a 110% year - on - year increase. Overseas energy storage demand also increased significantly. It is estimated that the global energy storage battery shipment in 2026 will maintain a high growth rate of about 60%, reaching 1040 GWh [81][84][87]. (3) Global Lithium Carbonate Demand Analysis - In 2025, the power battery demand drove the lithium carbonate demand to increase by 210,000 tons, a 31% year - on - year increase. In 2026, it will reach 1.08 million tons, an increase of 220,000 tons, a 25% year - on - year increase. The energy storage demand drove the lithium carbonate demand to increase by 190,000 tons in 2025, an 83% year - on - year increase. In 2026, it will reach 680,000 tons, an increase of 250,000 tons, a 60% year - on - year increase. In 2025, the total global lithium carbonate demand was estimated to be 1.55 million tons, a 36% year - on - year increase. In 2026, it is expected to reach 2.02 million tons, a 32% year - on - year increase [92]. 4. Lithium Carbonate Supply - Demand Analysis - In 2025, due to multiple factors such as the "anti - involution" policy, domestic mica ore production reduction, and the explosion of global energy storage demand, the oversupply contradiction of lithium carbonate was gradually alleviated, and the market was in a state of tight supply - demand balance. - In 2026, on the supply side, domestic supply will increase by nearly 59% year - on - year, and overseas supply will increase by 18%. The global lithium carbonate output will reach 2.13 million tons, a 28% year - on - year increase. On the demand side, the energy storage battery demand will maintain a high growth rate, and the power battery demand growth rate will slightly decline. The global lithium carbonate demand will reach 2.02 million tons, a 32% year - on - year increase. Overall, the demand growth rate will exceed the supply growth rate, and the price is expected to remain volatile between 100,000 - 150,000 yuan [2][3][94].

Core Viewpoint - Eramet has appointed Laetitia Brun as the new Chief Human Resources Officer, effective February 9, 2026, succeeding Anne-Marie Le Maignan, who is retiring after 22 years with the company [1][6]. Group 1: Leadership Transition - Laetitia Brun brings over 20 years of international HR experience across various industries, including chemicals, metallurgy, infrastructure, and transportation [3][4]. - Anne-Marie Le Maignan joined Eramet in 2003 and held several HR leadership roles, culminating in her position as Group Chief Human Resources Officer in 2020 [2]. Group 2: Laetitia Brun's Background - Brun's most recent role was as Group Chief Human Resources Officer at Seqens, where she was also part of the Executive Committee [4]. - She has held significant HR leadership positions at Rhodia and Solvay, focusing on learning & development, career management, and industrial relations [4][5]. - Brun has experience in leading transformation programs and developing HR strategies in complex, multicultural organizations [5]. Group 3: Company Statements - Paulo Castellari, CEO of Eramet, expressed gratitude to Anne-Marie Le Maignan for her contributions to the company's HR function and talent development [6]. - The company is optimistic about Brun's capabilities in driving transformation and enhancing performance and talent development within the organization [7]. Group 4: Company Overview - Eramet focuses on transforming mineral resources to provide sustainable solutions for industry growth and energy transition challenges [8]. - The company is involved in the recovery and development of essential metals such as manganese, nickel, lithium, and cobalt, contributing to sustainable infrastructure and technology [9].

Eramet (OTCPK:ERMA.F) Conference Call Summary Company Overview - **Company**: Eramet - **Industry**: Mining and metallurgy, focusing on commodities such as manganese, lithium, and nickel Key Points and Arguments Leadership and Team - Paulo Castellari, CEO, has been with Eramet for six months and has extensive experience in the industry [1][4] - Abel Martins Alexandre, CFO, brings 15 years of experience in financial services and mining [3][12] Safety Concerns - 2025 has been a challenging year for safety, with four fatalities reported [5] - Operations in Senegal have achieved six years without lost time injuries, showcasing pockets of excellence [6] Macroeconomic Environment - The company is facing a challenging macroeconomic environment, including: - Manufacturing contraction in China, with PMI below 50 [13] - Increased U.S. tariffs from 3% to 18% [13] - Downward trend in industrial commodity prices since 2023, with some prices at cyclical lows [14] - Adverse exchange rate movements, with the euro appreciating 13% against the dollar [14] Commodity Pricing and Demand - Current commodity prices are significantly depressed, with some at levels seen during COVID-19 or 2016 [14] - Long-term demand for energy transition commodities (lithium and nickel) is expected to double in the next decade [16] - Demand for crude steel production remains strong, particularly in emerging markets [17] Operational Improvements - The company has launched the "Resolution" program targeting an EBITDA uplift of EUR 130-170 million over the next two years [7][40] - Expected one-off cash improvements of EUR 60-70 million in 2025 [8][39] - Focus on safety, operational excellence, and financial resilience as part of the Resolution program [21] Centenario Project - Centenario is currently operating at 65% nameplate capacity, with plans to reach 90% by mid-2026 and 100% within 18 months [11][28] - Cash operating costs for Centenario are targeted at $5,400-$5,800 per ton once at full capacity [29] Financial Resilience - Commitment to deleveraging and improving cash flow generation [35][37] - CapEx guidance reduced to EUR 425 million for the upcoming year [35] - Focus on maintaining adequate liquidity and engaging with lenders [36] Commercial Excellence - Identified potential EBITDA uplift of EUR 10-20 million from commercial excellence initiatives [31] - Emphasis on supply chain excellence and optimizing logistics to boost efficiency [32] Future Outlook - The company remains committed to its strategy of focusing on energy transition metals while ensuring operational stability and cost optimization [86] - Plans to provide more detailed guidance on CapEx and operational performance in future updates [82][85] Additional Important Information - The company is assessing the impact of EU safeguard measures on its operations, particularly in manganese [53] - Ongoing evaluation of options for accelerating deleveraging, including potential asset disposals [50][52] - The company is confident in its ability to navigate current challenges and leverage its existing capabilities for future growth [41][42]

Paulo CASTELLARI, CEO Abel MARTINS-ALEXANDRE, CFO 4 th December, 2025 Disclaimer Certain information contained in this presentation including any information on Eramet's plans or future financial or operating performance and any other statements that express management's expectations or estimates of future performance, constitute forward-looking statements. Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significa ...

Core Viewpoint - Indonesia's nickel industry, once thriving, is now struggling due to miscalculations in capacity expansion, technology adoption, and environmental considerations, leading to a significant decline in nickel prices and a reliance on imports despite having the largest nickel reserves globally [1][3][6][10]. Group 1: Industry Overview - Indonesia possesses 60% of the world's nickel reserves and previously experienced a boom in nickel exports, exceeding $30 billion annually [3]. - The country implemented a strategy to ban raw ore exports and mandated foreign investment in local smelting facilities, initially attracting major players like China's Tsingshan Holding and LG Energy Solution from South Korea [3][6]. Group 2: Misjudgments in Strategy - The first misjudgment was the unchecked expansion of production capacity, leading to a shift from a nickel shortage to a severe oversupply, with refined nickel capacity projected to exceed 2.2 million tons by 2024 [6]. - The second misjudgment involved falling behind in technology, as Indonesia focused on high-energy, high-emission pyrometallurgical processes while global battery technology shifted towards lithium iron phosphate batteries, which now dominate the market [6][10]. - The third misjudgment was neglecting environmental trends, as Indonesia's pyrometallurgical processes have carbon emissions three times higher than hydrometallurgical methods, leading to its nickel products being labeled as "dirty" under the EU's carbon border adjustment mechanism [6][10]. Group 3: Comparative Strategies - In contrast to Indonesia, China has adopted a different approach by upgrading technology, establishing strategic reserves of primary nickel, reducing dependency on nickel by 40%, and focusing on high-end breakthroughs in the industry [8]. Group 4: Lessons for Resource-Rich Countries - Indonesia's experience highlights common misconceptions among resource-rich nations, such as equating resource advantages with industrial advantages and blindly copying foreign models without considering local conditions [10][12]. - The importance of a robust industrial ecosystem and technological autonomy is emphasized over mere resource control, as environmental standards increasingly become trade barriers [12][14]. - The ultimate competitive edge lies not in mineral wealth but in technological innovation, manufacturing processes, and market insights, which will determine the sustainability of the industry as resources deplete [14].

Investment Rating - The report recommends a "Buy" rating for the industry, indicating a positive outlook for investment opportunities [4]. Core Insights - The report highlights significant growth in nickel and lithium production, with nickel ore production increasing by 755% year-on-year to 12.32 million wet tons in Q3 2025, and lithium carbonate production reaching 2,080 tons [1][5]. - The report notes that the average grade of nickel ore sold by PT WBN has decreased significantly compared to Q3 2024, but it still commands a premium price due to limited domestic supply [2]. - The overall financial performance of the group showed a 10% decline in adjusted revenue to €720 million in Q3 2025, primarily due to lower sales prices, although sales volume increased by 22% [9]. Summary by Sections Nickel - Nickel ore production in Q3 2025 was 12.32 million wet tons, with a quarter-on-quarter increase of 74% and a year-on-year increase of 755% [1]. - NPI production reached 9,400 tons, reflecting a 19% quarter-on-quarter growth and a 27% year-on-year growth [3]. - The average grade of nickel ore sold decreased from 2.0% to 1.6% compared to Q3 2024, while the average moisture content increased [2]. Lithium - Lithium production in Q3 2025 was 2,080 tons, a significant increase from 270 tons in Q2 2025 [3]. - The Centenario plant in Argentina has improved its production capacity, achieving a utilization rate of 50% in September 2025 [5]. - Lithium sales reached 1,000 tons in Q3 2025, up from 480 tons in Q2 2025 [3]. Manganese - Manganese ore and sinter production totaled 1.874 million tons in Q3 2025, with a quarter-on-quarter increase of 6% but a year-on-year decrease of 8% [6]. - The average cash cost of manganese mining activities was $2.3 per ton, reflecting a 14% increase compared to Q3 2024 [6]. - Manganese alloy production was 174,000 tons, with a 9% quarter-on-quarter increase and a 5% year-on-year increase [7]. Financial Performance - The adjusted revenue for the group in Q3 2025 was €720 million, a 10% decrease from €804 million in Q3 2024 [9]. - The decline in revenue was attributed to a 25% drop in sales prices, particularly for manganese and nickel ores, despite a 22% increase in sales volume [9]. 2025 Outlook - Nickel demand is expected to grow in Q4 2025 due to increased stainless steel production in China, Indonesia, and India, while battery demand is anticipated to remain stable [10]. - Lithium demand is projected to continue rising, driven by electric vehicle sales, particularly in China, with expectations of a significant increase in battery-grade lithium prices [13]. - The manganese market is expected to remain oversupplied in Q4 2025, with stable supply but weak demand [16].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report The current supply and demand of lithium carbonate are both strong. Although the resumption of production of lithium mines in Jiangxi is fluctuating, the production of lithium carbonate remains at a high level. High prices have intensified the wait - and - see sentiment of downstream buyers. If the weakening of demand is verified, there is still room for further price correction. It is recommended to hold short positions [3]. 3. Summary According to Related Contents 3.1 Market Data - **Futures Market**: On November 3, 2025, the main contract of lithium carbonate futures fluctuated within a range. The trading volume was 586,668 lots (-328,577), and the open interest was 525,184 lots (-14,744). The price difference between near - month and consecutive - one contracts was - 1480 yuan/ton, the price difference between consecutive - one and consecutive - two contracts was 120 yuan/ton, and the price difference between consecutive - two and consecutive - three contracts was 0 yuan/ton. The basis widened, reaching - 1280 yuan/ton [3]. - **Spot Market**: The average price of battery - grade lithium carbonate (99.5%, domestic) was 81,000 yuan/ton (+450), the average price of industrial - grade lithium carbonate (99.2%, domestic) was 78,800 yuan/ton (+450), and the price difference between battery - grade and industrial - grade lithium carbonate was 2200 yuan/ton [3]. - **Raw Material Market**: The average price of lithium spodumene concentrate (6%, CIF China) was 941 US dollars/ton (-3), the average price of lithium mica (Li2O: 1.5% - 2.0%) was 1350 yuan/ton (-30), and the average price of lithium mica (Li2O: 2.0% - 2.5%) was 2150 yuan/ton (-30) [3]. - **Downstream Product Market**: The average price of lithium hexafluorophosphate (99.95%, domestic) was 113,500 yuan/ton (+3000), the average price of ternary precursor 523 (polycrystalline/consumer - type) was 104,850 yuan/ton (+500), and the average price of ternary material 523 (single - crystal/power - type) was 139,450 yuan/ton (+150) [3]. 3.2 Supply and Demand Analysis - **Supply Side**: Last week, the production of lithium carbonate decreased, mainly due to a slight decline in the production of lithium carbonate from lithium spodumene. The Argentine subsidiary of the French mining company Eramet, Eramine, successfully resumed its lithium extraction project. The Centenario Ratones lithium carbonate plant produced 2080 tons of lithium carbonate equivalent (LCE) in the third quarter, almost three times the output of 710 tons in the January - June period. The company plans to reach full - load production in the next 6 - 9 months, with a designed production capacity of 24,000 tons/year of battery - grade lithium carbonate [3]. - **Demand Side**: Last week, the production of lithium iron phosphate increased, the production of ternary materials increased, and the production of power batteries increased. In November, the production of cobalt - lithium batteries increased, and the production of manganese - lithium batteries decreased. The production and sales growth rate of new energy vehicles slowed down in September, the 3C shipments were average, and the production of energy - storage batteries increased in November [3]. 3.3 Inventory Situation The registered warehouse receipts were 27,290 tons (-331), the social inventory decreased, the inventory of smelters and downstream decreased, and the inventory of other parts increased [3].

Core Insights - Eramet's turnover decreased by 10% in Q3 2025, amounting to €720 million, primarily due to a negative price effect of 25% and logistical challenges, despite a positive volume effect of 22% [6][20][30] Financial Performance - Adjusted turnover for manganese activities fell to €421 million, down 26% year-on-year, with manganese ore turnover declining by 35% to €221 million [17][21] - Nickel activity saw a significant increase, with adjusted turnover rising to €142 million, a 122% increase compared to Q3 2024, driven by a 567% increase in external nickel ore sales [38][39] - Mineral sands turnover decreased by 32% to €51 million, reflecting price pressures and a slight decrease in ilmenite volumes sold [55] Operational Challenges - Manganese ore transportation volumes declined by 13% to 1.6 million tonnes due to operational challenges on the rail network [21][31] - The company is facing a highly uncertain macroeconomic environment, which is negatively impacting demand and cash generation [6][20] Production and Sales - Lithium carbonate production ramped up significantly, reaching 2,080 tonnes in Q3 2025, with sales of 1,000 tonnes [66][72] - Nickel ore production in Indonesia increased to 12.3 million wet metric tonnes, with external sales volumes rising to 9.3 million wet metric tonnes [38][48] Market Trends - Global manganese ore consumption increased by 8% in Q3 2025, driven by sustained manganese alloys production, particularly in China [26] - The price index for manganese ore averaged $4.3/dmtu in Q3 2025, down 40% compared to Q3 2024, reflecting unfavorable comparatives [28] Strategic Initiatives - The company has initiated a performance improvement program focusing on safety, operational excellence, and financial resilience [5][6] - A revised Capex plan for 2025 is set between €400 million and €425 million, down from previous estimates [81] Outlook - The outlook for Q4 2025 indicates a continued decline in global carbon steel production, which is expected to impact manganese ore demand [35] - The lithium market is anticipated to remain in surplus, with prices under pressure, despite strong demand driven by electric vehicle sales [70][73]

Core Points - Eramet has announced the purchase of 16,400 of its own shares to allocate bonus shares to employees and corporate officers under specific provisions of the French Commercial Code [1] - The total aggregated daily volume of shares purchased over the specified period was 16,400, with a daily weighted average price of €61.99 [2] - Detailed transaction information for the week of October 13, 2025, is available on Eramet's website [3] Company Overview - Eramet is focused on transforming Earth's mineral resources to provide sustainable solutions for industrial growth and energy transition challenges [3][4] - The company is involved in the recovery and development of essential metals such as manganese, nickel, mineral sands, and lithium, contributing to a more sustainable world [4] - Eramet aims to be a reference for the responsible transformation of mineral resources, supporting robust infrastructures and efficient technologies [5]