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]

Trade Relations - China plans to collaborate with the United States to resolve trade issues [1]