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FT reports that Eramet's largest shareholder is considering exiting the company as a $500 million capital increase looms.

The Financial Times reported that Eramet's biggest shareholder, the Duval family, had hired bankers to consider selling its stake in the troubled French mining group.

Reports added that the family had appointed Lazard as their advisor to help them explore the options available for its 37% stake and advise them on the capital raising of the company.

Eramet didn't immediately respond to a comment request, and the Duval family couldn't be reached. The French mining group announced in February it was planning to raise a capital of?500 millions euros ($583.80) and sell assets in order to boost cash flow. This came after the company reported a sharp drop in annual earnings.

Christel Bories, chair of Eramet, said that the capital increase was supported by Eramet’s major shareholders, including the Duval family, and the French state.

The plan was announced following the company's full-year adjusted EBITDA of 372 million euros, down 54% since 2024. This was due to lower manganese and nickel prices, as well as a weaker US dollar.

Abel Martins Alexandre, the finance chief of the nickel,'manganese, and lithium producer also faces a crisis in management after he was suspended from his position just days before he was fired.

(source: Reuters)