Eramet raises profit target as metal prices outweigh costs

div classBodysc17zpet90 cdBBJodivpPARIS Reuters – French mining group Eramet on Thursday raised its fullyear earnings target as it saw supply tensions keeping metal prices high and offsetting increased production costs.p

pMarket conditions remained favourable at the start of the second quarter although geopolitical uncertainties could weigh on demand, particularly in the second half of the year, Eramet said in a quarterly sales update.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe group forecast earnings before interest, tax, depreciation and amortisation EBITDA in 2022 of more than 1.5 billion euros 1.58 billion, up from an initial target of around 1.2 billion euros given in February.p

pRussias twomonthold invasion of Ukraine has fuelled metal price volatility, including by disrupting access to nickel from Russia and manganese and titanium products from Ukraine, Eramet said.p

pSoaring prices helped cushion rising input costs, notably for energy that swelled production costs for Eramets SLN nickel unit in New Caledonia and its TTI plant in Norway, it said.p

pThe company reported firstquarter sales of 1.2 billion euros, up nearly 80 from a year earlier.p

pIt confirmed previous targets to raise further mine output of manganese and nickel in Gabon and Indonesia, respectively, and increase nickel ore exports from New Caledonia.p

pEramet has been shifting its focus from supplying the steel industry towards making minerals for electric vehicle batteries, including through a lithium mine project in Argentina. p

p1 0.9521 eurosp

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pp Reporting by Gus Trompiz Editing by Kim Coghillp

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