The tide has turned for Eramet. PRESS RELEASE A recovery...

The tide has turned for Eramet.

PRESS RELEASE
A recovery strategy which gives the expected results: a strong improvement in the ERAMET group performance in 2016
 A successful strategy:
o Objectives exceeded for 2016 cost reduction and productivity plan rolled out across the Group: €129 million achieved in 2016, and €3061 million in total cumulated impact since 2014, significantly exceeding the objectives set in the 2014 – 2017 plan. Final plan target is raised to €4001 million from €3601 million previously.
o Most of the asset disposals program was completed during the year, yielding a positive €142 million impact on net debt.
o ERAMET strengthened its equity by €100 million (ODIRNAN issue) and extended the maturity of its revolving credit facility by two years.
 Significant improvement of the Group’s results:
o EBITDA rose strongly in 2016 (€375 million vs. €92 million in 2015).
o Current operating income for full-year 2016 up to €84 million from -€207 million in 2015. Current operating income for H2 2016 very significantly positive at €175 million.
o Free Cash-Flow2 turned positive in H2 2016 at €226 million.
o Very substantial €327 million net debt reduction in H2 2016. ERAMET ended the 2016 year with net debt (€836 million)
lower than at end-2015 (€878 million).

 TiZir (50/50 joint venture with Mineral Deposits Limited)
Low prices at the start of 2016 caused supply to contract across the titanium dioxide value chain with a resulting rebalancing in the titanium dioxide pigment markets. Finished product prices recovered strongly in 2016, but did not rise back up to 2013 levels.
Further up this value chain, the outlook continues to be positive for the products produced by TiZir (ilmenite and titanium dioxide slag for chloride processes), although excess capacity in the chloride slag sector may limit the price increase potential for this product in the short term.
Regarding zircon, after a decrease in prices in the first half of 2016, prices remained stable until the end of 2016. Some producers announced a slight increase in prices at the end of the year, demonstrating market stabilisation.
Production of heavy mineral concentrate (HMC) in Senegal came out at 614,000 tonnes in full-year 2016, with record production of 194,000 tonnes in Q4. The mine's operational efficiency met expectations.
An agreement was reached with the insurance company to pay USD 35 million in total compensation, following a fire in the furnace of the TiZir plant in Norway on 15 August 2016. The refractory relining was successfully completed at the end of 2016 and the facility came back on stream on 7 January 2017.
TiZir posted positive €16 million in EBITDA in 2016, demonstrating its capacity to generate value, despite overall stable prices for mineral sands and the furnace incident in Norway.