Eramet announces €500m preferential subscription rights issue
French miner Eramet has launched a €500-million share capital increase through preferential subscription rights.
The subscription ratio of six new shares for five existing shares will be offered at a price of €14.49 apiece. The theoretical value of the preferential subscription right is €13.09 apiece.
The 34.5-million new shares are expected to start trading on Euronext Paris on or about December 4.
French government agency Agence des Participations de l’Etat has already committed to subscribe for a total amount representing 64% of the rights issue, or €322-million.
Eramet says the rights issue will improve its cash generation and strengthen its balance sheet, particularly by reducing debt.
Eramet has manganese, nickel, lithium and mineral sands mines in Gabon, Indonesia, New Caledonia, Argentina and Senegal.
The company’s net debt was €1.94-billion at the end of its 2025 financial year, which increased by €1.3-billion compared to 2024 owing to lower metal prices, operational disruptions and a costly entry into lithium production. Eramet aims to reduce its net debt to between €1.6-billion and €1.7-billion, including by selling undeveloped lithium mining concessions for $71-million in Argentina, selling a minority stake in the Centenario-Ratones lithium operation and selling its 38% shareholding in Weda Bay Nickel.