Eramet could seek new investors in capital hike

Eramet said on Thursday it could talk to new investors about taking part in a 500 million euro ($585 million) capital increase that the struggling French mining group is planning for later this year.

The nickel, manganese and lithium producer said in February it was planning a capital increase, as well as asset sales, to shore up cash after a slump in earnings and a jump in debt last year.

In a first-quarter sales statement, Eramet said “discussions may be held with potential investors who could participate in the planned capital increase”.

It reiterated that the capital raise was planned for the second half of the year subject to approval at the company’s annual shareholder meeting next month.

Eramet has also obtained from its lenders a waiver on June and December 2026 gearing covenants, it said.

Eramet is also continuing a review of its portfolio with a view to asset sales this year, with the sale of minority stakes in some businesses notably under consideration, it said.

The group reported a 13% year-on-year rise in first-quarter sales to 840 million euros.

($1 = 0.8543 euros)

(By Gus Trompiz; Editing by Lincoln Feast)