France’s Eramet on Friday lowered its guidance for second-half profit blaming a sharp fall in prices for nickel and manganese, the miner’s two main products.
Eramet now expected earnings before interest, tax, depreciation and amortisation (EBITDA) for second half of year in line with its first-half performance, having previously forecast significantly higher EBITDA.
Benchmark manganese prices in November were down 33% compared with September while nickel prices showed a 14% decline over the same period, Eramet said, adding that it saw no change in the trend at the start of December.
Eramet shares were down 2.73% after falling 8.8% in opening trade.
Eramet confirmed its 2019 targets for production and nickel ore exports.
Nickel and manganese are mainly used in steelmaking.
Nickel prices hit a five-month low this month, weighed down by signs of larger-than-expected inventories.
Eramet is reorganising its nickel operations in New Caledonia after years of losses, notably by increasing exports of lower-grade ore and by reducing production costs.
(By Gus Trompiz; Editing by GV De Clercq and Jason Neely)