Finance
France's Eramet Could Seek New Investors in Capital Hike, Mining Firm Says
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
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Eramet, hit by plunging earnings and rising debt, plans a €500 million capital increase later in 2026, potentially involving new investors. The move, supported by its main shareholders and aided by waiver extensions, aims to bolster liquidity and support its turnaround strategy.
Eramet Considers New Investors, Asset Sales to Support €500M Capital Increase
Eramet's Capital Increase Plans and Financial Strategy
Potential New Investors and Capital Increase Details
PARIS, April 20 (Reuters) - 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.
Background on Capital Increase and Asset Sales
• 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.
Discussions with Potential Investors
• In a first-quarter sales statement, Eramet said "discussions may be held with potential investors who could participate in the planned capital increase".
Shareholder Approval and Timeline
• 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.
Financial Position and Portfolio Review
Lender Waivers and Debt Covenants
• Eramet has also obtained from its lenders a waiver on June and December 2026 gearing covenants, it said.
Asset Sales and Portfolio Review
• 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.
First-Quarter Sales Performance
• The group reported a 13% year-on-year rise in first-quarter sales to 840 million euros.
Exchange Rate Information
($1 = 0.8543 euros)
(Reporting by Gus Trompiz; Editing by Lincoln Feast.)
Key Takeaways
- •Eramet’s full‑year EBITDA fell 54 % in 2025, leading to a net loss and prompting the planned €500 million equity raise and asset sales to shore up finances (mining.com).
- •The capital increase is backed by key shareholders (Duval family and French state), and Eramet may engage new investors in the second half of 2026, pending shareholder approval (mining.com).
- •The company has obtained waivers on gearing covenants through June and December 2026 and continues reviewing its portfolio, including potential minority stake disposals, to improve liquidity (eramet.com).
References
Frequently Asked Questions about France's Eramet could seek new investors in capital hike, mining firm says
1Why is Eramet planning a capital increase?
Eramet is planning a €500 million capital increase to shore up cash after experiencing a slump in earnings and increased debt last year.
2Will new investors be involved in Eramet's capital increase?
Eramet stated it may hold discussions with new investors who could participate in the planned capital increase later this year.
3What other financial measures is Eramet considering?
Eramet is also reviewing its portfolio for potential asset sales, particularly selling minority stakes in some businesses.
4When is Eramet's capital increase expected to take place?
The capital raise is planned for the second half of the year, pending approval at the company's annual shareholder meeting.
5How did Eramet perform in Q1 this year?
Eramet reported a 13% year-on-year rise in first-quarter sales to 840 million euros.
