Struggling miner Eramet slumps after 'disastrous' 2025 triggers capital increase

Eramet

19/02/2026 11:14

Feb 19 (Reuters) - Shares of France's Eramet ERMT.PA plunged 22% on Thursday, a day after the struggling miner posted a big drop in annual earnings and said it was planning a capital increase and asset sales to shore up cash.

The mining and metallurgical group reported on Wednesday an adjusted core profit of 372 million euros ($439 million), down 54% from 2024, dragged down by a range of unfavourable conditions from low prices to production setbacks in Indonesia.

It also said it would not pay dividends for the next two years, setting the shares on track for their worst trading day since December 2018.

"Disastrous 2025 which prompted sweeping corrective actions," analyst Varun Sikka from AlphaValue said in reference to the 500-million-euro capital hike and possible stake sales, which also followed a rise in the company's debt.

Any improvement without support from recovering key end-markets remains unlikely, Sikka added in the research note.

"The only possible reason they may stay afloat amid this mess is largely due to the French State's unflinching support," the analyst said, adding the government could also be a big sponsor for the cash call.

Eramet is in the midst of a management crisis after it fired former CEO Paulo Castellari and suspended finance chief Abel Martins-Alexandre within a few days earlier this month.

($1 = 0.8475 euros)

(Reporting by Lucie Barbier in Gdansk, editing by Milla Nissi-Prussak)

((Email: lucie.barbier@thomsonreuters.com))