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About Us

Sherritt is one of the world’s largest producers of nickel from lateritic sources with operations in Canada, Cuba and Madagascar. We pride ourselves on being a leading low-cost producer that generates sustainable prosperity for our employees, investors and the communities in which we operate. We are also the largest independent energy producer in Cuba, with extensive oil and power operations across the island.

Moa Joint Venture Metal Refinery at Night, Fort Saskatchewan, Alberta Flags, Moa Joint Venture, Cuba ( Cuba Puerto Escondido) Close-up of Ore Truck, Moa Joint Venture, Cuba

STRATEGIC PRIORITIES 2017

The table below lists Sherritt’s strategic priorities for 2016. The 2016 Strategic Priorities reflect the continuing depressed commodity outlook and the Corporation’s responsibility to preserve liquidity, continue to drive down costs, and execute rational capital allocation plans. Sherritt’s purpose, originally communicated in 2014, continues to be a low-cost nickel producer that creates sustainable prosperity for our employees, investors and communities.

UPHOLD GLOBAL OPERATIONAL LEADERSHIP IN FINISHED NICKEL PRODUCTION FROM LATERITE

2017 Targets
  • Further reduce NDCC at Moa and Ambatovy towards the goal of achieving or remaining in the lowest quartile of global nickel cash costs
  • Increase Ambatovy production and predictability over 2017
  • Achieve peer leading performance in environmental, health, safety and sustainability
Status
  • First quarter NDCC of US$3.25/lb at the Moa JV represents cash costs at the 30th percentile, while Ambatovy NDCC of US$3.93/lb fell short of its target, due to lower production
  • Production guidance for the year remains in place.
  • Improvements to EHSS activities continue. The Lost Time Incident rate in Q1 was an improvement over the 2016 average

OPTIMIZE OPPORTUNITIES IN CUBAN ENERGY BUSINESS

2017 Targets
  • Determine future capital allocation based on results from first two wells to be drilled on Block 10
Status
  • First well results have provided constructive data to optimize the drilling of the second well, again targeting the Lower Veloz formation

PRESERVE LIQUIDITY AND BUILD BALANCE SHEET STRENGTH

2017 Targets
  • Finalize long-term Ambatovy equity and funding structure
  • Optimize working capital and receivables collection
  • Operate Metals and Power businesses to be free cash flow neutral or better
Status
  • Agreement on no defaulting shareholder status extended through May 2, 2017
  • Cuban energy payments received were US$37.6 million in the first quarter of 2017, an improvement over Q4 2016 payments received of US$18.3 million
  • Free cash flow generation of $12.6 million from Moa and Fort site and $12 million from Power in the first quarter of 2017