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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 2017. The 2017 Strategic Priorities reflect the continuing cautious commodity price outlook and the Corporation's responsibility to preserve liquidity, continue to drive down costs, improve organizational effectiveness 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.

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 in principle reached with the Ambatovy project partners, closing of the transaction expected in Q4 2017
  • Timing of working capital changes at the Fort Site fluctuate quarter-to-quarter. Management continues to take action to expedite Cuban energy receipts. In Q3, Sherritt received $32.6 million of Cuban energy payments.
  • On a year-to-date basis, Oil and Gas and Power divisions continued to generate positive free cash flow. The Moa JV has generated sufficient operating cash flow to repay a portion of the working capital facility.

OPTIMIZE OPPORTUNITIES IN CUBAN ENERGY BUSINESS

2017 Targets
  • Determine future capital allocation based on results from first two wells drilled on Block 10
Status
  • The results from the first well have provided constructive data to optimize the drilling of the second well, again targeting the Lower Veloz formation. Drill results from the second well are expected in Q4 2017.

UPHOLD GLOBAL OPERATIONAL LEADERSHIP IN FINISHED NICKEL LATERITE PRODUCTION

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 2016
  • Achieve peer leading performance in environmental, health, safety and sustainability
Status
  • Q3 NDCC of US$1.94/lb at the Moa JV is the lowest since Q4 2004. Moa’s NDCC ranked it within the lowest cost quartile for the second consecutive quarter. Ambatovy’s Q3 NDCC of US$4.27/lb marked an improvement from last year, but was below expectations due to lower production and higher maintenance costs.
  • Ambatovy year-to-date production has experienced unanticipated challenges. Initiatives, such as replacing certain equipment, are being implemented to improve asset reliability.
  • Sherritt was named as one of Corporate Knights’ 2017 Future 40 Responsible Corporate Leaders in Canada, based on sustainability disclosures. Sherritt has been supporting ongoing Hurricane Irma recovery efforts in Cuba, and promoting good hygiene in communities suffering from pneumonic plague in Madagascar. Sherritt was also named a finalist for the Canadian Nature Museum’s “Nature Inspiration Award,” largely for its conservation work in Madagascar, and continues implementing the Mining Association of Canada’s Towards Sustainable Mining program.