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 2016

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 LATERITE PRODUCTION

2016 Targets
  • Complete and commission the acid plant at Moa in the second half of 2016
  • Further reduce NDCC costs at Moa and Ambatovy towards the goal of being in the lowest quartile
  • Increase Ambatovy production over 2015, despite the major maintenance work scheduled for Q3
  • Maintain peer leading performance in environmental, health, safety and sustainability
Status
  • Acid plant on track to complete in Q2 with full operation in Q3 this year
  • Q1 NDCC of US$3.90/lb (avg between both operations) was down 24% over Q1 2015
  • Ambatovy production was lower in the first quarter, but expected to recover in the second quarter with no change to guidance
  • Performance on track

EXTEND THE LIFE OF OUR CUBAN ENERGY BUSINESS

2016 Targets
  • Allocate capital to new drilling on Block 10, with future drilling to be contingent on results from 2016 activity
Status
  • Capital allocation has been reduced in Q1, as drilling is expected to take place in the second half. Results from the first well will dictate next steps

PRESERVE LIQUIDITY AND BUILD BALANCE SHEET STRENGTH

2016 Targets
  • Protect Sherritt’s balance sheet and preserve cash
  • Establish clarity on long-term funding of Ambatovy
  • Run business units to be free cash flow neutral, and continue to optimize administrative costs
Status
  • Cash position declined by approximately $66 million since year end, with $45 million being repayment of credit facilities
  • Ceased funding Ambatovy cash calls due to the “40 for 12” issue