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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 2018

The table below lists Sherritt’s Strategic Priorities for 2018, and summarizes how the Corporation has performed against those priorities on a year to date basis.

PRESERVE LIQUIDITY AND BUILD BALANCE SHEET STRENGTH

2018 Actions
  • Continue to emphasize de-leveraging of the balance sheet
  • Optimize working capital and receivables collection
  • Operate the Metals businesses to maintain a leadership position as a low-cost producer of finished nickel and cobalt while maximizing Free Cash Flow
Status
  • Purchased $121.2 million of outstanding debentures at an aggregate cost of $110.3 million through a modified Dutch auction tender offer completed in Q1 2018. The transaction also allows Sherritt to generate annual savings of $10 million in interest expense.
  • Management continues to take action to expedite Cuban energy receipts and received US$40.7 million in payments in Q1 2018. Overdue scheduled receivables at quarter end were US$126.7 million, down from US$132.6 million at December 31, 2017.
  • The Moa Joint Venture and Fort Site generated $13.6 million in free cash flow in Q1 2018.

OPTIMIZE OPPORTUNITIES IN CUBAN ENERGY BUSINESS

2018 Actions
  • Successfully execute Block 10 drilling program
  • Review opportunities to leverage Oil and Gas experience and relationships
Status
  • Management completed the evaluation of available and proven technology and identified a solution to be deployed when drilling is slated to resume in July 2018. Preliminary drilling results are expected in Q3 2018. Capital spend is expected to be approximately US$13 million.
  • The Production Sharing Contract at Puerto Escondido/Yumuri was extended for three years to 2021

UPHOLD GLOBAL OPERATIONAL LEADERSHIP IN FINISHED NICKEL PRODUCTION FROM LATERITES

2018 Actions
  • Further reduce NDCC towards the goal of being consistently in the lowest cost quartile.
  • Maximize production of finished nickel and cobalt and improve predictability over 2017 results
  • Achieve peer leading performance in environmental, health, safety and sustainability
Status
  • NDCC at the Moa JV in Q1 2018 was US$2.06/lb, down 37% from last year. Moa’s NDCC ranked it within the lowest cost quartile for the fourth consecutive quarter. Ambatovy’s NDCC of US$5.34/lb in Q1 2018 was largely due to the impact of Cyclone Ava that caused damage to equipment and interrupted production.
  • Production at the Moa JV in Q1 experienced a 26% decline from last year due to the impact of the highest level of rainfall in more than 20 years and rail transportation delays to the Fort Site. Ambatovy production in Q1 experienced a number of unanticipated challenges, largely as a result of Cyclone Ava. Production at the Moa JV and Ambatovy is expected to be higher for the balance of 2018.
  • Operations at Moa, Ambatovy, Oil & Gas and Power had zero work-related fatalities, zero lost time incidents and zero high-severity environmental incidents. Sherritt’s Recordable injury frequency rate in Q1 was 0.24 and the lost time injury frequency rate was 0.09, both are in the lowest quartile of benchmark peer set data.