![]() Sadly, Sherritt reported two fatalities at the Moa JV mine site. ![]() Sherritt released its 2022 Sustainability Reports which continued to show progress on its ESG goals and achieved another successful independent audit on Sherritt’s conformance with the LME’s responsible sourcing requirements. Net earnings from continuing operations was $0.3 million, or $nil per share in Q2 2023, compared $81.5 million, or $0.21 per share, in Q2 2022.Īdjusted EBITDA (1) in the quarter was $15.7 million compared to $102.0 million in Q2 2022 primarily as a result of lower nickel, cobalt and fertilizer average-realized prices (1). Sherritt updated its 2023 annual production guidance range from 575 – 625 GWh to 650 – 700 GWh and reduced its unit operating cost guidance range from $28.50 – $30.00/MWh to $27.25 – $28.75/MWh. Power production increased by 29% compared to Q2 2022 primarily from the receipt of gas from two new wells and improved equipment availability. Sherritt revised its 2023 NDCC guidance range from US$5.00 – US$5.50 to US$6.75 – US$7.25 per pound of nickel sold. Net direct cash cost (NDCC) (1) was US$7.22/lb in Q2 2023 compared to US$2.19/lb in Q2 2022 primarily due to 63% lower cobalt and 35% lower fertilizer realized prices. Sherritt’s share of finished nickel and cobalt production at the Moa JV was 3,268 tonnes and 331 tonnes, 12% and 16% lower, respectively, than the prior year quarter. Sherritt sold 1,064 tonnes, $38.4 million, of cobalt (1,760 tonnes, $68.2 million for the year to date) and has received $35.1 million in cash from sales ($53.9 million for the year to date). General Nickel Company’s (GNC) 50% share of the cobalt and cash dividends, collectively US$57 million ($76 million) was redirected to Sherritt as payment towards the GNC receivable and At the end of the quarter, our capacity to make restricted payments under the Second Lien Note Indenture was approximately $114 million allowing significant flexibility to pursue investments and future shareholder returns.”Īvailable liquidity in Canada of $125 million largely driven by the successful completion of the first year of the Cobalt Swap.įinal 802 tonnes of cobalt dividend required to fulfill the 2,082 tonne annual maximum volume received Ĭash dividend of US$48.5 million ($64 million) received as a top-up payment as the total in-kind value of cobalt received did not meet the annual dollar minimum of US$114 million (US$57 million per partner) Binedell continued, “We paid cash interest on our PIK notes in July 2023 and following a second PIK note cash interest payment in January 2024 we will have the opportunity to provide returns to our shareholders. “Our current liquidity profile and expected future Cobalt Swap distributions creates significant strategic optionality for Sherritt.” ![]() While we had some production challenges this quarter, our Moa Joint Venture’s strong cash position and expected cash flow generation will continue to support our expansion program,” said Leon Binedell, President and CEO of Sherritt International. “We are pleased with the success of the Cobalt Swap agreement and the liquidity it provides Sherritt. All amounts are in Canadian currency unless otherwise noted. Sherritt International Corporation (“Sherritt”, the “Corporation”) (TSX: S), a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition, today reported its financial results for the three and six months ended June 30, 2023. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S. Next-generation laterite processing technology. ![]()
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