Sherritt International Corp SHERF

MORE NEWS FROM S.T INVESTOR RELATIONS

[CommonCents123]

Is expansion still moving ahead even though the glut in Ni continues and economies are slowing?
 
The low cost and low capital intensity two-phase expansion program remains on budget and on schedule.
 
Construction of phase one of the expansion, the SPP, has been completed on time and under budget. Following its ramp-up, phase one is expected to reduce ore haulage distances, lower carbon intensity from mining and increase annual MSP production of contained nickel and cobalt through increased throughput over the mine’s long life.
 
The overall timing and budget of phase two, the Processing Plant, to reach target levels of production approximately 20% higher, remains unchanged and is on schedule for an expected end of year 2024 completion with commissioning and ramp up in 2025. The joint venture has optimized the timing of certain capital spending items shifting some phase two spending to beyond 2024. This deferral is not expected to impact the timing of the ramp up of MSP production from the expansion. With completion of phase two of the expansion MSP production is expected to fill the refinery to nameplate capacity to maximize profitability from the joint venture’s own mine feed, displacing lower margin third party feeds and increasing overall finished nickel and cobalt production.
 
The Cuban people are suffering and I smell a "revolucion" coming. Uncle Sam's noose seems to be having the desired impact. How will this impact Sherritt? Have the brown/blackouts for power and lack of food impacted operations at all?
 
With respect to the mentioned conditions in Cuba, there is not expected to be an impact to operating results. Please see the above outlook for expectations from operations in 2024.  
 
Is there anything positive at all that you can report?  
 
We expect to report first quarter 2024 results in early May. We will issue a press release with the date of the release and the details to connect to the conference call. Again, please see the above outlook for expectations from operations in 2024.  
 
Is the Cobalt swap still going to be paid to Sherritt?
 
In 2023, Sherritt successfully completed the first year of the Cobalt Swap which included receipt of 2,082 tonnes of cobalt from the Moa JV which was sold by Sherritt realizing cash receipts of $80.3 million, a cash dividend of $64.0 million, and a corresponding reduction in the GNC receivable of $76.0 million. At current spot nickel prices, and given the prioritization of the joint venture to repay its outstanding advances, the Corporation expects that under the Cobalt Swap, the cobalt dividends anticipated to commence in the second half the year will not meet the annual maximum amount in 2024. As previously disclosed and as defined by the agreement, any short fall in the annual minimum payment amount will be added to the following year.

Where oh where ha WONDERFUL WALDO GONE?  No moonshots yet WALDO!

[Sanguinity]

Well done CC123.  Got something bafflegab out of them but otherwise they're at least acknowledging the points you make, albeit only obliquely.