Q2 Predictions- Q2 will be cash postivie, with Moa contributing $10-20 million to Sherritt.
- Production will be disapointing for both Moa and Ambatovy.
The important thing to take aqay from Q2 is it will be the benchmark for the next several years for Moa. The cash it generates will be representative of what it will generate for the next, call it, 12 quarters (3 years). The reason for this is A) Cobalt and Nickel will stay at these price ranges for the next several years. Any one who knows anything about the market knows the whole "EV revolution" is over hyped. NPI producers will figure out a way to produce a type of nickel sulphide that can be used by Chinese battery consumers. The Chinese certainly won't be reliant on refined nickel from western produces to make their batteris.
So take Q2 cash from Moa + Q2 Power cash, and that is what Sherritt will approximetly genrate on a quarterly basis for the next 3 years. What you will find is that is not enough cash to 1) Pay debt interest and principal 2) Cover Sherritt overhead (HQ + technologies) 3) Capex 4) Provide a return to shareholders.
This is why the stock is trading at 1.09.