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Sherritt International Corp T.S

Alternate Symbol(s):  SHERF

Sherritt International Corporation is a Canada-based company engaged in the mining and refining of nickel and cobalt metals essential for the adoption of electric vehicles. The Company is engaged in the production of high purity nickel and cobalt metals from lateritic ore. Its technologies group creates solutions for oil and mining companies around the world to improve environmental performance. It is also the independent energy producer in Cuba. The Company offers a range of products including Nickel, Cobalt, Fertilizers and Other Products. The Nickel products category includes standard grade, steel grade, and nickel powders. The Cobalt products category includes cobalt briquettes and cobalt powders. The Fertilizers product category includes anhydrous ammonia, granular ammonium sulfate, crystalline ammonium sulfate-super salt, and crystalline ammonium sulfate-standard grade. The Other products category includes sulfuric acid, zinc sulfide, and copper sulfide.


TSX:S - Post by User

Comment by FederalReserveon Aug 14, 2021 3:32am
102 Views
Post# 33705711

RE:RE:RE:Dear*SILENCEDOGOOD* a.k a "The Dog"

RE:RE:RE:Dear*SILENCEDOGOOD* a.k a "The Dog"*iammagic* maintenance costs are always going to vary because of what needs to be addressed now and what can we hide for now!!! but pound for pound Moa's maintenance needs will always be higher than the average newer nickel mine because moa mine is very old and rusty mine thus maintenance heavy. A few years ago(2018 or 2019) they dumped over $80 mil at moa because of issues that kept piling up & finally caught up to them and needed to be addressed! since they are the operators they can pick and chose what needs to be addressed and what can be put on the back burner for a bit longer. Im assuming since they had to stiff bondholders and make there income statements and balance sheet look a bit better for there massive reorganization, they obviously skimped out a key issues to make there situation look better than it is. Unfortunately that skimping now needs to be addressed, and bond lholders were stiffed so the time has come again!!! You raise a valid point. But for argument sake, let's say this nickel boom cycle lasts another 5 years and you want to run things smoth and efficient, calculate in 5 yrs how many things will go wrong at this old rusty mine if you don't deploy more capital to repair, upgrade and buy equipment to make things smooth. This mine isn't that big? For argument sake let's say they need to deploy $100mil at moa in the next 5 years which isn't unreasonable. Where may I ask will the $20mil per year avg maintenance come from? Will cashflows be enough to cover this hidden expense after they pay intrest to bondholders? I'm a firm believer they will continue to lose money and still won't produce sufficient cash flows at $10usd nickel. If $cdn dollar begins to appreciate due to higher oil prices and commodity prices, tl(Petro dollar) then this to will take the wind out of moa... but let's just say they do cashflow the maintenance, intrest expense and whatever elephant pops up, will be there be anything left for the poor lousy common stockholders???
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