Sherritt International Corp T.S

RE:RE:RE:Référence price for 4th quarter

[FrozenInOntario]

Hey E&B,
Thanks for the insights.   Lots of moving parts.

1. EBITDA per quarter
   1. CF 94 mm - Sounds good
   2. Corporate Cost 13 MM (50 MM per year – Only Sherritt ? or Moa also)
   3. Net 81 MM or 324 MM Yearly
2. Cobalt Dividend
   1. Can 76 MM which is paid out of EBITDA.

Questions

1.  Why do you add the cobalt dividend, it will be paid out from EBITDA.    Of course, the reimbursement of Energaz AR will also come in but it is also not part of EBITDA.  So your starting point is a bit overstated.
2. You assume that the EBITDA not dividend out will remain at Moa’s level.  Fine.
   1. There are admin charges (8 mm), interest (19.7mm)  and income tax charges (41 mm) respectively  after 9 months at the JV level as disclosed on note 7 and page .   Are these the one you are considering in your offsets ?  Or should they be deducted also ?
3. FCF
   1. Based on 324 MM EBITDA, FCF would be 176 M or about.      

Anyway, so many moving parts, we might end up with similar metrics than you have if we offset part of the long term debt with the Power AR which is now quasi cash.  As the situation simplifies itself, we should cleaner financials and a big rerate.
Many thanks