Sherritt International Corp T.S

4th Q Results

[Contrarian333]

(Bloomberg) -- Sherritt reported adjusted Ebitda for the
fourth quarter that missed the average analyst estimate.
FOURTH QUARTER RESULTS
* Adjusted Ebitda C$10.7 million, -40% y/y, estimate
C$24.0 million (Bloomberg Consensus) (2 estimates)
* Revenue C$28.2 million, -10% y/y

[rkhosla]

The dividends and receivable - i believe it was $20 mil their share, $20mil partner share, ?plus $10mil more energas = $50 mil in the quarter - that and their cash position very positive 

[Stratocheif]

Nickel at $8.47 a pound and the people continue to show staggering losses...even higher than 2019. Enough is enough. There is something else going on here. This company shows no intention of turning this around

[thenorthvanman]

Nickel was at $8.47 during 2020 and I missed it?

[Stratocheif]

Nickel averaged about $7.75 a pound in q4 They produce at $4.25 -$4.75 and they loose $50 million for the quarter. This is NO GOOD

[thenorthvanman]

Ni averaged $7.23 exactly as per their results.

[Sdbry75]

The price of nickel during the 4th quarter 2019 when factoring thier hedge book was higher than the 4th quarter 2020. I don't like Sherrits nickel hedge for 2021. Regardless, this company has certainly turned the corner and put most of the financial woes behind them. I do expect a pullback in the morning. It's always a guess though. I'm very new to this, like 2 months into a trading

[oceaneleven]

They earned over 20 million for the year 2020.. They made some huge changes(restructuring) to capitalize on future nickel prices.. the hedging is guaranteed revenue even though the locked in pricing is 6.50-7.00 lb US is A okay in my books...I am fine with this latest financial report..I was a Ballard Power shareholder for many years and they almost always reported a loss each and every quarter

[Rockafellow]

As expected the tonnage remains the same year after year but we r looking at a $1-$2 / lb increase with NI & $5-$10 /lb increase with COS4 this year which means money in ur pocket . .. .. .. .. Best news is the $9.3 mil put options which will realise very big return on money this year- a very wise thing to due as we all know where NI & COS4 r headed. ... ... ... ... I c a rise in share

[rkhosla]

The puts are out of the money Rock - and I hope they remain so - they will expire worthless.  Only way to make 'big money' on those outs is if Ni drops below the strike which none of us want.... Still I'm ok with their insurance strategy  

[autofocus111]

Rockafellow, They bought puts, not sold them. Cost of the hedge is ~0.30/lb so breakeven on the average 6.75 strike is ~$7/lb. It's for 50% of production so I'd say overall it was an okay move to be safe (although at this point not sure I prefer that approach). It is what it is. But I don't understand their comment on oil. Oil prices look like they're going to run strong this year

[mas75]

Could be because the oil site is mature with rapidly declining production flows. Costs have risen substantially the past few years as it has become more challenging to get oil out of the ground at the current location. they need to find a new site if they want to continue in the oil business, but have spent millions trying to find and develop new Cuban deposits without success. S doesn't have

[autofocus111]

Sure but at $60WTI I think it would still be postive cashflow so why not milk the existing operations? But assuming they are going to just walk away, will they have to take some kind of writedown? Block 10 was an unmitigated disaster financially, but seeing another hit from their oil business with oil prices doing good would be a nasty surprise to say the least.

[oceaneleven]

what we are seeing today is a little profit taking....this is healthy as we prepare for the next run up!!! 

[rkhosla]

Indeed Ocean.  We are in fact holding up admirably - was expecting a bigger dip actually - into the $.50s - so am happy how today is unfolding.  People tend to focus on the wrong numbers - I for one happy with the cash flow situation and prospects ahead.  

[oceaneleven]

rk, I think the sp dip was pure profit taking and the old typical sell the news....but I think investors need to dig a wee bit more into the little extras sherritt has to offer..there is some big news coming to Alberta Heartland area....squeaky clean green & mean gossip coming out of them dirty little flies on da wall.....

[rkhosla]

You seem unhappy? For me this is the statement that gives me joy: "US$20 million re-directed to Sherritt by GNC to be applied against amounts owing by Energas" - ie the marketing arm of our JV's finished product is honouring / enforcing (word it as you will) the receivables agreement.  More money to flow : ) And yes I get it, the receivable balance didn't change at all but