Sherritt International Corp T.S

Good morning

[rkhosla]

sorry I was grumpy yesterday - after a nice post long weekend open I found the second half of the day fade out a bit disappointing....  Today is another day and Ni is holding well

[thenorthvanman]

Frustration is warranted. S.TO is in theory heavily leveraged to Ni and Co price but has barely budged despite strong upward price moves in those commodities. If you had asked me to guess what the SP would be with 22 dollar Co and 8.40 Ni a couple of months ago I would have guess it to be well clear of a dollar.

[YourFriendo]

The issue is it takes a very high nickel price for Sherritt to generate a profit. The dividends from the Moa JV have to cover 1) Interest costs 2) Technologies division 3) Corporate overhead (which is very high given their executive compensation) and 4) Poor capital allocation (i.e block 10 or terrible hedging programs).  Then of course whatever is left from that (if any) has to pay back

[Cobalt]

What else we have out there for Nickel plays? so we can compare.

[YourFriendo]

Take a look at Nickel 28, but if all your looking for is to capitalize on the hypothetical EV revolution, don't limit yourself to nickel. All base metals will capitalize from electrification. I would highlight Lundin mining as an excellent example of a well run and diciplined mining company (basically the opposit of Sherritt). They produce the same amount of nickel units as Sherritt's

[Cobalt]

All base metals very true , my top pick IVN , and working in a Red day