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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

Post by rkhoslaon Dec 09, 2021 1:06pm
612 Views
Post# 34215130

Prediction

Prediction (*disclaimer - I have made many and they are always wrong) As the year ticks over or possibly just before we will gain some momentum. I find it hard to imagine come mid-February we don't get some recognition for our vastly improved fundamentals. I said this a few months ago, cobalt will hit $80k/t.  This possible transient over-supply of nickel that keeps getting mentioned I don't think is going to come to fruition.  I am more on board with JP Morgan's analysis that was in the article north man man forwarded that we will see a healthy steady rise to $23k and perhaps even a spike to mid $20k's.  Anyways, I am anticipating a new 52 week high of our share price by mid to end of February. Right now we really are not trading. Some people want to take some tax loss or settle their books by the end of the year etc. but we are not seeing much significant in or outflows.  Despite the problems Cuba is having, the JV is accumulating cash (capex/maintenance we had to deffer as we teetered on bankrupcy has been soaking up most of this so far but that will change) That cash goes to either two places. Reinvestment in the JV or after the minimum threshold out to us in dividends and receivable payments.So the big variable at the moment is this Brownfield expansion and how much cash that will consume and over what sort of phased time period.If they do it in a sensible manner, like $40 million a year (what our share of 2021 capex was first projected at) over 2 to 3 years, it is going to make lot of sense and we will still have cash flowing out of the JV.  If they announce something outlandish then all cards are off the table. So my crew energy Went from $.20 to mid $3 dollars.  Sherritt got left behind after its initial spike obviously.  Lots of Legacy and hangover with this stock. I don't think it's going to three anytime soon but I do believe it will break the $.70 and see new highs in the first two months of 2022.
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