Letter to B of D of SherrittDear Board of Directors
Sherritt International Inc
Toronto, Ontario
Dear Board members:
As a long-time shareholder of your company, I have noticed with sadness that the share price of Sherritt International Inc. has not made any significant positive move in spite of the fact that both the major commodities which the company produces have substantially increased in prices in the past several months. My rough calculations indicate that the company, without any good interventions and decisions of its senior management and/or its Board, should be recipient of a large inflow of free cash flow to the tune of hundreds of millions of dollars because of these price increases of its products. I am for sure hoping that all of you would encourage the senior management to make some strategic decisions and take some firm actions to negotiate with the Cuban government to share their portion of the windfall profit to pare down the debt owed by them so that the company can either buy back some of its own bonds or do a share by back. Furthermore, at the very least, give an update on the company’s current and near- term cash position based on these price increases in nickel and cobalt.
This is, in my opinion is the least, the Board and the Senior management can do to make the long-term shareholders like me feel bit a more secure and start to build some trust and confidence in its company’s Board.
Hope to see some positive announcement soon.
Regards
Yousuf Ali