RE:RE:RE:RE:RE:RE:CHAPTER 11?????We have been in a bear market for base metals since mid 2011. Now we are not. There is a new and never before seen incremental demand for the metals we do produce (EV and grid storage). The metal cycle is in an early stage of recovery with high level inventories finally being drawn down. Cash flow from Sherritt's nickel operation in Moa (before Madagascar) was sufficient at the top of the previous nickel cycle to support a $17+ share price.
Madagascar was a mistake but fortunately was structured as non recourse to Sherritt allowing for the extraction from the bulk of that debt without destroying the Company.
Power generation is small but steady state.
Oil was never a significant FREE cash flow contributor to the Company for many years in its history particularly in that period when the nickel price was strong and the share price doing well. Any new oil leases/discoveries will similarily NOT be a FREE cash flow contributor for many years to come. People are way to focused on the oil business.
The full nickel cycle (with cobalt credit) will be sufficient to create strong cash flow. The fact that S is levered makes the upside of the cycle even more attractive. What we don't need is stupid dilutive equity financings.
The recent dilutive equity offering was stupid. A cobalt streaming deal may also not be the be all and end all as cobalt credits are an important part of Sherritt's status as a low cost producer.
Management is thin and the leadership is suspect. The Board is too big and not dynamic.
The Company is not headed for Chapter 11. The public debentures which traded below 50 cents on the $1.00 in 2016 now trade around 90-95 cents on the $1.00.
The Company has many options to deal with maturing debt (maturities beginning in 2021 - a full 3 years from now) including refinancing.
Your comments are not credible.