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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 through hydrometallurgical processes. 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. 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 Company’s 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

Comment by Ernieandberton May 13, 2022 5:27pm
320 Views
Post# 34683078

RE:RE:RE:RE:RE:Cash

RE:RE:RE:RE:RE:Cash

On a sequential basis, and on a 100% basis, Mia's working capital increased about 54mm.  That puts sherritt's 50% share at a 27mm increase.   That is "where the money went" for those who may not follow such detailed cash flow analysis.  


And for those who don't understand the particulars of the excess cash flow sweep, the build up of working capital at moa is an intentional, deliberate and strategic move by the company to delever better than what would be provided by the sweep.  Very opportunistic.  And very bullish for the stock.  

And if you don't understand all the cash flow analysis, just don't ask yourself why the company would spend all the $50mm of cash sitting in Canada without having that and more coming from moa.   Sherritt has been saying over many years they need more like $150mm of cash in Canada, never mind only 50 and spending it all on bond buyback.  


And wrt where the stock trades, it is all retail and does not trade on valuation basis.  It is trading around 1.5x ev/ebitda. Free cash flow will start showing up on sherritt balance sheet eventually once it is delevered and the valauation will surface because numbers don't lie.  

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