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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 Jun 01, 2022 10:25pm
324 Views
Post# 34725217

RE:RE:$60 mil debt retired for $45 mil cost no extension

RE:RE:$60 mil debt retired for $45 mil cost no extension You want to know where they will get the cash?   How about a release of working capital at moa?   They show the full balance sheet of moa as of 1Q22.  You can see it he 50mm of cash moa holds and the recent build up of working capital.  Anyone want to bet there is a release of working capital over the next few quarters?  But that won't happen till after 2Q22 otherwise they hold too much cash on the balance sheet and be forced to buy bonds back at Par.  Clearly they are trying to avoid doing that and this process was extremely strategic and I would say a success. This is all in the senior bond indenture. And don't forget, thenindenture provides the co with the ability to buy bonds back at any time in the open market (at current prices).  And with Ni looking like it will average great than $12 for the 2Q22 that means at least another $80mm of ebitda to S.  stunning really.  At some point they will need to upstream the capital to S and will be forced to exercise the excess cash flow sweep in the indenture but likely not until the next six month period which will be dec 22.   
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