Sherritt International Corp T.S

Alternate Symbol(s): SHERF

Metals & Mining Copper

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

Sherritt International Corp > Référence price for 4th quarter

<< Previous

Bullboard Posts

Next >>

Comment by rkhoslaon Jan 22, 2023 12:19pm

131 Views

Post# 35238498

RE:RE:RE:Référence price for 4th quarter

Exactly. So lets say debt free in 18-24 months just to be conservative. This is why after the RSUs pay-out end of Feb they will need to start disclosing their profotability and intentions in order to defend the share price. My thought would be to signal that they will start paying a small dividend to shareholders starting after the debt is cleared (as they are not permitted to do so prior). Something like 2-3cents a quarter. Just on a yield basis then this ought to bring the sp up to $1-$1.50. Still vastly undervalued. And then concievably the divy could rise to $5-10c per q pushing sp up to $4-5. Because really no one is going to buy that we are a growth story.

Ernieandbert wrote: Thanks Contrarian.

For FCF, one needs to take Ebitda (which includes C$50mm of corp o/h) and deduct Cash Int Exp (~23mm) less Taxes (~50mm) less Capex (~75mm) = C$252mm of FCF.

Bonds o/s = ~C$300mm. Meaning, by YE23, they could pay out almost all bonds with FCF. And then if there is a release of WC at Moa, that upstream of WC is additive to the Dividends and FCF stated above.

Remember, S is effectively a holdco. Moa is the opco. Everything S makes is an upstream (both Dividends and WC) from Moa.

And if you look at valuation, at ~$300mm of bonds at roughly .83 = $250mm (cuffed) and the stock at .62 = $250mm you get ~$500mm of EV / C$400mm of Ebitda = 1.25x. (and this iexcludes all cash including cash in Canada to be ultra-conservative). Meaning, some Chinese co can buy S today for C$500mm and after 1.25 years of Ebitda, they would own the mine oprations and the cash flow free and clear for the next 25 years. Unless one thinks there is no need for Ni and Co for the next 25yrs. Think about that for a second. Oil cos in Canada trade at 3x and most woke idiots think there will be no use for pertrochemicals ever again in a few years. S should trade at 5x today which would put the stock closer to C$5.00...and maybe a higher multiple should be attached to it.

All hinges on the price of Ni and Co, of course, but I think it is fair to say there is a tailwind on tht front.