How efficient is Sherritt?I’d like more clarity on the process Sherritt follows to produce its products which could also be a big detractor compared to Ni producing competitors.
- They dig the material out of the ground in Cuba,
- then ship it to Canada,
- once in Canada ship by rail to Alberta,
- process it into a refined product, and
- send it to customers direct or the LME?
The LME inventory has had NEGLIGEABLE change in months sitting around 40,000 tons so that doesn’t seem like ongoing mining operations outputs are being sent there whether on paper or not. Perhaps direct to customers? Who are Sherritt customers? Do we ship to USA as a product of Canada since it’s refined in Canada or do the Americans reject it because country of origin is Cuba? Is China a customer? If that’s the case, relations are definitely strained given the ejection of a Chinese diplomat. China is already retaliating. Plus, I’m sure China is just stock piling Russian crude and minerals since US restrictions are in force. It would help to cut Russia off completely from providing resources to the world however that would cripple Europe severely and hurt everyone from a pricing perspective. The world can’t just ramp up production on many resources overnight. Companies like Russian Norilsk produce a lot.
Also wondering if the cost of production includes all this shipping compared to competitors.
I can only assume other producers mine and process in the same place which must be more efficient from a cost perspective.