Should I sell my shares ?Before selling, why did I buy first ?
I invested in Sherritt as a deleveraging story based on a positive outlook for the nickel/cobalt price
So Sherritt keeps on delivereng (bought back some PIK this qarter) and will buy back 28 million in 2026 this coming October. Would have preferred to see them buying back a big chunk on the open market but it is what it is.
Cobalt swap was a bonus last fall, but appears to be ok for the moment.
Still have a positive view on Nickel/cobalt but this is cyclical. It might go lower. Meanwhile, their NDCC is still lower than market price. So we still have a cushion.
So, did not like that production problem at Moa as well as the compressor problem at the Fort. But it is what it is, something can always go wrong and are temporary problems,not structural. In the mean time, we are getting closer to the 20% increase of production in 2024.
So management is still sticking to a good plan. Will keep on holding.
GLTA