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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

Post by FrozenInOntarioon Jul 31, 2023 2:45pm
223 Views
Post# 35565279

Impact of $ 10 nickel prices on Moa JV

Impact of $ 10 nickel prices on Moa JVTheir presentation on the Cobatlt Swap includes a sensitivity analysis which shows 120 M Free Cash and 180 M EBIDTA for their quota share of the Moa/Fort JV at $ 10/pound nickel with NDCC 5.25 and 31,000 MT Nickel with 90 M of capex.   This was more than enough to cover the 57 M quote share of distribution.

With NDCC now at 7 (avg), seems to me that Free Cash and EBIDTA would be reduced by roughly 60 M which now would be 60 M/120 M.

So seems to me that at current nickel price at $ 10,  the Cobalt Swap is still covered.   Heck, we could receive an additional distribution before the end of the year.

GLTA 
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