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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 Sanguinityon Feb 04, 2024 8:41pm
121 Views
Post# 35862270

Nickel Industry Has Imploded

Nickel Industry Has Implodedhttps://financialpost.com/pmn/business-pmn/from-green-hype-to-bailouts-the-nickel-industry-has-imploded

"...things have quickly soured for BHP and other miners. The nickel market has been thrown into chaos after a flood of new supply from Indonesia — the result of huge Chinese investment and major technological breakthroughs. Mines across the world are at risk of closing, others are asking for state bailouts or going bust."

. . .

"
A huge Indonesian expansion of low-grade production led to a surplus, but processing innovations have allowed that glut to be refined into a high-quality product that’s hitting the battery market."

The highlighted point above can't be overemphasized.  The high-quality product going into EV batteries is now being produced through cheapo Indonesian refineries.

Sherritt had a small piece of the high-quality nickel pie.  Now they just got Walmarted.

To continue:

"
As a result, prices for the metal have crashed over 40% from a year ago, adding to hurdles in a market that is also wobbling from weak demand and persistent concerns about China’s economy. Macquarie analysts estimate that more than 60% of the global industry is losing money at current prices."

Our beloved Sherritt was barely hanging on when nickel prices were soaring and there was only "high-quality" nickel to be mined for batteries.   Are they losing money hand over fist?  Why yes.  Yes they are.  BIGLY.

Let's clost with this:

"
The scale of the collapse has left some in the industry questioning if there’s a future for most nickel mines outside of Indonesia. "

The simple answer is "no".  Not for Sherritt at least.  2024 is the year they hang it up and close shop.  For ever.

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