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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 rkhoslaon May 13, 2024 12:06am
246 Views
Post# 36036225

Some observations:

Some observations:

1) ownership is increasingly concentrated - i estimate at least 30% of the float is owned by those who own at least 1%.... 
2) these 'large' shareholders seem unconcerned re the debt clock - are they recieving reassurance from somewhere that an extension is gauranteed?? 
3) the break even point for sherritt is approx an NDCC of $6.50 and a nickel price of $9.50. those are pretty crappy fundamentals.  anyone disagree??? What is keeping the big investors content??  What are the rest of us missing here??

(cash loss was $24 mil. They produce just under 8mil pounds per quarter.  Each dollar reduction of NDCC is $8mil USD or $11mil CAD saving.  Each $1 increase in reference price is $9mil CAD increase in revenue (see price sensitivity page 43 or do the math yourself )).  Reference price was $7.52 and NDCC was $7.24USD.  So....  to make up the $24 mil they would get $18mil from a reference price of $9.50 and $.75x11mil = $8mil for a total of $26mil to negate the loss.... I really don't think they're going to get NDCC down as far as they think they will. But you can play with the numbers. This is the reality.  And this is just breakeven. It does nothing to pay off debt.) 

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