Sherritt International Corp T.S

A STOCK DOUBLE COMING SOON.?

[WanTBe1]

Who sees Sherritt $1.15 before Dec 31/22.?

[Ernieandbert]

I would be extremely disappointed if S is only at $1.15 at YE22.  I think it will be double that on pure fundamental valuation basis.   

[FCPlady]

If S hits $1.15 by year end, doubt too many people will be disappointed. But at that valuation it will mean about $53M in share based compensation expense.   Not a good use of cashflow.

[Contrarian333]

To be precise, non cash compensation won't impact cash flow or the cash flow statement but rather the income statement and ultimately when settled the balance sheet.

[Buyreallow]

Don't think so Contrarian.  Sherritts share based ompensation plan consists entirely of notional shares through RSU,s and PSU,s, and are all settled for cash based on the share price at vesting, and include any declared dividends.  So the cash payout, should one occur when they vest, and compensation targets are met, result in a cash hit.  No shares are issued so no dilution.

[rkhosla]

I believe what he was saying is that presently it is on the books as a liability and so there is no immediate impact to cash flow. There is however to profitability.  where did the $53 million come from at a share price of $1.15? Is that 53 million in addition or a total of 53 million including the 26 million?  

[Contrarian333]

Yes, a cash hit to the balance sheet.  No impact on cash flow statement.

[harryangstrom]

JFC... the share based compensaion expense will result in an outflow of cash and be a draw on the balance sheet .   My point is that it will be a misuse of cashflow generated between now and of year.   Until the company reports its Q2 results, we can only specuatle on what their current cash balance is less the $45M - $47M spent on the dutch auction. 

[Maxmoe]

Anyone here no exactly how the exec comp works? I haven't seen the details anywhere I've looked. Key details like timelines,vesting,high water/low water triggers, caps if any ???  on top of typical who gets what%. If the terms are as absurdly outsized generous as some suggest.....The stock is way down from March 31 so if it's stock price based, fire them all and start over with

[Buyreallow]

Go on SEDAR and search by company name  Sherritt all docs for Apr 7.  Select Management Information circular.  It has all the details.  Essentially works like this.  RSU's or PSU.'s are notional shares (not real) issued to employees at a stated value.  No stock options are issued at this time.  Any previous d incentive awards prior to Dec 31 were

[Maxmoe]

OMG, if it takes 40,50 pages to explain the comp plan, that's a hint it's ridiculous. 2 glaring problems beyond the absurdly, unnecessarily, complex plan intentionally designed to bewilder anyone trying to sanely review and pass judgement. I don't see a cap set as a group, or individually. There needs to be a cap. Using a bonus pool concept allows some consideration of what

[Maxmoe]

So, this is all the legacy the new team needs to abruptly, significantly, change. Fire the consultants that must charge per word to creat that comp policy. Get real and pay in line with the rest of the industry. Find mgmt and directors that out actual skin in the game, not ones that line up for excessively generous handouts. The nickel assets are very very valuable with Ni over $10. Let's not

[Buyreallow]

Tell us how you really feel Maxmoe.   By the way, I agree with you, it's exorbitant. And to those who say that this expenses is not in the cash flow statement, it is but not obvious. Cash flow is the income from operations among other things such as depreciation.  But the income amount from operations contains the compensation expenses, so the net income is WITHOUT the

[rkhosla]

I don't think this is legacy. I think it's the current team. And it's not per say that the compensation is obscene. It's the timing that's obscene. Q1 could've been the first blowout quarter in a long time but management for many many years has consistently found a way to always throw a wrench into the good news.  

[FCPlady]

You are mistaken.  This is legacy. The RSU/PSU/DSU awards that will have a material impact on the balance sheet were awarded in 2020. They 'granted' anout 46 million units at $0.14 and $0.16. Read up note 18 of the year end FS.   They're supposed to disclose more details about the financial risk/exposure. So we'll have to wait until Q2 results. 

[Contrarian333]

That is correct!

[Contrarian333]

[Contrarian333]

You need to brush up on your accounting.  Non cash compensation is NOT INCLUDED in the cash flow statement as it is added back to calculate cash flow from operations.  This is not a case of some companies do this and some companies don't - it is accounting convention. Operating activities Net earnings (loss) from continuing operations $ 16.4 $ (1.9) Add (deduct): Depletion

[rkhosla]

Was it Uvalde police incompetence or was it the shooter??  I don't want to get into this again but Contrarian don't you find it illuminating / disturbing that you are one of just a handful of people who seem to understand all of this.  The rest of us - we are not dumb.  Some of us have diligently gone through the company material and tried to figure out what exactly this

[FCPlady]

Yes and no.  They provide informaiton but don't alawys connect the dots for investors.  I had to read and re-read their financials and MIC to try and make some sense of this dog's breakfast..  If all of the units granted in 2020 vest in 2023 here are the hits to the balance sheet we'll be looking at.   RSU 22,459,993

[Buyreallow]

But there is no reason to add it back into cash flow.  There is no cash.  It has gone to the employees.  It only makes it appear that management has done a great job of bringing in cash, even though it has gone out the door to employees.   Figures don't lie, but liars figure.

[rkhosla]

So long as World War III can be prevented. yes.  higher than that.  

[Snacktime]

Lol, you guys! They need 3-4 good quarters and a dividend before anything happens. Until then it will bounce around like it has for the last 2 years.