Sherritt International Corp T.S

John David’s question

[YourFriendo]

Is no longer on the webcast. They took it out. That's greasy.

[rkhosla]

No it is still there - 31:00.  You need to select 'webcast' then enter your e-mail and name and then press play.   https://www.sherritt.com/English/Investor-Relations/Events/Event-Details/2022/Third-Quarter-2022-conference-call-and-webcast/default.aspx

[YourFriendo]

Yes...it appears that it's back up. That was very strange.

[rkhosla]

so... when do these obscene amount of RSU's expire?  can we make it till then at a depressed share level then pop up?

[Contrarian333]

Q1 2023

[rkhosla]

Thank you.  Is it the end if February?  I seem to recall they were issued in Febuary and vest 3 years later.  Can you please provide some details in terms of how they work? Are they worthless below a certain SP?  Where can i find this info?  I just scanned the last AGM materiel but if its there, for me it is burried too deep.  

[Ernieandbert]

The "pin" is put in on all cash liability stock units at a Board meeting late Jan/early Feb accoring to what the co has told me.   Yes, it would be great if this stock can stay depressed till then. I know there are many at S that do not want to see the departed execs who were granted these mammoth units to work through the restructuring, reap any further comp than they did

[YourFriendo]

This idea that they are secretly hidding working capital in the Moa JV is just wrong: 1) Cash in the JV has actually dropped YOY 2) The increase is solely due to unsold nickel and cobalt, which is valued much higher than previous year end becuase unit cost production is much much higher.

[rkhosla]

I don't see what you are seeing.  They spell everything out quite clearly here.  Trade account receivables went up to $200mil because we sold more stuff.  Inventories went up because the piles of sulfur and tanks of deisel we have sitting there cost more. As Friendo said, cash in the JV actually dropped.  So where is the secret pile of money?  I don't see it.  

[VerificateASAP]

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[Ernieandbert]

Rkhosla and YourFriendo look at page 67.  It is indeed all laid out there.  CA less CL is $599mm for end of 3Q22....up from $421mm at YE21.  That is WC that will be released at some point but not before they strike those units, new mgmt gets cheap units adn they get rid of this bond to remove the covenants that restrict them.  Don;t think I am right?  Wait and see.  I

[rkhosla]

I guess I am saying this 1) WC will fluctuate with commodity costs.  If sulfur and diesel half in cost then all of a sudden WC drops.  One of the reasons WC is so high at the momment is the price of these inputs has skyrocketed.   2) It is not as if they can draw WC down to zero, so it is very notional to say there is $599 sitting there. 3) I don't fundamentally disagree they

[VerificateASAP]

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[Ernieandbert]

1) agreed but also include ni and co as part of inventory.  And when deliveries drop, a/r should drop too 2) agreed but that total wc number has been running slightly below $200mm, not growing to this record 3) then you agree.  Watch it release once they buy back the bulk of the bonds.   Like magic except some of us can see the trick

[Oaxacan]

I largely agree with your conclusions and would like to remind everyone that Sherritt's First Modified Dutch Auction to purchase secured notes and Fixed Price Tender to purchase junior notes back in late May did not result in the company spending the full $50 miliion. The positive news on the receivables deal along with the reported build-up in workng capital at Moa level  leads me to

[rkhosla]

I had this very same thought myself.  Given tgere was not excess demand last time who will be tendering this time.  Last time around I was surprised they didn't just use the left over alotment to retire bonds on the open market.  I hope if they don't reach their target via this fixed price Dutch auction they spend any left over making open market purchases this time.  

[VerificateASAP]

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[VerificateASAP]

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[FCPlady]

Details are spread out over a couplle of places. Start with note 18 in the share based compensation in the Q4 report.  They granted approx 46M RS, PS and DS units at $0.14 and $0.17 at those 'strike prices' the cash payment is about $6.5M.  At today's close that would result in a cash payment of about $20M.   I thought it was inappropriate for the caller to bring

[Ernieandbert]

Agreed 

[Contrarian333]

I know exactly who "John David" is and anyone who has attended the annual meeting would have seen him there making the same point.  He is a retail investor who has been around the company for a long time.  His question is still on the recording. Nothing wrong with advocating for increased disclosure but quite frankly he is a pain in the a$$ and has half the facts and the

[YourFriendo]

Seems like everyone who doesn't share your 5 year long bullish call (which has proved to be a disaster) is a "pain in the a$$"

[VerificateASAP]

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[Maxmoe]

Same "John David" that used to run mineralfields and changed his name after his google search showed nothing but trouble with osc? I forget his real name. But, that guy?

[rkhosla]

?James Barnett? See link https://www.osc.ca/sites/default/files/pdfs/proceedings/soa_20140321_barnettj-2.pdf

[Maxmoe]

WOW! Yup same guy. I met him before he was John David. I forget/don't care what his real name is/was. Man if ever a 10 foot pole is needed, it would be with him. And former cohort Joe dwek. I'm surprised he'd have his aka linked to sherritt or is he no longer squirreled away hiding in Florida?