Sherritt International Corp T.S

I would like comments on S's hedging strategy

[rkhosla]

or lack thereof.  Obviously, in retrospect, we would have benefitted had Sherritt entered into some future contracts during last spring's spike.  Sherritt never really discusses or discloses how they negotiate sales contracts and pricing but it is my understanding they basically rely on spot.  Curious to learn what others think about this approach or if they could shed some light on how Sherritt negotiates sales and if they enter into long-term contracts, etc.

[VerificateASAP]

This post has been removed in accordance with Community Policy

[VerificateASAP]

This post has been removed in accordance with Community Policy

[Contrarian333]

Historically it had been the companies policy not to hedge price.  Of course, as I recall, during the "crisis phase" there was some hedging done by previous management to protect the balance sheet.  Leon has said that he could see the Company entering into long term contracts on volume but not on price.  That's all I got.  A good question to ask of management at

[VerificateASAP]

This post has been removed in accordance with Community Policy

[VerificateASAP]

This post has been removed in accordance with Community Policy

[YourFriendo]

Traditional, investors in Sherritt want exposure to nickel price. They don't want it distorted by hedging. Having said that, this dog hasn't followed nickel price so at this point who cares. Ultimately managed won't hedge becuase if they win, no one is going to throw them a parade, if they lose,  you can bet heads will roll.