Sherritt International Corp T.S

Value of shares

[CPA023]

Let's look at some facts. In 2022, Sherritt realized a net income of $63.5 M after deducting an allowance for losses on the GNC receivable of $49 M. As these losses have not been realized as of today, we will add $49 M to the net income of 2022. So the adjusted net income of 2022 is $112.5 M. In the first quarter of 2023, Sherritt realized a net income of $13.3 M. So, from January 1, 2022 to March 31, 2023, Sherrittt realized a net income of $125.8 M. That represents a net income per share of $.316.

In 2022, Sherritt repurchased approximately $150 M of bonds and notes (cash outlay of $125 M). The cash came principally from the Moa Joint Venture ($100.6 M).

Since the beginning of 2023, Sherritt has received $144 M in cash and cobalt from Cuba ($72 M from the Moa Joint Venture and $72 M from the GNC receivable).

Since January 1, 2022, $244.6 M of cash and cobalt have been transferred from Cuba to Canada. This $244.6 M is not anymore at risk of being seized by the Cuban government, which is a fear that many investors have because Cuba is a communist country. This $244.6 M represents $0.615 per share of assets secured in Canada since January 1, 2022.

Market price of $0.49 today? Albatross has a good explanation saying that "the market usually represents a "shallow value"".

[VerificateASAP]

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[Maxmoe]

Clear as mud. This is a good example of why I focus on cash flow rather than reported earnings. Even worse is trying to compare "adjusted" earnings or earnings before or after unusual items. The writeoff last year was a "non cash" item, so no impact on cash flow. But this year, the cash is flowing in from the receivable so the financial position is drastically improved. I

[Albatross]

"We are done with giant bonuses for the executive" I sure hope so. I will sell my shares if that happens again... 

[CommonCents123]

They always take from the kitty. We don't have the clout to stop it unfortunately.