Sherritt Ends 2024 with Robust Operating Results in Line with Guidance; Received $30 Million from the Cobalt Swap and $13 Million of Dividends from Power

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TORONTO, January 16, 2025--(BUSINESS WIRE)--Sherritt International Corporation ("Sherritt" or the "Corporation") (TSX:S) today announced its fourth quarter and full year 2024 production results. Sherritt also announced it received total distributions of $29.8 million from the Cobalt Swap agreement (including both Sherritt’s and GNC’s redirected share), composed of $23.7 million in cash and 223 tonnes of finished cobalt with an in-kind value of $6.1 million, and in its Power division, Sherritt received dividends of $7.0 million in Canada during the quarter, bringing the total to $13.0 million for the year.

Leon Binedell, President and CEO of Sherritt commented, "Our operational performance in 2024 was a resounding success in the face of significant headwinds. Our production results at both our Metals and Power divisions were within our respective guidance ranges despite numerous external challenges. We successfully navigated extraordinary hurdles including hurricanes, an earthquake, and nationwide power outages in Cuba, as well as rail and port labour disruptions in Canada. Despite materially lower cobalt by-product credits, our net direct cash cost is also expected to meet our annual guidance thanks in part to the numerous cost reduction initiatives implemented throughout 2024.

Sherritt managed to navigate the multi-year low metal prices and external challenges effectively to maximize the potential for Cobalt Swap distributions and was able to receive a significant $30 million distribution in the quarter. Furthermore, our ongoing efforts to optimize our Power division and access additional gas for electricity production resulted in a six-year high in annual production and materially higher dividends in Canada with $13 million received during the year."

Mr. Binedell added, "The success we achieved despite these challenges faced during 2024 demonstrates Sherritt's ingenuity and resilience. We take pride in the accomplishments we delivered together with our Cuban partners and commend our team for their collective efforts contributing to the notable success of our performance. Looking ahead, we remain committed to driving operational excellence and delivering value through our continued focus on efficiency and cost management and delivering on our growth and other strategic initiatives."

2024 Production Results

Production volumes

Q4 2024

Actual

FY2024

Actual

2024

Guidance

 

 

 

 

Moa Joint Venture ("Moa JV") (tonnes, 100% basis)

 

 

 

Nickel, finished

7,705

30,331

30,000 – 32,000

Cobalt, finished

930

3,206

3,100 – 3,400

Electricity (GWh, 33⅓% basis)

171

816

775 – 825

 

 

 

 

Metals

In 2024, Sherritt’s finished nickel and cobalt production were within their respective guidance ranges. The completion of the Slurry Preparation Plant ("SPP") significantly enhanced mixed sulphides production efficiencies, ensuring a consistent feed to the refinery. This helped mitigate challenges encountered during the year, such as the rail labour disruption in Canada, as well as the earthquake, hurricanes and nationwide power outages in Cuba. Full year 2024 net direct cash cost ("NDCC")1 is expected to be within the previously disclosed guidance range of US$5.50 to US$6.00 per pound of nickel sold, marking a notable year-over-year improvement despite materially lower cobalt by-product credits.


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