Yahoo Finance

• Nickel Revenue: Lower due to decreased sales volumes despite stable average realized prices.

• Cobalt Revenue: Modestly higher with increased sales volumes offsetting lower average realized prices.

• Fertilizer Revenue: Strong performance with 39% higher sales volumes and 16% higher average realized prices.

• Combined Revenue: $125.7 million, relatively unchanged year over year.

• Adjusted EBITDA: $4.4 million, showing significant year-over-year improvement.

• Net Loss from Continuing Operations: $40.6 million.

• Adjusted Net Loss from Continuing Operations: $22.8 million, excluding non-cash loss on rehabilitation provisions.

• Net Direct Cash Cost (NDCC): $5.95 per pound of nickel sold, an 18% decrease year over year.

• Available Liquidity: $55.7 million in Canada at the end of the quarter.

• Debt Reduction: Reduced debt obligations by $43 million and extended debt maturity to November 2031.

• Interest Expense Reduction: Annual interest expense reduced by approximately $3 million.

• Warning! GuruFocus has detected 5 Warning Signs with SHERF.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sherritt International Corp (SHERF) successfully reduced its net direct cash cost by 18% year over year, maintaining low mining, processing, and refining costs.

• The company completed transactions to strengthen its capital structure, reducing debt obligations by $43 million and extending debt maturities to November 2031.

• Sherritt International Corp (SHERF) began commissioning Phase 2 of the Moa JV expansion, expecting increased production in the second half of the year.

• The company reported strong fertilizer performance with 39% higher sales volumes and 16% higher average realized prices.

• Sherritt International Corp (SHERF) anticipates benefiting from higher cobalt prices in the second quarter, with prices currently 35% higher than in Q1.

Negative Points

• Nickel and cobalt production were lower in Q1 due to low inventory and supply chain delays, impacting revenue.

• The operating environment in Cuba became more difficult due to escalating US pressure and restrictions, affecting foreign currency access.

• There was a national-wide power outage in Cuba, leading to downtime at Energas' facilities, although it did not materially impact electricity production.

• Lower gas availability due to mechanical issues with a legacy gas well affected electricity production, although partially offset by a new well.

• Sherritt International Corp (SHERF) reported a net loss from continuing operations of $40.6 million, with an adjusted net loss of $22.8 million.