In This Article:
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Nickel Sales Increase: Full year 2024 nickel sales increased by 22%.
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Net Direct Cash Cost (NDCC): Decreased by 18% from the previous year.
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Electricity Production: Reached a six-year high due to operational improvements and increased gas supply.
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Dividends from Energas: Received $13 million in 2024, expected to double in 2025.
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Combined Revenue: $160.3 million in Q4 2024, up from $140.5 million in Q4 2023.
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Adjusted EBITDA: $15.4 million in Q4 2024, significantly higher year over year.
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Net Loss from Continuing Operations: $22.5 million in Q4 2024.
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Available Liquidity in Canada: Ended the year with $62.4 million.
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Cash Received from Cobalt Swap: $23.7 million in Q4 2024.
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Nickel Put Options: $4.7 million received in Q4 2024.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sherritt International Corp (SHERF) reported a 22% increase in nickel sales for the full year 2024, demonstrating effective marketing strategies and sales team dedication.
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The company achieved a significant 18% reduction in net direct cash costs (NDCC) due to strategic cost management initiatives.
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The Moa joint venture is nearing completion of phase two of its expansion, with a processing plant scheduled for commissioning and ramp-up this year.
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Electricity production reached a six-year high, driven by operational improvements and increased gas supply from new wells.
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Sherritt International Corp (SHERF) maintained its available liquidity in Canada despite a challenging market environment with declining nickel and cobalt prices.
Negative Points
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Nickel and cobalt prices reached multi-year lows, impacting the company's revenue and financial performance.
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The company faced significant external challenges in Cuba, including natural disasters and nationwide power outages, affecting operations.
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Maintenance costs were higher in 2024 due to efforts to bring additional turbines online and improve equipment availability.
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The current supply-driven pricing environment for critical minerals is expected to persist, posing ongoing challenges.
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Sherritt International Corp (SHERF) anticipates that distributions under the cobalt swap will not meet the annual minimum amount in 2025 due to current market conditions.
Q & A Highlights
Q: Could you provide more details on the operating conditions in Cuba, particularly regarding skilled personnel and any other relevant issues? A: Operating conditions in Cuba have been challenging, especially post-COVID with reduced tourism revenue and political pressures. Despite these challenges, we've successfully navigated these conditions and expect to continue doing so. We've collaborated with Cuban partners to incentivize and retain talent, which should help mitigate the talent exit from the Moa region. We are confident that our actions will positively impact our operations despite the challenging environment. - Leon Binedell, President, CEO