Canadian nickel and cobalt producer Sherritt's Q3 net loss widens on production halt

Overview

• Canada nickel and cobalt producer's Q3 revenue flat yr/yr

• Company posted C$79.3 mln net loss and negative adjusted EBITDA as operations remained suspended

• Sherritt temporarily laid off 47% of Canadian workforce in early November to preserve liquidity

Outlook

• Sherritt says restart of mining and refining operations depends on further OFAC emergency licenses

• Company anticipates continued production of ammonia fertilizer and sulphuric acid at Fort Site in Q4

Result Drivers

• OPERATIONS HALTED - Mining and refining activities at Moa JV and Fort Saskatchewan refinery ceased due to US sanctions and fuel supply disruptions

• FERTILIZER FOCUS - Co prioritized fertilizer production and sales, increasing volumes and prices compared to prior year

• ELECTRICITY OPERATIONS CONTINUED - Energas electricity production was not affected by fuel supply disruptions, but output declined due to higher participation in frequency control

Company press release:

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)