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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Loss

C$79.3 mln

Q3 Adjusted EBITDA

-C$30.2 mln

Q3 Net Income from Cont Ops

-C$79.30 mln


Reuters Recommended Reads

  • Nov 12 - Canadian natural gas producer Birchcliff posts Q3 net income

  • Nov 13 - Canada's Kelt Exploration Q3 sales jump 75% on higher prices

  • Nov 12 - Canada's Hudbay Minerals Q3 revenue beats estimates on higher output


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk