Sherritt hits 2024 production targets despite headwinds
Sherritt International Inc. [S-TSX] President and CEO Leon Binedell said the company’s 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,’’ he said.
“We successfully navigated extraordinary hurdles including hurricanes, an earthquake, and nationwide power outages in Cuba as well as rail and port disruptions in Canada.’’
Binedell was commenting on Sherritt’s fourth quarter and full year 2024 production results. Sherritt said it received total distributions of $29.8 million from a Cobalt Swap agreement, composed of $23.7 million in cash and 223 tonnes of finished cobalt with an in-kind value of $6.1 million. 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.
The shares were unchanged at 15.5 cents and trade in a 52-week range of 36 cents and 15 cents.
Toronto-based Sherritt is a world leader in the mining and refining of nickel and cobalt from lateritic ores. The company ranks as the largest independent energy producer in Cuba, with extensive oil and power operations across the island. Its key asset is a nickel mining joint venture with the Cuban government.
The 50/50 partnership, formed in 1994, involves the extraction and processing of nickel and cobalt from an open pit mine at Moa Bay in eastern Cuba.
The laterite nickel ore is processed on site, producing mixed sulphides (containing nickel and cobalt) that are shipped in bags to Halifax, N.S., and then transported by rail to a refinery in Fort Saskatchewan, Alberta.
In 2024, Sherritt reported finished nickel (100% basis) production of 30,331 tonnes, which was within the company’s guidance range of 30,000 to 32,000 tonnes. That included 7,705 tonnes in the fourth quarter.
The company reported finished cobalt production of 3,206 tonnes in 2024, including 930 tonnes in the fourth quarter, which was also within the guidance range of 3,100 to 3,400 tonnes.
Sherritt was in the news last year when a nationwide power outage on October 18, reduced the Moa Bay site’s operating capacity to 50% to 60%. However, Sherritt’s electricity production was within its guidance range on the strength of additional gas from new gas wells, including a new well that was put into production in the fourth quarter. Full year 2024 electricity production was 816 GWh, 33 and 1/3% basis) and 171 GWh in the fourth quarter.
Sherritt expects to report its complete operational and financial results for the fourth quarter and year ended December 31, 2024, on February 5, 2025 after market close.
The company’s 2025 guidance for production, unit operating costs and spending on capital will also be provided with year-end 2024 results.