TORONTO – Sherritt International pledged to focus on its core nickel business last year as evidenced by its decision to get out of coal mining. A look at 2013 balance sheet, and readers will know why. Despite higher outputs of nickel and cobalt as well as higher revenues, the company suffered a net loss of $60 million or $0.35 per share.
Sherritt’s nickel production in 2013 was 26,830 tonnes, up 47% from 19,410 tonnes in 2012. Cobalt production also rose to 2,493 tonnes, up 26% from 2,093. Sherritt holds a 50% interest in the Moa nickel joint venture in Cuba and a 40% interest in the Ambatovy nickel joint venture in Madagascar. The Ambatovy project reached commercial production early in 2014.
Late in December 2013 the company announced that it was selling its coal operations for a total consideration of $946 million to two separate enterprises. That triggered a loss from discontinued operations of $508.1 million.
Looking forward in 2014, Sherritt offered guidance of 74,000 to 79,000 tonnes of nickel and 6,650 to 7,150 tonnes of cobalt. The company is also a producer of fertilizer, oil and electrical power.
Details of Q4 and 2013 year end are available at Sherritt.com.