NICKEL: Sherritt reports increased production from Ambatovy

MADAGASCAR – Sherritt International Corp. of Toronto reported higher nickel and cobalt production from the Ambatovy nickel mine in the second quarter compared to the first quarter of 2014. Total nickel output was up 26% to 9,004 tonnes, and cobalt output was up 14% to 712 tonnes.

Sherritt also noted that Q2 2014 was the first period during which Ambatovy reported a positive adjusted earnings before interest, tax, depreciation and amortization (EBITDA). The total was $5.3 million for the mine, and Sherritt's 40% interest was $2.1 million.

Sherritt said the average ore throughput in the pressure acid leaching circuit was 58% in Q2, compared to 67% in Q1. The decrease was the result of unanticipated mechanical problems in valves and piping systems and poor thickener performance downstream of the autoclaves. The autoclaves demonstrated better performance, operating 6,911 hours in Q2 compared to 6,740 hours in Q1.

The company recorded a net loss for the three months ended June 30, 2014, of $30.1 million. Details are available in the July 30, 2014, news release posted at Sherritt.com.