Sherritt International (S) investor relations material

Executive summary

• Q2 2025 results were impacted by operational challenges in Cuba, including U.S. policy pressures and lower mixed sulphides production at Moa, with a recovery plan and task force implemented.

• Significant cost reduction initiatives, including workforce and executive team reductions, are projected to deliver $20M in annualized savings, building on $17M from prior measures.

• Strategic debt and equity transactions reduced debt by $68M, lowered annual interest by $3M, and extended debt maturity to 2031, improving liquidity.

• Moa JV phase two expansion commissioning is underway, with ramp-up expected in H2 2025 to increase MSP production.

• Available liquidity in Canada stood at $45M at quarter-end, with Energas dividends contributing $5.6M.

Financial highlights

• Combined Q2 2025 revenue was $135.6M, down 17% year-over-year due to a 15% drop in nickel prices and 14% lower sales volumes.

• Net earnings from continuing operations were $10.4M, compared to a loss of $11.5M in Q2 2024.

• Adjusted net loss from continuing operations was $25.6M, excluding a $32.4M gain from debt and equity transactions.

• Adjusted EBITDA was $2.6M, down from $13.0M year-over-year.

• Cash and cash equivalents at June 30, 2025, were $121.6M; available liquidity in Canada was $45.0M.

Outlook and guidance

• 2025 finished nickel production guidance lowered to 27,000–29,000 tonnes (from 31,000–33,000); cobalt to 3,000–3,200 tonnes (from 3,300–3,600).

• Sustaining capital for metals reduced to $30M and tailings facility spending to $35M for 2025.

• Power production guidance maintained but expected at the lower end of 800–850 GWh due to gas well issues.

• Cobalt swap distributions expected to be limited and below annual minimum; Energas dividends in Canada anticipated at the lower end of $25M–$30M.

• NDCC guidance for Metals unchanged at US$5.75–$6.25/lb; Power unit operating cost guidance unchanged at $23.00–$24.50/MWh.