Sherritt International (S) Q1 2025 earnings summary

Executive summary

• Strengthened capital structure through major debt restructuring, reducing debt by $43 million, extending maturities to 2031, and lowering annual interest expense by $3 million.

• Commissioned phase two of the Moa JV expansion, with ramp-up expected in the second half of 2025.

• Maintained operational focus and 2025 guidance for Metals and Power segments amid challenging market and Cuban economic conditions.

• Adjusted EBITDA improved to $4.4 million from $(6.5) million year-over-year.

• Available liquidity in Canada was $55.7 million at quarter-end, supported by strong cash flow and asset sales.

Financial highlights

• Combined revenue was $125.7 million, down 2% year-over-year, as higher fertilizer and cobalt sales offset lower nickel and power revenue.

• Net loss from continuing operations was $40.6 million; adjusted net loss was $22.8 million, excluding a $15.7 million non-cash loss on rehabilitation provisions.

• Cash and cash equivalents were $135.6 million at quarter-end, down from $145.7 million at December 31, 2024.

• Working capital was $73.1 million, with a current ratio of 1.29:1.

• Adjusted EBITDA was $4.4 million, a significant year-over-year improvement.

Outlook and guidance

• Expect to benefit from higher cobalt prices in Q2, with average reference price up over 35% sequentially.

• Finished nickel and cobalt production expected to be weighted toward the second half of the year, with Moa JV ramp-up.

• 2025 guidance for production volumes, unit operating costs, and capital spending remains unchanged.

• Power production guidance maintained, with higher electricity production forecast for the remainder of 2025.

• Energas dividends in Canada projected at $25–$30 million for 2025.