Sherritt International (S) Q1 2025 earnings summary

Executive summary

• Strengthened capital structure by reducing outstanding debt, lowering annual interest expense by ~$3 million, and extending maturities to late 2031.

• Commissioned phase two of the Moa JV expansion, with ramp-up and increased production expected in H2 2025.

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

• Advanced the MHP project to develop new refining capacity for the electric vehicle supply chain.

• Organizational restructuring reduced executive team size, targeting $17 million in annualized savings.

Financial highlights

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

• Adjusted EBITDA was $4.4 million, a significant improvement from $(6.5) million in Q1 2024.

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

• Available liquidity in Canada was $55.7 million at quarter-end.

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

Outlook and guidance

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

• 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.

• Total dividends from Energas in Canada expected to be $25–$30 million in 2025.

• Cobalt Swap distributions and cash expected in H2 2025, but below annual minimum.