Sherritt International (S) Q3 2025 earnings summary

Executive summary

• Completed Moa JV expansion with the sixth leach train ramping up, positioning for future growth despite operational challenges in Cuba and low nickel prices.

• Significant cost reduction initiatives implemented, targeting $20 million in annual savings, in addition to $17 million from 2024.

• Net loss from continuing operations was $19.5 million in Q3 2025; adjusted net loss was $15.5 million.

• Adjusted EBITDA for Q3 2025 was $1.6 million, down sharply year-over-year.

• Ongoing operational challenges in Cuba, including power outages and maintenance, impacted production volumes.

Financial highlights

• Combined Q3 2025 revenue was $108.4 million, down 14% year-over-year; nine-month revenue was $369.7 million, down 11%.

• Net loss from continuing operations was $19.5 million ($0.04/share) in Q3 2025; adjusted net loss was $15.5 million ($0.03/share).

• Adjusted EBITDA for Q3 2025 was $1.6 million, down 85% year-over-year.

• Cash and cash equivalents totaled $120.2 million as of September 30, 2025; available liquidity in Canada was $45.2 million.

• Loans and borrowings decreased 15% year-over-year to $316.2 million.

Outlook and guidance

• 2025 finished nickel production guidance revised down to 25,000–26,000 tonnes (from 27,000–29,000); cobalt to 2,700–2,800 tonnes (from 3,000–3,200) due to operational challenges and hurricane impacts.

• NDCC guidance remains unchanged at US$5.75–$6.25/lb, reflecting effective cost management and higher byproduct credits.

• Power segment guidance for production, unit costs, and capital spending remains unchanged.

• Total 2025 capital spending expected at $69 million, slightly below prior guidance, with some tailings facility expenditures deferred to 2026.

• No expected Q4 distributions under the cobalt swap agreement; shortfall to be added to 2026 minimum payment.