February 5, 2025 — Sherritt International Corporation ("Sherritt" or the "Corporation") (TSX: S), a pioneer in hydrometallurgical processes for nickel and cobalt mining and refining, has released its financial results for the fourth quarter and full year ended December 31, 2024. The Corporation showcased remarkable operational resilience amidst challenging market conditions, particularly in nickel.

1. Fourth Quarter Highlights

In the fourth quarter of 2024, Sherritt achieved significant production milestones:

Nickel Production: Finished nickel production at the Moa Joint Venture (Moa JV) reached 3,853 tonnes, marking a 3% increase year-over-year.

Cobalt Production: Finished cobalt production totaled 465 tonnes, a robust 41% increase compared to the previous year.

Sales Performance: Finished nickel sales amounted to 4,326 tonnes, the highest quarterly sales in two years, representing a 23% increase from Q4 2023. Cobalt sales remained steady at 465 tonnes.

Revenue for the quarter totaled $45.7 million, a substantial 31% increase from $34.8 million in Q4 2023. This growth is attributed primarily to higher sales volumes, despite a backdrop of challenging nickel prices, with average-realized prices per pound declining by 8%.

Operational Excellence and Cost Management

Sherritt's President and CEO, Leon Binedell, highlighted the Corporation's operational excellence, noting that net direct cash costs (NDCC) improved significantly, coming in at US$5.44/lb for Q4 2024, down 31% from US$7.87/lb year-over-year. This reduction was driven by cost efficiencies in mining and processing despite a 41% decline in cobalt by-product credits due to lower average-realized prices.

The Corporation also reported that electricity production in Q4 was 171 GWh, despite nationwide power outages in Cuba. The Power division has played a critical role in stabilizing the national grid, showcasing Sherritt's strategic value in energy production.

2. Annual Results and Financial Position

For the full year 2024, Sherritt recorded:

Total Revenue: $158.8 million, down 29% from $223.3 million in 2023.

Net Loss from Continuing Operations: $73.1 million (or $(0.18) per share), an increase from the $64.3 million loss in 2023.

Adjusted EBITDA: $32.4 million, down 30% from $46.2 million in the previous year.

Despite the net loss, Sherritt's financial position remains robust, with an available liquidity of $62.4 million as of December 31, 2024. The Corporation also benefited from a $30 million distribution from the resumption of the Cobalt Swap initiative, strengthening its cash flow.

Strategic Initiatives and Future Outlook

Looking towards 2025, Sherritt sets ambitious production targets:

Nickel Production: Projected between 31,000 to 33,000 tonnes.

Cobalt Production: Expected between 3,300 to 3,600 tonnes.

Binedell emphasized the importance of operational excellence and strategic initiatives, including the ongoing expansion of Moa JV and the development of a mixed hydroxide precipitate project aimed at the North American electric vehicle market.

Sherritt plans to continue improving operational efficiencies while navigating external market pressures, particularly those driven by supply pressures from major producers in China and Indonesia.

Conclusion

Sherritt International Corporation's fourth quarter and full year results reflect a resilient operational performance that positions the Corporation for future growth amidst challenging market conditions. With strategic initiatives aimed at enhancing operational efficiencies and increasing production capacity, Sherritt is well-prepared to capitalize on the growing demand for nickel and cobalt in the energy transition landscape.

For more information, Sherritt will hold a conference call and webcast on February 6, 2025, at 10:00 a.m. Eastern Time. Investors and analysts are encouraged to participate to gain further insights into the Corporation's financial performance and strategic direction.

Contact Information:

Website: www.sherritt.com

Phone: +1 (800) 717-1738 for North American callers, +1 (289) 514-5100 for international callers. Passcode: 62973.

Original press release