Sherritt Reports Higher Production at Moa JV for Q3 2018

Sherritt International(TSX:S) has reported its financial results for the three – and nine – month periods ended September 30, 2018.

As highlighted in the press release:

• Adjusted EBITDA was C$40.6 million, up 20 percent from C$33.8 million in Q3 2017. The increase was largely due to higher realized nickel and cobalt prices, more than offsetting the impact of lower oil production due to the expiration of a production sharing contract at Varadero West as well as the impact of higher mining and input costs, including increased sulphur and energy expenses. Year-to-date adjusted EBITDA for 2018 has improved by 26 percent to C$126.5 million.
• Sherritt’s share of finished nickel production at the Moa JV was 4,457 tonnes, up 10 percent from last year, while finished cobalt was 465 tonnes, flat from Q3 2017. Nickel production in Q3 2018 improved largely due to the arrival of new mining equipment that enabled Moa to surpass its target mixed sulphide production for the quarter.
• The average-reference price for nickel improved 26 percent from last year to US$6.01/lb while the average-reference price for cobalt increased 22 percent to US$35.21/lb.
• Received C$5.2 million in dividend distributions from the Moa JV. The dividend marks the first that Sherritt has received since Q1 2015, and reflects generally improved nickel market conditions.
• Sherritt ended the quarter with C$207.1 million in cash, cash equivalents and short-term investments, up from $197.2 million at June 30, 2018.
• Net loss was C$13.3 million or C$0.03 on a per share basis. In Q3 2017, Sherritt incurred a net loss of C$69.5 million or C$0.24 per share.

Click here to read the full Sherritt International (TSX:S) press release.