NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO–(BUSINESS WIRE)–Sherritt International Corporation (“Sherritt”, the “Corporation”) (TSX: S), a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition – today reported its financial results for the three and nine months ended September 30, 2025. All amounts are in Canadian dollars unless otherwise noted.
Leon Binedell, Executive Chairman, President and CEO of Sherritt commented, “Sherritt hit an important milestone this quarter with the completion of our Moa expansion project with the sixth leach train commencing its ramp up. The foundation of maximizing the use of existing assets as a platform to build our future success is now complete, with significant dividends flowing to Canada from our Power division and the Metals business now expanded on the back of the extended mine life and the new life-of-mine tailings management facility which is well underway providing certainty on the continuity of operations.
“Our focus on increasing margins during the multi-year low pricing environment will benefit from the further cost reduction initiatives implemented in the quarter inclusive of the reduction in personnel. We anticipate approximately $20 million in annual savings from these measures on top of the $17 million implemented last year. These measures will allow Sherritt to materially benefit from nickel and cobalt price recoveries which we are starting to see in cobalt with the DRC’s new quota system implemented in October. We are pleased to see governments recognizing the value of key refining assets and critical mineral value chains outside of Chinese control and anticipate that Sherritt will benefit in the long term from geopolitical interventions.
“In the near-term, we continue to implement the recovery plan at Moa, which included the mobilization of additional expatriate personnel during the quarter. Overcoming the challenges in the Cuban operating environment remains complex and will take some time to fully resolve in pursuing the necessary steps to restore operations at Moa in line with the planned expansion volumes to fill the refinery,” concluded Mr. Binedell.
THIRD QUARTER 2025 SELECTED DEVELOPMENTS
- Significant organizational cost reductions were implemented during the quarter which included a further workforce reduction with a focus on non-operating roles across Canadian operations. The cost reduction initiatives are anticipated to deliver approximately $20.0 million in annual savings (100% basis) and are in addition to the $17.0 million in annual savings (100% basis) achieved through the 2024 initiatives.
- Finished nickel and cobalt production at the Moa Joint Venture (“Moa JV”) was 2,426 tonnes and 228 tonnes, respectively, (Sherritt’s share(1)) reflecting the planned annual plant shutdown occurring at the refinery during the quarter.
- Finished nickel and cobalt sales were 2,740 tonnes and 262 tonnes, respectively.
- Net direct cash cost (“NDCC”)(2) was US$6.67/lb with lower nickel production and sales and higher input commodity prices contributing to higher costs partially offset by ongoing cost optimization initiatives.
- Electricity production was 243 GWh benefitting from a new gas well that was brought online in Q4 2024, additional gas provided from existing wells and a replacement gas well that was brought online in Q3 2025 to offset the loss of gas production from the legacy CUPET well. Electricity production in Q3 2025 also reflects the Varadero facility returning to normal operations during July and August without frequency control.
- Electricity unit operating cost(2) was $12.23/MWh primarily reflecting lower planned maintenance and higher electricity production and sales.
- Net loss from continuing operations was $19.5 million, or $(0.04) per share.
- Adjusted net loss from continuing operations(2) was $15.5 million or $(0.03) per share which primarily excludes $3.6 million of severance expense (Sherritt’s share) related to the workforce reduction in the quarter and the impact of other revaluation gains and losses.
- Adjusted EBITDA(2) was $1.6 million.
- Updates to 2025 Guidance:
- At Metals, during the quarter, significant challenges in the general operating environment in Cuba continued to result in lower than expected production of mixed sulphides, impacting feed availability at the refinery. As well, Sherritt did not acquire additional third-party feed given the high payabilities in the intermediate market. In late October, subsequent to the quarter end, Hurricane Melissa brought heavy rainfall and power outages to the Moa region resulting in the processing facilities at Moa operating at a reduced rate. All environmental protection and safety activities at sites in Cuba continued uninterrupted, and there were no environmental incidents or injuries reported among personnel or significant damage to mining infrastructure. The processing facilities at Moa are currently operating at a reduced capacity and expected to ramp up to full capacity in the next week. The impact on finished metals production is expected to be partially mitigated by mixed sulphides inventory built up at the refinery during the planned annual plant shutdown. Although Sherritt continues to anticipate production of mixed sulphides will benefit from the ramp up of the sixth leach train at Moa and the implementation of the recovery plan for Moa operations, the mixed sulphides inventory available at the refinery during the fourth quarter will be lower than originally anticipated. As a result, Sherritt is revising its full year 2025 production guidance range for finished nickel from 27,000 to 29,000 tonnes to 25,000 to 26,000 tonnes and finished cobalt from 3,000 to 3,200 tonnes to 2,700 to 2,800 tonnes.
- NDCC(2) guidance of US$5.75/lb to US$6.25/lb, remains unchanged, benefiting from the ongoing cost optimization initiatives and higher cobalt by-product credits, offsetting the lower nickel production and sales and higher sulphur prices.
- At Power, guidance for production volumes, unit operating costs(2) and spending on capital(2) remain unchanged.
- Total spending on capital(2) for 2025 is now expected to be $69.0 million slightly below the previously provided guidance of $72.0 million with spending related to the tailings facility slightly lower and growth spending slightly higher.
- Available liquidity in Canada as at September 30, 2025 was $45.2 million.
- Power dividends in Canada were $8.3 million in Q3 2025, totaling $18.2 million for the nine months ended September 30, 2025.
- Phase two of the Moa JV expansion in ramp up. During the quarter, the sixth leach train was tested and successfully demonstrated the operability of the train and following the quarter end in October, commissioning was completed.
|
(1) |
References to operational and financial metrics in this press release, unless otherwise indicated, are to “Sherritt’s share” which is consistent with the Corporation’s definition of reportable segments for financial statement purposes. Sherritt’s share of “Metals” includes the Corporation’s 50% interest in the Moa JV, its 100% interest in the utility and fertilizer operations in Fort Saskatchewan (“Fort Site”) and its 100% interests in subsidiaries established to buy, market and sell certain of the Moa JV’s nickel and cobalt production and the Corporation’s cobalt inventory received under the Cobalt Swap agreement (“Metals Marketing”). Sherritt’s share of Power includes the Corporation’s 33⅓% interest in Energas. References to Corporate and Other and Oil and Gas includes the Corporation’s 100% interest in these businesses. Corporate and Other refers to the Corporate head office and growth and market development support. Fort Site refers to the Corporation’s 100% interest in the utility and fertilizer operations. |
|
(2) |
Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release. |
|
(3) |
For additional information on the Cobalt Swap, see Note 12 – Advances, loans receivable and other financial assets of the consolidated financial statements for the year ended December 31, 2024. |
DEVELOPMENTS SUBSEQUENT TO THE QUARTER
Subsequent to the quarter end, Sherritt paid $12.3 million in interest on its Amended Senior Secured Notes.
|
Q3 2025 FINANCIAL HIGHLIGHTS |
|||||||||||||||||
|
For the three months ended |
For the nine months ended |
||||||||||||||||
|
$ millions, except per share amount |
2025 September 30 |
2024 September 30 |
Change |
2025 September 30 |
2024 September 30 |
Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Revenue |
$ |
39.7 |
|
$ |
32.9 |
|
21 |
% |
$ |
121.8 |
|
$ |
113.1 |
|
8 |
% |
|
|
Combined revenue(1) |
|
108.4 |
|
|
126.4 |
|
(14 |
%) |
|
369.7 |
|
|
417.3 |
|
(11 |
%) |
|
|
Loss from operations and joint venture |
|
(12.6 |
) |
|
(2.3 |
) |
(448 |
%) |
|
(63.8 |
) |
|
(26.6 |
) |
(140 |
%) |
|
|
Net (loss) earnings from continuing operations |
|
(19.5 |
) |
|
1.8 |
|
nm(2) |
|
(49.7 |
) |
|
(50.6 |
) |
2 |
% |
||
|
Net (loss) earnings for the period |
|
(19.5 |
) |
|
2.1 |
|
nm(2) |
|
(49.9 |
) |
|
(49.9 |
) |
– |
|
||
|
Adjusted EBITDA(1) |
|
1.6 |
|
|
10.5 |
|
(85 |
%) |
|
8.6 |
|
|
17.0 |
|
(49 |
%) |
|
|
Adjusted loss from continuing operations(1) |
|
(15.5 |
) |
|
(11.5 |
) |
(35 |
%) |
|
(63.3 |
) |
|
(46.1 |
) |
(37 |
%) |
|
|
Net (loss) earnings from continuing operations ($ per share) |
|
(0.04 |
) |
|
0.00 |
|
– |
|
|
(0.11 |
) |
|
(0.13 |
) |
15 |
% |
|
|
Adjusted loss from continuing operations ($ per share)(1) |
|
(0.03 |
) |
|
(0.03 |
) |
– |
|
|
(0.14 |
) |
|
(0.12 |
) |
(17 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Cash provided (used) by continuing operations for operating activities |
|
2.5 |
|
|
20.4 |
|
(88 |
%) |
|
9.1 |
|
|
(4.4 |
) |
307 |
% |
|
|
Combined free cash flow(1) |
|
(24.0 |
) |
|
10.2 |
|
(335 |
%) |
|
(27.8 |
) |
|
(1.0 |
) |
nm(2) |
||
|
Average exchange rate (CAD/US$) |
|
1.377 |
|
|
1.366 |
|
1 |
% |
|
1.399 |
|
|
1.362 |
|
3 |
% |
|
|
$ millions, as at |
|
|
|
2025 September 30 |
2024 December 31 |
Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Canada |
|
|
|
|
|
$ |
14.9 |
$ |
32.1 |
(54 |
%) |
||||||
|
Cuba(3) |
|
|
|
|
|
|
103.8 |
|
113.0 |
(8 |
%) |
||||||
|
Other |
|
|
|
|
|
|
1.5 |
|
0.6 |
150 |
% |
||||||
|
|
|
|
|
|
|
|
120.2 |
|
145.7 |
(18 |
%) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Loans and borrowings |
|
|
|
|
|
316.2 |
|
372.5 |
(15 |
%) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
The Corporation’s share of cash and cash equivalents in the Moa Joint Venture, not included in the above balances: |
|
$ |
5.0 |
$ |
5.7 |
(13 |
%) |
||||||||||
|
(1) |
Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release. |
|
(2) |
Not meaningful (“nm”). |
|
(3) |
As at September 30, 2025, $102.6 million of the Corporation’s cash and cash equivalents was held by Energas (December 31, 2024 – $111.4 million). |
Cash and cash equivalents were $120.2 million as at September 30, 2025 compared to $121.6 million as at June 30, 2025.
As at September 30, 2025, total available liquidity in Canada was $45.2 million, composed of cash and cash equivalents in Canada of $14.9 million and available credit facilities of $30.3 million which was unchanged from June 30, 2025. During the quarter, cash inflows included $8.3 million of dividends in Canada from Energas for a total of $18.2 million during the nine month period ended September 30, 2025 and cash provided by operating activities primarily reflecting timing of working capital receipts and payments, including fertilizer sales receipts and $17.7 million of fertilizer pre-buys at Fort Site. Offsetting these inflows were $3.0 million of transaction costs related to the Debt and Equity Transactions and $2.7 million of expenditures on property, plant and equipment.
At current spot prices and based on revised 2025 guidance for Metals production volumes and spending on capital(1) disclosed in the Outlook section of this press release, the Corporation no longer expects cobalt or cash distributions to be received under the Cobalt Swap agreement in the fourth quarter of 2025. As previously disclosed and as defined by the Cobalt Swap agreement, the expected shortfall in the annual minimum payment in 2025 will be added to the annual minimum payment in 2026.
The Corporation expects to provide an update regarding anticipated distributions under the Cobalt Swap agreement when it publishes its 2026 guidance in early 2026.
The Moa JV’s cash and cobalt distributions to the Corporation are determined based on available cash in excess of liquidity requirements. Determinants of the Moa JV’s liquidity include but are not limited to, anticipated nickel and cobalt prices and sales volumes, spending on capital at the Moa JV, financing, working capital, and other liquidity requirements. Available cash is also impacted by changes in working capital primarily related to changes in inventory, and timing of receipts and payments, including receipts on nickel and cobalt sales subsequent to shipment.
Consistent with the Corporation’s expectations in the second quarter and based on 2025 guidance for Power, which anticipates electricity production at the lower end of the guidance range, Sherritt expects total dividends in Canada from Energas in 2025 to be at the lower end of its previously disclosed range of $25.0 million to $30.0 million.
Refer to the risks related to Sherritt’s corporate structure in the Corporation’s 2024 Annual Information Form for further information on risks related to distributions from the Moa JV and dividends in Canada from Energas.
As at September 30, 2025, the Corporation was in compliance with all its debt covenants.
REVIEW OF OPERATIONS
|
Metals |
|||||||||||||||||||||
|
|
For the three months ended |
|
For the nine months ended |
|
|||||||||||||||||
|
$ millions (Sherritt’s share), except as otherwise noted |
2025 September 30 |
2024 September 30 |
Change |
2025 September 30 |
2024 September 30 |
Change |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
FINANCIAL HIGHLIGHTS(1) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Revenue |
$ |
94.1 |
|
$ |
112.6 |
|
(16 |
%) |
$ |
332.5 |
|
$ |
378.3 |
|
(12 |
%) |
|||||
|
Cost of sales |
|
106.8 |
|
|
110.1 |
|
(3 |
%) |
|
356.0 |
|
|
385.7 |
|
(8 |
%) |
|||||
|
(Loss) earnings from operations |
|
(14.4 |
) |
|
0.8 |
|
nm(3) |
|
(30.4 |
) |
|
(17.5 |
) |
(74 |
%) |
||||||
|
Adjusted EBITDA(2) |
|
(1.5 |
) |
|
14.9 |
|
(110 |
%) |
|
11.8 |
|
|
25.4 |
|
(54 |
%) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
CASH FLOW(1) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Cash provided by continuing operations for operating activities(2) |
$ |
(9.2 |
) |
$ |
34.8 |
|
(126 |
%) |
$ |
32.7 |
|
$ |
87.2 |
|
(63 |
%) |
|||||
|
Free cash flow(2) |
|
(17.9 |
) |
|
24.2 |
|
(174 |
%) |
|
(0.1 |
) |
|
59.4 |
|
(100 |
%) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
PRODUCTION VOLUMES (tonnes) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Mixed sulphides (“MSP”)(4) |
|
3,720 |
|
|
4,148 |
|
(10 |
%) |
|
10,115 |
|
|
12,295 |
|
(18 |
%) |
|||||
|
Finished nickel |
|
2,426 |
|
|
4,333 |
|
(44 |
%) |
|
8,804 |
|
|
11,313 |
|
(22 |
%) |
|||||
|
Finished cobalt |
|
228 |
|
|
454 |
|
(50 |
%) |
|
940 |
|
|
1,138 |
|
(17 |
%) |
|||||
|
Fertilizer |
|
49,253 |
|
|
65,205 |
|
(24 |
%) |
|
170,280 |
|
|
182,624 |
|
(7 |
%) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
NICKEL RECOVERY(5) (%) |
|
82 |
% |
|
85 |
% |
(4 |
%) |
|
83 |
% |
|
87 |
% |
(5 |
%) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
SALES VOLUMES (tonnes) |
|
|
|
|
|
|
|
|
|
||||||||||||
|
Finished nickel |
|
2,740 |
|
|
3,538 |
|
(23 |
%) |
|
9,435 |
|
|
11,352 |
|
(17 |
%) |
|||||
|
Finished cobalt |
|
262 |
|
|
421 |
|
(38 |
%) |
|
1,098 |
|
|
1,173 |
|
(6 |
%) |
|||||
|
Fertilizer |
|
27,948 |
|
|
31,245 |
|
(11 |
%) |
|
105,682 |
|
|
115,836 |
|
(9 |
%) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
AVERAGE-REFERENCE PRICE(6) (US$ per pound) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nickel |
$ |
6.81 |
|
$ |
7.37 |
|
(8 |
%) |
$ |
6.92 |
|
$ |
7.74 |
|
(11 |
%) |
|||||
|
Cobalt |
|
17.17 |
|
|
12.25 |
|
40 |
% |
|
15.86 |
|
|
13.16 |
|
21 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
AVERAGE-REALIZED PRICE(2) (CAD) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nickel ($ per pound) |
$ |
9.42 |
|
$ |
10.11 |
|
(7 |
%) |
$ |
9.67 |
|
$ |
10.41 |
|
(7 |
%) |
|||||
|
Cobalt ($ per pound) |
|
18.52 |
|
|
12.42 |
|
49 |
% |
|
16.23 |
|
|
13.70 |
|
18 |
% |
|||||
|
Fertilizer ($ per tonne) |
|
517.25 |
|
|
434.58 |
|
19 |
% |
|
571.57 |
|
|
503.33 |
|
14 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
UNIT OPERATING COST(2)(US$) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Nickel – net direct cash cost (US$ per pound) |
$ |
6.67 |
|
$ |
5.16 |
|
29 |
% |
$ |
5.95 |
|
$ |
6.10 |
|
(2 |
%) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
SPENDING ON CAPITAL(2)(CAD) |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Sustaining |
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Moa JV (50% basis), Fort Site (100% basis) |
$ |
4.9 |
|
$ |
2.8 |
|
75 |
% |
$ |
21.3 |
|
$ |
13.8 |
|
54 |
% |
|||||
|
Moa JV – Tailings facility (50% basis) |
|
7.2 |
|
|
4.7 |
|
53 |
% |
|
17.0 |
|
|
8.5 |
|
100 |
% |
|||||
|
Growth – Moa JV (50% basis) |
|
2.3 |
|
|
3.7 |
|
(38 |
%) |
|
6.3 |
|
|
6.1 |
|
3 |
% |
|||||
|
|
$ |
14.4 |
|
$ |
11.2 |
|
29 |
% |
$ |
44.6 |
|
$ |
28.4 |
|
57 |
% |
|||||
|
(1) |
The amounts included in the Financial Highlights, and cash flow sections for Metals above include the combined results of the Moa JV, Fort Site and Metals Marketing. Breakdowns of revenue, Adjusted EBITDA, and the components of free cash flow (cash provided (used) by continuing operations for operating activities and Property, plant and equipment expenditures) for each of these operations are included in the Combined Revenue, Adjusted EBITDA and Free cash flow reconciliations, respectively, in the Non-GAAP and other financial measures section of this press release. |
|
(2) |
Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release. |
|
(3) |
Not meaningful (“nm”). |
|
(4) |
Mixed sulphides = mixed sulphide precipitate (MSP). |
|
(5) |
The nickel recovery rate measures the amount of finished nickel that is produced compared to the original nickel content of the ore that was mined. |
|
(6) |
Reference sources: Nickel – London Metal Exchange (“LME”). Cobalt – Average chemical-grade cobalt price published per Argus. |
Revenue
Metals revenue in Q3 2025 was $94.1 million compared to $112.6 million in Q3 2024.
Nickel revenue in Q3 2025 was $56.9 million compared to $78.8 million in Q3 2024. Revenue was lower primarily due to lower nickel sales volume and average-realized price(1). Sales volume of 2,740 tonnes compared to 3,538 tonnes in Q3 2024 primarily as a result of lower finished production outlined below. The average-realized price(1) of nickel of $9.42/lb was 7% lower compared to Q3 2024.
Cobalt revenue in Q3 2025 was $10.7 million compared to $11.5 million in Q3 2024 due to lower sales volume partially offset by higher average-realized price(1). Sales volume was 262 tonnes compared to 421 tonnes in Q3 2024. The average-realized price(1) of cobalt of $18.52/lb was 49% higher compared to Q3 2024.
Fertilizer revenue in Q3 2025 was $14.5 million compared to $13.6 million in Q3 2024. Fertilizer revenue was higher due to the higher average-realized price(1), partially offset by lower sales volume. The average-realized price(1) of fertilizers of $517.25/tonne was 19% higher compared to Q3 2024. Sales volume of 27,948 tonnes compared to 31,245 tonnes in Q3 2024. Lower sales volume reflects the lower fertilizer production in Q3 2025 consistent with lower metals production.
Cobalt Swap
There were no sales of cobalt from the Cobalt Swap in either Q3 2025 or Q3 2024.
Variances in cobalt sales volumes, revenue and cost of sales are, in part, dependent upon the timing of receipts of cobalt and their subsequent sale by Sherritt under the Cobalt Swap agreement compared to sales of cobalt produced and sold directly by the Moa JV. Sales volumes, revenue and costs of sales of cobalt received by Sherritt under the Cobalt Swap agreement are recognized by Sherritt on a 100% basis versus a 50% basis for cobalt produced and sold directly by the Moa JV.
While the timing of the sales under the Cobalt Swap or by Moa JV directly results in variances in sales volumes, revenue and cost of sales, it does not have a material impact on earnings from operations, average-realized prices(1), cobalt by-product credits(2), or NDCC(1). This is because the variance in revenue and costs of Sherritt’s share of cobalt under the Cobalt Swap is offset by Sherritt’s share of revenue and costs of the Moa JV and the cost of cobalt sold on volumes of cobalt redirected from GNC is determined based on the in-kind value of cobalt calculated as the cobalt reference price from the month preceding distribution less a mutually agreed selling cost adjustment.
At current spot prices and based on revised 2025 guidance for Metals production volumes and spending on capital(1) disclosed in the Outlook section of this press release, the Corporation no longer expects cobalt or cash distributions to be received under the Cobalt Swap agreement in the fourth quarter of 2025. As previously disclosed and as defined by the Cobalt Swap agreement, the expected shortfall in the annual minimum payment in 2025 will be added to the annual minimum payment in 2026.
The Corporation expects to provide an update regarding anticipated distributions under the Cobalt Swap agreement when it publishes its 2026 guidance in early 2026.
Refer to the risks related to Sherritt’s corporate structure in the Corporation’s 2024 Annual Information Form for further information on risks related to distributions from the Moa JV.
Production
Mixed sulphides production at the Moa JV in Q3 2025 was 3,720 tonnes compared to 4,148 tonnes in Q3 2024. Lower production in Q3 2025 was mainly the result of the ongoing challenging economic conditions and operating environment in Cuba including a nationwide power outage in September 2025 and unplanned maintenance of the processing facilities in Moa.
Sherritt and its Cuban partner continue to pursue a long-term recovery plan that was announced in July 2025 to address and mitigate ongoing operational challenges which are a result of the current economic conditions in Cuba. Immediate priorities included increasing expatriate technical support for the slurry preparation plants and adding additional expatriate personnel with mining operations, maintenance and optimization expertise to improve equipment availability and reduce maintenance downtime. The joint venture is currently expediting these solutions to drive higher mixed sulphides production.
Sherritt’s share of finished nickel and cobalt production in Q3 2025 was 2,426 tonnes and 228 tonnes, compared to 4,333 tonnes and 454 tonnes, respectively, in Q3 2024. In Q3 2025 production was lower due to the planned annual refinery maintenance shutdown. The annual shutdown occurred during the second quarter in 2024. Lower mixed sulphides feed availability from the mine site, a disruption in hydrogen supply from a third party and unplanned maintenance to processing equipment at the refinery also resulted in lower finished production. During the quarter, Sherritt processed previously contracted available third-party feed but did not acquire additional third-party feeds given the high payabilities in the intermediate market.
Fertilizer production in Q3 2025 was 49,253 tonnes compared to 65,205 tonnes in Q3 2024 primarily due to lower metals production.
NDCC(1)
NDCC(1) per pound of nickel sold in Q3 2025 was US$6.67/lb compared to US$5.16/lb in Q3 2024. In 2025, lower nickel sales volume compared to 2024 impacted NDCC(1).
MPR/lb was slightly higher driven by higher input commodity prices. In Q3 2025, sulphur prices were 75% higher while fuel oil natural gas, and diesel prices were 17%, 16% and 7% lower, respectively. MRP/lb in Q3 2025 also includes the impact of annual maintenance shutdown which was completed during the quarter compared to 2024 when the annual maintenance shutdown occurred during the second quarter. Partially offsetting these impacts were benefits from ongoing cost optimization initiatives. Third-party feed costs were higher as a result of processing more previously contracted third-party feed compared to Q3 2024. Cobalt by-product credits were higher primarily as a result of 49% higher average-realized cobalt price(1) and the impact of lower nickel sales volume which offset lower cobalt sales volumes. Fertilizer net by-product credits were lower in Q3 2025 driven by the impact of lower fertilizer sales volume and higher planned maintenance costs, partly offset by higher fertilizer prices.
Spending on capital(1)
Sustaining spending on capital in Q3 2025 was $4.9 million compared to $2.8 million in Q3 2024 primarily related to receipt of additional mining equipment.
Sustaining spending on capital related to the tailings facility in Q3 2025 was $7.2 million compared to $4.7 million in Q3 2024 and in line with the planned ramp up in project activity.
Growth spending on capital in Q3 2025 was $2.3 million compared to $3.7 million in Q3 2024.
|
(1) |
Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release. |
|
(2) |
Cobalt by-product credits include Sherritt’s share of cobalt revenue per pound of nickel sold only. |
Expansion program and strategic developments
Moa JV expansion program
During the quarter, commissioning of phase two of the Moa JV expansion was completed and the ramp up commenced.
Contacts
For further investor information contact:
Tom Halton
Director, Investor Relations and Corporate Affairs
Telephone: (416) 935-2451
Toll-free: 1 (800) 704-6698
E-mail: investor@sherritt.com
Sherritt International Corporation
Bay Adelaide Centre, East Tower
22 Adelaide St. West, Suite 4220
Toronto, ON M5H 4E3
