Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Sherritt International has withdrawn its guidance for 2020 because of market uncertainties created by the COVID-19 crisis. The company’s production activities will continue.


Finished nickel production at its Moa joint venture and wholly-owned Fort Site in Q1 2020 dropped by 13pc to 3,836mt compared to 4,397mt in Q1 2019. Nickel recovery was down by 1pc to 83pc in the first quarter of 2020 compared to Q1 2019. The decline in production was the result of heavy rain, Canadian rail blockades in February, and shipping vessels from Cuba being delayed.


Finished nickel sales at the Moa joint venture and Fort Site also dropped by 14pc to 3,773mt in Q1 2020 from 4,391mt Q1 2019. 


Sherritt’s revenues from the Moa joint venture and Fort Site in Q1 2020 decreased by 9pc to $66.4mn from $73mn in Q1 2019. Its adjusted EBITDA, however, rose by 140pc to $7.1mn in the first quarter of the year from $3mn in Q1 2019. 


COVID-19 impelled the company to take measures to protect the health and safety of its employees while maintaining production volumes. Therefore, the company did not suffer production losses in Q1 2020. However, Sherritt indicated that it’s prepared uncertainties the virus might create in the future. 



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