- Cuban operational challenges prompted Sherritt to lower its full-year nickel and cobalt production guidance, despite progress on the Moa JV Phase Two expansion
- Debt restructuring reduced obligations by C$68 million and extended maturity to 2031, improving liquidity and cutting annual interest expenses by C$3 million
- Cost-cutting measures, including a 10 per cent workforce reduction in Canada, are expected to deliver C$20 million in annualized savings amid prolonged low nickel prices and a global slowdown in the EV supply chain
- Sherritt International stock (TSX:S) last traded at $0.14
Sherritt International Corp. (TSX:S) reported its financial and operational results for Q2 2025, a quarter marked by debt restructuring, operational headwinds in Cuba, and a renewed focus on cost efficiency.
This content has been prepared as part of a partnership with Sherritt International Corp. and is intended for informational purposes only.
Financial highlights
Sherritt posted net earnings from continuing operations of C$10.4 million, or C$0.02 per share, while adjusted net loss stood at C$25.6 million, or C$(0.06) per share, primarily due to a C$32.4 million gain from recent debt and equity transactions. Adjusted EBITDA came in at C$2.6 million.
The company successfully closed strategic transactions that reduced debt obligations by C$68 million, extended debt maturity to November 2031, and cut annual interest expenses by approximately C$3 million. Liquidity in Canada as of June 30 stood at C$45 million, including C$14.7 million in cash and C$30.3 million in available credit.
Operational performance
At the Moa Joint Venture (Moa JV), Sherritt’s share of finished production totaled 3,431 tonnes of nickel and 389 tonnes of cobalt, with sales slightly lower at 3,256 tonnes and 380 tonnes, respectively. The net direct cash cost was USC$5.27/lb, benefiting from favorable by-product credits and reduced maintenance costs.
Electricity production reached 176 GWh, with the Varadero facility continuing to support Cuba’s national grid through frequency control operations. Despite gas supply challenges from a legacy CUPET well, a new well brought online in late 2024 and a replacement well expected in Q3 2025 are helping stabilize output.
Revised guidance and expansion progress
Due to ongoing challenges in Cuba and limited availability of profitable third-party feedstock, Sherritt revised its 2025 production guidance. Finished nickel production is now expected between 27,000–29,000 tonnes (down from 31,000–33,000), and cobalt between 3,000–3,200 tonnes (down from 3,300–3,600).
Despite these setbacks, the Phase Two expansion of the Moa JV is entering its final commissioning stage, with ramp-up activities slated for the second half of 2025. The expansion includes the addition of a sixth leach train, expected to boost production capacity once operational.
Cost reductions and tightening focus
In response to prolonged low nickel prices and a subdued global EV supply chain outside China, Sherritt announced a 10 per cent workforce reduction across Canadian operations, targeting non-operating roles. These measures are projected to yield C$20 million in annualized savings, on top of the C$17 million saved through 2024 initiatives.
Capital spending guidance was also adjusted: sustaining capital was reduced from C$35 million to C$30 million, and tailings facility spending was deferred from C$40 million to C$35 million, without affecting the overall project timeline.
ESG and market positioning
In May, Sherritt became a participant in the Copper Mark assurance framework, aiming to secure the Nickel Mark for its Fort Saskatchewan refinery. This move aligns with Sherritt’s commitment to responsible production and its strategic positioning in the critical minerals sector.
Leadership commentary
“Extensive challenges within Cuba’s operating environment spurred by the escalating U.S. policies against Cuba are continuing unabated, which have directly impacted our Cuban operations and particularly at Moa, resulting in lower than expected production of mixed sulphides,” the company’s executive chairman, president and CEO, Leon Binedell said in a media statement. “Sherritt has implemented mitigation strategies to protect our interests and operations in Cuba and has a history of overcoming these challenges in collaboration with our partners. We have confidence that we will overcome the current situation; however, it may take additional time to resolve these near-term challenges and to meet our full expansion potential at Moa.”
About Sherritt
Using hydrometallurgical processes to mine and refine nickel and cobalt, Sherritt International Corp. is engaged in the production of these high purity metals from lateritic ore. Its technologies group creates solutions for oil and mining companies around the world to improve environmental performance.
Sherritt International stock (TSX:S) last traded at $0.14. While down 9.38 per cent since the year began, its stock is up 11.54 per cent since the end of May 2025.
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