Miner Sherritt posts fall in Q2 revenue, cuts 2025 nickel output guidance

Sherritt International

29/07/2025 22:18

Overview

Sherritt Q2 revenue falls 15% yr/yr to C$43.7 mln

Adjusted EBITDA comes in at C$2.6 mln

The miner and refiner of nickel and cobalt lowers metals production guidance due to Cuban challenges

Cost reduction measures to save C$20 mln annually

Outlook

Sherritt lowers 2025 nickel production guidance to 27,000-29,000 tonnes from 31,000 to 33,000 tonnes

Company revises cobalt production guidance to 3,000-3,200 tonnes for 2025 from 3,300 to 3,600 tonnes

Sherritt reduces 2025 sustaining capital guidance to C$30 mln from $35.0 million

Electricity production expected at lower end of 800-850 GWh range

Result Drivers

CUBAN CHALLENGES - Lower production at Moa due to challenging operating environment in Cuba

HIGH PAYABILITIES - Limited ability to supplement Moa JV production with third-party feed due to high Chinese payabilities

COST REDUCTIONS - Workforce reduction and other measures expected to save C$20 mln annually

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
C$43.70 mln
Q2 Net Income
C$10.40 mln
Q2 Adjusted EBITDA
Miss
C$2.60 mln
C$4.20 mln (1 Analyst)
Q2 Combined Free Cash Flow
C$2.80 mln
Q2 Net Income from Cont Ops
C$10.40 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the diversified mining peer group is "buy."

Wall Street's median 12-month price target for Sherritt International Corp is C$0.25, about 40% above its July 28 closing price of C$0.15

Press Release: ID:nBw9k6gyda

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)