TORONTO (miningweekly.com) – Canadian nickel, oil and gas firm Sherritt International earned C$48,3-million in the fourth quarter, compared with a C$592,1-million loss a year earlier, when the company recorded a large goodwill impairment on its holding in the Ambatovy nickel project, in Madagascar.

Operating cash flow for the fourth quarter of 2009 was C$92,8-million, after a working capital increase of C$16,7-million, compared with operating cash flow of C$279,9-million in the same period of 2008.

Sherritt sold 9,3-million pounds of nickel, one-million pounds of cobalt, 9,4-million tons of thermal coal, 1,2-million barrels of oil and 175 GWh of electricity in the fourth quarter of 2009.

The company ended the year with consolidated cash, cash equivalents and short-term investments of C$861,6-million.

Capital expenditure in the fourth quarter amounted to C$365,4-million, including C$298,7-million for the Ambatovy project (on a 100% basis).

Sherritt owns 40% of the Ambatovy project, Sumitomo and a consortium led by Korea Resources each have a 27,5% stake in the mine, and the project's engineering contractor, SNC-Lavalin, also has a 5% interest.

Once in full production, the mine is expected to produce 60 000 t/y of nickel and 5 600 t/y of cobalt.

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