TORONTO (miningweekly.com) – TSX-listed nickel and cobalt producer Sherritt International will cut its salaried workforce by 10%, excluding employees at its Ambatovy nickel and cobalt mine, in Madagascar, as part of its company-wide restructuring process.
Sherritt, which had started a process to sell its Toronto head-office building, where staff had been reduced by one-quarter, said on Wednesday that it expected to recognise a $9-million, one-off charge related to the restructuring in the fourth quarter.
The company, which experienced a net loss of C$51.3-million, or C$0.17 a share, for the three months ended September 30 compared with earnings of C$1.1-million, or nil a share, a year earlier, explained that it was eyeing savings of up to C$10-million a year.
Sherritt pointed out that its third-quarter loss was mainly owing to C$41-million of depreciation recognised on the value of the Ambatovy joint venture, as well as higher income-tax expenses.
The company's revenue for the quarter under review was up 55% to C$302.7-million from C$195.3-million a year earlier on an adjusted basis, boosted by the ramp-up of its Ambatovy mine.
The Toronto-based miner, a specialist in mining and refining nickel from lateritic ores at its operations in Canada, Cuba and Madagascar, also operates three commercial oil fields in Cuba, where it is the largest independent oil producer.
Earlier in the month, Sherritt undertook a number of transactions that would reduce its outstanding debt by $425-million and spread out debt over a longer period, with payments, each of about $250-million, due in 2018, 2020 and 2022.
On Monday, Sherritt announced a share buyback programme, with the aim of buying and cancelling up to 5% of common shares over the next 12 months.
Sherritt’s TSX-listed stock on Wednesday closed up 6.32% at C$2.86 apiece.