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Sherritt International’s Q1 net earnings down 29%

24th April 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Global diversified miner Sherritt International on Wednesday reported a 29% slide in its first-quarter net profit to $23.1-million or $0.08 a share, compared with $32.4-million or $0.11 per share in the year-earlier quarter.

Revenue for the quarter ended March 31 was $286.5-million, down from $359.4-million, owing to lower sales volumes from its coal division’s Prairie operations as a result of the termination of the mining contract at the Highvale mine at the start of the quarter; lower export thermal coal volumes at its Mountain operations as a result of reduced shipping capacity at the Westshore terminal and inadequate rail service; lower nickel and cobalt prices and volumes; higher operating costs in its metals segment; and lower realised prices and sales volumes for oil.

Sherritt's share of sales volumes for the 2013 first quarter totalled 8.6-million pounds of finished nickel, 0.9-million pounds of finished cobalt, 6.3-million tonnes of thermal coal, 1-million barrels of oil and 160 GWh of electricity.

Sales volumes in first quarter do not include sales from the Ambatovy joint venture (JV), in Madagascar. Finished metal sold from the Ambatovy JV will not be categorised as sales volumes until the declaration of commercial production, defined as 70% of ore throughput of nameplate capacity in the pressure acid leach circuit over a thirty-day period.

Sherritt, which has projects and operations in Canada, Cuba, Indonesia and Madagascar, lost 2.92% on the TSX on Wednesday to trade at C$4.32 a share in afternoon trade.

Edited by Creamer Media Reporter

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