Canadian miner Sherritt said on Wednesday that the “cobalt swap” – announced last year – had been successfully implemented.

The Toronto-based company has entered into agreements with its Cuban partners to recoup $368-million of outstanding receivables over five years, beginning in January this year.

The agreements, known as the “cobalt swap”, allow the Moa joint venture (JV) in Cuba to prioritise dividend payments in the form of finished cobalt to each partner, and each partner’s share of these cobalt dividends will be redirected to Sherritt as debt repayment.

“The effectiveness of the cobalt swap was proven with almost 75% of cobalt volume for the year received to date. We expect to receive the entire $114-million through cobalt and cash distributions by mid-year, and all cash receipts from the sale of cobalt distributions to be received before the end of the year,” said president and CEO Leon Binedell.

During the first quarter, the Moa JV distributed 1 280 t (100% basis) of the 2 082 t annual maximum volume (61%) of finished cobalt with an in-kind value of $58-million (100% basis), GNC’s 50% share of the distribution ($29-million) was redirected to Sherritt to settle the GNC receivable, Sherritt sold 696 t, or $30-million, of cobalt to third parties during the quarter and the company received $19-million in cash from the sale of cobalt.

Subsequent to the quarter-end, the Moa JV distributed an additional 240 t of cobalt (100% basis) with an in-kind value of $9-million. GNC’s 50% share of the distribution ($5-million) was redirected to Sherritt.

Sherritt sold 152 t, $7-million, of cobalt to third parties and received $13-million in cash from the sale of cobalt.

The company reported net earnings from continuing operations of $13.6-million, or $0.03 a share, for the first quarter. This compares with net earnings of $16.4-million, or $0.04 a share, in the same quarter of 2022.