Sherritt Reports Q1 Results and Successful Implementation of the Cobalt
Sherritt International Corporation 1
For immediate release
Sherritt Reports Q1 Results and Successful Implementation of the Cobalt
Swap
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto – May 10, 2023 – Sherritt International Corporation (“Sherritt”, the “Corporation”) (TSX: S), a world leader in using
hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition , today
reported its financial results for the three months ended March 31, 2023. All amounts are in Canadian currency unless otherwise
noted.
“We are pleased with our continued accomplishments in the first quarter of this year,” said Leon Binedell, President and CEO of
Sherritt International. “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 US$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.”
Mr. Binedell continued, “In addition, we published our NI 43 -101 Technical Report for the Moa JV which more than doubles
reserves and extends the life of mine to 26 years . This technical repo rt underpins and validates our long -term strategy for
producing low cost, high purity nickel and cobalt.”
SELECTED Q1 2023 DEVELOPMENTS
• Net earnings from continuing operations was $13.6 million, or $0.03 per share in Q1 2023, compared to net earnings
from continuing operation of $16.4 million, or $0.04 per share, in Q1 2022.
• Adjusted EBITDA(1) in the quarter was $40 million compared to $59 million in Q1 2022.
• In accordance with the Cobalt Swap:
o The Moa JV distributed 1,280 tonnes (100% basis) of the 2,082 annual maximum volume (61%) of finished
cobalt with an in-kind value of $58 million (100% basis);
o GNC’s 50% share of the distribution ($29 million) was redirected to Sherritt to settle the GNC receivable;
o Sherritt sold 696 tonnes, $30 million, of cobalt to third parties during the quarter; and
o Sherritt received $19 million in cash from the sale of cobalt.
• Filed a National Instrument 43-101 technical report for the Moa JV which indicates that current reserves estimates are
sufficient to extend the life of mine to 2048 with an after-tax NPV (8%) of US$1.5 billion (100% basis) in the alternative
case based on recent analyst nickel, cobalt and input commodity price forecasts.
• Sherritt’s share of finished nickel and cobalt production at the M oa Joint Venture (Moa JV) was 3,483 tonnes and
367 tonnes, 10% and 18% lower, respectively, than the prior year quarter.
• Net direct cash cost (NDCC) (1) was US$6.46/lb in Q1 2023 compared to US$3.42/lb in Q1 2022 primarily due to
materially lower realized cobalt prices, placing Sherritt in the second cost quartile for HPAL nickel producers.
• Power production increased 15% to 158 GWh compared to Q1 2022 as a result of additional gas supply.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
DEVELOPMENTS SUBSEQUENT TO QUARTER END
• Successfully completed the drilling and testing of a new gas well for CUPET in the Puerto Escondido field in Cuba and
commenced drilling on a second well. The additional gas will be provided to Energas for use in power production starting
in Q2.
• In accordance with the Cobalt Swap, subsequent to quarter-end:
o The Moa JV distributed an additional 240 tonnes of cobalt (100% basis) with an in-kind value of $9 million;
o GNC’s 50% share of the distribution ($5 million) was redirected to Sherritt to settle the GNC receivable;
o Sherritt sold 152 tonnes, $7 million, of cobalt to third-parties; and
o Sherritt received $13 million in cash from the sale of cobalt.
2023 First Quarter Report
Press Release
2 Sherritt International Corporation
Q1 2023 FINANCIAL HIGHLIGHTS
$ millions, except as otherwise noted, for the three months ended March 31 2023 2022 Change
Revenue $ 58.6 $ 34.1 72%
Combined revenue(1) 189.5 202.2 (6%)
Earnings from operations and joint venture 21.6 23.5 (8%)
Net earnings from continuing operations 13.6 16.4 (17%)
Net earnings 13.3 15.7 (15%)
Adjusted EBITDA(1) 39.9 58.5 (32%)
Adjusted earnings from continuing operations(1) 12.7 14.7 (14%)
Net earnings from continuing operations ($ per share) (basic and diluted) 0.03 0.04 (25%)
Cash provided by continuing operations for operating activities 9.8 5.6 75%
Combined free cash flow(1) 58.6 (1.7) nm(2)
Average exchange rate (CAD/US$) 1.353 1.266 N/A
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) Not meaningful (nm).
2023 2022
$ millions, as at March 31 December 31 Change
Cash and cash equivalents
Canada $ 45.4 $ 20.3 124%
Cuba(1) 92.7 101.7 (9%)
Other 0.2 1.9 (89%)
138.3 123.9 12%
Loans and borrowings 370.3 350.9 6%
The Corporation's share of cash and cash equivalents in the Moa Joint Venture,
not included in the above balances: $ 43.0 $ 21.8 97%
(1) As at March 31, 2023, $88.9 million of the Corporation’s cash and cash equivalents was held by Energas (December 31, 2022 - $96.7 million).
Cash and cash equivalents as at March 31, 2023 were $138.3 million, up from $123.9 million at December 31, 2022. During
Q1 2023, Sherritt received $18.8 million in cash from the sale of cobalt to third -parties (Cobalt Swap); generated $15.7 million
from the Fort Site primarily due to strong fertilizer pre-sales, offset by a $24.4 million payment for share-based compensation. In
addition, Energas paid $6 million (33⅓% basis) to GNC, in Cuban pesos, in accordance with the Cobalt Swap. During the quarter,
Sherritt drew $18.0 million on its revolving credit facility.
Of the $138.3 million of cash and cash equivalents, $45.4 million was held in Canada, including cash received under the Cobalt
Swap. The remaining amounts were held in Cuba and other countries.
Subsequent to the quarter-end, Sherritt paid $9.4 million in interest on its second lien notes. At the interest payment date, the
Corporation was not required to make a mandatory redemption of second lien notes as it did not meet the minimum liquidity
threshold as defined in the indenture agreement.
Sherritt International Corporation 3
REVIEW OF OPERATIONS
Reportable segment update
As a result of the Cobalt Swap transaction, effective January 1, 2023, the former “Moa JV and Fort Site” reportable segment and
the “Metals Other” reportable segment were combined into one new “Metals” segment, reflecting the Corporation’s 50% interest
in the operations of the Moa Joint Venture, its 100% interest in the utility and fertilizer operations (Fort Site), and the 100%
interest in subsidiaries established to market and sell Moa Joint Venture’s nickel and cobalt production and the Corporation’s
cobalt inventory received under the Cobalt Swap (Metals Marketing). Information for the prior period was restated for
comparative purposes to reflect the new Metals reportable segment.
Metals
$ millions, except as otherwise noted, for the three months ended March 31 2023 2022 Change
FINANCIAL HIGHLIGHTS(1)
Revenue(1) $ 176.5 $ 187.6 (6%)
Cost of sales(1) 144.5 118.6 22%
Earnings from operations 31.0 67.1 (54%)
Adjusted EBITDA(2) 44.5 80.6 (45%)
CASH FLOW(1)
Cash provided by continuing operations for operating activities $ 92.4 $ 19.9 364%
Free cash flow(2) 82.8 9.2 800%
PRODUCTION VOLUMES (tonnes)
Mixed Sulphides 3,750 4,126 (9%)
Finished Nickel 3,483 3,875 (10%)
Finished Cobalt 367 446 (18%)
Fertilizer 57,991 63,088 (8%)
NICKEL RECOVERY(3) (%) 88% 89% (1%)
SALES VOLUMES (tonnes)
Finished Nickel 3,344 3,758 (11%)
Finished Cobalt 731 398 84%
Fertilizer 29,879 31,439 (5%)
AVERAGE-REFERENCE PRICES (US$ per pound)
Nickel $ 11.77 $ 11.97 (2%)
Cobalt(4) 17.56 35.90 (51%)
AVERAGE REALIZED PRICE (CAD)(2)
Nickel ($ per pound) $ 16.47 $ 14.85 11%
Cobalt ($ per pound) 19.11 41.66 (54%)
Fertilizer ($ per tonne) 566.93 654.55 (13%)
UNIT OPERATING COSTS(2) (US$ per pound)
Nickel - net direct cash cost $ 6.46 $ 3.42 89%
SPENDING ON CAPITAL(2)
Sustaining $ 5.9 $ 15.7 (62%)
Expansion 3.7 0.3 nm(5)
9.6 16.0 (40%)
(1) The Financial Highlights, and cash flow amounts for Metals combine the operations of the Moa JV, Fort Site and Metals Marketing. Breakdowns of revenue,
Adjusted EBITDA, and the components of free cash flow (cash provided (used) by continuing operations for operating activities and Property, plant and equipment
expenditures) for each of these operations are included in the Combined Revenue, Adjusted EBITDA and Free cash flow reconciliations, respectively, in the Non-
GAAP and other financial measures section of this press release.
(2) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(3) The nickel recovery rate measures the amount of finished nickel that is produced compared to the original nickel content of the ore that was mined.
(4) Average standard-grade cobalt price published per Argus.
(5) nm = not meaningful
2023 First Quarter Report
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4 Sherritt International Corporation
Metals revenue in Q1 2023 of $176.5 million was down 6% from $187.6 million in the same period last year. Approximately
$15 million of cobalt revenue in Q1 2023 is attributable to the additional cobalt received and sold by Sherritt pursuant to the
Cobalt Swap. Excluding the impact of the additional Cobalt Swap volume sold, total revenue was 14% lower primarily due to
materially lower cobalt average-realized prices(1). Fertilizer revenue was 18% lower as a result of lower volume and average-
realized price. Nickel revenue was relatively unchanged as the higher average-realized prices offset lower sales volume.
In Q1 2023 the average-realized prices for nickel and cobalt were $16.47/lb and $19.11/lb, 11% higher and 54% lower,
respectively, compared to the same period in the prior year. Nickel sold at a slight premium to the reference price, while cobalt
prices continued to reflect near-term softness in the market. Both nickel and cobalt average-realized prices benefited from a
weaker Canadian dollar relative to the U.S. dollar.
Mixed sulphides production at the Moa JV in Q1 2023 was 3,750 tonnes, down 9% from the 4,126 tonnes produced in Q1 2022.
The variance was primarily related to lower ore grade and unplanned leach train maintenance due to feed characteristics. As
the Moa JV continues to advance mine development to new ore bodies in 2023, some of the operational challenges related to
feed characteristics in Q1 will be reduced.
Sherritt’s share of finished nickel and cobalt production in Q1 2023 totaled 3,483 tonnes and 367 tonnes, 10% and 18% lower
than amounts produced in Q1 2022, respectively. Q1 2023 finished production was impacted by lower mixed sulphide feed
availability at the refinery.
Fertilizer production for the three months ended March 31, 2023 was 8% lower compared to Q1 2022, in line with metals
production.
NDCC(1) per pound of nickel sold increased to US$6.46/lb in Q1 2023 from US$3.42/lb in Q1 2022 placing Sherritt in the second
cost quartile for HPAL nickel producers. The higher NDCC was primarily due to materially lower cobalt prices, higher MPR costs,
and lower net fertilizer by-product credits. Higher MPR costs primarily relate to higher opening inventory costs, lower production
volumes, and higher diesel prices. Input commodity prices were lower in Q1 2023 compared to Q4 2022 and are expected to
remain lower than 2022 throughout the current year. The impact of the Cobalt Swap on NDCC was not significant.
Sustaining spending on capital(1) in Q1 2023 was $5.9 million, down by 62% from $15.7 million in Q1 2022 primarily due to timing
of spending at both the Moa JV and Fort Site including the receipt of mining equipment in Moa in the prior year.
Growth spending on capital, which represents spending on the Joint Venture’s expansion program, was $3.7 million, most of
which was related to spending on the slurry preparation plant (SPP).
The increase in free cash flow(1) resulted in higher ending cash balances at the Moa JV in Q1 2023 as cash distributions to
shareholders will not occur until the annual maximum cobalt volume distribution under the Cobalt Swap has been met. Cobalt
Swap and normal course cash distributions are expected to commence mid-year 2023.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
Moa JV expansion program update
Progress for the expansion program in Q1 2023 included:
Slurry Preparation Plant:
The SPP construction continues to progress and remains on budget and on time for expected completion in early 2024;
• structural steel is 80% erected and field assembly of major equipment is near completion with piping, electrical and
instrumentation installation to commence in May; and
• the slurry and water return pipelines are 25% complete and are expected to be finished in Q4 2023.
Processing Plant:
The processing plant expansion is progressing on schedule for an expected year end-2024 completion;
• the Joint Venture received approval of the feasibility study from the Cuban authorities in Q1 for the Moa processing plant
expansion;
• all significant contracts for long lead items for the Sixth Leach Train have been awarded or are in the process of being
awarded and a detail project execution schedule is being finalized;
Sherritt International Corporation 5
• engineering for the Fifth Sulphide Precipitation Train is ongoing and will be completed in Q2 2023; and
• preliminary engineering has been completed on the acid storage tanks and currently awaiting Cuban authorities’ approval
to construct.
Moa JV Life of mine/Updated NI 43-101 Technical Report
On March 31, 2023, Sherritt filed an updated National Instrument 43-101 Technical Report for the Moa Joint Venture indicating
that current reserves are estimated to support a 26-year life of mine. Other highlights include:
• Proven and Probable reserves increased to 1,182 kt of nickel and 144 kt of cobalt , an increase of 110% and 129%,
respectively;
• the life of mine extends to 2048, an increase of 14 years, with total estimated metal recovery of 724 kt of nickel and 85 kt
of cobalt;
• over the next 10 years, average annual finished metal production of 30 kt of nickel and 3.3 kt of cobalt from Moa is
expected, excluding the impact of the Moa JV expansion program and refining third-party feeds;
• favourable economics in the base case scenario supports an after-tax NPV (8%) of US$812 million (100% basis) using
conservative prices of US$7.12/lb nickel and US$21.32/lb cobalt;
• significant upside in an alternative case increases the after-tax NPV (8%) to US$1.5 billion (100% basis) using recent
analyst commodity price forecasts of US$9.00/lb nickel, US$23.50/lb cobalt and higher input commodity prices.
• NPV scenarios exclude the upside impact from the Moa JV expansion. Once completed by the end of 2024, the full
expansion is expected to result in a higher NPV but shorten the life of mine by 3-5 years.
Power
$ millions (33⅓% basis), except as otherwise noted, for the three months ended March 31 2023 2022 Change
FINANCIAL HIGHLIGHTS
Revenue $ 10.3 $ 9.0 14%
Cost of sales 3.4 6.0 (43%)
Earnings from operations 5.9 0.5 nm(3)
Adjusted EBITDA(1) 6.4 4.4 45%
CASH FLOW
Cash provided by continuing operations for operating activities $ 4.4 $ 8.7 (49%)
Free cash flow(1) 3.7 8.2 (55%)
PRODUCTION AND SALES
Electricity (GWh(2)) 158 137 15%
AVERAGE-REALIZED PRICE(1)
Electricity (per MWh(2)) $ 58.33 $ 54.73 7%
UNIT OPERATING COST(1)
Electricity (per MWh) $ 19.37 $ 15.70 23%
SPENDING ON CAPITAL(1)
Sustaining $ 0.7 $ 0.5 40%
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) Gigawatt hours (GWh), Megawatt hours (MWh).
(3) nm = not meaningful
Revenue for Q1 2023 of $10.3 million was 14% higher than Q1 2022 primarily due to higher production resulting in higher sales
of 158 GWh compared to 137 GWh in the prior year period. Higher production was primarily due to greater equipment availability
as a result of maintenance activities completed in the prior year. Q1 2023 revenue also benefited from higher average-realized
price(1) due to the impact of a stronger U.S. dollar relative to the Canadian dollar compared to Q1 2022.
Unit operating costs(1) for the three months ended March 31, 2023 were $19.37/MWh, up 23%, from Q1 2022 primarily as a result
of the timing of maintenance spending, partly offset by higher electricity production and sales volume. The Moa Swap has been
beneficial in providing the Power business with the liquidity required to effectively manage maintenance spending and the
operation of the business.
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6 Sherritt International Corporation
The Power business unit had $0.7 million spending on capital(1) in Q1 2023. Spending on capital is primarily driven by timing of
maintenance activities.
Subsequent to the quarter end, Sherritt successfully completed the drilling and testing of a new gas well for CUPET in the Puerto
Escondido field and commenced drilling on a second well. The additional gas will be provided to Energas for use in power
production starting in Q2.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
Technologies
During the three months ended March 31, 2023, Technologies continued to provide technical support, process optimization and
technology development services to the Moa JV and the Fort Site and continued to support the Moa JV’s expansion strategy.
These activities included establishing an updated mineral reserves estimate and life of mine plan utilizing economic cut-off grade,
finalizing the updated NI 43-101 Technical Report, supporting on-going process plant improvements and debottlenecking work at
Moa and the Fort Site locations. Technologies also continued to progress on its commercialization activities around proprietary
technologies and innovative industry solutions. As well in the quarter, Technologies:
• received a Natural Resources Canada (NRCan) funding commitment of $0.8 million to evaluate the possibility of using
mixed hydroxide precipitate (MHP) as an additional feed material for producing high purity nickel and cobalt metals at
the Fort Saskatchewan refinery;
• signed an agreement with Aurora Hydrogen to support the development of turquoise hydrogen production technology,
including Aurora building a demonstration plant at the Sherritt Technologies facility. Hydrogen gas is used as a reagent
at Sherritt’s refinery; and
• signed an agreement with a major mining company to conduct batch testing on specific laterite opportunities to test
applicability of Sherritt’s next generation laterite (NGL) technology and advanced a proposal on the potential to jointly
develop the technology.
For descriptions of ongoing commercialization projects, see the Corporation’s MD&A for the year ended December 31, 2022
available on Sherritt’s website of on SEDAR.com.
OUTLOOK
2023 guidance for production volumes, unit operating costs and spending on capital remains unchanged. Sherritt continues to
monitor the volatility in cobalt prices. NDCC guidance is based on a US$23.50/lb cobalt reference price. If the Q1 2023 average
reference price of US$17.56/lb were to persist through the remainder of the year, NDCC guidance could increase by
approximately US$0.85/lb, assuming all other assumptions remain constant.
Sherritt International Corporation 7
CONFERENCE CALL AND WEBCAST
Sherritt will hold its conference call and webcast May 11, 2023 at 10:00 a.m. Eastern Time to review its Q1 2023 results. Dial-in
and webcast details are as follows:
North American callers, please dial: 1 (888) 396-8049 Passcode: 60594804
International callers, please dial: 1 (416) 764-8646 Passcode: 60594804
Live webcast: www.sherritt.com
Please dial in 15 minutes before the start of the call to secure a line. Alternatively, listeners can access the conference call
and presentation via the webcast available on Sherritt’s website.
An archive of the webcast and replay of the conference call will also be available on the website.
FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS
Sherritt’s condensed consolidated financial statements and MD&A for the three months ended March 31, 2023 are available at
www.sherritt.com and should be read in conjunction with this news release. Financial and operating data can also viewed in the
investor relations section of Sherritt’s website on SEDAR at www.sedar.com.
NON-GAAP AND OTHER FINANCIAL MEASURES
Management uses the following non-GAAP and other financial measures in this press release and other documents: combined
revenue, adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), average-realized price,
unit operating cost/net direct cash cost (NDCC), adjusted net earnings/loss from continuing operations, adjusted earnings/loss
from continuing operations per share, spending on capital and combined free cash flow.
Management uses these measures to monitor the financial performance of the Corporation and its operating divisions and
believes these measures enable investors and analysts to compare the Corporation’s financial performance with its competitors
and/or evaluate the results of its underlying business. These measures are intended to provide additional information, not to
replace International Financial Reporting Standards (IFRS) measures, and do not have a standard definition under IFRS and
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As
these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other
companies.
The non-GAAP and other financial measures are reconciled to their most directly comparable IFRS measures in the Appendix
below. This press release should be read in conjunction with Sherritt’s consolidated financial statements for the three months
ended March 31, 2023.
ABOUT SHERRITT INTERNATIONAL CORPORATION
Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for
the energy transition. Sherritt’s Moa Joint Venture has a current estimated mine life of 26 years and has embarked on an
expansion program focused on increasing ann ual mixed sulphide precipitate production by 20% or 6,500 tonnes of contained
nickel and cobalt (100% basis). The Corporation’s Power division, through its ownership in Energas S.A., is the largest
independent energy producer in Cuba with installed electrical generating capacity of 506 MW, representing approximately 10%
of the national electrical generating capacity in Cuba. The Energas facilities are comprised of two combined cycle plants th at
produce low-cost electricity from one of the lowest carbon emi tting sources of power in Cuba. Additionally, its Technologies
Group creates innovative, proprietary solutions for natural resource-based industries around the world to improve environmental
performance and increase economic value. Sherritt’s common share s are listed on the Toronto Stock Exchange under the
symbol “S”.
2023 First Quarter Report
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8 Sherritt International Corporation
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements. Forward-looking statements can generally be identified by the use of
statements that include such words as “believe”, “expect”, “anticipate”, “intend”, “plan”, “forecast”, “likely”, “may”, “will”, “could”, “should”,
“suspect”, “outlook”, “potential”, “projected”, “continue” or other similar words or phrases. Specifically, forward-looking statements in this
document include, but are not limited to, statements regarding strategies, plans and estimated production a mounts resulting from
expansion of mining operations at the Moa Joint Venture, growing and increasing nickel and cobalt production, optimizing mine planning
and performance, extending the Moa life of mine, conversion of mineral resources to reserves, expansion program update as it relates
to the Slurry Preparation Plant and Moa Processing Plant, commercializing Technologies projects and growing shareholder value;
statements set out in the “Outlook” section of this press release and certain expectations regarding production volumes and increases,
inventory levels, operating costs and capital spending and intensity; sales volumes; revenue, costs and earnings ; the availability of
additional gas supplies to be used for power generation; Sherritt’s strategy, plan s, targets and goals in respect of environmental and
social governance issues, including climate change and greenhouse gas emissions reduction targets; anticipated payments under the
Cobalt Swap, the anticipated repayment of all outstanding receivables through dividends, including in the form of finished cobalt or cash;
and the timing, and amount of cobalt dividend distributions; distributions from the Corporation’s Moa Joint Venture in genera l; the
anticipated second lien secured notes becoming due in 2026; the impact of the U.S. sanctions on Cuba; anticipated economic conditions
in Cuba; sufficiency of working capital management and capital project funding; strengthening the Corporation’s capital structure and
amounts of certain other commitments.
Forward-looking statements are not based on historical facts, but rather on current expectations, assumptions and projections about
future events, including commodity and product prices and demand; the level of liquidity and access to funding; share price v olatility;
production results; realized prices for production; earnings and revenues; global demand for electric vehicles and the antici pated
corresponding demand for cobalt and nickel; the commercialization of certain proprietary technologies and services; adva ncements in
environmental and greenhouse gas (GHG) reduction technology; GHG emissions reduction goals and the anticipated timing of achieving
such goals, if at all; statistics and metrics relating to Environmental, Social and Governance (ESG) matters whic h are based on
assumptions or developing standards; environmental rehabilitation provisions; environmental risks and liabilities; compliance with
applicable environmental laws and regulations; risks related to the U.S. government policy toward Cuba; and ce rtain corporate
objectives, goals and plans for 2023. By their nature, forward-looking statements require the Corporation to make assumptions and are
subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclu sions or projections will not prove
to be accurate, that the assumptions may not be correct and that actual results may differ materially from such predictions, forecasts,
conclusions or projections.
The Corporation cautions readers of this press release not to place undue reliance on any forward -looking statement as a number of
factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or
intentions expressed in the forward -looking statements. These risks, uncertainties and other factors include, but are not limited to,
security market fluctuations and price volatility; level of liquidity and the related ability of the Moa Joint Venture to pay dividends; access
to capital; access to financing; the risk to Sherritt’s entitlements to future distributions (including pursuant to the Cobalt Swap) from the
Moa Joint Venture, the impact of infectious diseases (including the COVID-19 pandemic), the impact of global conflicts; changes in the
global price for nickel, cobalt, oil, gas, fertilizers or certain other commodities; risks related to Sherritt’s operations in Cuba; risks related
to the U.S. government policy toward Cuba, including the U.S. embargo on Cuba and the Helms-Burton legislation; political, economic
and other risks of foreign operations; uncertainty in the ability of the Corporation to enforce legal rights in foreign jurisdictions; uncertainty
regarding the interpretation and/or application of the applicable laws in foreign ju risdictions; compliance with applicable environment,
health and safety legislation and other associated matters; risks associated with governmental regulations regarding climate change
and greenhouse gas emissions; risks relating to community relations; maintaining social license to grow and operate; risks related to
environmental liabilities including liability for reclamation costs, tailings facility failures and toxic gas releases; uncertainty about the pace
of technological advancements required in re lation to achieving ESG targets; risks to information technologies systems and
cybersecurity; identification and management of growth opportunities; the ability to replace depleted mineral reserves; risk of future non-
compliance with debt restrictions and covenants; risks associated with the Corporation’s joint venture partners; variability in production
at Sherritt’s operations in Cuba; risks associated with mining, processing and refining activities; potential interruptions in transportation;
uncertainty of gas supply for electrical generation; reliance on key personnel and skilled workers; growth opportunity risks; the possibility
of equipment and other failures; uncertainty of resources and reserve estimates; the potential for shortages of equipment and supplies,
including diesel; supplies quality issues; risks related to the Corporation’s corporate structure; risks associated with the operation of
large projects generally; risks related to the accuracy of capital and operating cost estimates; foreign exchange and pricing risks; credit
risks; shortage of equipment and supplies; competition in product markets; future market access; interest rate changes; risks in obtaining
insurance; uncertainties in labour relations; legal contingencies; risks related to the Corporation’s accounting policies; uncertainty in the
ability of the Corporation to obtain government permits; failure to comply with, or changes to, applicable government regulations; bribery
and corruption risks, including failure to comply with the Corruption of Foreign Public Officials Act or applicable local anti-corruption law;
the ability to accomplish corporate objectives, goals and plans for 2023; and the ability to meet other factors listed from t ime to time in
the Corporation’s continuous disclosure documents.
The Corporation, together with its Moa Joint Venture is pursuing a range of growth and expansion opportunities, including wit hout
limitation, process technology solutions, development projects, commercial implementation opportunities, l ife of mine extension
opportunities and the conversion of mineral resources to reserves. In addition to the risks noted above, factors that could, alone or in
combination, prevent the Corporation from successfully achieving these opportunities may include, without limitation: identifying suitable
commercialization and other partners; successfully advancing discussions and successfully concluding applicable agreements wi th
external parties and/or partners; successfully attracting required financing; successfully developing and proving technology required for
the potential opportunity; successfully overcoming technical and technological challenges; successful environmental assessmen t and