Sherritt Reports Q2 Results and Strong Liquidity from Cobalt Swap
Sherritt International Corporation 1
For immediate release
Sherritt Reports Q2 Results and Strong Liquidity from Cobalt Swap
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto – July 26, 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 and six months ended June 30, 2023. All amounts are in Canadian curre ncy unless
otherwise noted.
“We are pleased with the success of the Cobalt Swap agreement and the liquidity it provides Sherritt. While we had some
production challenges this quarter, our Moa Joint Venture’s strong cash position and expected cash flow generation will continue
to support our expansion program,” said Leon Binedell, President and CEO of Sherritt International. “Our current liquidity profile
and expected future Cobalt Swap distributions creates significant strategic optionality for Sherritt.”
Mr. Binedell continued, “We paid cash interest on our PIK notes in July 2023 and following a second PIK note cash interest
payment in January 2024 we will have the opportunity to provide returns to our shareholders. At the end of the quarter, our
capacity to make restricted payments under the Second Lien Note Indenture was approximately $114 million allowing significant
flexibility to pursue investments and future shareholder returns.”
SELECTED Q2 2023 DEVELOPMENTS
• Available liquidity in Canada of $125 million largely driven by the successful completion of the first year of the Cobalt
Swap.
o Final 802 tonnes of cobalt dividend required to fulfill the 2,082 tonne annual maximum volume received;
o Cash dividend of US$48.5 million ($64 million) received as a top -up payment as the total in -kind value of
cobalt received did not meet the annual dollar minimum of US$114 million (US$57 million per partner);
o General Nickel Company’s (GNC) 50% share of the cobalt and cash dividends, collectively US$57 million
($76 million) was redirected to Sherritt as payment towards the GNC receivable; and
o Sherritt sold 1,064 tonnes, $38.4 million, of cobalt (1,760 tonnes, $68.2 million for the year to date) and has
received $35.1 million in cash from sales ($53.9 million for the year to date).
• Sherritt’s share of finished nickel and cobalt production at the Moa JV was 3,268 tonnes and 331 tonnes, 12% and 16%
lower, respectively, than the prior year quarter.
• Net direct cash cost (NDCC) (1) was US$7.22/lb in Q2 2023 compared to US$2.19/lb in Q2 20 22 primarily due to 63%
lower cobalt and 35% lower fertilizer realized prices. Sherritt revised its 2023 NDCC guidance range
from US$5.00 – US$5.50 to US$6.75 – US$7.25 per pound of nickel sold.
• Power production increased by 29% compared to Q2 2022 primarily from the receipt of gas from two new wells and
improved equipment availability. Sherritt updated its 2023 annual production guidance range from 575 – 625 GWh to
650 – 700 GWh and reduced its u nit operating cost guidance range from $28.50 – $30.00/MWh
to $27.25 – $28.75/MWh.
• Net earnings from continuing operations was $0.3 million , or $nil per share in Q2 2023, compared $81.5 million, or
$0.21 per share, in Q2 2022.
• Adjusted EBITDA(1) in the quarter was $15.7 million compared to $102.0 million in Q2 2022 primarily as a result of lower
nickel, cobalt and fertilizer average-realized prices(1).
• Sherritt released its 2022 Sustainability Reports which continued to show progress on its ESG goals and ac hieved
another successful independent audit on Sherritt’s conformance with the LME’s responsible sourcing requirements.
• Sadly, Sherritt reported two fatalities at the Moa JV mine site. Working with our Cuban partners, a rigorous root cause
analysis and review of the site’s fatality prevention measures was completed, and improvements are being implemented
to enhance and maintain a safe work environment.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
2023 Second Quarter Report
Press Release
2 Sherritt International Corporation
DEVELOPMENTS SUBSEQUENT TO QUARTER END
• In accordance with the Cobalt Swap, subsequent to quarter-end:
o Sherritt sold 114 tonnes, $4.3 million, of cobalt and received $13.3 million in cash from prior cobalt sales.
The remaining 208 tonnes of cobalt are expected to be sold and all cash is expected to be received by the
end of Q3 2023.
• Sherritt paid $3.4 million cash interest in July on its 10.75% unsecured PIK option notes due 2029 (PIK Notes). Under
the terms of the PIK Notes Indenture, payment of cash interest during the preceding consecutive 12-month period
permits the Corporation to provide returns to shareholders, including share repurchases and dividends.
• Sherritt received confirmation from the London Metals Exchange (LME) that Sherritt is in conformance with LME’s Track
B Responsible Sourcing Requirements.
Q2 2023 FINANCIAL HIGHLIGHTS
For the three months ended For the six months ended
2023 2022 2023 2022
$ millions, except per share amount June 30 June 30 Change June 30 June 30 Change
Revenue $ 93.5 $ 65.9 42% $ 152.1 $ 100.0 52%
Combined revenue(1) 201.1 221.5 (9%) 390.6 423.7 (8%)
Earnings from operations and joint venture 2.2 74.0 (97%) 23.8 97.5 (76%)
Net earnings from continuing operations 0.3 81.5 (100%) 13.9 97.9 (86%)
Net earnings for the period 0.3 81.1 (100%) 13.6 96.8 (86%)
Adjusted EBITDA(1) 15.7 102.0 (85%) 55.6 160.5 (65%)
Adjusted net (loss) earnings from continuing operations (0.8) 66.0 (101%) 12.2 80.7 (85%)
Net earnings from continuing operations ($ per share) - 0.21 (100%) 0.03 0.25 (88%)
Cash provided by continuing operations for operating
activities 32.0 25.6 25% 41.9 31.2 34%
Combined free cash flow(1) 5.6 23.5 (76%) 34.9 21.8 60%
Average exchange rate (CAD/US$) 1.343 1.277 5% 1.348 1.272 6%
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
2023 2022
$ millions, as at June 30 December 31 Change
Cash and cash equivalents
Canada $ 83.2 $ 20.3 310%
Cuba(1) 92.4 101.7 (9%)
Other 0.4 1.9 (79%)
176.0 123.9 42%
Loans and borrowings 357.4 350.9 2%
The Corporation's share of cash and cash equivalents in the Moa Joint Venture,
not included in the above balances: $ 16.1 $ 21.8 (26%)
(1) As at June 30, 2023, $90.4 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 June 30, 2023 were $176.0 million, up from $138.3 million at March 31, 2023. During Q2 2023,
Sherritt received $64.0 million as a top-up dividend on the Cobalt Swap and $35.1 million in cash from the sale of cobalt to third-
parties and used $17.6 million for operating activities at Fort Site primarily due to timing of payments relative to strong pre-sales
received in Q1, $9.4 million for interest payment on Second Lien Notes, $5.0 million to pay down its revolving credit facility and
$5.3 million for the repurchase of $7.4 million of PIK Notes. In addition, Energas paid $8.8 million (33⅓% basis) to GNC in the
quarter ($14.8 million for year to date), in Cuban pesos, in accordance with the Cobalt Swap.
Sherritt did not make any mandatory redemptions on the Second Lien Notes during the quarter as the minimum liquidity condition
pursuant to the provisions of the indenture agreement was not met.
Sherritt International Corporation 3
For the two -quarter period ended June 30, 2023, Excess Cash Flow, as defined and calculated pursuant to the Second Lien
Notes Indenture, was $57.1 million. Subject to the minimum liquidity threshold of $75.0 million pursuant to the Second Lien
Notes Indenture, at the interest payment date in October 2023, the Corporation will be required to redeem, at par, total Second
Lien Notes equal to 50% of Excess Cash Flow, or $28.6 million. In determining the minimum liquidity amounts in October 2023,
the $7.8 million of cash used to repurchase the 10.75% unsecured PIK option notes due 2029 during the six months ended June
30, 2023 and any amounts drawn on the Credit Facility will be added ba ck in the calculation of minimum liquidity before and
after any such redemption.
REVIEW OF OPERATIONS
Metals
For the three months ended For the six months ended
2023 2022 2023 2022
$ millions (Sherritt's share), except as otherwise noted June 30 June 30 Change June 30 June 30 Change
FINANCIAL HIGHLIGHTS
Revenue(1)(2) $ 185.6 $ 208.0 (11%) $ 362.1 $ 395.6 (8%)
Cost of Sales(1) 182.2 128.7 42% 326.7 247.3 32%
Earnings from operations 3.8 77.8 (95%) 34.8 144.9 (76%)
Adjusted EBITDA(2) 18.6 91.3 (80%) 63.1 171.9 (63%)
CASH FLOW
Cash provided by continuing operations for operating activities $ 38.8 $ 50.5 (23%) $ 101.8 $ 70.7 44%
Free cash flow(2) 22.7 38.3 (41%) 76.1 47.8 59%
PRODUCTION VOLUMES (tonnes)
Mixed Sulphides 3,783 3,906 (3%) 7,533 8,032 (6%)
Finished Nickel 3,268 3,704 (12%) 6,751 7,579 (11%)
Finished Cobalt 331 396 (16%) 698 842 (17%)
Fertilizer 52,224 61,965 (16%) 110,215 125,052 (12%)
NICKEL RECOVERY(3) (%) 85% 89% (4%) 85% 89% (4%)
SALES VOLUMES (tonnes)
Finished Nickel 3,188 3,148 1% 6,532 6,906 (5%)
Finished Cobalt 1,064 248 329% 1,795 646 178%
Fertilizer 63,384 49,951 27% 93,263 81,390 15%
AVERAGE-REFERENCE PRICE (USD)
Nickel (US$ per pound) $ 10.12 $ 13.13 (23%) $ 10.94 $ 12.54 (13%)
Cobalt (US$ per pound)(4) 15.27 38.19 (60%) 16.46 37.00 (56%)
AVERAGE-REALIZED PRICE(2) (CAD)
Nickel ($ per pound) $ 13.58 $ 16.99 (20%) $ 15.06 $ 15.83 (5%)
Cobalt ($ per pound) 16.36 44.16 (63%) 17.48 42.62 (59%)
Fertilizer ($ per tonne) 709.67 1,090.96 (35%) 663.94 922.38 (28%)
UNIT OPERATING COST(2) (US$ per pound)
Nickel - net direct cash cost $ 7.22 $ 2.19 230% $ 6.88 $ 2.85 141%
SPENDING ON CAPITAL(2)(CAD)
Sustaining $ 13.6 $ 12.5 9% $ 19.5 $ 28.2 (31%)
Growth 2.5 0.8 213% 6.2 1.1 464%
$ 16.1 $ 13.3 21% $ 25.7 $ 29.3 (12%)
(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.
2023 Second Quarter Report
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4 Sherritt International Corporation
Revenue for the three months ended June 30, 2023 was 11% lower compared to the same period in the prior year. Lower nickel
revenue was a result of 20% lower average-realized prices(1) on unchanged sales volume in Q2 2023. Higher cobalt revenue for
Q2 2023 was primarily attributable to a 329% increase in sales volume, which included the additional 50% of sale volume of re-
directed finished cobalt received and sold by Sherritt under the Cobalt Swap. This increase more than offset the impact of a 63%
decline in realized prices. On a comparative basis, based on Sherritt’s 50% share only, cobalt sales volume was 532 tonnes in
Q2 2023 compared to 248 tonnes in Q2 2022.
Fertilizer revenue was lower for Q2 2023 primarily as a result of the 35% lower average-realized price compared to the prior
year period. The impact of lower average-realized price was partly offset by a 27% increase in sales volume in the current year
period.
Mixed sulphides production at the Moa JV for the three months ended June 30, 2023 was 3,783 tonnes, down 3% from the same
period in the prior year. While ore blending challenges from Q1 2023 were resolved, the lower production in Q2 was primarily
due to unplanned maintenance in the hydrogen plant which was resolved in the quarter.
Sherritt’s share of finished nickel production for Q2 2023 totaled 3,268 tonnes and was 12% lower than the same period in the
prior year primarily as a result of lower mixed sulphide feed availability at the refinery. Finished cobalt production for Q2 2023 of
331 tonnes was 16% lower consistent with lower nickel production. The annual refinery shutdown occurred in Q2 similar to last
year and production has since resumed to normal.
Maintenance challenges at the Moa mine in the first half of the year, coupled with the ore blending challenges in Q1 have
impacted feed availability at the refinery. As a result, full year production is expected to be at the lower end of the guidance
range for the year; however, additional third-party feed has been secured to utilize existing refinery capacity and offset shortfalls
in Moa mine production from the first half of the year.
Fertilizer production for the three months ended June 30, 2023 was 16% lower compared to the same periods in the prior year
primarily as a result of lower metals production and unplanned ammonia plant maintenance during the period.
Mining, processing and refining (MPR) costs per pound of nickel sold for the three months ended June 30, 2023 was up 16%
compared to the same period in the prior year. Higher MPR costs reflects lower production volumes and the cost associated
with the significantly higher cobalt sales volume in the current year period. The higher MPR costs were partly offset by lower
input commodity prices in Q2, including a 49% decrease in global sulphur prices, a 50% decrease in natural gas prices, and a
24% decrease in fuel oil prices.
NDCC(1) per pound of nickel sold increased to US$7.22/lb in Q2 2023 from US$2.19/lb in Q2 2022. The higher NDCC was
primarily due to significantly lower fertilizer and cobalt by-product credits(2) as lower average-realized prices more than offset
higher sales volumes, and higher MPR costs in the current year period as discussed above. Q2 2022 saw a spike in cobalt and
fertilizer reference prices following the Russian invasion of Ukraine.
Based on the NDCC for the six month ended June 30, 2023 of US$6.88/lb, expected production and materially lower realized
prices for cobalt for the balance of the year, Sherritt revised its 2023 NDCC guidance range from US$5.00 – US$5.50 to
US$6.75 – US$7.25 per pound of nickel sold. Revised NDCC guidance reflects a full year average cobalt reference price of
US$16.80/lb compared to US$23.50/lb in Sherritt’s original estimates and incremental costs from third-party feed purchases in
the second half of the year as noted above. Continuing maintenance challenges in the fertilizer business are expected to impact
fertilizer production volumes reducing fertilizer by-product credits for the remainder of the year.
Sustaining spending on capital(1) in Q2 2023 was $13.6 million, up 9% from $12.5 million in Q2 2022. The year-over-year increase
was due primarily to timing of planned spending at both the Moa JV and Fort Site. Growth spending on capital was $2.5 million,
most of which was related to spending on the slurry preparation plant as part of the Moa JV expansion program.
Based on spending to date and expected timing of spending for the balance of the year, 2023 guidance for sustaining and growth
spending on capital are unchanged for the year.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) Cobalt by-product credits include Sherritt’s share of cobalt revenue per pound of nickel sold only.
Sherritt International Corporation 5
Moa JV expansion program update
Progress for the expansion program in Q2 2023 included:
Slurry Preparation Plant (SPP):
The SPP construction continues to progress and remains on budget and on time for expected completion in early-2024:
• structural steel and field assembly of major equipment completed;
• installation of piping, electrical cable tray and electrical cables and instrumentation progressing on schedule;
• slurry and water return pipelines are 72% complete and are expected to be finished in early Q4 2023; and
• the commissioning plan and schedule is being developed and is expected to be completed in August, 2023
Processing Plant:
The processing plant expansion is progressing on schedule for an expected end of year 2024 completion:
• 53% of procurement packages for the Sixth Leach Train have been awarded within budget, including all long lead items;
• an effort-hour loaded schedule has been developed for the Sixth Leach Train and is currently under review and is
expected to be finalized in Q3 2023;
• engineering for the Fifth Sulphide Precipitation Train is in progress and is expected to be completed in Q3 2023; and
• vendor selected to supply the materials and erect the acid tanks to whom the contract is expected to be awarded when
the construction permit is granted by the Cuban authorities, expected in the second half of 2023.
Power
For the three months ended For the six months ended
2023 2022 2023 2022
$ millions (33 ⅓% basis), except as otherwise noted June 30 June 30 Change June 30 June 30 Change
FINANCIAL HIGHLIGHTS
Revenue $ 10.9 $ 8.6 27% $ 21.2 $ 17.6 20%
Cost of sales 6.5 6.5 - 9.9 12.5 (21%)
Earnings from operations 3.3 2.3 43% 9.2 2.8 229%
Adjusted EBITDA(1) 4.0 6.3 (37%) 10.4 10.7 (3%)
CASH FLOW
Cash provided by continuing operations for operating activities $ 2.3 $ 9.7 (76%) $ 6.7 $ 18.4 (64%)
Free cash flow(1) 1.7 9.7 (82%) 5.4 17.9 (70%)
PRODUCTION AND SALES
Electricity (GWh(2)) 172 133 29% 330 270 22%
AVERAGE-REALIZED PRICE(1)
Electricity ($/MWh(2)) $ 57.25 $ 55.21 4% $ 57.77 $ 54.97 5%
UNIT OPERATING COSTS(1)
Electricity ($/MWh) 34.13 20.10 70% 27.08 17.86 52%
SPENDING ON CAPITAL(1)
Sustaining $ 0.6 $ - - $ 1.3 $ 0.5 160%
(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).
Revenue for the three months ended June 30, 2023 was $10.9 million, up 27% compared to the same period in the prior year
primarily due to higher production.
Electricity production for the three months ended June 30, 2023 was 172 GWh compared to 133 GWh in the prior year period.
The increase in electricity production is a result of increased equipment availability as one turbine was brought back online
following completion of maintenance work and successful efforts to increase availability of gas.
2023 Second Quarter Report
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6 Sherritt International Corporation
During the quarter, Energas began receiving additional gas from two gas wells drilled by Union Cubapetroleo. The gas is
provided to Energas free of charge for the use in power generation. Opportunities to further increase gas supply for additional
power production continue to be investigated.
Unit operating costs(1) for the three months ended June 30, 2023 was $34.13/MWh up 70% from the same period in 2022
primarily driven by higher maintenance costs due to timing of maintenance, partly offset by higher sales volumes.
As a result of successful efforts to increase available gas from two new wells, Sherritt updated its 2023 annual production
guidance range from 575 – 625 GWh to 650 – 700 GWh and reduced its unit operating cost guidance range from
$28.50 – $30.00/MWh to $27.25 – $28.75/MWh.
The Power business unit had $0.6 million spending on capital(1) in Q2 2023 primarily driven by maintenance activities. Spending
on capital is in line with guidance for the year.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
Technologies
During the three months ended June 30, 2023, Technologies:
• continued to provide technical support, process optimization and technology development services to the Moa JV and
the Fort Site and continued to support the Moa JV’s expansion program;
• commenced its mixed hydroxide precipitate (MHP) test program supported by a funding commitment from Natural
Resources Canada (NRCan);
• advanced its flowsheet enhancements on its next-generation laterite (NGL) processing technology and commenced new
batch testing on specific laterite opportunities to test NGL’s applicability; and
• continued to progress on commercialization activities around proprietary technologies and innovative industry solutions.
Sherritt International Corporation 7
OUTLOOK
2023 production volumes, unit operating costs and spending on capital guidance
Guidance Year-to-date Updated
for 2023 - actuals - 2023 guidance -
Production volumes, unit operating costs and spending on capital Total Total Total
Production volumes
Moa Joint Venture (tonnes, 100% basis)
Nickel, finished 30,000 - 32,000 13,502 No change
Cobalt, finished 3,100 - 3,400 1,396 No change
Electricity (GWh, 33⅓% basis) 575 - 625 330 650 - 700
Unit operating costs(1)
Moa Joint Venture - NDCC (US$ per pound) $5.00 - $5.50 $6.88 $6.75 - $7.25
Electricity (unit operating cost, $ per MWh) $28.50 - $30.00 $27.08 $27.25 - $28.75
Spending on capital(1)($ millions)
Sustaining
Metals: Moa Joint Venture (50% basis), Fort Site (100% basis) $70.0 $19.5 No change
Power (33⅓% basis) $4.4 $1.3 No change
Growth
Metals: Moa Joint Venture (50% basis) $20.0 $6.2 No change
Spending on capital(2) $94.4 $27.0 No change
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) Excludes spending on capital of the Metals Marketing, Oil and Gas, Technologies and Corporate segments.
Moa Joint Venture
Maintenance challenges at the Moa mine in the first half of the year, coupled with the ore blending challenges in Q1 have
impacted feed availability at the refinery. As a result, full year production is expected to be at the lower end of the guidance
range for the year, however, additional third-party feed has been secured to utilize existing refinery capacity and offset shortfalls
in Moa mine production from the first half of the year.
Based on the NDCC for the six months ended June 30, 2023 of US$6.88, expected production and materially lower realized
prices for cobalt for the balance of the year, Sherritt revised its 2023 NDCC guidance range from US$5.00 – US$5.50 to US$6.75
– US$7.25 per pound of nickel sold. Revised NDCC guidance reflects a full year average cobalt reference price of US$16.80/lb
compared to US$23.50/lb in Sherritt’s original estimates and incremental costs from third-party feed purchases in the second
half of the year as noted above. Continuing maintenance challenges in the fertilizer business are expected to impact fertilizer
production volumes reducing fertilizer by-product credits for the remainder of the year.
Power
As a result of successful efforts to increase available gas from two new wells, Sherritt updated its 2023 annual production
guidance range from 575 – 625 GWh to 650 – 700 GWh and reduced its unit operating cost guidance range from
$28.50 – $30.00/MWh to $27.25 – $28.75/MWh.
CONFERENCE CALL AND WEBCAST
Sherritt will hold its conference call and webcast July 27, 2023 at 10:00 a.m. Eastern Time to review its Q2 2023 results. Dial-in
and webcast details are as follows:
North American callers, please dial: 1 (888) 396-8049 Passcode: 66327482
International callers, please dial: 1 (416) 764-8646 Passcode: 66327482
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.
2023 Second Quarter Report
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8 Sherritt International Corporation
FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS
Sherritt’s condensed consolidated financial statements and MD&A for the three and six months ended June 30, 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 and six
months ended June 30, 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 cur rent estimated mine life of 26 years and has embarked on an
expansion program focused on increasing annual mixed sulphide precipitate production by 20% or 6,500 tonnes of contained
nickel and cobalt (100% basis). The Corporation’s Power division, through i ts 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 com prised of two combined cycle plants that
produce low-cost electricity from one of the lowest carbon emitting 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 shares are listed on the Toronto Stock Exchange under the
symbol “S”.