Sherritt Reports Third Quarter 2023 Results
Sherritt International Corporation 1
For immediate release
Sherritt Reports Third Quarter 2023 Results
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
TORONTO – November 1, 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 nine months ended September 30, 2023. All amounts are in Canadian curre ncy
unless otherwise noted.
“We are pleased with the progress of our Moa expansion project. The project remains on track and we expect reliable ore flows
to the Moa plant with the completion of phase one early next year. Once the full expansion is complete, we expect to achieve
higher production levels from 2025 onwards, benefitting us over a mine life that exceeds 20 years,” said Leon Binedell, President
and CEO of Sherritt International.
Mr. Binedell continued, “While we were successful advancing our expansion project, the third quarter was one marked by
challenges. Market conditions softened , particularly for nickel , and we faced a number of concurrent product ion challenges
related to adverse weather, supply chain logistic s and unplanned maintenance. Our team responded effectively to reduce the
impacts to our operations and largely resolved the maintenance outages by the end of the quarter . Despite the near -term
headwinds in EV adoption and slower than expected supply chain development, we remain encouraged on our long-term outlook
with the energy transition set to drive significant demand for the critical minerals we produce which aligns well with the timing of
our expansion.”
SELECTED Q3 2023 DEVELOPMENTS
• Sold approximately 97% of the total 2,082 tonnes of cobalt received under the Cobalt Swap agreement; remaining
cobalt expected to be sold and all cash to be received by end of year.
• Available liquidity in Canada was $104.2 million.
• Sherritt’s share of finished nickel and cobalt production at the Moa JV was 3,841 tonnes and 410 tonnes compared to
4,443 tonnes and 419 tonnes in Q3 2022, respectively.
• Finished nickel sales volumes were lower than the prior year period and finished production volumes in the current
quarter primarily due to lower demand for nickel from steel mills after summer shutdowns and delayed sales by
customers. Higher mixed hydroxide precipitate (MHP) and matte intermediate availability also led to lower metal
purchasing in Asia.
• Net direct cash cost (NDCC)(1) was US$7.24/lb compared to US$6.76/lb in Q3 2022 primarily due to the impact of lower
nickel sales volumes, lower fertilizer by-product credits and higher maintenance costs, partly offset by higher cobalt by-
product credits.
• Power production increased by 37% compared to Q3 2022 primarily from the receipt of gas from two wells that went
into production in the second quarter and improved equipment availability.
• Net loss from continuing operations was $24.8 million , or $(0.06) per share in Q3 2023, compared to a net loss from
continuing operations of $26.9 million, or $(0.07) per share, in Q3 2022.
• Adjusted EBITDA (1) was $(9.1) million compared to $37.4 million in Q3 2022 primarily as a result of delayed nickel
sales, lower fertilizer sales volumes and lower cobalt and fertilizer average-realized prices(1). Adjusted EBITDA includes
an $8.9 million write-down of fertilizer inventory and a $5.8 million increase in environmental rehabilitation obligations
(ERO) on legacy Oil and Gas Spanish assets.
• Based on its results to date, Sherritt has provided updates to its 2023 guidance.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
2023 Third Quarter Report
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2 Sherritt International Corporation
Q3 2023 FINANCIAL HIGHLIGHTS
For the three months ended For the nine months ended
2023 2022 2023 2022
$ millions, except per share amount September 30 September 30 Change September 30 September 30 Change
Revenue $ 36.4 $ 30.2 21% $ 188.5 $ 130.2 45%
Combined revenue(1) 132.4 190.1 (30%) 523.0 613.8 (15%)
(Loss) earnings from operations and joint venture (23.8) 21.3 (212%) - 118.8 (100%)
Net (loss) earnings from continuing operations (24.8) (26.9) 8% (10.9) 71.0 (115%)
Net (loss) earnings for the period (24.8) (26.3) 6% (11.2) 70.5 (116%)
Adjusted EBITDA(1) (9.1) 37.4 (124%) 46.5 197.9 (77%)
Adjusted net (loss) earnings from continuing operations (19.3) 13.9 (239%) (6.7) 95.0 (107%)
Net (loss) earnings from continuing operations ($ per share) (0.06) (0.07) 14% (0.03) 0.18 (117%)
Cash provided by continuing operations for operating
activities 4.4 18.8 (77%) 46.3 50.0 (7%)
Combined free cash flow(1) (11.7) 0.1 nm(2) 23.2 21.9 6%
Average exchange rate (CAD/US$) 1.341 1.306 3% 1.346 1.283 5%
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) nm = not meaningful
2023 2022
$ millions, as at September 30 December 31 Change
Cash and cash equivalents
Canada $ 22.7 $ 20.3 12%
Cuba(1) 96.9 101.7 (5%)
Other 0.8 1.9 (58%)
120.4 123.9 (3%)
Loans and borrowings 316.5 350.9 (10%)
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 September 30, 2023, $92.5 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 September 30, 2023 were $120.4 million, compared to $176.0 million as at June 30, 2023.
During Q3 2023, Sherritt received $23.7 million in cash from the sale of cobalt to third parties and used $40.0 million to pay
down its revolving credit facility, $15.0 million as a short-term advance to the Moa JV under their credit facility, $12.2 million for
operating activities at Fort Site including the impact of receipts from fertilizer pre-sales, $6.9 million for property, plant and
equipment, and $3.4 million for the interest payment on the 10.75% unsecured PIK option notes (PIK Notes).
As at September 30, 2023, total available liquidity in Canada, which is composed of cash and cash equivalents in Canada and
available credit facilities of $81.5 million was $104.2 million compared to $124.8 million at June 30, 2023.
Subsequent to the quarter end, Sherritt received an additional $1.5 million in cash from the sale of cobalt to third parties and 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
Metals
For the three months ended For the nine months ended
2023 2022 2023 2022
$ millions (Sherritt's share), except as otherwise noted September 30 September 30 Change September 30 September 30 Change
FINANCIAL HIGHLIGHTS
Revenue(1)(2) $ 115.7 $ 176.0 (34%) $ 477.8 $ 571.6 (16%)
Cost of Sales(1) 128.1 151.0 (15%) 454.8 398.3 14%
(Loss) earnings from operations (14.9) 22.5 (166%) 19.9 167.4 (88%)
Adjusted EBITDA(2) (0.8) 34.8 (102%) 62.3 206.7 (70%)
CASH FLOW
Cash provided by continuing operations for operating activities $ 10.7 $ 29.3 (63%) $ 112.5 $ 90.0 25%
Free cash flow(2) (3.0) 11.9 (125%) 73.1 49.7 47%
PRODUCTION VOLUMES (tonnes)
Mixed Sulphides 4,037 4,216 (4%) 11,570 12,248 (6%)
Finished Nickel 3,841 4,443 (14%) 10,592 12,022 (12%)
Finished Cobalt 410 419 (2%) 1,108 1,261 (12%)
Fertilizer 48,400 62,841 (23%) 158,615 187,893 (16%)
NICKEL RECOVERY(3) (%) 88% 87% 1% 87% 88% (1%)
SALES VOLUMES (tonnes)
Finished Nickel 2,845 4,487 (37%) 9,377 11,393 (18%)
Finished Cobalt 526 347 52% 2,321 993 134%
Fertilizer 21,389 27,373 (22%) 114,652 108,763 5%
AVERAGE-REFERENCE PRICE (USD)
Nickel (US$ per pound) $ 9.23 $ 10.01 (8%) $ 10.38 $ 11.66 (11%)
Cobalt (US$ per pound)(4) 16.58 26.26 (37%) 16.50 33.35 (51%)
AVERAGE-REALIZED PRICE(2) (CAD)
Nickel ($ per pound) $ 12.54 $ 12.94 (3%) $ 14.29 $ 14.69 (3%)
Cobalt ($ per pound) 17.64 28.21 (37%) 17.51 37.59 (53%)
Fertilizer ($ per tonne) 389.43 531.10 (27%) 612.73 823.91 (26%)
UNIT OPERATING COST(2) (US$ per pound)
Nickel - net direct cash cost $ 7.24 $ 6.76 7% $ 6.97 $ 4.39 59%
SPENDING ON CAPITAL(2)(CAD)
Sustaining $ 12.8 $ 16.2 (21%) $ 32.3 $ 44.4 (27%)
Growth 2.9 1.9 53% 9.1 3.0 203%
$ 15.7 $ 18.1 (13%) $ 41.4 $ 47.4 (13%)
(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.
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4 Sherritt International Corporation
Revenue for the three months ended September 30, 2023 was $115.7 million compared to $176.0 million in same period of the
prior year.
Finished nickel revenue for the three months ended September 30, 2023 was $78.6 million compared to $128.0 million in the
prior year period as result of lower sales volumes and lower average-realized prices(1). While average nickel reference prices
were 8% lower, the average-realized prices were only 3% lower. Average-realized prices are impacted by the timing of deliveries,
the timing of settlement against contract terms and the value of the Canadian dollar against the U.S. dollar. Average-realized
prices for the three months ended September 30, 2023 were positively impacted by a stronger U.S. dollar relative to the Canadian
dollar compared to the prior year period.
Finished nickel sales volumes for the three months ended September 30, 2023 were lower than the prior year period and finished
production volumes in the current quarter primarily due to lower demand for nickel from steel mills after summer
shutdowns. Higher MHP and matte intermediate availability also led to lower metal purchasing in Asia, with delivery of new
China cathodes to the London Metal Exchange (LME) highlighting the lower nickel metal demand in the region. Decreases in
nickel prices have delayed some sales to consumers anticipating the bottom of the current nickel price cycle to be realized in
the near-term. Sales volumes for the three months ended September 30, 2023 were also lower compared to the same prior year
period where Sherritt successfully reduced the inventory build-up from Q2 2022 in part through higher netback sales to other
markets and new customers.
Finished cobalt revenue, including cobalt sold by Sherritt under the Cobalt Swap and Sherritt’s 50% share of cobalt sold by the
Moa JV, for the three months ended September 30, 2023 was $20.4 million compared to $21.5 million in the prior year period.
While cobalt sales volumes of 526 tonnes were 52% higher, revenue was impacted by 37% lower average-realized prices. As
of September 30, 2023 Sherritt had sold approximately 97% of the cobalt received under the Cobalt Swap and expects to sell
the remaining cobalt and receive all remaining cash by end of year.
Based on Sherritt's 50% share, cobalt sales volumes were 401 tonnes compared to 347 tonnes in Q3 2022 primarily due to a
general improvement in demand as consumers took advantage of buying at the perceived bottom of the price cycle and took
the opportunity to restock inventories. In addition, Sherritt increased its customer base in the current year.
Fertilizer revenue for the three months ended September 30, 2023 was $8.3 million compared to $15.0 million in the prior year
period. Sales volumes for the three months ended September 30, 2023 were 22% lower on lower fertilizer production due to
maintenance and 27% lower average-realized prices compared to the prior year period.
Mixed sulphides production at the Moa JV for the three months ended September 30, 2023 was 4,037 tonnes, down 4% from
the same period in the prior year primarily due to required maintenance on the ore thickener and lower ore grades. Logistical
delays in the delivery of purchased sulphuric acid required during planned sulphuric acid plant maintenance resulted in ore
processing reductions at the end of the third quarter and into the early part of the fourth quarter.
Finished nickel production for the three months ended September 30, 2023 totaled 3,841 tonnes,14% lower than the prior year
period primarily as a result of lower mixed sulphides feed availability at the refinery. The first shipment of additional third-party
feed initially expected to be received in the third quarter was temporarily delayed as result of Hurricane Lee. Approximately 650
tonnes (100% basis) of the additional feed is expected to be received and processed in the fourth quarter.
Finished cobalt production for the three months ended September 30, 2023 of 410 tonnes was 2% lower compared to the prior
year period for the same reasons as the lower nickel production.
Fertilizer production for the three months ended September 30, 2023 was 23% lower, compared to the prior year period in line
with metals production and the impact of reduced ammonia plant availability resulting from unplanned maintenance during the
year and planned maintenance in the current year quarter.
Mining, processing and refining (MPR) costs per pound of nickel sold for the three months ended September 30, 2023, which
includes Sherritt’s share of cost of the Cobalt Swap and Moa JV cobalt sold in the current year period, was up 3% compared to
the prior year period. The higher MPR costs were primarily attributable to the impact of lower nickel production and sales
volumes, higher maintenance costs, and the cost associated with the significantly higher cobalt sales volumes in the current
year period. MPR costs in the three-month period ended September 30, 2023 were positively impacted by lower input commodity
prices, including a 65% decrease in sulphur prices, a 29% decrease each of diesel and natural gas prices, and a 19% decrease
in fuel oil prices.
Sherritt International Corporation 5
NDCC(1) per pound of nickel sold for the three months ended September 30, 2023 increased to US$7.24/lb from US$6.76/lb in
the prior year period primarily due to the impact of lower nickel sales volumes and lower fertilizer by-product credits, partly offset
by higher cobalt by-product credits(2).
Sustaining spending on capital(1) for the three months ended September 30, 2023 was $12.8 million compared to $16.2 million
in the prior year period, primarily due to timing of planned spending at both the Moa JV and Fort Site.
Growth spending on capital for the three months ended September 30, 2023 was $2.9 million, most of which was related to
spending on the slurry preparation plant as part of the Moa JV expansion program.
(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.
Moa JV expansion program update
The Moa JV expansio n program was specifically designed to minimize the risks of capital overruns and project delays which
were anticipated following the COVID -19 pandemic. The low capital intensity of our expansion program , at approximately
US$13,200 per additional annual tonne of contained nickel, minimizes risks to our liquidity during volatile market conditions as
currently experienced with the slower than anticipated EV supply chain demand.
The Moa JV continued to advance the expansion program at the mine site in Q3 2023. Progress included:
Slurry Preparation Plant (SPP):
• installation of piping was completed and installation of electrical cable tray, electrical cables and instrumentation is
progressing on schedule and nearing completion;
• slurry and water return pipelines are complete and pre-commissioning has commenced; and
• the commissioning plan was completed and the pre -commissioning plan has started on project systems that are
mechanically complete.
The SPP construction remains on budget and expected to commence operations in early-2024.
Processing Plant:
• 95% of procurement packages, including all long lead-items, for the Sixth Leach Train have been awarded, and remain
within budget;
• an effort-hour loaded schedule has been finalized for the Sixth Leach Train with construction scheduled to commence
in Q2 2024;
• engineering for the Fifth Sulphide Precipitation Train has been completed and ordering of equipment and materials will
commence in 2024; and
• the construction permit has been granted by the Cuban authorities for the acid tanks and the contract is being finalized
with the vendor for the supply of the materials and erection of the tanks.
The processing plant expansion remains on budget and on schedule for an expected end of year 2024 completion with
commissioning and ramp up in 2025.
2023 Third Quarter Report
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6 Sherritt International Corporation
Power
For the three months ended For the nine months ended
2023 2022 2023 2022
$ millions (33 ⅓% basis), except as otherwise noted September 30 September 30 Change September 30 September 30 Change
FINANCIAL HIGHLIGHTS
Revenue $ 11.9 $ 9.0 32% $ 33.1 $ 26.6 24%
Cost of sales 5.7 6.8 (16%) 15.6 19.3 (19%)
Earnings from operations 5.6 1.4 300% 14.8 4.2 252%
Adjusted EBITDA(1) 6.2 5.5 13% 16.6 16.2 2%
CASH FLOW
Cash provided by continuing operations for operating activities $ 2.8 $ 9.1 (69%) $ 9.5 $ 23.9 (60%)
Free cash flow(1) 2.2 6.1 (64%) 7.6 20.4 (63%)
PRODUCTION AND SALES
Electricity (GWh(2)) 190 139 37% 520 409 27%
AVERAGE-REALIZED PRICE(1)
Electricity ($/MWh(2)) $ 56.30 $ 57.02 (1%) $ 57.23 $ 55.67 3%
UNIT OPERATING COSTS(1)
Electricity ($/MWh) 27.06 20.04 35% 27.07 18.60 46%
SPENDING ON CAPITAL(1)
Sustaining $ 0.6 $ 3.0 (80%) $ 1.9 $ 3.5 (46%)
(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 September 30, 2023 was $11.9 million, up 32% compared to the prior year period primarily
due to higher production.
Electricity production for the three months ended September 30, 2023 was 190 GWh compared to 139 GWh in the prior year
period. The increase in electricity production is a result of increased equipment availability and additional gas from two gas wells
that went into production in Q2 2023. The gas is provided to Energas free of charge by Union Cubapetroleo for use in power
generation. Opportunities to further increase gas supply for additional power production in 2024 continue to be investigated.
Unit operating costs(1) for the three months ended September 30, 2023 were $27.06/MWh compared to $20.04/MWh for the prior
year period primarily driven by the timing of planned maintenance activities, partly offset by higher sales volumes.
The Power business unit had $0.6 million spending on capital(1) in Q3 2023 primarily driven by maintenance activities.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
Technologies
During the three months ended September 30, 2023, Technologies:
• continued to advance development of strategic growth opportunities for Sherritt, provide technical support, process
optimization and technology development services to the Moa JV and the Fort Site and support the Moa JV’s expansion
program;
• continued its MHP test program supported by a funding commitment from Natural Resources Canada (NRCan);
• advanced its flowsheet enhancements on its next-generation laterite (NGL) processing technology and commenced new
batch testing on specific laterite opportunities to test NGL’s applicability; and
• continued to progress on commercialization activities around proprietary technologies and innovative industry solutions.
Sherritt International Corporation 7
OUTLOOK
2023 production volumes, unit operating costs and spending on capital guidance
Guidance Year-to-date Updated
for 2023 - actuals - 2023 guidance -
Production volumes, unit operating costs and spending on capital Total Total Total
Production volumes
Moa Joint Venture (tonnes, 100% basis)
Nickel, finished 30,000 – 32,000 21,184 29,000 – 30,000
Cobalt, finished 3,100 – 3,400 2,216 2,900 – 3,100
Electricity (GWh, 33⅓% basis) 650 – 700 520 No change
Unit operating costs(1)
Metals – NDCC (US$ per pound) $6.75 – $7.25 $6.97 No change
Electricity (unit operating cost, $ per MWh) $27.25 – $28.75 $27.07 No change
Spending on capital(1)($ millions)
Sustaining
Metals: Moa Joint Venture (50% basis), Fort Site (100% basis) $70.0 $32.3 $50.0
Power (33⅓% basis) $4.4 $1.9 No change
Growth
Metals: Moa Joint Venture (50% basis) $20.0 $9.1 $15.0
Spending on capital(2) $94.4 $43.3 $69.4
(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.
Metals
Supply chain logistics challenges resulted in delays receiving equipment replacement parts, sulphuric acid, and additional third-
party feed, which impacted production in Q3 2023. Based on nickel and cobalt production for the nine months ended September
30, 2023, of 21,184 tonnes and of 2,216 tonnes (100% basis), respectively, Sherritt has updated its 2023 production guidance
to 29,000 – 30,000 tonnes of nickel and 2,900 – 3,100 tonnes of cobalt. NDCC guidance for 2023 of US$6.75/lb – US$7.25/lb
remains unchanged.
For sustaining spending on capital, Sherritt has reduced its 2023 guidance from $70.0 million to $50.0 million based on its
spending for the nine months ended September 30, 2023. Sherritt continues to manage its capital spending in a prudent manner
and has the ability to decrease spending or defer certain capital items due to market conditions.
For growth spending on capital, Sherritt has reduced its 2023 guidance from $20.0 million to $15.0 million based on its spending
for the nine months ended September 30, 2023 of $9.1 million. This reduction in spending is related to the timing of spending
for non-critical path items whereby the project timing and overall budget remains unchanged.
Power
2023 guidance ranges for electricity production, unit operating cost and spending on capital remain unchanged.
CONFERENCE CALL AND WEBCAST
Sherritt will hold its conference call and webcast November 2, 2023 at 10:00 a.m. Eastern Time to review its Q3 2023 results.
Dial-in and webcast details are as follows:
North American callers, please dial: 1 (888) 886-7786 Passcode: 79249342
International callers, please dial: 1 (416) 764-8658 Passcode: 79249342
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.
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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 nine months ended September 30, 2023
are available at www.sherritt.com and should be read in conjunction with this news r elease. Financial and operating data can
also viewed in the investor relations section of Sherritt’s website on SEDAR at www.sedarplus.ca.
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 nine
months ended September 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 current 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 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 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”.