Sherritt Reports Second Quarter 2026 Results
Sherritt International Corporation 1
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sherritt Reports Second Quarter 2026 Results
TORONTO – August 12, 2026 – Sherritt International Corporation (“Sherritt”, the “Corporation”) (TSX: S ) today reported its
financial results for the three and six months ended June 30, 2026. All amounts are in Canadian dollars unless otherwise noted.
“The second quarter was marked by significant challenges and disruption,” said Peter Hancock, Interim President and Chief
Executive Officer. “Against this backdrop, we remained focused on preserving liquidity, maintaining safety, maximizing fertilizer
production, and advancing stakeholder engagement and strategic initiatives necessary to prepare for a restart of our critical
minerals mining and refining operations subject to U.S. government approval. We are continuing to work with urgency and
discipline to deliver a solution that supports the long-term stability and viability of our business.”
SECOND QUARTER 2026 SELECTED DEVELOPMENTS(1)
Operational update
On May 7, 2026, as a result of the Executive Order issued by the U.S. administration on May 1, 2026 expanding its sanctions
against persons and companies conducting business in Cuba (the “Executive Order”), Sherritt suspended its direct participation
in both its Moa and Energas joint venture activities in Cuba.
As a result of fuel supply disruptions in Cuba and challenges procuring other input commodities and supplies at the mine site ,
feed inventory at the refinery in Fort Saskatchewan, Alberta was depleted on June 22, 2026. Mining and processing operations
at the mine ceased near the end of the quarter.
During the refinery downtime, the Corporation will complete necessary maintenance activities that do not require significant
capital investment. The Corporation continues to produce fertilizers and sulphuric acid for sale.
Operational performance
• Finished nickel and cobalt production at the Moa Joint Venture (“Moa JV”) was 1,319 tonnes and 135 tonnes,
respectively, (Sherritt’s share(1)).
• Finished nickel and cobalt sales were 1,720 tonnes and 167 tonnes, respectively(1).
• Fertilizer sales were 52,328 tonnes(1) as Sherritt prioritized initiatives to maximize fertilizer production at Fort Site.
• Net direct cash cost (“NDCC”)(2) of US$7.31/lb was primarily impacted by the higher sulphur prices and significantly
lower nickel production and sales volumes.
• Electricity production was 207 GWh. Production was not affected by fuel supply disruptions to Cuba as Energas
processes domestically sourced raw natural gas to generate electricity.
• Electricity unit operating cost(2) was $13.36/MWh primarily reflecting lower maintenance costs and higher electricity
production and sales.
Financial performance
• Net loss from continuing operations was $71.1 million, or $(0.10) per share.
• Adjusted net loss from continuing operations(2) was $24.8 million or $(0.04) per share which primarily excludes the
$38.6 million loss from operations of Sherritt’s Oil and Gas division, primarily due to a $36.1 million contractually
obligated environmental rehabilitation cost update on legacy assets in Spain in Q2 2026. In addition, the current year
period excludes a $6.8 million non-cash net loss on revaluation of the GNC(3) receivable and Energas payable pursuant
to the Cobalt Swap agreement(4). Adjusted net loss from continuing operations for Q2 2025 primarily excludes a
$32.4 million gain on the Debt and Equity Transactions(5).
• Adjusted EBITDA(2) was $(2.0) million.
• Available liquidity in Canada as at June 30, 2026 was $80.1 million.
2026 Second Quarter Report
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2 Sherritt International Corporation
Organizational updates
• On April 7, 2026, the Corporation completed a non -brokered private placement of common shares, issuing
approximately 207 million shares at $0.21 per share for total gross proceeds of $43.6 million.
• In April 2026, foreign currency payments from the Moa JV to Energas pursuant to the Moa Swap ceased as a result of
reduced operations at the Moa JV which reduced the Moa JV’s cash available in major foreign currencies. Dividends
from Energas to the Corporation in Canada ceased.
• On May 1, 2026, the Executive Order was issued by the U.S. administration expanding its sanctions against persons
and companies conducting business in Cuba. Sherritt International Corporation, the legal entity, has not, nor has any
of its officers or directors, been sanctioned following issuance of the Executive Order.
• On May 7, 2026 Sherritt announced:
• It suspended its direct participation in both its Moa and Energas joint venture activities in Cuba, and that it took
steps to repatriate Sherritt’s expatriate employees on assignment in Cuba and requested that partners repatriate
their expatriate personnel on assignment in Canada.
• Brian Imrie, Richard Moat and Brett Richards resigned from its board of directors (the “Board”).
• On May 13, 2026, Sherritt announced:
• Deloitte LLP resigned as the Corporation’s external auditor, effective May 12, 2026. The resignation was not the
result of any disagreement between the Corporation and Deloitte on any matter of accounting principles or
practices, financial statement disclo sure, or auditing scope or procedure. Deloitte’s reports on the Corporation’s
previously issued financial statements did not contain any adverse opinion or a disclaimer of opinion, and was not
qualified or modified as to uncertainty, audit scope, or accoun ting principles. Sherritt commenced a request for
proposal process for external audit services to identify a successor auditor.
• Yasmin Gabriel resigned as Chief Financial Officer.
• On May 14, 2026, Sherritt announced that pursuant to its application in the Ontario Superior Court of Justice,
Commercial List, it was granted (i) an order under the Canada Business Corporations Act (the “CBCA”) permitting the
Corporation’s Board to continue to act with two directors until no later than September 30, 2026, (ii) an order under the
CBCA permitting the Corporation to continue to operate without an external auditor until no later than Se ptember 30,
2026, and (iii) an order extending the time for Sherritt to call its annual meeting of shareholders to not later than
September 30, 2026.
• On May 15, 2026, Sherritt announced that in light of the May 1, 2026 Executive Order, it intended to invoke its
dissolution rights under the Moa Shareholders’ Agreement and Energas Association Agreement and seek relief from
the Alberta Court of King’s Bench to facilitate accelerated dissolution to the extent possible. The intended outcome was
to allow Sherritt to most definitively address the Executive Order by eliminating Sherritt’s Cuban interests. Further, the
separation from Cuba was intended to assist Sherritt in addressing issues that could arise from the Executive Order
such as difficulties in obtaining an auditor or banking services.
• On May 19, 2026, following further and ongoing consultation with its advisors, stakeholders and relevant governmental
authorities, and in light of additional information available to the Corporation, it would no longer proceed with the
dissolution and disclaimer steps relating to its interests in Cuba and would not proceed with its application to the Alberta
Court of King’s Bench.
• On May 20, 2026, Sherritt announced that it had entered into a non-binding term sheet with Gillon Capital, LLC (“Gillon
Capital”) with respect to a proposed private placement of a common share purchase warrant (the “Warrant”),
exercisable for up to that number of common shares of the Corporation such that, immediately upon exercise in full of
the Warrant, Gillon Capital would own 55% of the common shares then issued and outstanding (the “Gillon Private
Placement”). The Warrant will be exercisable at a price to be agreed by the parties for a period ending nine months
from the closing date, subject to satisfaction of certain conditions precedent, including compliance with the
Corporation’s existing contractual arrangements and debt agreements. Given the curren t circumstances of the
Corporation, management expects that such exercise price will be at a discount to the closing price of the common
shares on May 15, 2026. The Gillon Private Placement remains subject to the execution of definitive documentation
Sherritt International Corporation 3
and the transaction is expected to be subject to the satisfaction of customary conditions and the receipt of all required
regulatory approvals, including approval of the Toronto Stock Exchange. In connection with the Gillon Private
Placement, Sherritt engaged c onstructively with the United States Department of State, which confirmed that the
Department of State and Department of Treasury do not object to Gillon Capital’s engagement in negotiations with the
Corporation and, based on the information provided to da te, do not consider such negotiations to be contrary to U.S.
law. Any subsequent transaction will be subject to approval of the Department of State and Department of Treasury.
On June 15, 2026, Sherritt entered into an exclusivity agreement with Gillon Capital providing for a 120 -day period of
exclusive negotiations with respect to the non -binding term sheet regarding the Gillon Private Placement. The period
of exclusivity was entered into to allow the parties to complete their respective due diligence reviews and negotiate a
definitive agreement with respect to the Gillon Private Placement.
• On May 22, 2026, Sherritt announced that its principal regulator, the Ontario Securities Commission, issued a failure -
to-file cease trade order (“FFCTO”) against the Corporation, effective May 21, 2026, as a result of the Corporation’s
failure to file its first quarter 2026 interim financial statements, management’s discussion and analysis and related
officer certifications (collectively, the “Q1 Filing“).by the filing deadline on May 15, 2026. The Corporation was unable
to complete the filings as a result of operational and governance disruptions following the Executive Order. The Q1
Filing was made on June 25, 2026 and the FFCTO was revoked on July 9, 2026 with shares commencing trading on
July 10, 2026.
• On June 3, 2026, Sherritt announced it had appointed Fitzroy Richardson as Interim Chief Financial Officer to provide
experienced financial leadership as the Corporation works to complete its outstanding quarterly filings, an important
step toward seeking a revocation of the FFCTO. Mr. Richardson is a seasoned finance executive with nearly 30 years
of experience at Sherritt, where he has held a range of senior finance and treasury roles.
• On June 1 4, 2026, Sherritt appointed Tabrez Khan as an independent director, bringing deep M&A, financial and
strategic advisory experience to the Board. Mr. Khan was nominated to the Board by Kyma Capital Opportunities Master
Fund Limited (“Kyma”), pursuant to Kyma’s nomination right under the investor rights agreement dated as of April 22,
2025 between the Corporation and Kyma. Concurrent with Mr. Khan’s appointment to the Board, he was appointed to
the audit committee of the Board (the “Audit Committee”) . Following Mr. Khan’s appointment, the Audit Committee
consists of Dr. Peter Hancock, Ms. Chih-Ting Lo, and Mr. Khan. As Dr. Hancock is the interim Chief Executive Officer
of Sherritt, he is not considered independent under National Instrument 52 -110 – Audit Committees (“NI 52-110”).
Sherritt is relying on the temporary exemption provided in Sec tion 3.5 of NI 52-110 for Dr. Hancock’s membership on
the Audit Committee. Following Mr. Khan’s appointment, the Audit Committee is compliant with the requirements of NI
52-110 and the rules of the Toronto Stock Exchange.
• In respect of the Corporation’s Credit Facility:
• As a result of the issuance of the Executive Order, a material adverse change to the Corporation's business
occurred which would give the administrative agent (on behalf of the lenders) the ability to call an event of default
under the Credit Facility and demand repayment of all indebtedness currently owing thereunder.
• On May 31, 2026, the borrowing base of the Credit Facility was $76.3 million, which was below the then aggregate
borrowings of $79.5 million including outstanding letters of credit. As a result of this deficiency, the lenders issued
a notice of excess borrowing and required the Corporation to repay the difference of $3.2 million during the three
months ended June 30, 2026.
• During the three months ended June 30, 2026, the Corporation was not in compliance with the EBITDA-to-Interest
Expense covenant, as defined in the Credit Facility agreement.
• The Corporation does not have the ability to make further draws on the Credit Facility at this time.
• Refer to the Liquidity section of the Corporation’s Management’s Discussion and Analysis for the three and six
months ended June 30, 2026 (“MD&A”) for further details.
(1) References to operational and financial metrics in this press release, unless otherwise indicated, are to “Sherritt’s share” which is consistent with the Corporation’s
definition of reportable segments for financial statement purposes. Sherritt’s share of “Metals” includes the Corporation’s 50% interest in the Moa Joint Venture (“Moa
JV”), its 100% interest in the utility and fertilizer operations in Fort Saskatchewan (“Fort Site”) and its 100% interests in subsidiaries established to buy, market and
sell certain of the Moa JV’s nickel and cobalt production and the Corporation’s cobalt inventory received under the Cobalt Swap agreement (“Metals Marketing”).
Sherritt’s share of Power includes the Corporation’s 33⅓% interest in Energas S.A. (“Energas”). References to Corporate and Other and Oil and Gas includes the
Corporation’s 100% interest in these businesses. Corporate and Other refers to the Corporate head office and growth and market development support. Fort Site
refers to the Corporation’s 100% interest in the utility and fertilizer operations.
(2) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(3) General Nickel Company S.A. (“GNC”).
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4 Sherritt International Corporation
(4) For additional information on the “Cobalt Swap”, see Note 13 – Advances, loans receivable and other financial assets of the consolidated financial statements for the
year ended December 31, 2025.
(5) For more information on the “Debt and Equity Transactions”, see Note 16 – Loans, borrowings and other financial liabilities of the consolidated financial statements
for the year ended December 31, 2025.
DEVELOPMENTS SUBSEQUENT TO THE QUARTER
Credit Facility update
• On June 30, 2026, the borrowing base of the Credit Facility was $43.1 million, which was below the amount of the then
aggregate borrowings of $76.3 million including outstanding letters of credit. As a result of this deficiency, the lenders
issued a notice of excess borrowing and the Corporation repaid 50% of the June 30, 2026 borrowing base deficiency
amounting to $16.6 million subsequent to period end in return for the lenders agreeing not to act on the Corporation’s
default to pay the full amount of the deficiency.
• As of August 12, 2026, the administrative agent under the Credit Facility has not issued a notice of an event of default
and no demand for repayment of the loan obligations has been made, other than the notices of excess borrowings
noted above.
Sherritt International Corporation 5
Q2 2026 FINANCIAL HIGHLIGHTS
For the three months ended For the six months ended
2026 2025 2026 2025
$ millions, except per share amount June 30 June 30 Change June 30 June 30 Change
Revenue $ 59.3 $ 43.7 36% $ 93.3 $ 82.1 14%
Combined revenue(1) 132.1 135.6 (3%) 238.7 261.3 (9%)
Loss from operations and joint venture (52.7) (19.4) (172%) (64.8) (51.2) (27%)
Net (loss) earnings from continuing operations (71.1) 10.4 (784%) (80.3) (30.2) (166%)
Net (loss) earnings for the period (71.1) 10.2 (797%) (80.3) (30.4) (164%)
Adjusted EBITDA(1) (2.0) 2.6 (177%) 5.6 7.0 (20%)
Adjusted loss from continuing operations(1) (24.8) (25.6) 3% (36.7) (47.8) 23%
Net (loss) earnings from continuing operations ($ per share) (0.10) 0.02 (600%) (0.14) (0.07) (100%)
Adjusted loss from continuing operations ($ per share)(1) (0.04) (0.06) 33% (0.06) (0.11) 45%
Cash provided by continuing operations for operating
activities 38.9 5.6 595% 25.8 6.6 291%
Combined free cash flow(1) 35.0 2.8 nm(2) 30.3 (3.8) 897%
Average exchange rate (CAD/US$) 1.384 1.384 - 1.378 1.409 (2%)
2026 2025
$ millions, as at June 30 December 31 Change
Cash and cash equivalents
Canada $ 80.1 $ 13.4 498%
Cuba(3) 119.8 109.4 10%
Other 3.9 2.1 86%
203.8 124.9 63%
Loans and borrowings 323.2 316.0 2%
The Corporation's share of cash and cash equivalents in the Moa Joint Venture, not
included in the above balances: $ 5.4 $ 12.8 (58%)
(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”)
(3) As at June 30, 2026, $115.5 million of the Corporation’s cash and cash equivalents was held by Energas (December 31, 2025 - $103.3 million).
Cash and cash equivalents were $203.8 million as at June 30, 2026 compared to $123.6 million at March 31, 2026. As at June
30, 2026, total available liquidity in Canada was $ 80.1 million, composed of cash and cash equivalents in Canada . The
Corporation did not have availability under its Credit Facility at the end of the quarter.
During the quarter, Sherritt received $42.5 million in net proceeds from the common share private placement completed on April
7, 2026.
As well during the three months ended June 30, 2026, the Corporation received $128.7 million of cash receipts for nickel, cobalt
and fertilizer sales and other working capital items from the Moa JV in the Corporate and Other segment in response to the
Executive Order and the Corporation’s suspension of its d irect participation in joint venture activities in Cuba effective May 7,
2026 and is being used to fund working capital. The cash receipts are recognized as accounts payable to the Moa JV and
included in trade accounts payable and accrued liabilities and s ettled through the incurrence of costs by the Corporation on
behalf of the Moa JV’s Canadian operations.
See the Liquidity section of the MD&A for additional details on the Credit Facility and cash flows.
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6 Sherritt International Corporation
REVIEW OF OPERATIONS
Metals
For the three months ended For the six months ended
2026 2025 2026 2025
$ millions (Sherritt's share), except as otherwise noted June 30 June 30 Change June 30 June 30 Change
FINANCIAL HIGHLIGHTS(1)
Revenue $ 117.5 $ 124.7 (6%) $ 211.3 $ 238.4 (11%)
Cost of sales 130.8 130.1 1% 232.5 249.2 (7%)
Loss from operations (14.9) (7.4) (101%) (24.1) (16.0) (51%)
Adjusted EBITDA(2) 0.3 7.8 (96%) 6.0 13.3 (55%)
CASH FLOW(1)
Cash (used) provided by continuing operations for operating
activities(2) $ (26.2) $ 20.0 (231%) $ (27.9) $ 41.9 (167%)
Free cash flow(2) (28.0) 6.4 (538%) (35.1) 17.8 (297%)
PRODUCTION VOLUMES (tonnes)
Mixed sulphides ("MSP")(4) 934 3,238 (71%) 2,745 6,395 (57%)
Finished nickel 1,319 3,431 (62%) 3,204 6,378 (50%)
Finished cobalt 135 389 (65%) 348 712 (51%)
Fertilizer 56,344 65,207 (14%) 109,348 121,027 (10%)
NICKEL RECOVERY(5) (%) 74% 83% (11%) 79% 84% (6%)
SALES VOLUMES (tonnes)
Finished nickel 1,720 3,256 (47%) 3,964 6,695 (41%)
Finished cobalt 167 380 (56%) 370 836 (56%)
Fertilizer 52,328 44,614 17% 79,700 77,734 3%
AVERAGE-REFERENCE PRICE(6) (US$ per pound)
Nickel $ 8.22 $ 6.88 19% $ 8.05 $ 6.97 15%
Cobalt 26.50 17.50 51% 26.24 15.24 72%
AVERAGE-REALIZED PRICE(2) (CAD)
Nickel ($ per pound) $ 11.27 $ 9.57 18% $ 10.93 $ 9.78 12%
Cobalt ($ per pound) 34.51 18.19 90% 33.54 15.51 116%
Fertilizer ($ per tonne) 701.78 674.44 4% 630.62 591.10 7%
UNIT OPERATING COST(2) (US$)
Nickel - net direct cash cost (US$ per pound) $ 7.31 $ 5.27 39% $ 7.13 $ 5.64 26%
SPENDING ON CAPITAL(2)(CAD)
Sustaining
Moa JV (50% basis), Fort Site (100% basis) $ - $ 7.6 (100%) $ 0.7 $ 16.4 (96%)
Moa JV - Tailings facility (50% basis) 1.8 5.0 (64%) 6.5 9.8 (34%)
Growth - Moa JV (50% basis) - 2.3 (100%) - 4.0 (100%)
$ 1.8 $ 14.9 (88%) $ 7.2 $ 30.2 (76%)
(1) The amounts included in the Financial Highlights, and Cash Flow sections for Metals above include the combined results 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) Reference sources: Nickel – London Metal Exchange (“LME”). Cobalt - Average standard-grade cobalt price published by Argus.
(5) Growth spending on capital: 2026 relates to improvement debottlenecking projects, 2025 relates to the Moa JV expansion.
Sherritt International Corporation 7
On May 7, 2026, Sherritt announced that it suspended its direct participation in both its Moa and Energas joint venture activities
in Cuba in response to the Executive Order issued by the U.S. administration on May 1, 2026.
Revenue
Metals revenue was $117.5 million compared to $124.7 million in the prior year period.
Nickel revenue was $42.8 million compared to $68.6 million in the prior year period primarily due to lower nickel sales volume
partly offset by higher average-realized price(1). Sales volume of 1,720 tonnes compared to 3,256 tonnes in the prior year period
primarily as a result of lower finished production outlined below. The average-realized price(1) of nickel of $11.27/lb was 18%
higher compared to the prior year period.
Cobalt revenue was $12.8 million compared to $15.2 million in the prior year period primarily due to lower sales volume partly
offset by higher average-realized price(1). Sales volume was 167 tonnes compared to 380 tonnes in the prior year period primarily
as a result of lower finished production outlined below. The average-realized price(1) of cobalt of $34.51/lb was 90% higher
compared to the prior year period.
Fertilizer revenue was $36.8 million compared to $30.0 million in the prior year period primarily due to higher sales volume and
average-realized price(1). Sales volume of 52,328 tonnes compared to 44,614 tonnes in the prior year period. The average-
realized price(1) of fertilizers of $701.78/tonne was 4% higher compared to the prior year period. The Corporation continues to
produce fertilizers and sulphuric acid for sale.
Other revenue includes 450 tonnes (50% basis) of mixed sulphides sales following Sherritt’s suspension of its direct participation
in its joint venture activities in Cuba.
Production
As a result of fuel supply disruptions in Cuba and challenges procuring other input commodities and supplies at the mine site,
only small quantities of mixed sulphides were produced during the quarter. Mixed sulphides production at the Moa JV was 934
tonnes compared to 3,238 tonnes in the prior year period. Mining and processing operations at the mine ceased near the end
of the quarter.
At the refinery in Fort Saskatchewan, Alberta, metals production was maintained at reduced rates during the quarter until June
22, 2026 when the mixed sulphides inventory was depleted and metals refining activity stopped. Sherritt’s share of finished
nickel and cobalt production was 1,319 tonnes and 135 tonnes, compared to 3,431 tonnes and 389 tonnes, respectively, in the
prior year period.
Fertilizer production was 56,344 tonnes, compared to 65,207 tonnes in the prior year quarter. Fertilizer production was lower in
the current year period primarily due to lower metals production. Sherritt expects to conduct a planned acid plant maintenance
shutdown in the third quarter 2026.
NDCC(1)
NDCC(1) per pound of nickel sold was US$7.31/lb compared to US$5.27/lb in the prior year period. Higher NDCC(1), and its
components, were, in part, impacted by significantly lower nickel sales volume compared to the prior year period.
Mining, processing and refining costs per pound of nickel sold (“MPR/lb”) was higher primarily as a result of higher input
commodity prices and the impact of the higher allocation of fixed costs over the significantly lower nickel sales volume. Sulphur,
diesel and natural gas prices were 78%, 59% and 27% higher, respectively, while fuel oil prices were 29% lower in the current
year period compared to Q2 2025. The joint venture did not purchase additional sulphur during the quarter.
Cobalt by-product credits were higher primarily as a result of the higher average-realized price(1) of cobalt.
Fertilizer net by-product credits were higher primarily as a result of the impact of significantly lower nickel sales volume on
marginally higher net contribution from fertilizer sales during the current year quarter compared to Q2 2025.
Spending on capital(1)
Sustaining spending on capital was nil compared to $7.6 million and spending on capital related to the tailings facility was $1.8
million compared to $5.0 million, respectively. Spending on capital was lower in the current year period as Metals deferred non-
essential capital spending to manage liquidity and the impact of the Executive Order which limited the joint venture’s ability to
procure or receive delivery of capital assets.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) For additional information on the Cobalt Swap, see Note 1 3 – Advances, loans receivable and other financial assets of the consolidated financial statements for the
year ended December 31, 2025.
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8 Sherritt International Corporation
Power
For the three months ended For the six months ended
2026 2025 2026 2025
$ millions (33 ⅓% basis), except as otherwise noted June 30 June 30 Change June 30 June 30 Change
FINANCIAL HIGHLIGHTS
Revenue $ 14.5 $ 10.6 37% $ 27.1 $ 22.0 23%
Cost of sales 3.2 5.0 (36%) 7.2 11.9 (39%)
Earnings from operations 9.8 4.3 128% 17.2 7.0 146%
Adjusted EBITDA(1) 10.4 5.0 108% 18.4 8.4 119%
CASH FLOW
Cash provided by continuing operations for operating
activities(1) $ 22.8 $ 16.0 43% $ 35.7 $ 16.9 111%
Free cash flow(1) 22.7 15.2 49% 35.4 16.0 121%
PRODUCTION AND SALES
Electricity (GWh(2)) 207 176 18% 416 346 20%
AVERAGE-REALIZED PRICE(1)
Electricity ($/MWh(2)) $ 52.58 $ 52.56 - $ 52.35 $ 53.53 (2%)
UNIT OPERATING COSTS(1)
Electricity ($/MWh) $ 13.36 $ 24.80 (46%) $ 15.09 $ 31.03 (51%)
SPENDING ON CAPITAL(1)
Sustaining $ 0.1 $ 0.8 (88%) $ 0.3 $ 0.9 (67%)
(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”).
On May 7, 2026, Sherritt announced that it suspended its direct participation in both its Moa and Energas joint venture activities
in Cuba in response to the Executive Order issued by the U.S. administration on May 1, 2026.
Revenue
Revenue was $14.5 million compared to $10.6 million in the prior year period. primarily due to increased electricity production
as discussed below.
Production
Production volume was 207 GWh compared to 176 GWh in the prior year period primarily as a result of lower maintenance
activities in the current year period. Energas processes domestically sourced raw natural gas to generate electricity and has not
been affected by fuel supply disruptions in Cuba.
Unit operating cost(1)
Unit operating cost(1) was $13.36/MWh compared to $24.80/MWh in the prior year period primarily as a result of lower
maintenance costs. As a result of the discontinuation of the Moa Swap in April, the joint venture prioritized and deferred certain
planned maintenance activities to preserve liquidity and access to foreign currencies.
Spending on capital(1)
Spending on capital(1) was $0.1 million.
Dividends from Energas
In April 2026, foreign currency payments from the Moa JV to Energas facilitated by the Moa Swap ceased as a result of reduced
operations at the Moa JV which reduced the Moa JV’s cash available in major foreign currencies. Dividends from Energas to
the Corporation in Canada ceased.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.