Sherritt Provides an Operational Update
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Sherritt Provides an Operational Update
TORONTO, October 21, 2024 – Sherritt International Corporation (“Sherritt” or the “Corporation”) (TSX:S)
today announced an operational update following a countrywide power outage in Cuba that began on
Friday, October 18th. Partial restoration of power occurred on Saturday, October 19th with efforts toward the
complete restoration of the national grid continuing. At this time, Sherritt does not anticipate any impact to
its 2024 guidance.
At Sherritt’s Metals division, t he Moa Nickel mine, began operating at a reduced capacity of 50% to 60%
with the mine site’s power generating capabilities providing power following the outage . In addition, the
mine provided power to regional power stations to assist with restarting in anticipation of connecting and
generating power back to the national grid . Operations at the mine are expected to return to full capacity
once power from the national grid is restored. Cuba’s national power company expects this to occur in the
coming days, with the timing potentially affected by the impacts of Hurricane Oscar which are still to be
assessed. Hurricane Oscar , which weakened to a tropical storm, is not anticipated to have any material
impact to the mine site beyond the potential for minor delays in timing for power from the national grid to
be restored. With the impact of the power outage minimized by the operation’s backup power supply and
prudent risk mitigation planning, there is not expected to be a material impact to mixed sulphides production.
Sherritt’s Power division has played a meaningful role in assisting to restore power to the Cuban national
grid. Teams at Energas S.A. (“Energas”) worked unceasingly since the power outage occurred, partially or
fully restoring operations at all Energas facilities by Saturday, October 19th with some intermittent temporary
disruptions occurring since then given the complexities with establishing power to the grid.
Sherritt continues to stand in solidarity with its Cuban partners, collaborating to achieve the complete
restoration of power to the Cuban national grid.
About Sherritt International
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
25 years and has embarked on an expa nsion program focused on increasing annual mixed sulphide
precipitate production by approximately 20% of contained nickel and cobalt. The Corporation’s Power
division, through its ownership in Energas S.A., is the largest independent energy producer in Cub a 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 that
produce low-cost electricity from one o f the lowest carbon emitting sources of power in Cuba. Sherritt’s
common shares are listed on the Toronto Stock Exchange under the symbol “S”.
For further information, please contact:
Tom Halton
Director, Investor Relations and Corporate Affairs
Email: [email protected]
Telephone: (416) 935-2451
www.sherritt.com
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, the
Corporation’s 2024 guidance and timing of a return to full operating rates at the Moa Nickel mine.
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 volatility; production results; realized prices for production; earnings and revenues; global
demand for electric vehicles and the anticipated corresponding demand for cobalt and nickel; the commercialization of
certain proprietary technologies and service s; advancements 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) matte rs which 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 certain
corporate objectives, goals and plans for 2024. 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, conclusions 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, uncertainty in the ability to accurately forecast the timing of operations
operating a full capacity following the power outages of the Cuban national grid, 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, 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
jurisdictions; 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 l iabilities including
liability for reclamation costs, tailings facility failures and toxic gas releases; uncertainty about the pace of technological
advancements required in relation 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; compe tition 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 Corporat ion 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 la w; the ability to accomplish
corporate objectives, goals and plans for 2023; and the ability to meet other factors listed from time to time in the
Corporation’s continuous disclosure documents.
In addition to the risks noted above, factors that could, alone or in combination, prevent the Corporation from
successfully achieving the benefits from expansion opportunities may include, without limitation: identifying suitable
commercialization and oth er partners; successfully advancing discussions and successfully concluding applicable
agreements with external parties and/or partners; successfully attracting required financing; successfully developing
and proving technology required for the potential o pportunity; successfully overcoming technical and technological
challenges; successful environmental assessment and stakeholder engagement; successfully obtaining intellectual
property protection; successfully completing test work and engineering studies, prefeasibility and feasibility studies,
piloting, scaling from small scale to large scale production; procurement, construction, commissioning, ramp -up to
commercial scale production and completion; unanticipated cost increases; supply chain challenges and securing
regulatory and government approvals. There can be no assurance that any opportunity will be successful, commercially
viable, completed on time or on budget, or will generate any meaningful revenues, savings or earnings, as the case
may be, for the Corporation. In addition, the Corporation will incur costs in pursuing any particular opportunity, which
may be significant. Readers are cautioned that the foregoing list of factors is not exhaustive and should be considered
in conjunction with the risk factors described in the Corporation’s other documents filed with the Canadian securities
authorities, including without limitation the “Managing Risk” sec tion of the Management’s Discussion and Analysis for
the three and six months ended June 30, 2024 and the Annual Information Form of the Corporation dated March 21,
2024 for the period ending December 31, 2023, which is available on SEDAR at www.sedarplus.ca.
The Corporation may, from time to time, make oral forward-looking statements. The Corporation advises that the above
paragraph and the risk factors described in this press release and in the Corporation’s other documents filed with the
Canadian securities authorities should be read for a description of certain factors that could cause the actual results of
the Corporation to differ materially from those in the oral forward -looking statements. The forward-looking information
and statements contained in this press release are made as of the date hereof and the Corporation undertakes no
obligation to update publicly or revise any oral or written forward-looking information or statements, whether as a result
of new information, future events or otherwise, except as required by applicable securities laws. The forward -looking
information and statements contained herein are expressly qualified in their entirety by this cautionary statement.