- Write by:
-
Saturday, April 27, 2019 - 10:07:25 AM
-
1306 Visit
-
Print
Mining News Pro - Investors dumped Nickel and cobalt miner Sherritt International’s (TSE: S) shares on Friday, after the company released first quarter earnings.
According to Mining News Pro - Sherritt reported record first quarter nickel and cobalt production at its Cuban JV. In Q1 2019 nickel production was 4,397 tonnes, up 54% from last year, while finished cobalt was 426 tonnes, up 27%. The combined nickel and cobalt total for Q1 2019 marks the Moa JV’s highest ever first quarter production results.
But Sherritt’s Q1 2019 adjusted EBITDA was negative $1.2 million, down from positive adjusted EBITDA of $35.5 million in Q1 2018.
The decrease, Sherritt said, was due to a number of factors, including a 70% year-over-year decline in realized cobalt prices and lower contributions from the oil and gas business as a result of decreased net working-interest production stemming from maturing oil fields and a lower profit share.
“Adjusted EBITDA in Q1 2019 was largely impacted by the 70% decline in realized cobalt prices, a price decline triggered of destocking of inventory by consumers and increased available supply," David Pathe, Sherritt’s president and CEO said in an email.
“Our record production results in Q1 2019 were negatively impacted by the dramatic decline in realized cobalt prices, contributing to considerably lower by-product revenue and higher NDCC than we have experienced in recent quarters Our Q1 progress was also impeded by the disappointing collections on our Cuban overdue receivables,” Pathe said.
Sherritt ended Q1 2019 with cash, cash equivalents and short-term investments of $177.3 million, down from $207.0 million at the end of 2018. The decrease, Sherritt said, was due to the timing of capital expenditures, interest paid on outstanding debentures and changes to working capital, including lower than expected Cuban energy receipts.
By Friday afternoon, Sherritt’s stock was down over 28.7%, priced at $0.26. More than $7.9 million shares were traded, over seven times the average volume of 874,582.
The company has a C$101 million market capitalization.
Short Link:
https://www.miningnews.ir/En/News/363709
Anglo American CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time ...
Around $7 billion of infrastructure investments in the Democratic Republic of Congo by Chinese companies in a revised ...
M23 rebels in eastern Democratic Republic of Congo have taken control of Rubaya, a key mining town for the smartphone ...
Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an ...
The Democratic Republic of Congo’s government notified Apple Inc. of concerns that the company’s supply chain may be ...
Copper traded near $10,000 a ton, hitting a new two-year high on its way, as investors continue to pile in on a bet that ...
The United States speaks regularly with the Democratic Republic of Congo’s state miner Gecamines, a senior State ...
The United States is looking to Africa to help loosen a Chinese stranglehold on battery metals and reduce Russia’s ...
Democratic Republic of Congo and Chinese investors on Thursday signed an agreement reached in January that revises some ...
No comments have been posted yet ...