Q3 2024 Sherritt International Corp Earnings Call Transcript
Key Points
- Sherritt International Corp (SHERF) delivered strong operational performance with increased production of mixed sulfides, finished nickel, cobalt, and fertilizers.
- The company's net direct cash costs (NDCC) declined to USD 5.16 per pound, marking the best quarterly result in two years.
- Electricity production at the Power division reached a nine-year high, supported by the completion of a new gas well.
- Available liquidity in Canada increased by 28% during the quarter, driven by strong operating performance.
- Fertilizer sales increased by 46% year-over-year, benefiting from higher production and operating improvements.
- The average reference price of nickel decreased by 12% during the quarter, reaching its lowest level since Q4 2020.
- Cobalt prices were also at their lowest since Q2 2016, impacting byproduct credits negatively.
- Finished nickel and cobalt sales were below production due to seasonal factors and logistical disruptions.
- The company faced higher unit operating costs due to planned maintenance activities.
- The challenging market conditions with oversupply and decreasing prices for nickel and cobalt continue to pose a significant challenge.
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Sherritt International Corporation Q3 2024 Results Conference Call and Webcast. (Operator Instructions) I would like to remind everyone that this conference call is being recorded today, Tuesday, October 31, 2024, at 10:00 a.m. Eastern Time. I will now turn the presentation over to Tom Halton, Director, Investor Relations. Please go ahead.
Thank you, operator, and welcome, everyone, to Sherritt's third-quarter 2024 conference call. We released our third quarter results last night. Our press release, MD&A and financial statements are available on our website and on SEDAR+. During today's call, we will be referring to our presentation that is available on our website and on today's webcast.
As we will be making forward-looking statements and references to certain non-GAAP financial measures, please refer to the cautionary notes on slide 3 of our presentation as well as the material assumptions and
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