The following is a summary of the Sherritt International Corporation (SHERF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Sherritt International closed Q4 with consolidated revenue of $34.6 million, a drop of 28% from the previous year due to lower fertilizer prices and sales volume.
Combined revenue of the year was $140.5 million, affected primarily by lower average nickel prices and lesser nickel sales volume.
In the given financial year, the company faced a negative Adjusted EBITDA of $7 million, primarily due to market conditions, lower production, unplanned maintenance, and high operational costs along with an inventory write-down of $2.3 million.
Adjusted net loss from continuing operations stood at $27.9 million.
Concluding the year, the company had available liquidity of $63 million, a drop from the previous quarter due to various expenses.
With projected increases in production, sales, and a downturn in operating costs, the company is hopeful of improved operational margin and cash flow in 2024.
Business Progress:
Despite operational setbacks, Sherritt International successfully finished the first year of the Cobalt Swap agreement and increased electricity production.
The operational improvements included finalizing the technical report for the Moa Joint Venture, extending mine life past 2040 and completing phase one of the Moa Joint Venture expansion under budget and on time.
The company aims to increase the plant feed from the Moa mine site, ensuring increased quality and feed rate in the coming year.
The Power Division expects to increase electricity production with two wells going into production in Q2 2023.
Sherritt International is hopeful of increased dividends from Energas in 2024 owing to the operational strength carried forward from 2023.
The company anticipates dividends from the cobalt swap agreement to begin in the second half of 2024.
More details: SHERRITT INTL CORP IR
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