NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
All amounts are Canadian dollars unless otherwise indicated.
Sherritt International Corporation ("Sherritt" or the "Corporation") (TSX:S), a
world leader in the mining and refining of nickel from lateritic ores and the
largest independent energy producer in Cuba, today reported its financial
results for the second quarter ended June 30, 2014.
HIGHLIGHTS
-- Nickel and cobalt production at Ambatovy in the second quarter was
slightly better than the first quarter and increased 26% and 14%,
respectively, over the prior year period. The second quarter was the
first period for Ambatovy to record positive adjusted EBITDA, which was
$2.1 million ($5.3 million on a 100% basis).
-- On May 29, 2014, Sherritt executed an agreement with the Government of
Cuba to amend an existing Production-Sharing Contract ("PSC") for an
additional ten-year extension to March 2028 for new wells drilled.
-- On April 28, 2014, Sherritt closed the previously announced transaction
to sell the non-core coal business from its portfolio. Sherritt received
net cash proceeds of $804.3 million from the transaction.
-- Debt repayments were $365.0 million, including repaying the Coal
revolving credit facility of $300.0 million. Further reduction of
overall debt levels will be pursued by the Corporation.
-- Market prices for nickel and cobalt continued their recovery in the
second quarter, up by 35% and 13% year-to-date, resulting in higher
revenues in our Metals business.
-- Adjusted EBITDA of $75.4 million increased 42% for the three months
ended June 30, 2014 compared to $53.2 million in the prior year period
primarily due to higher adjusted EBITDA contribution from the Metals
business and due to the fact that an impairment was recognized in the
Power business in the prior year.
-- Net loss for the three months ended June 30, 2014 was $30.1 million
($0.10 per share) compared to $10.7 million ($0.04 per share) in the
same period in the prior year principally due to the Corporation's share
of losses in Ambatovy, which primarily consisted of significant
depletion, depreciation and amortization of $40.3 million (Sherritt's
share).
-- Adjusted operating cash flow from continuing operations per share was
$0.01 for the three months ended June 30, 2014 compared to $0.09 per
share in the same period in the prior year largely due to timing of
income tax payments.
-- During the quarter Sherritt continued the evaluation of its operations
and capital allocation to pursue longer term operating efficiencies and
has updated its year-to-date realized cost savings to $25 million. Work
continues on further opportunities to reduce structural costs following
the completion of the coal transaction, and to improve efficiencies.
-- On May 6, 2014, Mr. Timothy Baker was elected to the Corporation's Board
of Directors. Mr. Baker was the former Chief Operating Officer of
Kinross Gold Corporation and a former senior executive of Placer Dome.
Q2 FINANCIAL HIGHLIGHTS
For the three months For the six months
ended ended
$ millions, unless 2014 2013 2014 2013
otherwise noted June 30 June 30 Change June 30 June 30 Change
----------------------------------------------------------------------------
Revenue 130.2 121.7 7% 251.1 228.7 10%
Adjusted EBITDA(1) 75.4 53.2 42% 130.3 114.5 14%
Net (loss) earnings
per share (0.10) (0.04) (150%) (0.26) 0.04 (750%)
Adjusted continuing
operating cash flow
per share(1) 0.01 0.09 (89%) 0.11 0.19 (42%)
----------------------------------------------------------------------------
(1) For additional information, see the Non-GAAP measures section of this
release.
2014 2013
$ millions, except as noted, as at June 30 December 31 Change
----------------------------------------------------------------------------
Cash, cash equivalents and short term
investments 965.9 651.8 48%
Total loans and borrowings 2,163.3 2,489.8 (13%)
Long-term debt to total assets 39% 39% -
----------------------------------------------------------------------------
"During the second quarter, we made clear steps forward in executing our
long-term plan to refocus on base metals and our Cuban oil business," said David
Pathe, President and CEO. "The strong nickel market has had positive benefits in
our metals business and we remain committed to ramping up at Ambatovy towards
financial completion next year. In Cuba, we achieved a significant milestone
with the approval of an important oil PSC that will extend our oil and gas
operations and continue to strengthen our relationship with the country. We are
proud of the significant progress made this year and look to continue to build
momentum over the balance of 2014."
CORPORATE AND OTHER
The Corporation continues to target savings in 2014 in general, administrative
and other costs. For the six months ended June 30, 2014, $25 million of savings
has been realized.
Separately, administrative expenses during the quarter included several one-time
items related to the coal sale transaction, the annual general meeting and the
revaluation of stock-based compensation due to share price appreciation in the
quarter. In addition, administrative expenses for Ambatovy are recognized as
part of the share of loss of an associate only for the second quarter 2014 and
not the prior year period as the project capitalized those figures. Excluding
the several one-time items and the Ambatovy expenses, total administrative
expenses declined 17% ($2.6 million) compared to the prior year period.
At the end of the second quarter, total cash, cash equivalents and short term
investments was $965.9 million and total debt was $2,163.3 million.
REVIEW OF OPERATIONS
METALS
$ millions, For the three months ended For the three months ended
unless 2014 2013
otherwise noted June 30 June 30 Change
----------------------------------------------------------------------------
Moa(1) Ambatovy Metals(2) Moa(1) Ambatovy Metals(2)
(50%) (40%) (50%) (40%)
Production
volumes
(Sherritt's
share)
Mixed sulphides
(tonnes) 4,893 3,756 8,649 4,569 2,312 6,881 26%
Finished nickel
(tonnes) 3,870 3,602 7,472 3,868 2,854 6,722 11%
Finished cobalt
(tonnes) 376 285 661 374 250 624 6%
Sales volumes
(Sherritt's
share)
Nickel, finished
(tonnes) 3,792 3,485 7,277 3,907 - 3,907 86%
Cobalt, finished
(tonnes) 366 260 626 378 - 378 66%
Average realized
prices(3)
Nickel (US$/lb) 8.74 8.92 8.84 6.85 - 6.85 29%
Cobalt (US$/lb) 14.68 13.26 14.01 12.82 - 12.82 9%
Unit operating
costs(3)
Nickel - net
direct cash
cost (US$/lb) 5.05 7.19 4.27 -
Revenue 122.9 77.8 216.0 114.5 - 120.6 79%
Adjusted EBITDA
(3) 22.0 2.1 24.7 17.2 (0.3) 17.3 43%
Spending on
capital 5.7 8.4 14.1 9.8 9.0 18.8 (25%)
----------------------------------------------------------------------------
(1) Includes results for certain 100% owned assets at Fort Saskatchewan
plant.
(2) Includes results for Sherritt's marketing organization for certain
Ambatovy sales.
(3) For additional information, see the Non-GAAP measures section of this
release.
$ millions,
unless For the six months ended For the six months ended
otherwise 2014 2013
noted June 30 June 30 Change
----------------------------------------------------------------------------
Moa(1) Ambatovy Metals(2) Moa(1) Ambatovy Metals(2)
(50%) (40%) (50%) (40%)
Production
volumes
(Sherritt's
share)
Mixed sulphides
(tonnes) 8,884 7,608 16,492 8,736 5,433 14,169 16%
Finished nickel
(tonnes) 7,509 7,114 14,623 7,770 5,186 12,956 13%
Finished cobalt
(tonnes) 732 562 1,294 779 466 1,245 4%
Sales volumes
(Sherritt's
share)
Nickel,
finished
(tonnes) 7,615 6,089 13,704 7,822 - 7,822 75%
Cobalt,
finished
(tonnes) 755 453 1,208 790 - 790 53%
Average
realized
prices(3)
Nickel (US$/lb) 7.93 8.26 8.26 7.35 - 7.35 12%
Cobalt (US$/lb) 14.77 14.31 14.57 12.14 - 12.14 20%
Unit operating
costs(3)
Nickel - net
direct cash
cost (US$/lb) 5.17 7.04 4.80 -
Revenue 213.3 128.6 376.1 211.8 - 224.3 68%
Adjusted
EBITDA(3) 29.0 (2.3) 27.5 33.8 (0.8) 34.2 (20%)
Spending on
capital 10.3 12.3 22.6 14.5 14.0 28.5 (21%)
----------------------------------------------------------------------------
(1) Includes results for certain 100% owned assets at Fort Saskatchewan
plant.
(2) Includes results for Sherritt's marketing organization for certain
Ambatovy sales.
(3) For additional information, see the Non-GAAP measures section of this
release.
Metal markets
Pricing for nickel and cobalt continued to improve from lower pricing levels in
2013 as global nickel markets anticipate future shortages due to the Indonesian
mineral export ban on raw ore exports. Nickel prices have rebounded this year,
increasing 35% since the start of 2014. Cobalt prices have also increased in
2014, up 13% year-to-date, reflecting continued strength in cobalt demand.
Moa Joint Venture (50% interest) and Fort Site
Adjusted EBITDA increased 28% ($4.8 million) during the second quarter compared
to the prior year period primarily due to higher nickel prices, which was
partially offset by lower fertilizer prices in the Western Canadian market.
Nickel production of 3,870 tonnes (7,740 tonnes, 100% basis) and cobalt
production of 376 tonnes (751 tonnes, 100% basis) were in line with production
compared to the prior year period. Sales volumes were similar to production for
the quarter.
Net direct cash cost of nickel increased 18% (US$0.78 per pound) compared to the
prior year period due primarily to lower by-product credits from fertilizer
sales and, to a lesser extent, higher third-party feed costs. This increase was
partly offset by lower mining and processing costs due to lower prices for
sulphuric acid and sulphur.
Capital spending was lower than prior year periods due to the timing of mining
equipment additions in the prior year. Expansion capital included the
mobilization of resources for the construction of the 2,000 tonne per day acid
plant at Moa. Commencement of construction has been deferred until the first
quarter of 2015 as a result of further government review of key contracts.
Ambatovy Joint Venture (40% interest)
Ambatovy generated adjusted EBITDA of $2.1 million during the quarter ($5.3
million on a 100% basis).
Nickel and cobalt production at Ambatovy in the second quarter was slightly
better than the first quarter and both achieved quarterly production records. In
the second quarter of 2014, 3,602 tonnes of nickel was produced (9,004 tonnes,
100% basis), representing a 26% increase over the prior year period. Also during
the quarter, 285 tonnes of cobalt was produced (712 tonnes, 100% basis),
representing a 14% increase year-over-year.
The average ore throughput in the PAL circuit was approximately 58% for the
second quarter compared to 67% in the first quarter of 2014. The lower
throughput in the quarter was a result of various unanticipated mechanical
issues, such as valve and piping maintenance, as well as thickener performance
downstream of the autoclaves.
Autoclave operating hours during the second quarter of 2014 were 6,911 hours,
compared to 6,740 hours in the first quarter, demonstrating increased mechanical
reliability of the autoclaves.
To support Ambatovy's production targets, additional technical staff with
metallurgical and operational expertise have been hired to assist in optimizing
plant performance.
Second-quarter nickel and cobalt sales volumes were lower than production levels
due to the timing of shipments.
The net direct cash cost of nickel was US$7.19 per pound in the second quarter
of 2014, consistent with the expectation for the facility when operating at
approximately 60% of its finished metal production capacity. Mining, processing
and refining costs per pound in the quarter were higher than the post commercial
production period in the prior quarter due to various unanticipated mechanical
issues, thickener performance and higher sulphur prices.
Capital spending for Ambatovy is focused on sustaining activities and
construction of Phase II of the Tailings Management Facility.
OIL AND GAS
For the three months For the six months
ended ended
$ millions, unless 2014 2013 2014 2013
otherwise noted June 30 June 30 Change June 30 June 30 Change
---------------------------------------------------------------------------
Production and sales
(boepd)
Gross working-
interest - Cuba 19,528 20,425 (4%) 19,862 19,990 (1%)
Total net working
interest 11,109 11,485 (3%) 11,441 11,181 2%
Average-realized
price(1)
Cuba ($ per barrel) 72.88 67.64 8% 72.32 69.34 4%
Average unit
operating costs(1)
Cuba ($ per barrel) 14.38 12.70 13% 13.21 12.48 6%
Revenue 74.7 71.2 5% 151.6 142.3 7%
Adjusted EBITDA (1) 57.5 55.7 3% 117.9 113.1 4%
Spending on capital 15.4 11.8 31% 31.2 23.3 34%
---------------------------------------------------------------------------
(1) For additional information, see the Non-GAAP measures section of this
release.
On May 29, 2014, Sherritt executed an agreement with the Government of Cuba to
amend an existing PSC for an additional ten-year extension to March 2028. The
extension of the Puerto Escondido/ Yumuri PSC applies to new development well
commitments made following the amendment of the PSC. The PSC will terminate with
respect to existing wells as of its original expiry date in March 2018. As part
of the minimum development commitments under the amended PSC, Sherritt is
required to drill a minimum of seven new wells in the development area. Three of
these wells are expected to be drilled in 2014.
Oil prices remained strong in the second quarter of 2014 with prices slightly
higher than the prior year period.
Adjusted EBITDA was 3% ($1.8 million) higher in the second quarter compared to
the prior year period, primarily as a result of a weaker Canadian dollar and
higher oil prices which were partially offset by lower net production volumes.
Gross working-interest (GWI) oil production in Cuba decreased 4% (897 bopd) in
the second quarter compared to the prior year period. The decrease was caused by
a mechanical failure in a well in the Yumuri area and natural reservoir
declines, which were partially offset by the optimization of production from
existing wells. The well that was impacted during the quarter is expected to
return to its production capability in the third-quarter of 2014.
The average-realized price for oil produced in Cuba increased 8% ($5.24 per
barrel) in the second quarter compared to the prior year period, due to a weaker
Canadian dollar.
Unit operating costs in Cuba increased 13% ($1.68 per barrel) in the second
quarter compared to the prior year period due to an increase in workover
maintenance costs, and a weaker Canadian dollar.
Spending on capital in the second quarter of 2014 was 31% higher ($3.6 million)
due to increased equipment purchases in Cuba related to the start-up of the
second drilling rig and a related camp, as well as the purchase of a service
rig. During the second quarter, one development well was drilled and completed
in Cuba, which is currently pending a workover.
POWER
For the three months For the six months
ended ended
$ millions, unless
otherwise noted 2014 2013 2014 2013
33 1/3% basis June 30 June 30 Change June 30 June 30 Change
----------------------------------------------------------------------------
Production and sales
Electricity (GWh) 224 153 46% 411 313 31%
Average-realized
price(1)
Electricity ($/MWh) 46.24 42.28 9% 46.22 42.07 10%
Total unit operating
costs
Electricity ($/MWh) 15.62 28.92 (46%) 16.45 27.78 (41%)
Net capacity factor
(%) 67 66 2% 62 68 (9%)
Revenue 12.7 13.5 (6%) 24.6 29.5 (17%)
Adjusted EBITDA (1) 6.5 (5.5) 218% 11.4 (2.0) 670%
Spending on
capital(2) 1.0 6.1 (84%) 3.2 14.1 (77%)
----------------------------------------------------------------------------
(1) For additional information, see the Non-GAAP measures section of this
release.
(2) Includes service concession arrangements.
Adjusted EBITDA increased 218% ($12.0 million) in the second quarter when
compared with the year prior. This increase was a result of a provision on
receivables and an impairment of facilities in Madagascar in the prior year
period, as well as an increase in production.
Electricity production increased 46% (71 GWh) in the second quarter compared to
the prior year period. This increase primarily reflected the increased
production from the recently completed Boca de Jaruco Combined Cycle Project.
The average-realized price of electricity was 9% higher ($3.96 per MWh) in the
second quarter compared to the prior year period, primarily due to a weaker
Canadian dollar relative to the U.S. dollar.
Operating costs decreased by 46% ($13.30 per MWh) in the second quarter compared
to the prior year period because of lower scheduled major turbine inspections
and the effect of higher production on fixed costs.
Capital spending, including service concession arrangements, declined by 84%
($5.1 million) for the second quarter 2014 as compared to the prior year period,
due to the completion of the 150 MW Boca de Jaruco project.
NEAR-TERM PRIORITIES
Over the past year, Sherritt has undergone significant changes to its business
in order to focus on its core competencies, improve its liquidity position and
streamline its operations. As a result, Sherritt has gained positive momentum
and will continue to focus on the following:
1. Base metals focus: With over 60 years of technological and operating
experience, as well as the favourable medium-to-long-term fundamentals
of the nickel market, Sherritt will focus its attention on its base
metals business. This includes continuing to ramp up the Ambatovy nickel
operation in Madagascar and advancing various initiatives to reduce
costs from projects such as the construction of a third acid plant in
Moa.
2. Ambatovy: Meeting the target of ramping up Ambatovy to 90% of its
nameplate capacity in 2015 is a significant priority for Sherritt.
Despite mechanical challenges and unanticipated maintenance requirements
during the quarter, the Corporation remains committed to increasing
output of finished metal from Ambatovy. In the first quarter, Ambatovy
reached the key milestone of declaring commercial production and this
quarter is reporting positive EBITDA for the first time.
3. Oil and Gas: For more than two decades Sherritt has developed a unique
Oil & Gas business in Cuba where Sherritt is the largest foreign oil
producer in the country. As part of its strategy to extend the life of
the Oil and Gas business, Sherritt announced the extension of an oil PSC
for an additional 10 years to March 2028. The amended agreement provides
for the extension of the Puerto Escondido/Yumuri PSC to allow for
further development drilling in those fields. With respect to existing
wells, the PSC will terminate upon its original expiry date in March
2018. Sherritt is also awaiting final approval by Cuban ministries with
respect to four new exploration blocks.
4. Financial discipline: During the quarter the coal revolving credit
facility of $300.0 million was repaid, in addition to repayments of
$65.0 million on other borrowings. Further reduction of overall debt
levels will be pursued by the Corporation that will strengthen the
balance sheet and allow Sherritt to take advantage of growth
opportunities as they become available.
5. Cost reduction: During the quarter Sherritt continued the evaluation of
its operations and capital allocation to pursue longer term operating
efficiencies and has updated its year-to-date realized cost savings to
$25 million. Work continues on further opportunities to reduce
structural costs following the completion of the coal transaction, and
to improve efficiencies.
6. Communication: Sherritt's priorities include an emphasis on its
communication strategy and execution to meet its commitment of effective
and frequent communication with employees, shareholders and other
stakeholders.
OUTLOOK
For the year ended December 31, 2014, Sherritt expects production volumes and
spending on capital projected for full-year 2014 as shown below.
Production volumes for Ambatovy have been revised for mixed sulphides, nickel
and cobalt primarily due to lower than anticipated production for the first six
months of the year.
Moa Joint Venture capital spending has been revised down by $15 million for the
year as construction has not yet commenced on the acid plant project resulting
from further government review of key contracts.
Oil and Gas capital spending has been revised to $94 million, representing an
increase of $21 million from the previous guidance in order to support
additional drilling under the extended Oil and Gas PSC. This increase in capital
will be directed towards drilling three wells under the minimum development
commitments, the start-up of the second drilling rig, and purchasing and
investing in support equipment and facilities.
Projected for the year ending
(units as noted) December 31, 2014
----------------------------------------------------------------------------
Production volumes
Mixed sulphides (tonnes, Ni+Co
contained, 100% basis)
Moa Joint Venture 38,000
Ambatovy Joint Venture 39,000 - 44,000
----------------------------------------------------------------------------
Total 77,000 - 82,000
----------------------------------------------------------------------------
Nickel, finished (tonnes, 100% basis)
Moa Joint Venture 34,000
Ambatovy Joint Venture 37,000 - 41,000
----------------------------------------------------------------------------
Total 71,000 - 75,000
----------------------------------------------------------------------------
Cobalt, finished (tonnes, 100% basis)
Moa Joint Venture 3,350
Ambatovy Joint Venture 2,700 - 3,100
----------------------------------------------------------------------------
Total 6,050 - 6,450
----------------------------------------------------------------------------
Oil - Cuba (gross working-interest,
bopd) 19,000
Oil and Gas - All operations (net
working-interest, boepd) 11,200
Electricity (GWh, 33 1/3% basis) 750
Spending on capital ($ millions)
Metals - Moa Joint Venture (50% basis),
Fort Site (100% basis)(1) 55
Metals - Ambatovy Joint Venture (40%
basis) 34
Oil and Gas (2) 94
Power (33 1/3% basis) 4
----------------------------------------------------------------------------
Spending on capital (excluding
Corporate) 187
----------------------------------------------------------------------------
(1) Spending on capital relating to the Corporation's 50% share of the Moa
Joint Venture and to the Corporation's 100% interest in the fertilizer and
utilities assets in Fort Saskatchewan.
(2) Exploration and evaluation spending incurred prior to the technical
feasibility and commercial viability of extracting the resources is
recorded as an intangible asset.
NON-GAAP MEASURES
The Corporation uses adjusted EBITDA, average-realized price, unit operating
cost, and adjusted operating cash flow to monitor the performance of the
Corporation and its operating divisions and believes these measures enable
investors and analysts to compare the Corporation's financial performance with
its competitors and evaluate the results of its underlying business. These
measures do not have a standard definition under IFRS and should not be
considered in isolation or as a substitute for measures of performance prepared
in accordance with IFRS. As these measures do not have a standardized meaning,
they may not be comparable to similar measures provided by other companies. See
Sherritt's Management's Discussion and Analysis for the period ended June 30,
2014 for further information.
CONFERENCE CALL AND WEBCAST
Sherritt will hold its quarterly conference call and webcast today at 2:00 p.m.
Eastern Time.
Conference Call and Webcast: July 30, 2014, 2:00 p.m. ET
Speakers: David Pathe, President and CEO
Dean Chambers, EVP and CFO
North American callers, please dial: 1-866-530-1553
International callers, please dial: 416-847-6330
Live webcast: http://www.sherritt.com/
An archive of the webcast will be made available on the website. The conference
call will be available for replay until August 28, 2014 by calling 647-436-0148
or 1-888-203-1112, access code 6822208#.
COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS
Sherritt's complete unaudited condensed interim consolidated financial
statements, and MD&A for the three and six months ended June 30, 2014 are
available at www.sherritt.com and should be read in conjunction with this news
release.
ABOUT SHERRITT
Sherritt is a world leader in the mining and refining of nickel from lateritic
ores with operations in Canada, Cuba, and Madagascar. The Corporation is the
largest independent energy producer in Cuba, with extensive oil and power
operations on the island. Sherritt licenses its proprietary technologies and
provides metallurgical services to commercial metals operations worldwide. The
Corporation's common shares are listed on the Toronto Stock Exchange under the
symbol "S".
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", "projected",
"continue" or other similar words or phrases. Specifically, forward-looking
statements in this document include, but are not limited to, statements set out
in the "Outlook" sections of this press release; certain expectations about
capital costs and expenditures; capital project commissioning and completion
dates; sufficiency of working capital and capital project funding; completion of
development and exploration wells.
Forward-looking statements are not based on historic facts, but rather on
current expectations, assumptions and projections about future events, including
commodity and product prices and demand; realized prices for production;
earnings and revenues; development and exploratory wells and enhanced oil
recovery in Cuba; environmental rehabilitation provisions; availability of
regulatory approvals; compliance with applicable environmental laws and
regulations; the impact of regulations related to greenhouse gas emissions and
credits; debt repayments; collection of accounts receivable; and certain
corporate objectives, goals and plans for 2014. 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 those
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.
Key factors that may result in material differences between actual results and
developments and those contemplated by this press release include global
economic and market conditions, and business, economic and political conditions
in Canada, Cuba, Madagascar, and the principal markets for the Corporation's
products.
Other such factors include, but are not limited to, uncertainties in the
development, construction, ramp-up and operation of large mining, processing and
refining projects; risks related to the availability of capital to undertake
capital initiatives; changes in capital cost estimates in respect of the
Corporation's capital initiatives; risks associated with the Corporation's
joint-venture partners; expectations of the timing of financial completion at
the Ambatovy Joint Venture; risk of future non-compliance with financial
covenants; potential interruptions in transportation; political, economic and
other risks of foreign operations; the Corporation's reliance on key personnel
and skilled workers; the possibility of equipment and other unexpected failures;
the potential for shortages of equipment and supplies; risks associated with
mining, processing and refining activities; uncertainty of gas supply for
electrical generation; uncertainties in oil and gas exploration; risks related
to foreign exchange controls on Cuban government enterprises to transact in
foreign currency; risks associated with the United States embargo on Cuba and
the Helms-Burton legislation; risks related to the Cuban government's and
Malagasy government's ability to make certain payments to the Corporation; risks
related to exploration and development programs; uncertainties in reserve
estimates; risks associated with access to reserves and resources; uncertainties
in environmental rehabilitation provisions estimates; risks related to the
Corporation's reliance on partners and significant customers; risks related to
the Corporation's corporate structure; foreign exchange and pricing risks;
uncertainties in commodity pricing; credit risks; competition in product
markets; the Corporation's ability to access markets; risks in obtaining
insurance; uncertainties in labour relations; 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; risks associated with future acquisitions; uncertainty in
the ability of the Corporation to obtain government permits; risks associated
with governmental regulations regarding greenhouse gas emissions; risks
associated with government regulations and environmental, health and safety
matters; uncertainties in growth management; interest rate risk; risks related
to political or social unrest or change and those in respect of indigenous and
community relations; risks associated with rights and title claims; and certain
corporate objectives, goals and plans for 2014; and the Corporation's ability to
meet other factors listed from time to time in the Corporation's continuous
disclosure documents.
Readers are cautioned that the foregoing list of factors is not exhaustive and
should be considered in conjunction with the risk factors described in this
press release and in the Corporation's other documents filed with the Canadian
securities authorities.
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 including, but not limited to, the Corporation's
Annual Information Form for the year ended December 31, 2013 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sherritt International Corporation
Investor Relations
416.935.2451
Toll-free: 1.800.704.6698
investor@sherritt.com
Sherritt International Corporation
1133 Yonge Street
Toronto, Ontario, Canada
M4T 2Y7
www.sherritt.com
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