VANCOUVER (miningweekly.com) – Canadian diversified miner Sherritt International has narrowed its headline loss for the 12 months ended December 31, as lower costs and higher commodity prices boosted the bottom line.
The Toronto-based miner, which produces nickel, cobalt and oil in Cuba, and nickel and cobalt at the Ambatovy mine, in Madagascar, reported an adjusted net loss of C$317.1-million, or C$1.07 a share outstanding, compared with an adjusted net loss of C$427.9-million, or C$1.46 a share outstanding, for 2016.
Net earnings for the period, including a C$629-million gain related to the Ambatovy Joint Venture (JV) restructuring, were C$293.8-million, or C$0.99 a share outstanding, up from a net loss of C$378.9-million, or C$1.29 a share outstanding, in 2016. Revenue for the period fell 22% to C$54.8-million.
In the fourth quarter, Sherritt and its partners successfully completed the restructuring of the Ambatovy JV, with Sherritt retaining a 12% ownership interest in Ambatovy and continuing as operator.
As a result of the restructuring, Sherritt eliminated C$1.4-billion in debt from its balance sheet, while it also benefitted from the lowest direct cash cost at the Moa JV since the third quarter of 2004 of C$1.80/lb of finished nickel sold.