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Sherritt International (TSE:S)
:S
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Sherritt International (S) AI Stock Analysis

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TSE:S

Sherritt International

(TSX:S)

Rating:47Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
Sherritt International's overall stock score reflects significant financial challenges, with declining revenues and profitability issues being the most impactful factors. The technical analysis suggests a neutral to slightly bearish outlook, and the valuation is unattractive due to a negative P/E ratio. While the earnings call highlighted some positive cost management efforts, production challenges remain a concern. Corporate events provided some positive sentiment, but potential threats from SC2 Inc. pose additional risks.

Sherritt International (S) vs. iShares MSCI Canada ETF (EWC)

Sherritt International Business Overview & Revenue Model

Company DescriptionSherritt International Corporation is a Canadian resource company that focuses on the mining and refining of nickel and cobalt, primarily through its operations in Cuba. The company is also involved in oil and gas exploration and production, as well as power generation. Sherritt's core business activities include the production of nickel and cobalt from its Moa Joint Venture, which it operates in partnership with the Cuban government. The company is headquartered in Toronto, Ontario, and is recognized for its expertise in mining and refining technologies.
How the Company Makes MoneySherritt International makes money primarily through the production and sale of nickel and cobalt, which are key components used in the production of electric vehicle batteries and other high-demand applications. The company operates through its Moa Joint Venture, which is a significant source of revenue, as it processes mixed sulfide containing nickel and cobalt. Additionally, Sherritt generates revenue through its oil and gas exploration and production activities in Cuba and its power generation operations, which include the generation of electricity from natural gas. The company's earnings are influenced by global market prices for nickel and cobalt, as well as its ability to effectively manage its joint venture operations and maintain productive partnerships with the Cuban government.

Sherritt International Earnings Call Summary

Earnings Call Date:Jun 30, 2025
(Q2-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positives and negatives. While Sherritt International successfully managed costs and completed strategic financial transactions to strengthen its position, the company faced significant production challenges in Cuba and was adversely affected by low nickel prices. The revised production guidance for nickel and cobalt indicates ongoing difficulties, although cost-saving measures are a proactive step toward resilience.
Q2-2025 Updates
Positive Updates
Cost Management Success
Despite lower production, net direct cash costs were reduced by 8% year-over-year, achieving effective cost management and benefiting from higher byproduct credits.
Debt and Equity Transactions
Successfully closed debt and equity transactions to strengthen capital structure, extend note maturities, and provide a 6-year runway to navigate the current nickel price downturn.
Significant Cost Reductions
Implemented cost reductions expected to yield $20 million in annual savings, in addition to $17 million in savings from the previous year's initiatives.
Negative Updates
Lower Nickel and Cobalt Production
Revised guidance for 2025 with nickel production down from 31,000-33,000 tons to 27,000-29,000 tons and cobalt from 3,300-3,600 tons to 3,000-3,200 tons due to operating challenges in Cuba.
Challenging Operating Conditions in Cuba
Faced challenging conditions in Cuba with operating environment impacted by increased U.S. pressure, power grid instability, and supply chain challenges.
Persistently Low Nickel Prices
Nickel prices reached multi-year lows, significantly impacting revenues and necessitating further cost reductions and strategic decisions to manage margins.
Company Guidance
During the Sherritt International Corporation's second quarter 2025 earnings call, the company provided guidance on various metrics, indicating adjustments and strategies in response to ongoing challenges. The company revised its nickel production guidance from 31,000-33,000 tons to 27,000-29,000 tons and cobalt production from 3,300-3,600 tons to 3,000-3,200 tons for 2025, citing difficult operating conditions in Cuba and limited third-party feed opportunities. Despite these challenges, Sherritt managed an 8% year-over-year reduction in net direct cash costs, reaching $5.27 per pound of nickel sold. The Moa Joint Venture expansion is on track, with commissioning activities for Phase 2 expected to complete in mid-August, aiming to improve mixed sulphides production. Additionally, Sherritt implemented significant cost reduction measures, projecting $20 million in annual savings, and successfully closed debt and equity transactions to extend financial flexibility, with the revolving term credit facility extended to April 2027.

Sherritt International Financial Statement Overview

Summary
Sherritt International's financial performance shows significant challenges. The income statement reveals negative profitability with a net profit margin of -43.3% and low gross profit margin. The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.70, but poor profitability is reflected in the negative ROE. Cash flow analysis highlights liquidity issues, with negative free cash flow and inadequate cash generation relative to net losses.
Income Statement
45
Neutral
The Income Statement reveals a challenging financial situation. The TTM Gross Profit Margin is low at 4.04%, and the Net Profit Margin is significantly negative at -43.3%, indicating difficulty in generating profits from revenues. Revenue growth from the previous fiscal year is a modest 6.04%, but EBIT and EBITDA margins are both negative, showing operational inefficiencies.
Balance Sheet
60
Neutral
The Balance Sheet shows moderate financial stability. The Debt-to-Equity Ratio is 0.70, which is relatively reasonable but indicates moderate leverage. The Return on Equity (ROE) is deeply negative, reflecting the company's lack of profitability. The Equity Ratio stands at 42.21%, showing a balanced but slightly leveraged capital structure.
Cash Flow
40
Negative
Cash Flow analysis highlights financial strain. The TTM Free Cash Flow is negative, with a concerning Operating Cash Flow to Net Income Ratio of 0.52, indicating insufficient cash generation relative to net losses. Free Cash Flow growth is negative, further suggesting liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue160.70M158.80M223.30M178.80M110.20M119.80M
Gross Profit8.40M20.30M-42.20M16.10M-30.80M-38.10M
EBITDA3.30M-18.60M-12.30M135.50M-19.10M7.30M
Net Income-51.20M-72.80M-64.60M63.50M-13.40M-85.70M
Balance Sheet
Total Assets1.23B1.38B1.39B1.56B1.40B1.35B
Cash, Cash Equivalents and Short-Term Investments17.80M34.30M119.10M123.90M145.60M167.40M
Total Debt324.40M382.30M366.60M350.90M444.50M441.40M
Total Liabilities686.80M785.40M777.00M860.70M813.00M745.40M
Stockholders Equity544.20M597.40M613.60M694.90M585.00M606.80M
Cash Flow
Free Cash Flow-3.50M-32.90M6.00M60.20M-15.10M28.60M
Operating Cash Flow5.30M-26.10M27.30M88.70M-4.40M40.70M
Investing Cash Flow5.20M36.10M-18.40M-23.40M-9.90M-11.40M
Financing Cash Flow-21.10M7.10M-11.70M-93.30M-6.90M-26.40M

Sherritt International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.15
Negative
100DMA
0.14
Negative
200DMA
0.16
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
45.38
Neutral
STOCH
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:S, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:S.

Sherritt International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
47
Neutral
C$69.48M-9.02%6.14%59.41%
44
Neutral
C$930.37M-8.96-0.02%2.69%23.24%-42.45%
42
Neutral
C$54.74M-373.14%-17.28%
40
Underperform
C$77.13M-4.19%37.66%
39
Underperform
C$40.90M
-21.49%
37
Underperform
$90.38M-9.46%57.83%
26
Underperform
C$63.29M-399.98%51.01%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:S
Sherritt International
0.14
-0.08
-36.36%
TSE:LI
American Lithium
0.42
-0.15
-25.89%
TSE:HPQ
HPQ-Silicon Resources
0.15
-0.19
-55.88%
TSE:FPX
FPX Nickel
0.24
-0.05
-17.24%
TSE:WHY
West High Yield Resources
0.38
0.12
46.15%
TSE:NBM
NEO Battery Materials Ltd
0.44
0.33
300.00%

Sherritt International Corporate Events

Business Operations and Strategy
Sherritt International Unveils 2024 Sustainability Reports with Key Advancements
Positive
Aug 7, 2025

Sherritt International has released its 2024 Sustainability Reports, highlighting significant advancements in health and safety, environmental stewardship, and responsible production. The company has implemented enhanced safety protocols and embarked on a low-capital-intensity tailings project to ensure environmentally responsible solutions. Sherritt’s commitment to ethical sourcing and production is demonstrated by achieving high standards in sustainable mining protocols and advancing partnerships with Indigenous communities. These efforts underscore Sherritt’s dedication to delivering lasting value to stakeholders and maintaining its social license to operate.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Business Operations and Strategy
Sherritt International Unveils 2024 Sustainability Achievements
Positive
Aug 7, 2025

Sherritt International has released its 2024 Sustainability Reports, highlighting significant advancements in health and safety, environmental stewardship, and responsible production. The company has implemented enhanced safety protocols, initiated a tailings project at Moa JV, and assessed climate-related risks to reduce GHG emissions. Sherritt also achieved high standards in responsible sourcing and strengthened its partnerships with Indigenous communities, aligning with global sustainability frameworks.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Sherritt International Faces Challenges in Cuba, Strengthens Financial Position
Neutral
Jul 29, 2025

Sherritt International reported its second-quarter 2025 results, highlighting challenges in its Cuban operations due to U.S. policies, which have affected production at its Moa site. The company has lowered its metals production guidance for the year but is implementing cost reduction measures expected to save $20 million annually. Strategic debt and equity transactions have strengthened Sherritt’s financial position, extending debt maturity to 2031 and reducing obligations by $68 million. Despite current nickel price pressures, Sherritt is optimistic about future performance and market recovery.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Sherritt International to Release Q2 2025 Results and Host Conference Call
Neutral
Jul 8, 2025

Sherritt International has announced that it will release its second quarter 2025 financial results on July 29, 2025, followed by a conference call and webcast on July 30, 2025, to discuss its financial and operational performance. This announcement is significant for stakeholders as it provides insights into the company’s ongoing expansion efforts and its impact on the energy and mining sectors, particularly in the context of the energy transition.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Sherritt International Announces Board Appointments and Governance Updates
Positive
Jun 11, 2025

Sherritt International Corporation announced the results of its 2025 Annual and Special Meeting of Shareholders, including the election of directors and key board appointments. John Ewing was appointed to the Board of Directors, with Leon Binedell named Executive Chairman and Shelley Brown as Lead Independent Director. The company is committed to board renewal and governance improvements, aiming to enhance operational efficiency and stakeholder value. The reconstitution of board committees reflects a strategic alignment with the expertise of new directors, and major shareholders have expressed support for Sherritt’s ongoing initiatives.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Sherritt International Announces Chairman’s Retirement Amid Strategic Growth
Positive
Jun 9, 2025

Sherritt International Corporation announced the retirement of its Chairman, Sir Richard Lapthorne, effective immediately. During his tenure since 2019, the company underwent major transformations, including debt restructurings and strategic investments, positioning itself as a reliable supplier of critical minerals. His leadership has left Sherritt well-prepared for future growth and operational efficiency, with the company expressing gratitude for his contributions.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Sherritt International Receives Proxy Advisor Support Amid Shareholder Challenge
Neutral
May 30, 2025

Sherritt International Corporation has received a recommendation from Institutional Shareholder Services Inc. (ISS) for shareholders to vote in favor of all resolutions and director nominees at the upcoming Annual and Special Meeting. This endorsement follows a similar recommendation from Glass, Lewis & Co. LLC, highlighting the progress made under Sherritt’s current board and management. The company is facing a challenge from SC2 Inc., which seeks to replace the incumbent directors to benefit its affiliate, Seablinc Canada Inc., a supplier to Sherritt’s Moa Joint Venture. Sherritt warns that SC2’s actions could jeopardize the company’s financial stability and strategic goals, urging shareholders to support the board’s resolutions to protect the corporation’s future.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Sherritt International Warns Shareholders of Potential Threat from SC2 Inc.
Negative
May 26, 2025

Sherritt International has issued a letter to its shareholders warning of a potential threat from SC2 Inc., an affiliate of Seablinc Canada Inc., which is attempting to gain control of Sherritt without a credible plan. The company highlights the conflict of interest posed by SC2, whose actions seem to prioritize Seablinc’s supplier agreements over the interests of Sherritt’s shareholders. Sherritt’s Board urges shareholders to vote in favor of all resolutions to protect the company’s future and maintain its strategic progress.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Sherritt International Strengthens Capital Structure and Advances Moa JV Expansion
Positive
May 13, 2025

Sherritt International reported its first quarter 2025 results, highlighting strategic initiatives that enhance its capital structure and operational capacity. The company reduced its debt obligations, extended debt maturity, and commenced phase two of its Moa JV expansion, which will increase production capacity and profitability. Despite challenges in Cuba due to U.S. sanctions, Sherritt remains optimistic about stronger operating results in the latter half of the year, supported by its sound liquidity management and low net direct cash costs.

The most recent analyst rating on (TSE:S) stock is a Hold with a C$0.25 price target. To see the full list of analyst forecasts on Sherritt International stock, see the TSE:S Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025