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SC2 Inc. to Vote Against Sherritt Directors at 2025 AGM, Calls for Board Renewal Amid Operational and Governance Failures
SC2 Inc. to Vote Against Sherritt Directors at 2025 AGM, Calls for Board Renewal Amid Operational...
About this update from Sherritt International Corporation
[{"type":"text","content":"\n\n\n\n SC2 Inc. to Vote Against Sherritt Directors at 2025 AGM, Calls for Board Renewal Amid Operational and Governance Failures\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n TORONTO\n \n\n ,\n \n\n May 23, 2025\n \n\n /CNW/ - SC2 Inc. (\"\n \n SC2\n \n \"), a significant shareholder of Sherritt International Corporation (TSX: S) (\"\n \n Sherritt\n \n \" or the \"\n \n Company\n \n \"), today announced that it will vote\n \n (i) against the say-on-pay resolution proposed by the board of directors, and (ii) against the election of all nominated directors\n \n at the Company's upcoming Annual and Special Meeting on\n \n June 10, 2025\n \n ,\n \n with the exception of\n \n Richard Moat\n \n\n , who is being nominated for election for the first time.\n \n\n SC2, owning approximately 8.07% of the post-dilution issued and outstanding shares of Sherritt, has sought constructive engagement with Sherritt's Board of Directors (the \"\n \n Board\n \n \") since\n \n May 2024\n \n . In the aggregate, the Company's persistent underperformance, weak governance, and unwillingness to address shareholder concerns compel SC2 to withhold support from the current Board (except for\n \n Richard Moat\n \n ).\n \n\n\n Sherritt's Key Failings\n \n\n\n\n 1. Ongoing Operational Underperformance\n \n\n\n\n Sherritt struggling with production, including in Q4 2024 and Q1 2025, where mixed sulphide output fell to near-historic lows, despite completion of the Phase 1 expansion. Although Q1 2025 net direct cash cost (\"\n \n NDCC\n \n \") was lower than it was in Q1 2024, it was higher than Q4 2024. NDCC is a lagging indicator of cost and, given the low mixed sulphide production, this trend will likely continue.\n \n\n Cash in\n \n Canada\n \n declined in both Q4 2024 and Q1 2025, and available liquidity in\n \n Canada\n \n is now critically strained. At the end of Q1 2025, without violating its minimum liquidity covenant, the Company has only approximately\n \n $30 million\n \n of cash remaining.\n \n\n To maintain liquidity, Sherritt has relied on p...