Sherritt International Corporation · TSX:S
Sherritt International — Investor Presentation (October 2006)
17 slides from Sherritt International's investor presentation, October 2006
Slide 1: Sherritt International Investor Presentation – October 2006
Sherritt International Investor Presentation – October 2006
Slide 2: Forward-looking statements
This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties. These risks and uncertainties co
Slide 3: Sherritt International
Sherritt International Diversified natural resource company with assets in Canada and Cuba ¾ Sherritt Coal has ~12 billion tonnes of near surface thermal coal reserves Coal ¾ Sherritt operates and has an indirect interest in Royal Utilities Income Fund, the largest thermal coal producer in Canada ¾
Slide 4: Rationalizing balance sheet and operating structure to deliver shareholder value
Sherritt International Sherritt continues to rationalize its balance sheet and operating structure to deliver shareholder value ¾Thermal coal business spun out to maximize premium associated with strong and stable cash flow business ¾Total of $107 million (principal amount) of convertible 7% debentu
Slide 5: Diversified revenue base and financial strength
Diversified revenue base and financial strength Sherritt’s 2nd Quarter results as at June 30, 2006 Revenue: C$296.9 EBITDA: C$124.8 15% 15% Coal 35% 8% 37% 25% Metals Oil & Gas 23% Power & 42% Other Capital Assets distribution: Canada 50%, Cuba 49%, other 1% Cash and cash equivalents: C$356.4 millio
Slide 6: Evolution of Coal business
Evolution of Coal business In June 2006, Sherritt completed the initial public offering for Royal Utilities Income Fund, dividing it’s coal business: Royal Utilities Income Fund Sherritt Coal 8 mine-mouth Mining Operations Coal Valley Resources Inc. Royalty Streams Carbon Development Partnership Ope
Slide 7: Royal Utilities Income Fund
Royal Utilities Income Fund Sherritt International has a 41.2% interest in Royal Utilities Income Fund: ¾ Royal Utilities is the exclusive supplier of thermal coal to ATCO, EPCOR, TransAlta, and SaskPower to produce electricity in Alberta & Saskatchewan ¾ Revenues are derived from mine-mouth operati
Slide 8: Coal as a non conventional fuel
Coal as a non conventional fuel Coal Conversion Technologies Markets for Clean Coal Technologies (CCT) Existing Thermal Power Oilsands In-Situ steam Run of Mine Coal (Steam Assisted Gravity Coal Beneficiation Drainage - SAGD) Synthetic Fuels Coal Gasification Petrochemicals IGCC(1) Power Plants (1 )
Slide 9: Coal as non-conventional fuel: Growth Opportunities
Coal as non-conventional fuel Growth Opportunities Coal to Steam ¾ Clean Coal Technologies support coal fired super-critical boilers ¾ New opportunities for bitumen production and upgrading ¾ Coal complements other fuel sources ¾ Economic benefits to using coal for SAGD Coal to Syngas/Hydrogen ¾ Gas
Slide 10: Metals Enterprise
Metals Enterprise ¾ Joint venture with General Nickel Company of Cuba since 1994 ¾ Moa mine and processing facilities - Cuba ¾ Fort Saskatchewan refinery – Canada ¾ Proposed Metals expansion will increase capacity by 50% to 49,000 tonnes Cobalt – 1,605 tonnes Sherritt's premium Nickel and Cobalt are
Slide 11: Growth Opportunities – Metals
Growth Opportunities – Metals ¾ Global demand for base metals continues to grow ¾ Brownfield expansion lowers risk profile ¾ Utilize proven technology ¾ Phased expansion lowers execution risk ¾ Lower capital cost ¾ Shorter ramp-up time ¾ Reduction in existing unit operating ¾ Leader in pressure hydr
Slide 12: Sherritt Oil & Gas
Sherritt Oil & Gas ¾ Cuba’s largest producer of oil ~30,000 bpd gross working interest production ¾ Sherritt allocation ~16,000 bpd, net ¾ Significant reserves of original oil in place (OOIP) ~ 6 billion barrels ¾ Growing oil production ¾ Reinvestment of cash flows into expanded capital program ¾ Su
Slide 13: Sherritt Oil & Gas: On shore drilling operations and off shore potential
Sherritt Oil & Gas On shore drilling operations and off shore potential 13
Slide 14: Growth Opportunities – Oil and Gas
Growth Opportunities – Oil and Gas ¾ Santa Cruz declared commercial in February 2006 ¾ 2006 exploration program ¾ Playa Larga (Block 10); Majaguillar ¾ Enhanced development program ¾ Focused on increasing primary recovery from current 1.8% ¾ OOIP ~ 6 billion barrels ¾ Electrical submersible pumps ¾
Slide 15: Sherritt Power
Sherritt Power ¾ Sherritt Power has a 1/3 interest in Energas ¾ Integrated gas treatment and power generating facilities near Varadero, Boca de Jaruco and Puerto Escondido ¾ Installed power production capacity of 311 MW ¾ Represents 15% of installed Cuban capacity ¾ 65 MW expansion project at Boca t
Slide 16: Potential Synergies between Business Units
Potential Synergies between Business Units Oil & Gas Reclamation Enhanced Recovery Infrastructure Development Coal Power Process experience Safety Management Power Generation Metals 16
Slide 17: Sherritt International Corporation
Sherritt International Corporation TSX listed: Symbols: S, S.DB.A Shares outstanding: 152 million shares Market capitalization: C$1.5 billion (as of Sep/29/06) Daily trading volume*: ~ 698,000 shares Sherritt International is a diversified resource company involved in the production of thermal coal,
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