Sherritt International Corporation · TSX:S
Sherritt International — Q2 2025 Earnings Presentation
38 slides from Sherritt International's earnings presentation, Jul 30, 2025
Slide 1: Q2 2025 Conference Call
Sherritt International Corporation Q2 2025 Conference Call Review of Financial and Operational Results July 30, 2025 SHERRITT.COM • TSX: S
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements. Forward-looking statements toward Cuba, including the U.S. embargo on Cuba and the Helms-Burton legislation; political, Readers are cautioned that the foregoing list of factors is not exhaustive and should be c
Slide 3: Presenters
Presenters Leon Binedell Executive Chairman, President & CEO Yasmin Gabriel CFO Elvin Saruk COO and Head of Cuban Operations 3
Slide 4: Highlights Second Quarter 2025
Highlights Second Quarter 2025 → Lower mixed sulphides production from Moa resulting in lower finished nickel and cobalt production and sales → NDCC(1) of US$5.27/lb improved 8% year-over-year → Commissioning of phase two of the Moa JV expansion underway → Varadero remains in frequency control → CUP
Slide 5: Nickel and Cobalt Price Second Quarter 2025 Developments
Nickel and Cobalt Price Second Quarter 2025 Developments Second Quarter 2025 Key Market Developments Nickel and Cobalt Reference Prices(1) → April 2 – U.S. announces Liberation Day tariffs 50% → May 14 – Indonesian cobalt production capacity from its HPAL Q2 2025 40% operations will more than double
Slide 6: Review of Operations
Review of Operations 6
Slide 7: Metals Second Quarter Highlights
Metals Second Quarter Highlights Q2 2025 Q2 2024 Production Volume (tonnes)(1) Mixed sulphides → Challenging operating environment in Cuba impacted production of mixed Mixed Sulphides 3,238 4,095 sulphides – recovery plan being implemented Nickel 3,431 3,383 → Planned acid plant shutdown (and decisi
Slide 8: Metals Second Quarter Net Direct Cash Costs (NDCC)
Metals Second Quarter Net Direct Cash Costs (NDCC)(1) Mining, processing and refining (“MPR”)(2) Second Quarter 2025 Results Year-Over-Year Change → Lower MPR/lb: NDCC(1) (US$/lb of Nickel Sold) → Lower natural gas 12%, fuel oil 10% and diesel 4% 8% Decrease YoY partially offset by higher sulphur in
Slide 9: Moa JV Expansion Update
Moa JV Expansion Update Phase two: Processing Plant → Commissioning expected to be completed by mid-August with ramp up to follow in Q3 2025 → Additional MSP from the ramp up of phase two of the expansion is expected to begin to be processed at the refinery in Q4 2025 Processing plant, Moa, Cuba Low
Slide 10: Power Second Quarter Highlights
Power Second Quarter Highlights Varadero → In frequency control required by government agency UNE to help stabilize Cuba’s national grid → Energas fully compensated for lost production in Q2 and expects to be Q2 2025 Q2 2024 fully compensated throughout 2025 Operating Results(2) Electricity producti
Slide 11: 2025 Guidance Update
2025 Guidance Update 2025 Guidance Previous 2025 Guidance Updated Production Volumes Finished nickel and cobalt production Metals: Moa Joint Venture (100% basis) → Lower MSP availability to the refinery and limited Finished nickel (t) 31,000 – 33,000 27,000 – 29,000 profitable third-party feed Finis
Slide 12: Financial Highlights
Financial Highlights 12
Slide 13: Financial Performance Second Quarter Results
Financial Performance Second Quarter Results Q2 2025 Q2 2024 Financial performance key drivers compared to prior year quarter: Financial Results ($ millions) Average-Realized Prices(1) Sales Volumes Revenue(2) 43.7 51.4 Nickel 15% 14% Cobalt 27% 3% Combined revenue(1)(3) 135.6 163.2 Fertilize
Slide 14: Available Liquidity in Canada Second Quarter 2025 Update
Available Liquidity in Canada Second Quarter 2025 Update Second quarter changes include: → Dividends from Energas $5.6 M $30.3M → Debt and Equity Transaction costs $(10.3) M → Interest on Second Lien Notes $(8.7) M $45.0M → Contractually obligated rehabilitation costs related to legacy Oil and Gas a
Slide 15: Strategic Cost Reduction Program
Strategic Cost Reduction Program Progressive Reductions to Minimize Risks Latest cost reduction initiatives to deliver ~$20 M in annualized savings in addition to the $17 M in annualized savings from 2024 initiatives(1) Completed 10% workforce reduction Completed further 10% across Canadian operatio
Slide 16: Summary
Summary Fort Saskatchewan, Alberta 16
Slide 17: Second Quarter 2025 Summary
Second Quarter 2025 Summary Significant actions taken expected to increase Metals production, decrease costs, improve margins, translating to strengthening performance ahead: → Task force formed, recovery plan developed and being implemented to mitigate operating challenges in Cuba → Moa JV expansio
Slide 18: Q&A Discussion
Q&A Discussion sherritt
Slide 19: Sherritt International Corporation
SHERRITT INTERNATIONAL CORPORATION 22 Adelaide West, Suite 4220 Toronto, Ontario, Canada M5H 4E3 Tom Halton, Director, Investor Relations and Corporate Affairs Telephone: S E P T E M B 416.935.2451 ER 2024 | Toll -Free: 1.800.704.6698 Email: investor@sherritt.com SHERRITT.COM • TSX: S
Slide 20: Appendix: Forward-looking estimates and Non-GAAP and other financial measures
APPENDIX Forward-looking estimates and Non-GAAP and other financial measures 20
Slide 21: Forward-looking estimates
Forward-looking estimates Cobalt Swap distributions At current spot nickel prices, and based on revised 2025 guidance for Metals, (please refer to the Outlook section of the MD&A for further details), the Corporation expects that distributions under the Cobalt Swap agreement will be limited, commenc
Slide 22: Non-GAAP and other financial measures
Non-GAAP and other financial measures 22
Slide 23: Combined revenue
Combined revenue The Corporation uses combined revenue as a measure to help management assess the Corporation’s financial performance across its core operations. Combined revenue includes the Corporation’s consolidated revenue, less Oil and Gas revenue, and includes the revenue of the Moa JV within
Slide 24: Adjusted EBITDA
Adjusted EBITDA The Corporation defines Adjusted EBITDA as earnings/loss from operations and joint venture, which excludes net finance expense, income tax expense and loss from discontinued operations, net of tax, as reported in the financial statements for the period, adjusted for: depletion, depre
Slide 25: Adjusted EBITDA (continued)
Adjusted EBITDA (continued) $ millions, for the three months ended June 30 2024 Adjustment Corporate for Moa Oil and and Joint Metals(1) Power Gas Other Venture Total Earnings (loss) from operations and joint venture per financial statements $ 2.7 $ 1.2 $ 1.7 $ (6.9) $ (0.6) $ (1.9) Add (deduct): De
Slide 26: Adjusted EBITDA (continued)
Adjusted EBITDA (continued) $ millions, for the six months ended June 30 2024 Adjustment Corporate for Moa Oil and and Joint Metals(2) Power Gas Other Venture Total (Loss) earnings from operations and joint venture per financial statements $ (18.3) $ 8.3 $ (0.6) $ (13.9) $ 0.2 $ (24.3) Add (deduct):
Slide 27: Average-realized price
Average-realized price Average-realized price is generally calculated by dividing revenue by sales volume for the given product in a given segment. The average-realized price for power excludes frequency control, by-product and other revenue, as this revenue is not earned directly for power generati
Slide 28: Average-realized price (continued)
Average-realized price (continued) $ millions, except average-realized price and sales volume, for the three months ended June 30 2024 Metals Adjustment for Moa Joint Nickel Cobalt Fertilizer Power Other(1) Venture Total Revenue per financial statements $ 94.0 $ 12.3 $ 34.8 $ 11.8 $ 16.3 $ (117.8) $
Slide 29: Average-realized price (continued)
Average-realized price (continued) $ millions, except average-realized price and sales volume, for the six months ended June 30 2024 Metals Adjustment for Moa Joint Nickel Cobalt Fertilizer Power Other(1) Venture Total Revenue per financial statements $ 181.8 $ 23.9 $ 44.7 $ 23.8 $ 28.0 $ (222.0) $
Slide 30: Unit operating cost/Net direct cash cost (NDCC)
Unit operating cost/Net direct cash cost (NDCC) With the exception of Metals, which uses NDCC, unit operating cost is generally calculated by dividing cost of sales as reported in the financial statements, less depreciation, depletion and amortization in cost of sales, the impact of impairment losse
Slide 31: Unit operating cost/Net direct cash cost (continued)
Unit operating cost/Net direct cash cost (continued) $ millions, except unit cost and sales volume, for the three months ended June 30 2024 Adjustment for Moa Metals Power Other(1) Joint Venture Total Cost of sales per financial statements $ 144.5 $ 9.3 $ 4.6 $ (116.6) $ 41.8 Less: Depletion, deprec
Slide 32: Unit operating cost/Net direct cash cost (continued)
Unit operating cost/Net direct cash cost (continued) $ millions, except unit cost and sales volume, for the six months ended June 30 2025 Adjustment for Moa Metals Power Other(1) Joint Venture Total Cost of sales per financial statements $ 249.2 $ 11.9 $ 23.9 $ (201.9) $ 83.1 Less: Depletion, deprec
Slide 33: Unit operating cost/Net direct cash cost (continued)
Unit operating cost/Net direct cash cost (continued) $ millions, except unit cost and sales volume, for the six months ended June 30 2024 Adjustment for Moa Metals Power Other(1) Joint Venture Total Cost of sales per financial statements $ 275.6 $ 13.3 $ 12.9 $ (232.5) $ 69.3 Less: Depletion, deprec
Slide 34: Adjusted net earnings/loss from continuing operations and per share
Adjusted net earnings/loss from continuing operations and adjusted net earnings/loss from continuing operations per share The Corporation defines adjusted net earnings/loss from continuing operations as net earnings/loss from continuing operations less items not reflective of the Corporation’s curre
Slide 35: Adjusted net earnings/loss from continuing operations (continued)
Adjusted net earnings/loss from continuing operations and adjusted net earnings/loss from continuing operations per share (continued) 2025 2024 For the three months ended June 30 $ millions $/share $ millions $/share Net earnings (loss) from continuing operations $ 10.4 $ 0.02 $ (11.5) $ (0.03) Adju
Slide 36: Adjusted net earnings/loss from continuing operations (continued)
Adjusted net earnings/loss from continuing operations and adjusted net earnings/loss from continuing operations per share (continued) 2025 2024 For the six months ended June 30 $ millions $/share $ millions $/share Net loss from continuing operations $ (30.2) $ (0.07) $ (52.4) $ (0.13) Adjusting ite
Slide 37: Spending on capital
Spending on capital The Corporation defines spending on capital for each segment as property, plant and equipment and intangible asset expenditures on a cash basis adjusted to the accrual basis in order to account for assets that are available for use by the Corporation and the Moa JV prior to payme
Slide 38: Spending on capital (continued)
Spending on capital (continued) $ millions, for the six months ended June 30 2025 Total Adjustment derived from Combined for Moa financial Metals Power Other(1) total Joint Venture statements Property, plant and equipment expenditures (2) $ 24.1 $ 0.9 $ 0.1 $ 25.1 $ (17.6) $ 7.5 Intangible asset exp
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