Sherritt International Corporation · TSX:S
Sherritt International — Investor Presentation (June 2006)
18 slides from Sherritt International's investor presentation, June 2006
Slide 1: Sherritt International Investor Presentation – June 2006
Sherritt International Investor Presentation – June 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 Business Units
Sherritt International Business Units ¾ Largest thermal coal producer in Canada – contracted, stable cash flows Coal ¾ Coal as a non conventional fuel – hydrogen and steam ¾ Significant reserves and resources ¾ Sherritt 2005 production (50% basis) totalled approximately 16,000 Metals tonnes of nicke
Slide 4: Diversified revenue base and financial strength
Diversified revenue base and financial strength Sherritt’s results as at March 31, 2006 Revenue: C$259.6 EBITDA: C$112.2 14% 13% Metals 25% 32% 15% Coal 28% Oil & Gas Power & 47% 26% Other Capital Assets Total: C$1.6 billion Capital Assets distribution: Canada 50%, Cuba 49%, other 1% Cash and cash e
Slide 5: Integral Component of Electricity Infrastructure
Integral Component of Electricity Infrastructure Majority of electricity in Alberta and Saskatchewan is generated by coal Alberta Power Generation Saskatchewan Power Generation 3% 5% 6% Thermal Coal 26% Hydro 22% Natural Gas Other 16% 66% 56% Source: Alberta Energy and Utilities Board (2005) Source:
Slide 6: Strategic Asset Base
Strategic Asset Base Royal Utilities’ IPO represents stable, mature cash flows from thermal coal operations ¾ Royal Utilities is the exclusive supplier of thermal coal to ATCO, EPCOR, TransAlta, and SaskPower to produce electricity in Alberta & Saskatchewan ¾ Revenues derived from mine-mouth operati
Slide 7: Unique Cost Structure
Unique Cost Structure Operating margin protection through contract structures Total Operating Cost Owned Mines* Cost Structure (All Mines) (Boundary Dam, Poplar River, Sheerness, Paintearth) Largely pass-through Inflation adjusted 29% Repairs & Maintenance 42% 45% Labour Pass-through 15% (Genesee, H
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 a non conventional fuel: Growth Opportunities
Coal as a 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 G
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 Metals expansion will increase capacity by 50% to 49,000 tonnes ¾ Commissioning to start in 2008 Cobalt – 409 tonnes Sherritt's premium
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 Lower capital cost ¾ Shorter ramp-up time ¾ Reduction in existing unit operating costs ¾ Leader in pressure hydrometallurgical operations ¾ Process
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 ¾ Significant reserves have been defined ¾ Stabilized oil production ¾ Higher oil prices ¾ Reinvestment of cash flows into expanded capital program ¾ Successful explora
Slide 13: Sherritt Oil & Gas
Sherritt Oil & Gas No 10 20 fa LA HABANA () COMMERCIAL FIELDS 6 Seboruco 7 Varadero West 1 Boca de Jaruco 2 Santa Cruz 3 Canasi 8 Perifericos 4 Puerto Escondido 9 Varadero 5 Yumuri 30 kilometers EXPLORATION & APPRAISAL 1 Tarara 5 Majaguillar 2 Guanabo 6 Marti 3 Playa Larga 7 Corojal 4 San Anton High
Slide 14: Growth Opportunities – Oil and Gas
Growth Opportunities – Oil and Gas ¾ Santa Cruz commercialization 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 Electrical submersible pumps ¾ High volume gas lift ¾ Therma
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 net power capacity 311 MW ¾ Represents 15% of installed Cuban capacity ¾ 65 MW expansion project at Boca to include
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: Environment, Health and Safety
Environment, Health and Safety ¾ Sherritt is an industry leader in innovative environmental management practices and procedures ¾ Coal has received several awards recognizing its reclamation and environmental management practices ¾ Implementation of environmental operating standard at Moa; set to be
Slide 18: Sherritt International Corporation
Sherritt International Corporation TSX listed: Symbols: S, S.DB.A Shares outstanding: 151 million shares Market capitalization: C$1.5 billion (as of June 15/06) Daily trading volume: ~ 960,000 shares Sherritt International is a diversified resource company involved in the production of thermal coal,
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