Sherritt International Corporation · TSX:S
Sherritt International — TD Securities Mining Conference 2020
13 slides from Sherritt International's conference presentation, January 2020
Slide 1: Sherritt: The Name in Nickel
SHERRITT THE NAME IN NICKEL TD Securities Mining Conference Andrew Snowden Chief Financial Officer January 2020 1
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains certain forward-looking statements. Forward-looking statements can generally be identified by the use of statements that include such words as “believe”, “expect”, “anticipate”, “intend”, “plan”, “forecast”, “likely”, “may”, “will”, “could”, “sho
Slide 3: North America's only nickel and cobalt refinery: 2019 Highlights
North America’s only nickel and cobalt refinery 2019 Highlights • Achieved guidance at Cuban operations • Completed 5,700M of drilling at Block 10 • Celebrated 25-year anniversary of Moa JV Metals • Confirmed potential for Oil and Gas Power resource expansion at Commercial operations developed with
Slide 4: Higher production achieved in 2019 at Moa
Higher production achieved in 2019 at Moa1 Finished Nickel Finished Cobalt 30,708 33,108 3,376 • Growth driven by operational 3,234 excellence initiatives • Improved ore access • Better equipment reliability • Mitigation strategies helped to offset the impact of CN rail strike FY2018 FY2019 and dies
Slide 5: What has become of nickel and cobalt prices?
What has become of nickel and cobalt prices? 50% Q3 2019 Q4 2019 Q1 2020 40% Mutanda news US$16.13/lb US$8.45/lb Cobalt - US$16.35/lb 30% 20% 10% Nickel inventories Nickel inventories restocked Indonesia bans 0% draw down ore export Nickel - US$6.28/lb (10%) (20%) Volatility driven by geopolitical a
Slide 6: Nickel inventory fluctuations mirrored pricing volatility in Q4
Nickel inventory fluctuations mirrored pricing volatility in Q4 500,000 400,000 300,000 61% Tonnes 200,000 decrease in inventory 100,000 since Jan. 1, 2016 0 Dec-15 Sep-16 Dec-16 Sep-17 Dec-17 Sep-18 Dec-18 Sep-19 Dec-19 Jun-16 Jun-17 Jun-18 Jun-19 Mar-16 Mar-17 Mar-18 Mar-19 LME SHFE Lack of new su
Slide 7: Nickel market fundamentals remain strong
Nickel market fundamentals remain strong Stainless steel +4% growth Special alloys +3% growth EV batteries +10% growth Nickel consumption to grow to 2.5MT in 2020 Source: Wood Mackenzie, CRU 7
Slide 8: Long-term nickel demand is strong
Long-term nickel demand is strong 4,500 4,036 4,000 3,500 3,549 • Modest near-term demand 3,172 growth expected 2,843 3,000 • 2.6% average growth Thousands of tonnes 2,706 2,764 2,794 2,613 2,436 2,498 2,500 rate/year through 2025 2,000 • Strong long-term growth 1,500 expected 1,000 • Total demand t
Slide 9: Dealing with the U.S. embargo restrictions against Cuba
Dealing with the U.S. embargo restrictions against Cuba U.S. sanctions 1. Ban on trade and commerce 2. Limits on U.S.travel to Cuba 3. Embargo on fuel suppply 100% of finished 4. Bans on certain banking transactions product is sold 5. Limit of U.S. content on certain supplies internationally Havana
Slide 10: Sherritt's near-term focus
Sherritt’s near-term focus: - Preserve liquidity - Sustain momentum of operational excellence initiatives - Complete testing on Block 10 10
Slide 11: 2020 guidance summary
2020 guidance summary Moa JV Oil and Gas Power Finished nickel production Gross Working Interest Cuba Electricity production 32,000 – 34,000 tonnes 3,000 – 3,300 BOPD 500 – 550 GWh Finished cobalt production Unit Cost Cuba Unit Cost 3,300 – 3,600 tonnes $28.00 - $29.50/bbl $28.00 - $29.5
Slide 12: Questions?
Questions? 12
Slide 13: Sherritt International Corporation contact details
Sherritt International Corporation 22 Adelaide West, 42nd Floor Toronto, Ontario, Canada M5H 4E3 Joe Racanelli Telephone: (416) 935-2457 Toll-Free: 1 (800) 704-6698 Email: joe.racanelli@sherritt.com Website: www.sherritt.com 13
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