Sherritt International Corporation · TSX:S
Sherritt International — PDAC Conference 2019
13 slides from Sherritt International's conference presentation, March 2019
Slide 1: Sherritt – The Name in Nickel, PDAC Conference
SHERRITT THE NAME IN NICKEL PDAC Conference Steve Wood Chief Operating Officer March 2019 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”, “shou
Slide 3: Nickel is the best performing metal YTD
Nickel is the best performing metal YTD 30.00% 25.00% Nickel +23% 20.00% 15.00% Copper +12% 10.00% Zinc +11% 5.00% Gold +3% 0.00% -5.00% Zinc Nickel Gold Copper Strong market fundamentals are driving price recovery 3
Slide 4: Demand for nickel is growing
Demand for nickel is growing* Stainless steel +4% growth per year Special alloys +2% growth per year EV batteries +33% growth per year Nickel consumption to grow to 2.4MT in 2019 and 2.5MT in 2020 Source: Wood Mackenzie 4
Slide 5: Nickel prices are catching up to market fundamentals
Nickel prices are catching up to market fundamentals Tonnes 450,000 400,000 350,000 49% 300,000 250,000 200,000 Decline in inventory 150,000 since Jan 1 2018 100,000 1-Jan-18 Mar-18 May-18 Jul-18 Apr-18 Feb-18 Oct-18 Feb-19 Jan-18 Jun-18 Aug-18 Sep-18 Nov-18 Dec-18 Jan-19 LME Inventories SHFE Supply
Slide 6: 90 years of production & innovation
90 years of production & innovation 6
Slide 7: Sherritt is completing a transformation
Sherritt is completing a transformation Recent progress & momentum: • Eliminated $2B of debt since 2014 • 2018 nickel production at Moa JV in line with guidance • Moa JV ranked in lowest cost quartile and peer-leading safety record • Operational excellence initiatives driving improved results Metals
Slide 8: Electric vehicles trend is a global phenomenon
Electric vehicles trend is a global phenomenon Initiative Year China targets 5M EVs on the road by 2020 and production of 7M EVs by 2025. EVs with China 2020, 2025 range > 400km see increase in subsidies Norway Change to taxes and incentives to achieve zero or low emission vehicle sales 2025 Holland
Slide 9: Not all nickel is the same
Not all nickel is the same Differences in nickel supply and uses 3.5 >70% 3.0 2.5 Stainless steel Low purity Class II – 2.0 Nickel Pig Iron & Mt Ferro-nickel 1.5 Stainless steel with high Of all nickel supply is purity nickel unsuitable for EV battery High purity 1.0 Class I – High Non-stainless exc
Slide 10: Why this matters… Sherritt is well positioned for strong battery metals outlook
Why this matters…. Metal content by battery Sherritt is well positioned for Changes strong batterydriven by: outlook metals Nickel 19.8% - Cobalt supply 36.2% - Low-cost producer of Class 1 nickel constraints and cobalt 48.2% 48.8% Cobalt 19.9% - Commodity - High pricing cobalt to nickel production
Slide 11: Upcoming catalysts
Upcoming catalysts 1. Drill results on Block 10 2. Agreement on overdue receivables 3. Increased target production for nickel and cobalt at Moa JV in 2019 Near-term opportunities to unlock shareholder value 11
Slide 12: Investment summary
Investment summary 1 Low cost producer of high purity nickel and cobalt 2 Well positioned to capitalize on growing EV battery demand 3 Upside leverage to improving nickel prices 4 Energy assets provide cash flow diversity and upside potential 5 Near-term catalysts in place to unlock shareholder valu
Slide 13: Questions?
Questions? Join us at Booth #2312 13