Sherritt International Corporation · TSX:S
Sherritt International — Debt Investor Presentation (June 2016)
11 slides from Sherritt International's debt investor presentation, Jun 22, 2016
Slide 1: Noteholder Maturity Extension Information Session
Noteholder Maturity Extension Information Session June 22, 2016 SHERRITT INTERNATIONAL CORPORATION 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: David Pathe, President and CEO & Dean Chambers, EVP and CFO
David Pathe, President and CEO (L) & Dean Chambers, EVP and CFO (R) SHERRITT INTERNATIONAL CORPORATION 3
Slide 4: Sherritt Overview
Sherritt Overview • Two fully integrated, LME quality HPAL nickel operations, which delivered 80,976 tonnes finished nickel in 2015 • Cuban oil production of 18,257 bopd (GWI) in 2015 • Cuban power generation business that creates steady cash flow • Market cap $235 million with $369.9 million cash,
Slide 5: With First Notes due in 2018, Now is the Time to Initiate a Recapitalization
Situation Overview • Nickel and oil prices reached 12-year lows in Q1 2016 with limited visibility on timing of a recovery • Capital structure is highly levered in current market environment • Negative current operating cash flow; enhanced stability will increase operational flexibility • Sherritt w
Slide 6: Nickel – the most volatile base metal
Nickel – the most volatile base metal 26.00 10.00 9.00 22.00 8.00 18.00 7.00 14.00 6.00 5.00 10.00 4.00 6.00 3.00 2.00 2.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2015 2016 Nickel ($/lb) 10 years Nickel ($/lb) 2 years SHERRITT INTERNATIONAL CORPORATION 6
Slide 7: Terms of the Offer to Noteholders
Terms of the Offer to Noteholders • In exchange for voting in favour of the Plan of Arrangement to extend the maturities of each series by three years, noteholders of record on June 15, 2016 that vote in favour and file an election by July 19, 2016 have the option to receive either: • 2% cash consen
Slide 8: Transaction Benefits
Transaction Benefits • Extension of maturities enhances ability to repay all series of notes in full at maturity and creates stability • Enhances ability to restructure its significant investment in Ambatovy • Provides cash or equity consent consideration at the option of the Noteholder • Provides a
Slide 9: Timeline and Process
Timeline and Process June 2016 July 2016 S M T W T F S S M T W T F S 1 2 3 4 1 2 5 6 7 8 9 10 11 3 4 5 6 7 8 9 12 13 14 15 16 17 18 10 11 12 13 14 15 16 19 20 21 22 23 24 25 17 18 19 20 21 22 23 26 27 28 29 30 24 25 26 27 28 29 30 31 Denotes Key Dates Denotes Holiday Record Date: June 15 Mailing of
Slide 10: Executing on our Strategic Priorities
Executing on our Strategic Priorities Extending The Life Maintaining Focusing On Core Of Cuban Energy Strong Balance Nickel Business Business Sheet And Reducing Costs Acid plant on track to complete in Capital allocation reduced End Q1 with $370 million cash Q2 with full operation in Q3 in Q1, resul
Slide 11: Sherritt International Corporation contact details
Sherritt International Corporation 181 Bay Street, 26th Floor, Brookfield Place Toronto, Ontario, Canada M4T 2Y7 Investor Relations Flora Wood Telephone: 416.935.2457 Toll-Free: 1.800.704.6698 Email: investor@sherritt.com Website: www.sherritt.com SHERRITT INTERNATIONAL CORPORATION 11
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