Sherritt International Corporation · TSX:S
Sherritt International — Shareholder Meeting (May 2015)
21 slides from Sherritt International's shareholder meeting presentation, May 12, 2015
Slide 1: Annual General Meeting May 12, 2015
THE NAME IN NICKEL Annual General Meeting l May 12, 2015 SHERRITT INTERNATIONAL CORPORATION 1
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information This document 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”,
Slide 3: Our Operations
Our Operations SHERRITT INTERNATIONAL CORPORATION 3
Slide 4: Global Scope
Global Scope What we influence $17.4B Assets (2) What we (3) operate $2B Revenue (3) $373M Adj. EBITDA (1) Sherritt $5.6B Reported Assets (1) Assets of $5.6 billion as reported on the Balance Sheet of the Q1 Condensed Consolidated Financial Statements at March 31, 2015 (2) Total assets comprise the
Slide 5: Shifting Our Business Focus
Shifting Our Business Focus Historical Contribution: Medium Term Outlook Contribution: Adjusted EBITDA by Division (%)(1) Adjusted EBITDA (%)(1) 4% 5% 9% 30% 41% 61% 66% 32% 24% 65% 23% 15% 25% 2012 2013 2014 Metals Coal Oil & Gas Power Metals Oil and Gas Power (1) Excludes Corporate and Other SHERR
Slide 6: Nickel
Nickel Nickel Plant, Moa, Cuba SHERRITT INTERNATIONAL CORPORATION 6
Slide 7: Nickel in Today's World
Nickel in Today’s World +50% +4% +60% In 2015, the number of Total worldwide general By 2020 over 60% of hybrid vehicles worldwide aviation airplane the world’s population had grown 50% to 80 shipments increased 4% will live in cities.(3) million, from 2009.(1) to 2,454.(2) (1) Source: Statista 2015
Slide 8: 10 Year Nickel Price Performance
10 Year Nickel Price Performance 30 25 20 15 Current spot US$6.30 10 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nickel Nickel($/lb) (US$/lb) SHERRITT INTERNATIONAL CORPORATION 8
Slide 9: Nickel Market Supply/Demand
Nickel Market Supply/Demand 2,500 2,000 Tonnes (000's) 1,500 1,000 2014 2015 2016 2017 2018 2019 World Demand World Supply Source: CRU SHERRITT INTERNATIONAL CORPORATION 9
Slide 10: Our Nickel Production Growth
Our Nickel Production Growth Finished Nickel Production (tonnes) - Sherritt’s Attributable Share 36,550 31,276 26,830 19,800 14,821 19,410 10,059 2,278 17,132 16,771 16,455 16,750 2012 2013 2014 2015E(1) Moa Ambatovy 50% 40% Production expected to increase by 17% in 2015 (1) Mid-point of guidance SH
Slide 11: Low Cost Nickel Producer
Low Cost Nickel Producer (1) Nickel Cost Curve (U.S. $/lb) * Target range when producing 54,000-60,000 tonnes per annum Source: Wood Mackenzie SHERRITT INTERNATIONAL CORPORATION 11 (1) Nickel Industry, Normal, C1 Cash Cost
Slide 12: Ambatovy is on the Cusp of Cash Flow
Ambatovy is on the Cusp of Cash Flow 15 Year Sherritt vs Nickel Price Illustrative Mining Life Cycle Cash Flow 20 60,000 18 16 50,000 14 40,000 12 10 30,000 8 Exploration Construction 20,000 Operations 6 & Drilling & Ramp-Up 4 10,000 Time 0 10 20 30+ 2 0 0 Approximate Current Status 2000 2001 2002 2
Slide 13: Ambatovy Plant Site, Madagascar
2014 Ambatovy Plant Site, Madagascar SHERRITT INTERNATIONAL CORPORATION 13
Slide 14: Year In Review: 2014 Accomplishments
Year In Review: 2014 Accomplishments Extending The Focusing On Continuing To Life Of Our Strengthening Core Nickel Ramp Up Cuban The Balance Reducing Business Ambatovy Energy Business Sheet Costs Completed sale Achieved Extended term Reduced debt Cost savings of Coal division commercial on an existi
Slide 15: 2014 Financial Highlights
2014 Financial Highlights $1.1B $0.25/share $253M DEBT 25% 45% 56% 16% $1.9B (1) COMBINED ADJ. CASH FLOW ADJ. EBITDA (1) (1) REVENUE PER SHARE (1) For non-GAAP measures please see p. 65 of the 2014 Annual Report for full explanation SHERRITT INTERNATIONAL CORPORATION 15
Slide 16: Our Purpose and Our Promises
Our Purpose and Our Promises To be a low cost nickel producer that creates sustainable prosperity for our employees, investors and communities. Our Promises: Integrity, Agility, Safety and Sustainability, Learning and Innovation, Shared Prosperity SHERRITT INTERNATIONAL CORPORATION 16
Slide 17: Managing Risks, Building Value
Sustainability Managing Risks, Building Value SHERRITT INTERNATIONAL CORPORATION 17
Slide 18: 2015: The Year Ahead
2015: The Year Ahead Ambatovy Pipeline, Madagascar SHERRITT INTERNATIONAL CORPORATION 18
Slide 19: Executing on Our 2015 Strategic Priorities
Executing on Our 2015 Strategic Priorities Extending The Life Focusing On Continuing To Of Our Cuban Our Core Nickel Ramp Up Energy Building Balance Business Ambatovy Business Sheet Strength Reducing Costs Sustaining Targeting a Securing two Maintaining a strong Optimizing production and production
Slide 20: Delivering Results
Delivering Results Focused on delivering against stated priorities Strategic priorities to Clear strategy, result in stronger simplified business business Top 10 largest nickel producer in the world Rising production in base metals with forecasted nickel price increases Strong cash flow growth Catal
Slide 21: Questions
Questions SHERRITT INTERNATIONAL CORPORATION 21
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