Sherritt International Corporation · TSX:S
Sherritt International — Q2 2016 Earnings Presentation
15 slides from Sherritt International's earnings presentation, Jul 26, 2016
Slide 1: Second Quarter 2016 Results
Second Quarter 2016 Results July 26, 2016 SHERRITT INTERNATIONAL CORPORATION 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain 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”, “
Slide 3: New Sustainability Report Going Live Next Week
New Sustainability Report Going Live Next Week… SHERRITT INTERNATIONAL CORPORATION 3
Slide 4: Q2 2016 Nickel Highlights
(1) Q2 2016 Nickel Highlights Moa Production (50% basis) Moa: NDCC 4,242 4,145 3,877 Avg. Reference Price Nickel (USD) $5.90 Q2 2015 Q1 2016 Q2 2016 $4.00 $3.86 Ambatovy Production (40% basis) Ambatovy: NDCC 4,442 4,158 $5.48 3,620 $5.12 $4.41 Q2 2015 Q1 2016 Q2 2016 Q2 2015 Q1 2016 Q2 2016 Q2 2015
Slide 5: Q2 2016 Oil & Gas and Power Highlights
(1) Q2 2016 Oil & Gas and Power Highlights Oil: Cuba GWI and NWI Oil: Unit Operating Costs 18,607 $11.27 16,449 16,200 $10.35 $10.57 Avg. Reference Price Fuel Oil No. 6 (USD) 11,151 9,890 9,933 $50.92 Q2 2015 Q1 2016 Q2 2016 Q2 2015 Q1 2016 Q2 2016 Oil GWI Production Cuba Oil NWI Production Cuba $31
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS SHERRITT INTERNATIONAL CORPORATION 6
Slide 7: New non-GAAP Disclosure: Net Investment in Ambatovy
New non-GAAP Disclosure: Net Investment in Ambatovy SHERRITT INTERNATIONAL CORPORATION 7
Slide 8: Q2 2016 Net Loss and Adjusting Items
Q2 2016 Net Loss and Adjusting Items $ millions Per Share Net (loss) earnings from continuing operations $ (103.6) $ (0.35) Adjusting items: Gain on repurchase of debentures (12.6) (0.04) Unrealized FX (loss) from continuing operations 1.6 - Ambatovy VAT adjustment (6.5) (0.02) Deferred consideratio
Slide 9: Balance Sheet Cash from Q4 2015 to Q2 2016
Balance Sheet Cash from Q4 2015 to Q2 2016 500 $12.0 $9.2 $435.4 $11.9 450 400 $(42.7) $(26.7) (millions of dollars) 350 $(16.8) $312.6 300 $(62.4) $(7.3) 250 200 150 100 50 0 December 31, Adjusted Adjusted Adjusted Corporate cash Working capital Capital Debt Obed/Other June 30, 2016 - 2015 - Cash,
Slide 10: CEO Closing Recap
CEO CLOSING RECAP SHERRITT INTERNATIONAL CORPORATION 10
Slide 11: NDCC for Both Operations Since Q1 2015
NDCC for Both Operations Since Q1 2015 $8.00 $7.00 $6.00 $5.74 $5.48 $5.12 $5.06 $4.96 $5.51 U.S.$/lb Ni $5.00 $5.23 $4.48 $4.24 $4.07 $4.38 $4.00 $4.36 $4.41 $4.12 $4.07 $3.00 $3.34 $2.90 $2.94 $2.00 $1.00 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Moa JV & Fort Site Ambatovy JV 50th percentil
Slide 12: Cash Cost Curve
Cash Cost Curve 2016 Nickel Industry, Normal C1 Cash Cost Grouped by Operation and Ranked by Cash Cost (C1) Existing Operations and Base Case 50th percentile = US$4.38 25th percentile = US$2.77 Ambatovy = US$5.12 (Q2 2016) Moa = US$2.94 (Q2 2016) Source: Wood Mackenzie Ltd., Dataset: Q2 2016 SHERRIT
Slide 13: 1 Year Spot Nickel vs 100, 200 and 300 Day Moving Average
$3.25 $3.75 $4.25 $4.75 $5.25 $5.75 $6.25 $6.75 $7.25 7/20/15 7/28/15 8/05/15 8/13/15 Average 8/21/15 8/31/15 9/09/15 9/17/15 SHERRITT INTERNATIONAL CORPORATION 13 9/25/15 10/05/15 10/13/15 10/21/15 10/29/15 11/06/15 Nickel 11/16/15 11/24/15 12/03/15 12/11/15 Nickel vs. 100-, 200- and 300-DMA's 12/2
Slide 14: Reporting on our 2016 Strategic Priorities
Reporting on our 2016 Strategic Priorities Extending The Life Maintaining Focusing On Core Of Cuban Energy Strong Balance Nickel Business Business Sheet And Reducing Costs Moa acid plant in operation, NDCC Oil production better than Cash position of $312.6M after benefit expected Q4 and 2017 expecte
Slide 15: Questions
QUESTIONS SHERRITT INTERNATIONAL CORPORATION 15
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