Sherritt International Corporation · TSX:S
Sherritt International — Shareholder Meeting (May 2016)
17 slides from Sherritt International's shareholder meeting presentation, May 10, 2016
Slide 1: 2016 Annual General Meeting
2016 ANNUAL GENERAL MEETING David Pathe, President & CEO May 10, 2016 SHERRITT INTERNATIONAL CORPORATION 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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”, “will”, “could”, “should”
Slide 3: 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 $238 million with $369.9 million cash,
Slide 4: The Name in Nickel
The Name in Nickel SHERRITT INTERNATIONAL CORPORATION 4
Slide 5: Nickel - The Most Volatile Base Metal
Nickel - The Most Volatile Base Metal $10 $22 10 Year Nickel 2 Year Nickel $9 Performance Performance $18 $8 $7 $14 $6 $10 $5 $4 $6 $3 $2 $2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2015 2016 Nickel ($/lb) Nickel ($/lb) SHERRITT INTERNATIONAL CORPORATION 5
Slide 6: Nickel vs Metals & Oil
Nickel vs Metals & Oil 2015 Commodity Price Performance 20% 10% 0% -10% -20% Nickel (-41.75% YoY) -30% Copper (-26.10% YoY) West Texas Intermediate (-30.47% YoY) -40% Gold (-10.41% YoY) -50% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SHERRITT INTERNATIONAL CORPORATION 6
Slide 7: What it Means to be the Name in Nickel
What it Means to be the Name in Nickel Indexed Price Performance (2013-2016 YTD) 300 275 250 225 200 175 150 125 100 75 50 April 29, 2016 25 0 2013 2014 2015 2016 Nickel Sherritt SHERRITT INTERNATIONAL CORPORATION 7
Slide 8: Nickel Production up 84% in 3 Years
Nickel Production up 84% in 3 Years 35,761 31,276 26,830 18,908 14,821 19,410 10,059 2,278 17,132 16,771 16,455 16,853 2012 2013 2014 2015 Moa Ambatovy 50% 40% SHERRITT INTERNATIONAL CORPORATION 8
Slide 9: Reducing Costs Since Q1 2015
Reducing Costs Since Q1 2015 $6 $5.74 $5.48 $5.51 $5.06 $4.96 $5 $5.23 $4.48 $4.24 U.S.$/lb Ni $4.07 $4.41 $4.36 $4 $4.12 $4.07 $3 $3.34 $2.90 $2 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Moa JV & Fort Site Ambatovy JV 50th percentile of Wood Mackenzie Annual Forward-looking Cash Cost Curve Updated Q1
Slide 10: Cash Cost Curve
Cash Cost Curve 2016 Industry Nickel, Normal, C1 Cash Cost Grouped by Operation and Ranked by Cash Cost (C1) Existing Operations and Base Case 50th percentile = US$4.48 25th percentile = US$3.04 Ambatovy = US$4.41 (Q1 2016) Moa = US$3.34 (Q1 2016) Source: Wood Mackenzie Ltd., Dataset: Q1 2016 SHERRI
Slide 11: Total Debt vs. Recourse Debt
Total Debt vs. Recourse Debt • Since 2014, Sherritt has reduced debt by more than $400 million. As at Mar. 31, 2016 ($ millions) Total Recourse Senior unsecured notes (2018, 2020, 2022) $750 $750 Ambatovy partner loans 126 126 Ambatovy additional partner loans 1,221 - Other 45 45 Total debt 2,128.1
Slide 12: Peer Leader in Safety & Sustainability
Peer Leader in Safety & Sustainability Sustainability Performance Awards Key Performance Areas Principles 2015 • Providing a safe and rewarding • 2015 Syncrude Award for • Achieve a TRIF(1) of less than workplace excellence in sustainable 0.50 injuries of any kind per development 200,000 work hours
Slide 13: Strategic Priorities
Strategic Priorities SHERRITT INTERNATIONAL CORPORATION 13
Slide 14: Our 2015 Strategic Priorities
Our 2015 Strategic Priorities Focusing on Core Continuing to Extending the Strengthening Reducing Nickel Business Ramp Up Life of our Cuban the Balance Costs Ambatovy Energy Business Sheet Moa nickel Financial 8 wells drilled in Cash, cash Net Direct Cash production was completion Puerto equivalents
Slide 15: Our 2016 Strategic Priorities
Our 2016 Strategic Priorities Focusing On Core Extending The Life Maintaining Nickel Business Of Cuban Energy Strong Balance Business Sheet And Reducing Costs Complete and commission the acid Allocate capital to new drilling Protect Sherritt’s balance sheet plant at Moa in the second half of on Bloc
Slide 16: 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 Acid plant on track to complete in Capital allocation reduced End Q1 with $370 million cash Q2 with full operation in Q3 in Q1,
Slide 17: Sherritt International Corporation
Sherritt International Corporation 181 Bay Street, 26th Floor, Brookfield Place Toronto, Ontario, Canada M4T 2Y7 Investor Relations Telephone: 416.935.2451 Email: investor@sherritt.com www.sherritt.com SHERRITT INTERNATIONAL CORPORATION 17
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