Sherritt International Corporation · TSX:S
Sherritt International — Investor Presentation (March 2013)
13 slides from Sherritt International's investor presentation, March 2013
Slide 1: Investor Presentation
Investor Presentation March 2013 Sherritt International Corporation 1
Slide 2: Cautionary Language
CAUTIONARY LANGUAGE Forward-Looking Statements and Adjusted EBITDA 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”
Slide 3: Sherritt International Corporation
SHERRITT INTERNATIONAL CORPORATION 3
Slide 4: Metals
METALS Moa Joint Venture (50%, operating) • Cuba, Canada, Bahamas Moa, Cuba • Over 50 years of operational experience • Long-life reserves • Capacity: ~33,500 tpa finished nickel, 3,500 tpa finished cobalt • Partners: Sherritt 50%, General Nickel 50% Ambatovy Joint Venture (40%, in ramp-up) • Madaga
Slide 5: Ambatovy
AMBATOVY Ambatovy, Madagascar 2012 Q4 2012 • First full quarter of production for Ambatovy • Q4 production of 3,403 tonnes finished nickel, 334 tonnes finished cobalt, 100% basis • Full-year 2012 production of 5,695 tonnes finished nickel, 493 tonnes finished cobalt, 100% basis • Ramp-up progressing
Slide 6: Coal
COAL Prairie (Mine Mouth) Operations (~22 million tpa) • Six mines in Western Canada (Alberta, Saskatchewan) • Sold under long-term contract to domestic utilities • Base pricing not subject to changes linked to market pricing for coal • Escalators in all contracts Drag Line, Poplar River Mine, Saska
Slide 7: Oil & Gas and Power
OIL & GAS and POWER OIL Cuba (~ 20,160 bopd, GWI) • Largest independent oil producer in Cuba • Sales prices are based on a benchmark – Gulf Coast Fuel Oil No. 6 (GCF06) – with realizations ranging between 71% and 75% GCF06 • Sherritt has produced over 188 million barrels of oil in Cuba. Other (Spain
Slide 8: Operational Stability
OPERATIONAL STABILITY Annual Production Nickel and Cobalt Production Oil Production 50,000 25,000 boepd, net production tonnes, 100% basis 40,000 20,000 30,000 15,000 20,000 10,000 10,000 5,000 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Nickel Production Cobalt Production Coal P
Slide 9: Operational Efficiency
OPERATIONAL EFFICIENCY Margin Management Oil (Cuba) Nickel Realized Price vs Operating Cost (1) Reference Nickel Price vs Operating Cost (1) 12 80 $72.21 70 10 $7.95 60 8 50 US $/lb $/bbl 6 40 $4.94 30 4 20 2 $12.69 10 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Cash Cost Reference Price O
Slide 10: Financial Discipline: Cash Flow Positive Base Operations
FINANCIAL DISCIPLINE Cash Flow Positive Base Operations Metals (1)(2) Oil & Gas (1)(2) Adjusted EBITDA Base Capex Adjusted EBITDA Base Capex $250 $250 $250 $250 $200 $200 $200 $200 $150 $150 $150 $150 $100 $100 $100 $100 $50 $50 $50 $50 $0 $0 $0 $0 2009 2010 2011 2012 2009 2010 2011 2012 Coal (1)(2)
Slide 11: Consolidated Performance
CONSOLIDATED PERFORMANCE Revenue (1)(2) Adjusted EBITDA (1)(2) ($ millions) ($ millions) $2,000 $800 $1,500 $600 $1,000 $400 $500 $200 $0 $0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 (1) Segmented numbers do not include corporate revenue or Adjusted EBITDA. Metals Coal Oi
Slide 12: Balance Sheet Management and Cash Flow
BALANCE SHEET MANAGEMENT and CASH FLOW Balance Sheet Management Long-Term Debt to Total Assets (%) Cash & Short-Term Investments $1,000 35 30 $800 25 Completed $500 million senior unsecured ($ millions) $600 20 debenture offering in Q3 2012 (8 year $400 15 term, 7.5% coupon) 10 $200 Extended Sherrit
Slide 13: Investor Relations
Telephone: 416-935-2451 INVESTOR RELATIONS Toll-Free: 1-800-704-6698 Fax: 416-935-2283 Sherritt International Corporation 1133 Yonge Street Email: investor@sherritt.com Toronto, Ontario, Canada M4T 2Y7 Website: www.sherritt.com 13
Sherritt International — Investor Presentation (March 2013) on 6ix