Sherritt International Corporation · TSX:S
Sherritt International — Q1 2025 Earnings Presentation
31 slides from Sherritt International's earnings presentation, May 14, 2025
Slide 1: Q1 2025 Conference Call
Sherritt International Corporation Q1 2025 Conference Call Review of Financial and Operational Results May 14, 2025 SHERRITT.COM • TSX: S
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements. Forward-looking statements Sherritt, including access to capital and financing; the ability of the Moa JV to pay dividends; construction, commissioning, ramp-up to commercial scale production and completion; an
Slide 3: Presenters
Presenters Leon Binedell President & CEO Yasmin Gabriel CFO Elvin Saruk COO 3
Slide 4: Nickel and Cobalt Price First Quarter 2025 Developments
Nickel and Cobalt Price First Quarter 2025 Developments First Quarter 2025 Key Market Developments Nickel and Cobalt Reference Prices(1) → January 17, 2025: Canada discusses critical minerals pricing floors with the Group of Seven (G7) Q1 2025 $10.00 $18.00 → January 23, 2025: After reports in Decem
Slide 5: Highlights First Quarter 2025
Highlights First Quarter 2025 → Nickel and cobalt production of 2,947 t and 323 t, respectively → Nickel and cobalt sales of 3,439 t and 456 t, respectively → NDCC(1) decreased 18% year-over-year primarily on higher net fertilizer and other by-product credits and lower third-party feed costs → Commi
Slide 6: Review of Operations
ie Ay a | ps3 Review tonne ic ns
Slide 7: Metals First Quarter Highlights
Metals First Quarter Highlights Mixed sulphides Q1 2025 Q1 2024 → Lower mixed sulphides production on supply chain delays, maintenance to Production Volume (tonnes)(1) the ore thickener, lower mining equipment availability and nationwide power Mixed Sulphides 3,157 4,052 outage in Cuba Nickel 2,947
Slide 8: Metals First Quarter Net Direct Cash Costs (NDCC)
Metals First Quarter Net Direct Cash Costs (NDCC)(1) First Quarter 2025 Results Year-Over-Year Change Mining, processing and refining (MPR)(2) NDCC(1) (US$/lb of Nickel Sold) → Relatively unchanged MPR/lb: 18% Decrease YoY → Slightly higher input commodity prices $7.24 → Lower opening inventory cost
Slide 9: Moa JV Expansion Update
Moa JV Expansion Update Phase two: Processing Plant → Commissioning began during the quarter → All final spending amounts associated with phase two have been committed and are expected to be incurred concurrent with commissioning activities → The Moa JV is continuing work to remove minor processing
Slide 10: Power First Quarter Highlights
Power First Quarter Highlights Varadero → In frequency control at request of Cuban utility to help stabilize Cuba’s power grid Q1 2025 Q1 2024 → Energas was fully compensated for lost production in Q1 and expects to Operating Results(2) be fully compensated in 2025 Electricity production Electricity
Slide 11: Financial Highlights
Financial Highlights 11
Slide 12: Financial Performance First Quarter Results
Financial Performance First Quarter Results Q1 2025 Q1 2024 Financial performance key drivers: Financial Results ($ millions) Average-Realized Prices(1) Sales Volumes Revenue(2) 38.4 28.8 Nickel 1% 15% Cobalt 8% 26% Combined revenue(1)(3) 125.7 127.7 Fertilizers 16% 39% Net loss from cont
Slide 13: Available Liquidity in Canada First Quarter 2025 Update
Available Liquidity in Canada First Quarter 2025 Update First quarter changes include: $25.4M → Fertilizer presales in the quarter $12.8M → Proceeds from sales on cobalt from Cobalt Swap $6.1M → Dividend from Energas $4.3M → Contractually obligated rehabilitation costs related to legacy Oil and Gas
Slide 14: Transactions Successfully Closed During Q2 2025
Transactions Successfully Closed During Q2 2025 Overview $317M $68M Second Lien Note premium $25M(1) PIK Notes due Aug. $249M Transactions summary: 2029 $71M(2) → Reduced outstanding notes obligations by $43M through debt exchange and 99M share issuance C$ millions → Eliminated the $25M premium paya
Slide 15: Summary
Summary Fort Saskatchewan, Alberta 15
Slide 16: First Quarter 2025 Delivered on Key Strategic Initiatives
First Quarter 2025 Delivered on Key Strategic Initiatives → Successfully delivered on key strategic initiatives during the quarter → Delivered transactions to strengthen capital structure reducing outstanding debt obligations, decreasing annual interest expense and extending maturities to late 2031
Slide 17: Q&A Discussion
Q&A Discussion sherritt
Slide 18: Sherritt International Corporation
SHERRITT INTERNATIONAL CORPORATION 22 Adelaide West, Suite 4220 Toronto, Ontario, Canada M5H 4E3 Tom Halton, Director, Investor Relations and Corporate Affairs Telephone: S E P T E M B 416.935.2451 ER 2024 | Toll -Free: 1.800.704.6698 Email: investor@sherritt.com SHERRITT.COM • TSX: S
Slide 19: Appendix: Forward-looking estimates and Non-GAAP and other financial measures
APPENDIX Forward-looking estimates and Non-GAAP and other financial measures 19
Slide 20: Forward-looking estimates
Forward-looking estimates Cobalt Swap distributions At current spot nickel prices, and based on 2025 guidance for production volumes, NDCC(1) and spending on capital(1) disclosed in the Outlook section of the MD&A, the Corporation continues to expect that cobalt dividends and cash distributions unde
Slide 21: Non-GAAP and other financial measures
Non-GAAP and other financial measures 21
Slide 22: Combined revenue
Combined revenue The Corporation uses combined revenue as a measure to help management assess the Corporation’s financial performance across its core operations. Combined revenue includes the Corporation’s consolidated revenue, less Oil and Gas revenue, and includes the revenue of the Moa JV within
Slide 23: Adjusted EBITDA
Adjusted EBITDA The Corporation defines Adjusted EBITDA as (loss) earnings from operations and joint venture, which excludes net finance expense, income tax expense and loss from discontinued operations, net of tax, as reported in the financial statements for the period, adjusted for: depletion, dep
Slide 24: Adjusted EBITDA (continued)
Adjusted EBITDA (continued) $ millions, for the three months ended March 31 2024 Adjustment Corporate for Moa Oil and and Joint Metals(1) Power Gas Other Venture Total (Loss) earnings from operations and joint venture per financial statements $ (21.0) $ 7.1 $ (2.3) $ (7.0) $ 0.8 $ (22.4) Add (deduct
Slide 25: Average-realized price
Average-realized price Average-realized price is generally calculated by dividing revenue by sales volume for the given product in a given segment. The average-realized price for power excludes frequency control, by-product and other revenue, as this revenue is not earned directly for power generati
Slide 26: Average-realized price (continued)
Average-realized price (continued) $ millions, except average-realized price and sales volume, for the three months ended March 31 2024 Metals Adjustment for Moa Joint Nickel Cobalt Fertilizer Power Other(1) Venture Total Revenue per financial statements $ 87.8 $ 11.6 $ 9.9 $ 12.0 $ 11.7 $ (104.2) $
Slide 27: Unit operating cost/Net direct cash cost (NDCC)
Unit operating cost/Net direct cash cost (NDCC) With the exception of Metals, which uses NDCC, unit operating cost is generally calculated by dividing cost of sales as reported in the financial statements, less depreciation, depletion and amortization in cost of sales, the impact of impairment losse
Slide 28: Unit operating cost/Net direct cash cost (continued)
Unit operating cost/Net direct cash cost (continued) $ millions, except unit cost and sales volume, for the three months ended March 31 2024 Adjustment for Moa Metals Power Other(1) Joint Venture Total Cost of sales per financial statements $ 131.1 $ 4.0 $ 8.3 $ (115.9) $ 27.5 Less: Depletion, depre
Slide 29: Adjusted net earnings/loss from continuing operations and per share
Adjusted net earnings/loss from continuing operations and adjusted net earnings/loss from continuing operations per share The Corporation defines adjusted net earnings/loss from continuing operations as net earnings/loss from continuing operations less items not reflective of the Corporation’s curre
Slide 30: Spending on capital
Spending on capital The Corporation defines spending on capital for each segment as property, plant and equipment and intangible asset expenditures on a cash basis adjusted to the accrual basis in order to account for assets that are available for use by the Corporation and the Moa JV prior to payme
Slide 31: Spending on capital (continued)
Spending on capital (continued) $ millions, for the three months ended March 31 2024 Total Adjustment derived from Combined for Moa financial Metals Power Other(1) total Joint Venture statements Property, plant and equipment expenditures (2) $ 9.5 $ 2.6 $ -$ 12.1 $ (8.4) $ 3.7 Intangible asset expen
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