Low prices hit Sherritt

The financial performance of Sherritt International (S-T) has always served as an effective barometer of the state of the nickel and cobalt industries. This year was no exception: as might be expected, the company’s bottom line reflects significantly lower commodity prices for both metals than a year ago.

Sherritt reported net earnings of $6.4 million in the quarter ended Sept. 30, compared with $12.9 million a year ago. Net earnings for the first nine months were $27 million, or 12 cents per share, compared with earnings of $33.3 million in the corresponding period last year.

The company holds a 50% indirect interest in a vertically integrated nickel-cobalt joint venture, and is also involved in the marketing and trading of commodity metals. Sherritt’s mining and processing facilities are in Moa, Cuba, and its refinery and marketing divisions are in Fort Saskatchewan, Alta.

The company notes that its refinery set new cobalt and nickel production records in the third quarter. Total cobalt production of 704 tonnes marked the third consecutive quarterly record, breaking the previous record of 660 tonnes.

Total nickel production of 7,168 tonnes was 10% above levels reported for the third quarter of 1997, and surpassed the previous production record, established in the fourth quarter of 1996.

Sherritt also operates oil and gas and fertilizer divisions, and holds a portfolio of investments in Cuba’s tourism, agriculture, communications and power sectors.