Finding feedstock for its nickel refinery in Fort Saskatchewan, Alta., remains a priority for Sherritt Gordon (TSE), President Ian Delaney recently told a meeting of financial analysts in Toronto.
Booked capacity for 1991 is better than 80%, up from the 71% level achieved in 1990, Delaney said. The refinery was closed for two months last year because of supply problems, but no shutdown is anticipated for 1991, he said.
The next two years, he said, are also expected to be a challenge for Sherritt, which used to mine its own nickel ore in Manitoba, but Delaney is confident that by 1994, nickel producers will be knocking on the company’s door.
Ideally, Delaney said, the company would like to have contracts for feed with two or three producers. Current plant capacity is 55 million lb. nickel and 2.5 million lb. cobalt. (Cobalt and other metals are extracted from the nickel feedstock.)
Sherritt, whose origins can be traced back to the 1920s, has no intention of getting back into the production side of the industry. “We will not be miners,” Delaney said. However, a joint venture with a nickel producer could not be ruled out.
In addition to its metals refining, Sherritt operates a rolling mill and coinage products business. Its other major business is the production of fertilizers.
Future growth for the company, Delaney predicted, will be in the area of technology, in particular on the materials science research side.
Sherritt is a substantial user of natural gas and Delaney said the company is exploring the possibility of acquiring a natural gas company.
Nominated for a position on the Sherritt board of directors this year is Cliff Frame, president of zinc-lead producer Curragh Resources (TSE). Through Curragh, Frame exercises control over about 8% of Sherritt’s outstanding shares.
For 1990, Sherritt recorded a net loss of $32.4 million on revenue of $345.3 million, compared to a profit of $32.2 million in 1989 on revenue of $545.9 million. The company reported an operating profit in 1990 of $13.1 million compared with $73.9 million for the previous year. Sherritt Gordon (TSE) 12 months ended Dec. 31 1990 1989 Revenue $345,250 $545,899 Net earnings (loss) (32,387) 32,181
per share (1.29) 1.19
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