Overview

* Sherritt ( SHERF ) Q2 revenue falls 15% yr/yr to C$43.7 mln

* Adjusted EBITDA comes in at C$2.6 mln

* The miner and refiner of nickel and cobalt lowers metals production guidance due to Cuban challenges

* Cost reduction measures to save C$20 mln annually

Outlook

* Sherritt ( SHERF ) lowers 2025 nickel production guidance to 27,000-29,000 tonnes from 31,000 to 33,000 tonnes

* Company revises cobalt production guidance to 3,000-3,200 tonnes for 2025 from 3,300 to 3,600 tonnes

* Sherritt ( SHERF ) reduces 2025 sustaining capital guidance to C$30 mln from $35.0 million

* Electricity production expected at lower end of 800-850 GWh range

Result Drivers

* CUBAN CHALLENGES - Lower production at Moa due to challenging operating environment in Cuba

* HIGH PAYABILITIES - Limited ability to supplement Moa JV production with third-party feed due to high Chinese payabilities

* COST REDUCTIONS - Workforce reduction and other measures expected to save C$20 mln annually

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$43.70

Revenue mln

Q2 Net C$10.40

Income mln

Q2 Miss C$2.60 C$4.20

Adjusted mln mln (1

EBITDA Analyst)

Q2 C$2.80

Combined mln

Free

Cash

Flow

Q2 Net C$10.40

Income mln

from

Cont Ops

Analyst Coverage

* The one available analyst rating on the shares is "hold"

* The average consensus recommendation for the diversified mining peer group is "buy."

* Wall Street's median 12-month price target for Sherritt International Corp ( SHERF ) is C$0.25, about 40% above its July 28 closing price of C$0.15

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)