10:34 AM EDT, 10/21/2024 (MT Newswires) -- Sherritt International ( SHERF ) was edging up early on Monday after saying that its Moa nickel mine in Cuba is operating at 50-60% capacity following a countrywide power outage in Cuba that began last Friday. At this time, the miner said it does not anticipate any impact to its 2024 guidance.

Operations are expected to return to full capacity once power from the national grid is restored, which is expected this Monday.

"With the impact of the power outage minimized by the operation's backup power supply and prudent risk mitigation planning, there is not expected to be a material impact to mixed sulphides production," Sherritt ( SHERF ) said.

The company added that Hurricane Oscar, which weakened to a tropical storm, is not expected to materially impact the mine site aside from potential minor delays in timing for power from the national grid to be restored.

Meanwhile, Sherritt ( SHERF ) has maintained its Sector Perform rating and $0.35 price target at National Bank of Canada following the news.

The bank expects for every week of reduced capacity that would result in an impact of US$1.6 million or 4.2% on its Q4 2024 EBITDA Estimate However, the bank said, the company may be able to schedule maintenance activities to offset any impact of the power challenges to date.

National said its Sector Perform rating accounts for the improving outlook at the Moa JV offset by the currently challenging nickel market and lower cobalt/fertilizer prices, ongoing debt commitments and need for delivering anticipated growth initiatives at Moa. It noted Sherritt ( SHERF ) was trading at 0.19x NAV compared to NBF junior base metal peers at 1.09x. Its $0.35 target is based on ascribing a multiple of 0.60x NAV (100%).

Sherritt's ( SHERF ) share price gained 2.6% at last look to $0.20 on the TSX.

Price: 0.20, Change: +0.01, Percent Change: +2.56