Sherritt Posts $17.3 Million Q4 Net Loss, Adjusted Earnings Miss Estimates

The Canadian Press, February 27, 2013 | Go to article overview

Sherritt Posts $17.3 Million Q4 Net Loss, Adjusted Earnings Miss Estimates


Sherritt misses Q4 profit estimates

--

TORONTO - Sherritt International Corp. is focused on ramping up production at its Ambatovy project in Madagascar this year as the nickel mine heads toward commercial production.

"While the exact timing is difficult to predict because of the natural and uncertain nature of ramp-ups, at this point we are highly confident of our ability to get the project up to nameplate capacity and hopefully beyond," Sherritt chief executive David Pathe told a conference call with analysts.

The ramp-up comes after the company reported a $17.2-million loss in its latest quarter as it wrote down the value of two coal-related projects in Western Canada due to economic conditions.

The mining and power company reported the loss amounted to six cents per share for the quarter, compared with a profit of $28.1 million or 10 cents per share a year ago.

Construction of the $5.5-billion Ambatovy project has been plagued with delays and increased costs that have driven its price tag hundreds of millions of dollars higher than originally estimated.

Ambatovy is designed for annual production of 60,000 tonnes of nickel, 5,600 tonnes of cobalt and 200,000 tonnes of ammonium sulphate, with an estimated life of 30 years.

Sherritt, which holds a 40 per cent stake in Ambatovy, cited a litany of problems during construction, including poor performance by contractors and inaccurate estimates on the project in the island country off the east coast of Africa.

However, Pathe told analysts Wednesday that certainty on Ambatovy's completion helped allow it to increase its quarterly dividend earlier this week.

"The range of potential outcomes from a capital perspective are now narrow enough that we can see the project through to cash flow neutrality without further jeopardizing our balance sheet," Pathe said.

On Tuesday, Sherritt increased its quarterly dividend to 4.3 cents per share from 3.8 cents.

During its most recent quarter, Sherritt wrote off $10.9 million in development costs at its Dodds-Roundhill coal gasification project and $5.6 million related to its investment on its Bow City Power project.

After adjusting for the writedowns and other non-cash items, Sherritt (TSX:S) said net earnings were $6.2 million or three cents per share.

Analysts had estimated 11 cents per share of net income and six cents per share of adjusted earnings.

Sherritt's revenue was down from last year as it received lower prices for the commodities it produces, but came in slightly above analyst estimates. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Sherritt Posts $17.3 Million Q4 Net Loss, Adjusted Earnings Miss Estimates
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.