Map/Description

world map

Incorporated in 1927 as Sherritt Gordon Mines Limited, Sherritt has deep Canadian roots; it is one of the oldest Canadian-owned metals producers still in operation. Refer to “Sherritt’s History”, on the right, for more information.

To learn more about Sherritt’s milestone 90th anniversary, please click here.

Divisions/Products

Currently, Sherritt has three operating divisions, as well as a corporate office and a commercial and technologies group. These entities are accounted for in our financial and sustainability reporting.

Entity Operations, Products and Markets
Metals
  • Ambatovy Joint Venture in Madagascar (40% ownership) – nickel and cobalt mining, processing and refining for international markets. Watch this video to learn more about our Ambatovy operation.
  • Moa Joint Venture (50% ownership)
    • Moa, Cuba – nickel and cobalt mining and processing.
    • Fort Saskatchewan, Alberta, Canada – nickel and cobalt refining for international markets.
  • Fort Saskatchewan (100% ownership) – ammonia, sulphuric acid and utilities for the Moa Joint Venture’s nickel and cobalt production, and ammonium sulphate fertilizer (a by-product of nickel and cobalt production) for the western Canadian market. Watch this video to learn more about the Fort Saskatchewan operation.
Oil & Gas
  • Oil & Gas in Cuba (100% ownership) – exploration and production for Cuba’s energy needs.
Power
  • Energas, S.A. in Cuba (33.3% ownership) – electricity production from natural gas for Cuba’s electricity needs.
Corporate and Commercial and Technologies
  • Corporate Office in Toronto – corporate administration and management.
  • Commercial and Technologies – provides technical support, marketing and bulk commodity procurement services to Sherritt’s operating divisions and identifies opportunities for the Corporation as a result of its international activities and research and development activities.

A more detailed overview of our business and corporate structure can be found on pages 1 to 8 in our 2016 Annual Information Form.

In November 2016, Sherritt Technologies was merged with Sherritt’s Global Marketing and Logistics group to form the aforementioned “Commercial and Technologies” group. Otherwise, there were no significant changes to the size of our company or its structure, ownership or supply chains during the reporting period.

2016 Key Indicators

Financial

(C$ millions, except per share data, as at December 31) 2016
Combined revenue $820.20
Adjusted EBITDA(1) $40.00
Combined free cash flow(1) ($111.90)
Adjusted loss from continuing operations ($427.90)
Net loss from continuing operations per share ($1.30)
Cash, cash equivalents and short-term investments $309.60
Total loans and borrowings $2,185.20
Weighted average number of shares (millions) 294.20
(1) For additional information, please see the Non-GAAP Measures section of the Management’s Discussion and Analysis in our 2016 Financial Statements.

Production

  • Nickel: 75,033 tonnes (100% basis)
  • Cobalt: 6,967 tonnes (100% basis)
  • Oil: 15,452 barrels of oil equivalent per day
  • Electricity: 2,682 gigawatt hours (100% basis)

People

  • Full- and part-time employees and permanent contractors: 6,376
  • Total workforce: 11,520 (including long-term suppliers working on site)

On December 31, 2016, our market capitalization was $391.3 million and shareholder equity was $1,097.9 million. Refer to our 2016 Financial Statements for our Management’s Discussion and Analysis commentary on our performance during the year.

Our Supply Chain

Like most commodity producers, we play the role of a value-adding producer in a long supply chain. We require significant goods and services as inputs (the upstream supply chain) to develop bulk products, which we sell to customers that produce finished products for consumers (the downstream supply chain).

As the table below demonstrates, many of our products contribute materially to global sustainable development. For instance: we provide energy to the Cuban people, we produce fertilizer for agricultural development and our high-quality metals are used in clean-technology infrastructure and products, such as alloys for renewable power applications, batteries for electric and hybrid electric vehicles, buildings, airplanes, household goods and appliances, medical devices and much more. For more information on how nickel is used in society, visit the Nickel Institute’s website.

Business Key Inputs Sherritt’s Contribution Key Customers
Metals Energy products, sulphuric acid, sulphur, limestone, engineering/technical expertise Mining, processing and refining to produce finished nickel and cobalt and a fertilizer by-product
  • Car-component manufacturers
  • Steel producers
  • Battery producers
  • Agricultural producers
Oil & Gas Current technological drilling practices Drilling and extraction of oil
  • CUPET, Cuba’s national oil company, for national energy needs
Power Raw natural gas Processing of gas to produce electricity and by-products, such as condensate and liquefied petroleum gas
  • UNE, Cuba’s electricity utility, for the national grid
  • CUPET, for industrial processes and domestic needs

Refer to Operating Ethically for a description of how Sherritt applies anti-corruption and human rights requirements to its supply chain.