Sherritt Provides Updates on Operations and Financial Position
Sherritt International’s Moa restart clears an OFAC fuel license hurdle, though a going concern risk remains for the nickel-cobalt project.
Sherritt International Corporation has received a specific OFAC "Fuel License" authorizing the purchase and delivery of fuel, fuel oil, and sulfur to its Moa Nickel operations in Cuba. This license represents the first of several required emergency licenses tied to a non-binding term sheet with Gillon Capital, LLC, which holds a proposed controlling interest acquisition. To facilitate interim fuel shipments, the company reached an agreement with Moa Bay Mining Co., the Helms-Burton Act claim holder, involving consent fees and a pause on litigation.
Operations at Moa have been suspended since May 7, 2026, and the Fort Saskatchewan refinery ceased metals refining on June 22, 2026, due to feed inventory depletion. The actual restart of Moa operations remains conditional on receiving a second OFAC emergency license, which is currently being applied for. The initial fuel shipment is expected to occur in Q4 2026.
The company continues to operate under constrained liquidity with a material uncertainty regarding its ability to continue as a going concern, heavily dependent on the Gillon Capital transaction and additional financing.
Sherritt International Corporation (S) received an OFAC fuel license, a procedural prerequisite for restarting the Moa operation that does not constitute a commercial or financial resolution. The license does not alter the company’s going concern warning, nor does it guarantee the closure of the Gillon Capital transaction.
The market has largely priced in the suspension and the recapitalization narrative. Since mid-September, the stock has traded in a tight $0.26–$0.29 range, indicating the news is expected and unremarkable to current holders.
The license merely keeps optionality alive. Until a second OFAC license is secured, the Gillon deal is definitive, and debt covenants are resolved, the material impact remains neutral to negative.
Sherritt International Corporation operates a Moa Joint Venture in Cuba, which handles nickel and cobalt mining and processing but is currently suspended. The company also owns a 33% stake in Energas S.A., the largest independent power producer in Cuba, with operations continuing unaffected.
In Canada, the Fort Saskatchewan Refinery in Alberta ceased operations on June 22, 2026. Additionally, the company holds legacy oil and gas assets in Spain that carry significant environmental rehabilitation liabilities.