Sherritt's Moa produces 25,240 t Ni, 2,729 t Cu in 2025

Executive Summary

• Sherritt International Corp. reported its fourth quarter and full-year 2025 production results, highlighting a significant increase in dividends received from its joint venture partner Energas SA, which doubled to $26 million for the year compared to $13 million in 2024.
• Finished nickel and cobalt production fell to the lower ends of revised 2025 guidance ranges due to operational challenges at the Moa mine, including lower-than-expected ore volumes, leach train availability issues, power outages, and the impact of Hurricane Melissa.
• The company announced an operational review with its joint venture partner to stabilize the Moa site and restore production, while noting that power division output was restricted by government-mandated frequency control measures, though financial impact was neutralized by compensation.

Key Details

• Dividends: Sherritt received $7.7 million in dividends from Energas SA in Q4 2025, bringing the full-year 2025 total to $26 million, which is double the $13 million received in 2024.
• Metals Production: Finished nickel and cobalt production were at the lower ends of revised 2025 guidance ranges.
• Moa Mine Challenges: Q4 2025 feed availability at the refinery was impacted by:
  • Below-plan mined ore volumes.
  • Lower leach train availability.
  • Delay in commodity procurement.
  • National grid power outages.
  • Reduced operating rates following Hurricane Melissa.
  • No additional third-party feed was acquired due to high payabilities in the intermediate market.
• Costs: Full-year 2025 net direct cash cost (NDCC) was within the original guidance range of $5.75 to $6.25 (U.S.) per pound of nickel sold, benefiting from higher cobalt byproduct credits and cost optimization.
• Power Division: Electricity production was slightly below the low end of the 2025 guidance range.
• Power Restrictions: Varadero and Boca de Jaruco facilities were required by Union Electrica (UNE) to operate in frequency control to stabilize the national grid, restricting output.
• Power Financials: Energas was fully compensated for the production reduction, resulting in no impact to power's adjusted EBITDA, earnings from operations, or dividends to Sherritt.
• Power Costs: Full-year 2025 unit operating cost was at the lower end of the guidance range of $23 to $24.50 (U.S.) per megawatt-hour.
• Operational Review: Sherritt is collaborating with its joint venture partner to review the recovery plan at Moa to stabilize the site and restore mixed sulphide production to pre-2025 levels.
• Expansion Plans: The ramp-up of the Moa JV expansion program will be reassessed and optimized following site stabilization.
• Future Guidance: Sherritt expects to provide 2026 guidance for production, NDCC, unit operating costs, capital spending, estimated distributions under the cobalt swap agreement, and dividends from Energas when reporting Q4 and full-year 2025 financial results.
• Next Earnings Date: February 10, 2026, after market close.

Notable Quotes

• "Since my appointment in December, I have worked with our joint venture partner on a comprehensive operational turnaround at Moa to address the challenges we saw in 2025 and support a return to consistent operational performance at the site. Our efforts aim to strengthen the productivity and reliability of the mine's operations amid heightened geopolitical uncertainty and ultimately pave the way for us to realize the full benefit from our expansion. Our power division demonstrates what focused operational improvements can achieve, with our dividends doubling this year to $26-million. We will be applying the same operational discipline at Moa to replicate that success in the years ahead." — Dr. Peter Hancock, Interim Chief Executive Officer