Sherritt Reports Second Quarter 2026 Results

Sherritt International Corporation reported second-quarter 2026 results after market close on August 12, 2026. The company posted a net loss from continuing operations of C$71.1 million, or C$(0.10) per share. Adjusted net loss from continuing operations was C$24.8 million, or C$(0.04) per share, while adjusted EBITDA was negative C$2.0 million. Revenue reached C$59.3 million, a 36% increase year-over-year, though this growth was driven by mix shifts and working capital-related items rather than metals production.

Operational output at the Moa joint venture declined significantly, with the facility producing only 934 tonnes of mixed sulphides, down 71% from 3,238 tonnes in the second quarter of 2025. Sherritt’s share of finished nickel fell 62% to 1,319 tonnes, and finished cobalt production dropped 65% to 135 tonnes. Net direct cash costs for nickel rose 39% to US$7.31 per pound, up from US$5.27 per pound in the second quarter of 2025, exceeding the company’s earlier guidance range of US$5.75–6.25 per pound.

The Fort Saskatchewan refinery depleted its feed inventory on June 22, 2026, leading to a halt in refining operations. Mining and processing at Moa ceased near the end of the quarter. In contrast, power production increased 18% to 207 GWh, with unit power costs falling to C$13.36 per megawatt-hour from C$24.80 per megawatt-hour. Fertilizer sales rose 17% to 52,328 tonnes, up from 44,614 tonnes.

Financially, available liquidity in Canada stood at C$80.1 million, but there was no undrawn credit facility availability. The company disclosed a credit facility borrowing base deficiency and a breach of the EBITDA-to-interest-expense covenant. Sherritt did not provide updated 2026 production guidance or a timeline for restarting operations.

Sherritt International Corporation (S) reported a materially negative fundamental outlook, citing a net loss, negative adjusted EBITDA, a covenant breach, a borrowing base deficiency, and suspended core metals operations with no restart timeline. The release formally quantified the Q2 loss, the net debt to cash flow (NDCC) blowout, and a June 30 borrowing base deficiency of C$33.2 million, providing new detail beyond previous press releases.

Most of the operational collapse had already been disclosed during May–July 2026, and the market is now trading the company primarily on recapitalization proposals rather than current earnings. The stock has recovered from the May/July low of C$0.11 to C$0.25 on the competing Kyma/Glencore/US anchor recap proposal, not because of Q2 operating performance.

Sherritt International Corporation (S) is a Canadian critical minerals company whose main assets include the Fort Saskatchewan refinery in Alberta, a 50% interest in the Moa Joint Venture in Cuba, a 33⅓% interest in Energas S.A. in Cuba, and legacy oil and gas interests that include Spanish rehabilitation obligations. The Fort Saskatchewan facility is described as the only significant cobalt refinery and one of three nickel refineries in North America, where the company also produces fertilizers and sulphuric acid. As of Q2 2026, the core nickel-cobalt mining and refining operations are halted, while power and fertilizer operations continue in a limited capacity.