Sherritt Reports 2025 Production Results and Operational Update
Sherritt Scrapes Bottom of Twice-Revised Guidance as Interim Leadership Signals "Comprehensive Turnaround" Amid Systemic Cuban Volatility.
The news release from January 19, 2026, details Sherritt’s production results for the full year 2025. Finished nickel production was 25,340 tonnes and finished cobalt was 2,729 tonnes. Both figures fell within the lower end of the most recently revised guidance (25,000–26,000 tonnes for nickel and 2,700–2,800 tonnes for cobalt). Electricity production was 799 GWh, slightly missing the low end of the 800–850 GWh range. Net Direct Cash Cost (NDCC) for nickel was US$5.75/lb, hitting the low end of the guidance range.
The interim CEO, Dr. Peter Hancock, acknowledged the challenges of 2025 and announced a "comprehensive operational turnaround" at the Moa Joint Venture (JV). The report highlights persistent headwinds including national grid power outages in Cuba, lower leach train availability, and geopolitical uncertainty.
The impact of this news is neutral because it confirms a significantly weakened operational state that was already priced in following two guidance cuts during 2025. - Production Performance: In January 2025, the company guided for 31,000–33,000 tonnes of nickel. The final 2025 result of 25,340 tonnes represents a nearly 20% miss against original expectations. Meeting a "revised" lower bar is not a sign of operational strength. - Management Turmoil: The transition to an interim CEO following the resignation of Leon Binedell (pushed by dissident shareholder Pala Assets) suggests a period of internal instability. The "turnaround" plan indicates that the Moa JV is not currently operating at a sustainable or efficient level. - Power Division Paradox: While the Power division doubled its dividends to $26 million, the actual electricity production missed the low end of guidance. This suggests financial gains in power are driven by compensation for frequency control rather than actual generation growth. - Expansion Lag: The much-touted Phase 2 expansion at Moa is being "reassessed and optimized" rather than aggressively ramped up, implying that previous timelines for reaching nameplate capacity are at risk.
Sherritt is a vertically integrated nickel and cobalt producer with a 50% interest in the Moa Joint Venture in Cuba. Its secondary asset is Energas S.A., a power generation JV in Cuba. - Flagship Project: The Moa JV, which uses hydrometallurgical processes to mine and refine nickel and cobalt. - Fort Saskatchewan Refinery: Located in Canada, it processes the mixed sulphides produced in Cuba. - Expansion Status: Phase 2 was intended to increase MSP production by 20%, but ramp-up has been delayed by operational inefficiencies and regional geopolitical pressures.