{"id":1112974,"date":"2019-04-26T19:49:18","date_gmt":"2019-04-26T19:49:18","guid":{"rendered":"http:\/\/www.mining.com\/?p=984614"},"modified":"2019-04-26T19:49:18","modified_gmt":"2019-04-26T19:49:18","slug":"cobalt-price-collapse-hits-sherritts-earnings-shares-drop","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1112974","title":{"rendered":"Cobalt price collapse hits Sherritt\u2019s earnings \u2014 shares drop"},"content":{"rendered":"

Investors dumped Nickel and cobalt miner Sherritt International\u2019s (TSE: S) shares on Friday, after the company released\u00a0 first quarter earnings<\/a>.<\/p>\n

Sherritt reported record first quarter nickel and cobalt production at its Cuban JV.\u00a0 In Q1 2019 nickel production was 4,397 tonnes, up 54% from last year, while finished cobalt was 426 tonnes, up 27%. The combined nickel and cobalt total for Q1 2019 marks the Moa JV\u2019s highest ever first quarter production results.<\/p>\n

But Sherritt\u2019s Q1 2019 adjusted EBITDA was negative $1.2 million, down from positive adjusted EBITDA of $35.5 million in Q1 2018.<\/p>\n

The decrease, Sherritt said, was due to a number of factors, including a 70% year-over-year decline in realized cobalt prices and lower contributions from the oil and gas business as a result of decreased net working-interest production stemming from maturing oil fields and a lower profit share.<\/p>\n

\u201cOur record production results in Q1 2019 were negatively impacted by the dramatic 70% decline in realized cobalt prices, contributing to considerably lower by-product revenue and higher NDCC than we have experienced in recent quarters Our Q1 progress was also impeded by the disappointing collections on our Cuban overdue receivables,\u201d David Pathe, Sherritt\u2019s president and CEO said in a statement.<\/p>\n

Sherritt ended Q1 2019 with cash, cash equivalents and short-term investments of $177.3 million, down from $207.0 million at the end of 2018. The decrease, Sherritt said, was due to the timing of capital expenditures, interest paid on outstanding debentures and changes to working capital, including lower than expected Cuban energy receipts.<\/p>\n

By Friday afternoon, Sherritt\u2019s stock was down 20.5%, priced at $0.29. More than $5.3 million shares were traded, nearly six times the average volume of\u00a0<\/span>874,582.<\/span><\/p>\n

The company has a C$115 million market capitalization.<\/p>\n

 <\/p>\n

The post Cobalt price collapse hits Sherritt\u2019s earnings \u2014 shares drop<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Record production cannot offset 70% decline for realized prices for battery material.<\/p>\n

The post Cobalt price collapse hits Sherritt’s earnings — shares drop<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[404,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1112974"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1112974"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1112974\/revisions"}],"predecessor-version":[{"id":1112992,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1112974\/revisions\/1112992"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1112974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1112974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1112974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}