Sherritt posts loss on lower nickel sales, price
(Reuters) - Canadian miner Sherritt International Corp posted a
third-quarter loss on Wednesday as lower nickel prices and sales
volumes, and lower exports of thermal coal weighed on revenue.
The miner's net loss was C$22.6 million, or 8 Canadian cents a share, in
the quarter ended Sept 30. That compared with a profit of C$45.5
million, or 16 cents a share, in the year-earlier period.
Adjusted to remove one-time items, earnings were 3 Canadian cents a
share, compared with average analyst expectations of 9 Canadian cents a
shares, according to Thomson Reuters I/B/E/S.
Revenue dropped 9 percent to C$422.2 million as nickel sales volumes
fell 9 percent to 8.6 million pounds and thermal coal sales volumes fell
7 percent to 8.5 million tonnes.
Sherritt said the ramp-up at its Ambatovy nickel mine in Madagascar is
progressing, with full commercial production expected in early 2013. The
project, which is a joint venture with Sumitomo Corp <8053.T> and Korea
Resources Corp , is on track to remain within its $5.5 billion capital
Sherritt owns nickel operations in Canada, Cuba, Indonesia and
Madagascar, along with numerous coal mines in Canada and energy projects
(Reporting by Julie Gordon; Editing by Gerald E. McCormick)