January 13, 2016 01:00 ET
TORONTO, ON–(Marketwired – January 13, 2016) –
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sherritt International Corporation (“Sherritt” or the “Corporation”) (TSX: S) announces an expected impairment of Ambatovy Joint Venture assets due to lower forecast nickel prices. Using a long term nickel price of US$8.50/lb, on a 100% basis, an impairment loss of approximately US$2.4 billion after-tax is expected to be recognized at the Ambatovy Joint Venture level. Sherritt expects to record an impairment expense of approximately C$1.6 billion (40% basis, after-tax) within Sherritt’s share of loss of an associate in the Consolidated Statement of Comprehensive Income (loss) for the year ended December 31, 2015. The total impairment consists of approximately C$1.3 billion being Sherritt’s 40% share of Ambatovy’s impairment and C$0.3 billion from the incremental carrying value of Sherritt’s investment in an associate, primarily related to mineral rights acquired from Dynatec in 2007. The impairment loss is a non-cash item with no adverse impact on cash flow.
This press release contains Expectations about asset impairments related to the Ambatovy Joint Venture and the expected reporting of impairments on the Corporation’s financial statements constitutes “forward-looking information” within the meaning of applicable securities legislation. There can be no assurance that such forward-looking information will prove to be accurate. Forward-looking information is based on the opinions and estimates of management of Sherritt as of the date such information is provided and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information. Key factors that may result in material differences between actual results and developments and those contemplated by this press release include business, economic and political conditions in Madagascar. Other such factors include those risk factors listed from time to time in the Corporation’s continuous disclosure documents. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained in this press release is made as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.
Sherritt is a world leader in the mining and refining of nickel from lateritic ores with projects and operations in Canada, Cuba, and Madagascar. The Corporation is the largest independent energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its proprietary technologies and provides metallurgical services to mining and refining operations worldwide. The Corporation’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
Source: Sherritt Investor Relations