Sherritt 1Q nickel, cobalt production dips

Market: Metals
15/05/25

Canadian miner Sherritt International said it produced less nickel and cobalt in the first quarter from a year earlier but expects to boost production in the second half of 2025.

Sherritt's nickel production dropped by 18pc to 2,947 tonnes (t) and cobalt production decreased by 6pc to 323t from the same quarter last year.

In February, the company raised its nickel and cobalt guidance for 2025, which remains unchanged despite lower first quarter production.

Operations at the company's Moa nickel and cobalt project in Cuba has faced increased pressure from US sanctions, according to Sherritt chief executive Leon Binedell. Sherritt started the second phase of an expansion project at Moa, which the company expects to ramp-up in the second half of the year to full capacity.

The company expects higher average realized cobalt price in the second quarter.

In the first quarter, the company's average realized price for nickel rose by 1pc to C$9.98/lb while cobalt fell by 8pc to C$13.29/lb compared to the first quarter of 2024.

Sherritt sold 3,439t of nickel in the quarter, down 15pc from a year earlier, while cobalt sales were up 26pc to 456t. Demand drove sales above production volumes, according to the company.

Sherritt reported a C$40.6mn loss in the first quarter, slightly down from the C$40.5mn loss in the first quarter of 2024. Revenue rose 33pc to C$38.4mn.

By Reagan Patrowicz

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