![]() ![]() The Moa JV converts foreign currency to Cuban pesos through Energas to support Moa JV’s local Cuban operating activities. Sherritt expects to continue to receive approximately US$4.2 million ($5.6 million) per month under a payment agreement between Sherritt, Moa JV and Energas. Sherritt and its Cuban partners finalized an extension to the Energas Payment Agreement (the Moa Swap) to fund the operating and maintenance costs of Energas, as well as cover future payments that would be owed to Sherritt, including dividends. Sherritt repurchased an aggregate of almost $90 million in principal of its second lien secured notes and junior notes at a discounted value of $80 million. All of the Cuban partner’s share of these cobalt dividends, and potentially additional cash dividends, will be redirected to Sherritt as payment to settle the receivables until the annual maximum cobalt volume and dollar amount limits, including the collection of any prior year shortfalls, has been reached. Under this agreement, the Moa JV will prioritize payment of dividends in the form of finished cobalt to each partner, up to an annual maximum of cobalt, with any additional dividends in a given year to be distributed in cash. Sherritt finalized an agreement with its Cuban partners to recover $368 million total outstanding Cuban receivables over five years beginning Janu(the Cobalt Swap). Combined with the Moa Swap, it enables the Power business to run efficiently, including a mechanism to distribute funds to Sherritt in the future.” In addition, we set both our Metals and Power businesses up for the long-term, with on-going work at the Moa mine to extend the mine life beyond 2040, and the 20-year extension to the Power production agreement. Our Cobalt Swap agreement yielded its first distribution following the year-end, demonstrating the significant value associated with our outstanding receivables, and will provide financial support to deliver on our strategic priorities going forward. Binedell added, “We are encouraged by the progress we have made on these building blocks for the future while maintaining sound operational focus and fiscal responsibility. ![]() We were able to commence a low capital intensity expansion program, significantly deleverage our balance sheet, finalize transformative payment agreements with our Cuban partners to recover $368 million of total outstanding receivables, advance our portfolio of proprietary technologies, and meet our sustainability targets,” said Leon Binedell, President and CEO of Sherritt International Corporation. On the strength of higher nickel and fertilizer prices, we achieved strong operating and financial results while delivering on each of our 2022 strategic priorities to set the stage for continued success in the future. ![]() Pro forma expansion production profile (Graphic: Business Wire) Next-generation laterite processing technologyĪppendix 1. ![]()
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