Sherritt International Corp.

Sherritt International Corp. is a junior nickel producer headquartered in Toronto, Canada, operating primarily in South America. The company's portfolio consists of 1 operating mine. Key assets include Moa JV. The company's business model is centered on a vertically integrated structure that utilizes hydrometallurgical processes for lateritic ore bodies. Operations involve mining and processing ore into an intermediate product, which is then transported to a separate, dedicated refining facility. This core business is supported by a wholly-owned fertilizer operation that provides essential inputs, including ammonia and sulphuric acid, to the metals refinery, creating significant operational synergies while also producing agricultural products for external sale. A distinct power division operates as an independent energy producer, processing raw natural gas supplied at no cost by a partner to generate electricity under long-term, fixed-price contracts. The power facilities leverage combined-cycle technology, capturing waste heat from gas turbines to enhance electrical output, which underscores a focus on low-cost production and operational efficiency. A dedicated marketing division manages the sale of refined products to global markets.

Strategic priorities center on expanding midstream processing capacity to capitalize on growing demand within the electric vehicle supply chain. A key operational initiative involves an expansion program designed to increase the output of intermediate products, which will enable the refinery to operate at its full nameplate capacity, thereby maximizing profitability from proprietary feed sources and displacing lower-margin third-party materials. In response to market conditions, the organization exercises capital preservation measures, including the phased scheduling of certain expenditures. A company-wide restructuring and cost-reduction program was implemented to enhance operational performance. The financial strategy focuses on strengthening the balance sheet through active debt management, including note repurchases, and the implementation of innovative agreements with partners to accelerate the recovery of outstanding receivables. Long-term resource management includes adopting an economic cut-off grade methodology to optimize the operational lifespan of its assets.

Governance is led by a board of 7 directors, of whom 6 are independent, including an independent Chair. Board oversight is structured through 4 primary committees: Audit; Reserves, Operations and Capital (ROC); Human Resources; and Nominating and Corporate Governance. The ROC Committee conducts annual site visits to foreign operations, and all committees meet at least 4 times per year. Executive leadership is headed by President and CEO Leon Binedell, an executive with over 25 years of international experience in mining operations, joint ventures, and corporate finance. As part of an organizational restructuring, the executive management team was consolidated to streamline operational leadership. The board maintains an active succession plan, which led to the appointment of 3 new directors in 2024, enhancing expertise in diplomacy, audit, and legal affairs. The Audit Committee mandate includes direct oversight of internal and external auditors and pre-approval of all non-audit services.

The sustainability framework is guided by 6 primary goals, including strengthening safety culture and achieving conformance with international management systems. In 2024, the company implemented a Fatality Prevention Action Plan, conducted comprehensive safety strategy sessions, and achieved zero work-related fatalities. Environmental initiatives include the completion of baseline greenhouse gas emission assessments to identify decarbonization opportunities and a climate risk assessment for power operations. The organization achieved ISO 14001 and ISO 45001 certification and independently verified its continued conformity with London Metal Exchange Track B Responsible Sourcing Requirements. Diversity and inclusion efforts, guided by a 5-year framework established in 2019, resulted in women comprising 22.3% of the total workforce and 50% of independent board members by year-end 2024. Community investments include co-funding a rural electrification project, partnering with UNICEF on a traffic injury prevention program, and donating vital medical equipment to a local hospital.

The company's core metals business operates through a 50/50 partnership with General Nickel Company S.A. This vertically integrated joint venture is structured across 3 distinct corporations responsible for mining and processing, refining, and marketing. The power business is conducted via a one-third equity interest in Energas S.A., with the remaining two-thirds held equally by government agencies Unión Eléctrica and Unión Cubapetróleo. In October 2022, the enterprise finalized a structural arrangement, the Cobalt Swap, with its partners to facilitate the recovery of outstanding receivables. Under this agreement, the primary joint venture partner, GNC, assumed certain payment obligations owed by the other partners, with settlement occurring through the redirection of distributions from the main joint venture. The organization also maintains wholly-owned subsidiaries for its fertilizer and metals marketing businesses, which are integrated with the primary joint venture operations.