Summer Sale
50% off Premium Yearly
00days
00hrs
00mins
00secs
Opinions Lyle Stein
Sherritt International Corp.S.TOBUYMar 12, 2014
Lyle SteinOwned
$3.31
Stock price when the opinion was issued
$0.12
As of May 19, 2026. Market Open.
integrated mines
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
You might be interested:
RISKY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
It is certainly not beyond possibility. Bloomberg default ratio is 7.36%, which is very high for that indicator. Cash flow was negative in the last quarter, yet 12-month interest expenses were $36.1M net. With its small size and Cuban and other issues, we are not sure it could raise a lot of money with a dilutive equity issue. Most debt matures in 2026. Certainly any investment here needs to be considered extremely risky.
Unlock Premium - Try 5i Free
integrated mines
DON'T BUY
This is a zero, although not priced there yet. That is where it is going. It has been a lousy company for a long time. Madagascar will prove to be their undoing. They defaulted on their debt in February. Their debt is currently worth 54 cents on the dollar so the stock is worth zero.
integrated mines
COMMENT
The share price keeps falling. Why? The biggest thing recently is in Cuba where they have assets and deal with the government to repatriate cash flow, not related to that quarter's cash flow. A quarter ago, Cuba didn't pay. Two weeks ago, they announced a solution, a deal with the Cuban government which is cash-strapped, especially as it deals with the costs of hurricanes that have hit Cuba. Cuba has to pay or else it will scare off other Western companies.
integrated mines
COMMENT
Cobalt is a partner commodity in the production of lithium batteries. Earnings are expected to be negative in 2019. Cobalt prices have risen sharply, causing manufacturers to find a way to move away from using it -- nickle may replace it (as an aside Sherritt could be a potential benefactor of this). He would consider selling FCC-V in favour of XBC-V (who focuses on garbage dump gas extraction).
integrated mines
Nickel is $7 a pound while it was $6 at the beginning of the year. Nickel prices have been going down for 3 years so, because of their Madagascar mine, this company has been suffering. Indonesia ruled that their ore cannot be taken out without processing it, so nickel prices have been rebounding. Oil business is very profitable and a good generator of free cash. This is a call on what nickel prices are 5 years from now. You want to buy mining assets when they are well below Book and this one is.