Sherritt International Corp. | StockChase
699
Sherritt International Corp. (S-T)

Last Price Recorded: $1.5000 on 2017-12-15

ON STOCKCHASE SINCE Nov 2000

60% coal, 30% Cuba in oils and nickel mines.

integrated mines
699
Sherritt International Corp. (S-T)

Last Price Recorded: $1.5000 on 2017-12-15

ON STOCKCHASE SINCE Nov 2000

60% coal, 30% Cuba in oils and nickel mines.

integrated mines

Sherritt International Corp.


Signal Opinion Expert
TOP PICK

He bought it last month.  They are capable of extremely high purity in nickel, which is very much in demand for batteries.  (Analysts’ target: $1.60).

integrated mines

He bought it last month.  They are capable of extremely high purity in nickel, which is very much in demand for batteries.  (Analysts’ target: $1.60).

integrated mines
Michael Smedley

Exec VP & Chief Investment Officer, Morgan Meighan & Ass...

PricePrice
$1.390
Owned Owned
Yes

COMMENT

A big international mining company.  You have to assume electric cars going forward are all they are hyped up to be.  You also have to assume S-T is going to be a major beneficiary.  There has been and continues to be stronger demand for base metals that they dig out of the ground all over the world, which provides diversification and they could also be subject to political risk.

integrated mines

A big international mining company.  You have to assume electric cars going forward are all they are hyped up to be.  You also have to assume S-T is going to be a major beneficiary.  There has been and continues to be stronger demand for base metals that they dig out of the ground all over the world, which provides diversification and they could also be subject to political risk.

integrated mines
Brendan Caldwell

President, Caldwell Securities...

PricePrice
$1.470
Owned Owned
Unknown

COMMENT

Used to own many years ago. It’s doing better lately, because of nickel prices. In battery technology, there is some nickel and cobalt. They also have an oil/gas side in Cuba. Prospects are better. To really super prosper and be back to a $3 stock again, you probably need $7 nickel, and we are quite some ways from that. The trend is in the right direction. The bonds got down to $.60 on the dollar, yielding 20%. They are now back to about $.78 and yields are still 12%-13%. It is now positive.

integrated mines

Used to own many years ago. It’s doing better lately, because of nickel prices. In battery technology, there is some nickel and cobalt. They also have an oil/gas side in Cuba. Prospects are better. To really super prosper and be back to a $3 stock again, you probably need $7 nickel, and we are quite some ways from that. The trend is in the right direction. The bonds got down to $.60 on the dollar, yielding 20%. They are now back to about $.78 and yields are still 12%-13%. It is now positive.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$1.460
Owned Owned
No

WATCH

Golden Cross?  It implies a break through a shorter moving average by a longer moving average.  It is in a sideways pattern and you will get a lot of these.  It does not mean it is a good thing because it has done it a few times.  He would want to see it break $1.50. 

integrated mines

Golden Cross?  It implies a break through a shorter moving average by a longer moving average.  It is in a sideways pattern and you will get a lot of these.  It does not mean it is a good thing because it has done it a few times.  He would want to see it break $1.50. 

integrated mines
Keith Richards

Portfolio Manager, ValueTrend Wealth Ma...

PricePrice
$1.280
Owned Owned
Unknown

HOLD

He is not familiar with the seasonality of this, but logic would suggest that since it is involved in the base metal sector, it should normally be doing well near the end of the year. Technically, the stock has completed a nice little base, and has just broken above the base, which is quite encouraging. It fits in with something else. The price of nickel, a major part of this company’s production, has recently broken on the upside, and looks like it wants to move higher with other base metals.

integrated mines

He is not familiar with the seasonality of this, but logic would suggest that since it is involved in the base metal sector, it should normally be doing well near the end of the year. Technically, the stock has completed a nice little base, and has just broken above the base, which is quite encouraging. It fits in with something else. The price of nickel, a major part of this company’s production, has recently broken on the upside, and looks like it wants to move higher with other base metals.

integrated mines
Don Vialoux

Research Analyst, TimingTheMarket.CA &...

PricePrice
$1.130
Owned Owned
Unknown

COMMENT

This has always been a very difficult one. It is a Cuba thing. It sold off a lot of its Canadian assets. Has a bit of cobalt which is strong nowadays.

integrated mines

This has always been a very difficult one. It is a Cuba thing. It sold off a lot of its Canadian assets. Has a bit of cobalt which is strong nowadays.

integrated mines
Michael Smedley

Exec VP & Chief Investment Officer, Morgan Meighan & Ass...

PricePrice
$1.070
Owned Owned
Unknown

DON'T BUY

A nickel producer and the stock has been in a long slump. There have been some signs of life in the last few weeks. It is trading in sympathy with all the base metal commodities, most notably nickel. Emerging markets have been growing their economies faster this year than last. The problem he would have is with the quality of the assets and the financial strength of the company.

integrated mines

A nickel producer and the stock has been in a long slump. There have been some signs of life in the last few weeks. It is trading in sympathy with all the base metal commodities, most notably nickel. Emerging markets have been growing their economies faster this year than last. The problem he would have is with the quality of the assets and the financial strength of the company.

integrated mines
Brian Madden

Senior VP & Portfolio Manager, Goodreid Investment ...

PricePrice
$1.090
Owned Owned
No

DON'T BUY

It has been on his watch list for years.  He used to not like the management and they have not done well recently. 

integrated mines

It has been on his watch list for years.  He used to not like the management and they have not done well recently. 

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.790
Owned Owned
Unknown

WATCH

It has been trapped lately.  It is pulling back to the old support level of 70-75 cents.  He would expect it to bounce, but would want it to take out the last peak before buying. 

integrated mines

It has been trapped lately.  It is pulling back to the old support level of 70-75 cents.  He would expect it to bounce, but would want it to take out the last peak before buying. 

integrated mines
Keith Richards

Portfolio Manager, ValueTrend Wealth Ma...

PricePrice
$0.800
Owned Owned
Unknown

DON'T BUY

Hasn’t followed this closely over the past couple of months, but did do a lot of work on it 6 months ago. Had a lot of debt they were trying to get rid of, at which time the multiple would expand. That has happened, but the stock really didn’t react the way people expected. He would stay on the sidelines.

integrated mines

Hasn’t followed this closely over the past couple of months, but did do a lot of work on it 6 months ago. Had a lot of debt they were trying to get rid of, at which time the multiple would expand. That has happened, but the stock really didn’t react the way people expected. He would stay on the sidelines.

integrated mines
Peter Imhof

Vice President & Portfolio Manager, AGF Investments Inc...

PricePrice
$0.800
Owned Owned
No

COMMENT

A nickel producer in Cuba and Madagascar. They’ve renegotiated their position in Madagascar and have gone from 40% ownership to 12% of equity and debt. Their balance sheet is now in much better shape. It is fully expected this will be completed by the end of June. It will leave them with 2 nickel projects. About $3.50 nickel would be their breakeven, and it is currently trading at $4.15. They really need higher nickel prices. They can survive, because they have cash in the bank and cash from these projects.

integrated mines

A nickel producer in Cuba and Madagascar. They’ve renegotiated their position in Madagascar and have gone from 40% ownership to 12% of equity and debt. Their balance sheet is now in much better shape. It is fully expected this will be completed by the end of June. It will leave them with 2 nickel projects. About $3.50 nickel would be their breakeven, and it is currently trading at $4.15. They really need higher nickel prices. They can survive, because they have cash in the bank and cash from these projects.

integrated mines
Douglas Kee

Chief Investment Officer, Leon Frazer & Associ...

PricePrice
$0.800
Owned Owned
Yes

COMMENT

Reached an agreement with Ambatovy on a joint venture partnership structure, with Sherritt reducing its interest from 40% to 12%, and got forgiven $1.3 billion of debt. This gives them a better balance sheet. You need higher nickel prices. If nickel were to go to $7, this stock would be worth a couple of dollars. It has huge leverage on nickel which overwhelms every other single thing about it.

integrated mines

Reached an agreement with Ambatovy on a joint venture partnership structure, with Sherritt reducing its interest from 40% to 12%, and got forgiven $1.3 billion of debt. This gives them a better balance sheet. You need higher nickel prices. If nickel were to go to $7, this stock would be worth a couple of dollars. It has huge leverage on nickel which overwhelms every other single thing about it.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$0.840
Owned Owned
Unknown

COMMENT

His issue has to do with 1) what is happening with the commodities they are in and 2) the geography that they operate in. Madagascar and Cuba are their 2 major markets. He would rather not invest in companies that operate in countries that he is not sure of.

integrated mines

His issue has to do with 1) what is happening with the commodities they are in and 2) the geography that they operate in. Madagascar and Cuba are their 2 major markets. He would rather not invest in companies that operate in countries that he is not sure of.

integrated mines
Norman Levine

Managing Director, Portfolio Management...

PricePrice
$1.340
Owned Owned
No

COMMENT

Nickel mining in Cuba. The stock has been up a little over the last while. For basic raw materials stocks, so much is dependent on growth in Asia. Doesn’t think we are going to see the same sort of structural buildout of China for a while. Wouldn’t bet on this company or any other basic raw material producer, on whether or not we are going to see demand in North America.

integrated mines

Nickel mining in Cuba. The stock has been up a little over the last while. For basic raw materials stocks, so much is dependent on growth in Asia. Doesn’t think we are going to see the same sort of structural buildout of China for a while. Wouldn’t bet on this company or any other basic raw material producer, on whether or not we are going to see demand in North America.

integrated mines
Brendan Caldwell

President, Caldwell Securities...

PricePrice
$1.440
Owned Owned
Unknown

COMMENT

He prefers Hudbay Minerals (HBM-T). Sherritt is nickel, which is finally perking up for the 1st time in quite a while. Their Madagascar mine has a cost of about $4.40. Nickel got over $5 recently, and this spent a lot of time below its breakeven point for quite a while. They have extended their bonds out 5 years, and have done a deal where they no longer fund their 40% of Ambitovy mine, they are only funding 12%, so the balance sheet looks okay. If you believe in the whole economy growing because the US is fiscal stimulating and these prices go higher, he still finds Hudbay safer with a better balance sheet with better zinc prices and a better copper price, and it could go to $10.

integrated mines

He prefers Hudbay Minerals (HBM-T). Sherritt is nickel, which is finally perking up for the 1st time in quite a while. Their Madagascar mine has a cost of about $4.40. Nickel got over $5 recently, and this spent a lot of time below its breakeven point for quite a while. They have extended their bonds out 5 years, and have done a deal where they no longer fund their 40% of Ambitovy mine, they are only funding 12%, so the balance sheet looks okay. If you believe in the whole economy growing because the US is fiscal stimulating and these prices go higher, he still finds Hudbay safer with a better balance sheet with better zinc prices and a better copper price, and it could go to $10.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$1.340
Owned Owned
No

BUY

Just recently it moved above a key resistance level and started to show an upward trend.  Nickel prices are starting to move higher.  You are into a good position technically and seasonally these stocks do well now.

integrated mines

Just recently it moved above a key resistance level and started to show an upward trend.  Nickel prices are starting to move higher.  You are into a good position technically and seasonally these stocks do well now.

integrated mines
Don Vialoux

Research Analyst, TimingTheMarket.CA &...

PricePrice
$1.390
Owned Owned
Unknown

COMMENT

This has gone into the tank, and the balance sheet has fallen away as they have taken off write-offs. It is now rallying with the metals. They are scheduled to lose another $.89 a share this year, which could erode the BV even further.

integrated mines

This has gone into the tank, and the balance sheet has fallen away as they have taken off write-offs. It is now rallying with the metals. They are scheduled to lose another $.89 a share this year, which could erode the BV even further.

integrated mines
Ross Healy

Chairman, Strategic Analysis C...

PricePrice
$1.240
Owned Owned
Unknown

COMMENT

Management has done a great job in doing the things that are necessary. However, a tough problem to overcome is that they have a market cap of over $3 million, which needs to get to $1 billion before institutions get on board. They’ve fixed their debt, but they have to fix the mine in Madagascar. The only pure play in the nickel market, but unfortunately, too small of a market cap for many companies.

integrated mines

Management has done a great job in doing the things that are necessary. However, a tough problem to overcome is that they have a market cap of over $3 million, which needs to get to $1 billion before institutions get on board. They’ve fixed their debt, but they have to fix the mine in Madagascar. The only pure play in the nickel market, but unfortunately, too small of a market cap for many companies.

integrated mines
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$1.220
Owned Owned
No

SPECULATIVE BUY

You have issues with it being leveraged, issues with nickel and political issues in Madagascar.  It could be interesting as a lottery ticket.  They re-structured some of the debt, but that does not mean the equity is going to be worth anything at the end of it.

integrated mines

You have issues with it being leveraged, issues with nickel and political issues in Madagascar.  It could be interesting as a lottery ticket.  They re-structured some of the debt, but that does not mean the equity is going to be worth anything at the end of it.

integrated mines
Daniel Lloyd

Portfolio Manager, Forge First Asset Ma...

PricePrice
$0.810
Owned Owned
Unknown

SELL

(Market Call Minute.) Good, long term nickel opportunity, but an over levered balance sheet. A lot of risk.

integrated mines

(Market Call Minute.) Good, long term nickel opportunity, but an over levered balance sheet. A lot of risk.

integrated mines
Alex Ruus

Portfolio Manager, Arrow Capital Manage...

PricePrice
$0.830
Owned Owned
Unknown

DON'T BUY

(Market Call Minute.) They extended the life of their debentures by 3 years, but this is a company that needed 3 years to survive, so you don’t need to be there.

integrated mines

(Market Call Minute.) They extended the life of their debentures by 3 years, but this is a company that needed 3 years to survive, so you don’t need to be there.

integrated mines
Peter Hodson

CEO & Head of Research, 5i Research Inc....

PricePrice
$0.790
Owned Owned
No

DON'T BUY

This has been a relative, long term underperformer. When you are an underperformer, you can stay that way for a very long time.

integrated mines

This has been a relative, long term underperformer. When you are an underperformer, you can stay that way for a very long time.

integrated mines
Bill Carrigan

Technical Analyst, Getting Technical In...

PricePrice
$0.800
Owned Owned
Unknown

DON'T BUY

Had owned the 8% bonds for very specific reasons. Cuba is essentially a ringed fence and so is the Manitoba smelter. There was $600 million in debt, and he thought the coal assets in Western Canada were worth $1-$1.5 billion. Bond agencies wouldn’t rate this because they didn’t know how to rate the Cuban risk. He didn’t care about that risk because it was offset by the Western Canadian coal. On the hint the company was going to sell the coal, he got rid of the bonds as fast as he could. You are now exposed to the Cuban issue, which is a wildcard. Madagascar, depending on the nickel price, might never make money.

integrated mines

Had owned the 8% bonds for very specific reasons. Cuba is essentially a ringed fence and so is the Manitoba smelter. There was $600 million in debt, and he thought the coal assets in Western Canada were worth $1-$1.5 billion. Bond agencies wouldn’t rate this because they didn’t know how to rate the Cuban risk. He didn’t care about that risk because it was offset by the Western Canadian coal. On the hint the company was going to sell the coal, he got rid of the bonds as fast as he could. You are now exposed to the Cuban issue, which is a wildcard. Madagascar, depending on the nickel price, might never make money.

integrated mines
Bill Harris, CFA

Portfolio Manager, Avenue Investment Ma...

PricePrice
$0.840
Owned Owned
No

COMMENT

For 3 to 5 years? A very interesting company. Not overly diversified and sitting on a fairly good chunk of cash. Has some assets, nickel mining and oil/gas and power, in Cuba which have been phenomenal. Has fallen down on its nickel mine in Madagascar. The CapX, which is mostly behind them right now, has kind of blown their brains out. They have 3 bonds outstanding, 2018, 2020 and 2022, and are trading at roughly $.50 on the dollar, very, very distressed with a high yield. They are in a position where they could, and should, buy back debt in the open market. If the nickel market turned around, this has a lot of leverage to nickel.

integrated mines

For 3 to 5 years? A very interesting company. Not overly diversified and sitting on a fairly good chunk of cash. Has some assets, nickel mining and oil/gas and power, in Cuba which have been phenomenal. Has fallen down on its nickel mine in Madagascar. The CapX, which is mostly behind them right now, has kind of blown their brains out. They have 3 bonds outstanding, 2018, 2020 and 2022, and are trading at roughly $.50 on the dollar, very, very distressed with a high yield. They are in a position where they could, and should, buy back debt in the open market. If the nickel market turned around, this has a lot of leverage to nickel.

integrated mines
Paul Tepsich

Portfolio Manager, High Rock Capital Ma...

PricePrice
$0.910
Owned Owned
Unknown

DON'T BUY

(Market Call Minute.) He would avoid this. Their debt load always scares him. Not keen on management.

integrated mines

(Market Call Minute.) He would avoid this. Their debt load always scares him. Not keen on management.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.910
Owned Owned
No

DON'T BUY

We are getting a rebound in a lot of commodities, which could be the beginning of the inflationary wave that he has been waiting for. However, this would not be the way he would play it. He would use Teck Resources (TCK.B-T) as it is a much bigger leveraged type company. His company has this as a sector outperform with a $1.07 target.

integrated mines

We are getting a rebound in a lot of commodities, which could be the beginning of the inflationary wave that he has been waiting for. However, this would not be the way he would play it. He would use Teck Resources (TCK.B-T) as it is a much bigger leveraged type company. His company has this as a sector outperform with a $1.07 target.

integrated mines
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$0.800
Owned Owned
No

COMMENT

(Market Call Minute.) Took on too much debt. He is Short this.

integrated mines

(Market Call Minute.) Took on too much debt. He is Short this.

integrated mines
James Hodgins

Chief Investment Officer, Curvature Hedge Stra...

PricePrice
$0.820
Owned Owned
Yes

COMMENT

Not comfortable with management. Debt load is too high. Has a big project in Madagascar that has not worked out. It is always one of the dangers when you put a lot of money into something that is far away. As commodity prices come back, it should help them. The company has tremendous upside, but feels bankruptcy is not out of the question.

integrated mines

Not comfortable with management. Debt load is too high. Has a big project in Madagascar that has not worked out. It is always one of the dangers when you put a lot of money into something that is far away. As commodity prices come back, it should help them. The company has tremendous upside, but feels bankruptcy is not out of the question.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.750
Owned Owned
Unknown

DON'T BUY

It has had its ups and downs, and mostly downs.  The commodity price has been a huge detractor.  There are regulatory issues in Madagascar now.  The Cuba businesses are safer, but you have the uncertainty of a new US government coming in. 

integrated mines

It has had its ups and downs, and mostly downs.  The commodity price has been a huge detractor.  There are regulatory issues in Madagascar now.  The Cuba businesses are safer, but you have the uncertainty of a new US government coming in. 

integrated mines
Mohsin Bashir

VP Investments, Stone Asset Manageme...

PricePrice
$0.710
Owned Owned
Unknown

DON'T BUY

This is a commodity stock with debt on the balance sheet which impacts the valuation. All commodities are in decline and at record lows.

integrated mines

This is a commodity stock with debt on the balance sheet which impacts the valuation. All commodities are in decline and at record lows.

integrated mines
Peter Hodson

CEO & Head of Research, 5i Research Inc....

PricePrice
$0.590
Owned Owned
No

COMMENT

Holds this and it has been painful. The only pure play on nickel that you can buy globally today. A market cap of about $250 million Cdn. They have been chopping and chopping costs, and is roughly at $4 a pound, just about where the nickel price is. A great Hold if you’ve got some patience. The stock is well worth more than $2. We need a nickel price recovery. When inventories hit below 400,000 tons, they creep back up, and that is what he is watching.

integrated mines

Holds this and it has been painful. The only pure play on nickel that you can buy globally today. A market cap of about $250 million Cdn. They have been chopping and chopping costs, and is roughly at $4 a pound, just about where the nickel price is. A great Hold if you’ve got some patience. The stock is well worth more than $2. We need a nickel price recovery. When inventories hit below 400,000 tons, they creep back up, and that is what he is watching.

integrated mines
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$0.730
Owned Owned
Yes

SELL

Sell and put into Bank of Nova Scotia (BNS-T)? Two very different stocks. This one ranks 613 in his dividend model. Earnings are expected to improve, but still be negative going from a loss of $1.14 to a loss of $0.82. In comparison, BNS ranks much higher and it looks like the banks as a group are going to improve. He would agree with your thinking.

integrated mines

Sell and put into Bank of Nova Scotia (BNS-T)? Two very different stocks. This one ranks 613 in his dividend model. Earnings are expected to improve, but still be negative going from a loss of $1.14 to a loss of $0.82. In comparison, BNS ranks much higher and it looks like the banks as a group are going to improve. He would agree with your thinking.

integrated mines
Robert McWhirter

President, Selective Asset Mana...

PricePrice
$0.770
Owned Owned
Unknown

DON'T BUY

How many Canadian mining companies have stumbled at attempts at mining in Africa?  They are going to write a lot off of their balance sheet.  They have a big hunk of debt and lot of Nickel at a very low price.  The question is if they can finance their debt.  It smells like a value trap to him.

integrated mines

How many Canadian mining companies have stumbled at attempts at mining in Africa?  They are going to write a lot off of their balance sheet.  They have a big hunk of debt and lot of Nickel at a very low price.  The question is if they can finance their debt.  It smells like a value trap to him.

integrated mines
David Baskin

President, Baskin Wealth Manage...

PricePrice
$0.790
Owned Owned
Unknown

DON'T BUY

You have to know what the commodity is going to do before investing.  S-T has built one of the biggest nickel mines in the world.  But it is a relatively small company and he would go to a larger one if he wanted metals exposure.  He is worried about this one.

integrated mines

You have to know what the commodity is going to do before investing.  S-T has built one of the biggest nickel mines in the world.  But it is a relatively small company and he would go to a larger one if he wanted metals exposure.  He is worried about this one.

integrated mines
Alex Ruus

Portfolio Manager, Arrow Capital Manage...

PricePrice
$0.890
Owned Owned
Unknown

COMMENT

Primarily nickel and cobalt. Have projects in Madagascar. Just eliminated the dividend. Thinks they are buckling down the hatches and making sure they can ride out this low based metal environment. The depressed nickel prices are going to be weighing on them for some time.

integrated mines

Primarily nickel and cobalt. Have projects in Madagascar. Just eliminated the dividend. Thinks they are buckling down the hatches and making sure they can ride out this low based metal environment. The depressed nickel prices are going to be weighing on them for some time.

integrated mines
Mohsin Bashir

VP Investments, Stone Asset Manageme...

PricePrice
$0.940
Owned Owned
No

DON'T BUY

Just eliminated their dividend. Debt level is very, very high. If you have a lot of guts and intestinal fortitude, he could see buying it. Anything you put in it, you have to think that you could lose at all. He wouldn’t buy it now.

integrated mines

Just eliminated their dividend. Debt level is very, very high. If you have a lot of guts and intestinal fortitude, he could see buying it. Anything you put in it, you have to think that you could lose at all. He wouldn’t buy it now.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.940
Owned Owned
No

HOLD

It has been a tough road.  They have a new nickel mine in Madagascar.  He would be concerned about mine construction, but they are basically done now.  Nickel prices are below $5 now so it is tough for the miners.  Longer term he likes the base metal side of things.  He thinks they have a good mine in Madagascar. 

integrated mines

It has been a tough road.  They have a new nickel mine in Madagascar.  He would be concerned about mine construction, but they are basically done now.  Nickel prices are below $5 now so it is tough for the miners.  Longer term he likes the base metal side of things.  He thinks they have a good mine in Madagascar. 

integrated mines
Ryan Bushell

V. P. & Portfolio Manager, Leon Frazer and Asso...

PricePrice
$1.120
Owned Owned
Yes

DON'T BUY

She owns very little in base metals.  They have a new mine coming on and it has had some production problems.  You want to see stabilization in the commodities.  The strong US dollar is impacting demand for all the commodities.

integrated mines

She owns very little in base metals.  They have a new mine coming on and it has had some production problems.  You want to see stabilization in the commodities.  The strong US dollar is impacting demand for all the commodities.

integrated mines
Christine Poole

CEO & Managing Director, GlobeInvest Capital ...

PricePrice
$1.230
Owned Owned
No

DON'T BUY

Currently at an all-time low. A few years ago he was interested in this and went to their AGM. After the meeting he decided he did not have enough confidence in management. Debt load was high and management didn’t have the skill level he was looking at for a turnaround. Since then, they have been hammered by commodity prices. Nickel prices are down at a 5-6 year low. It would not surprise him to see them go bankrupt. It really needs cooperation from commodity prices. Very, very dangerous situation.

integrated mines

Currently at an all-time low. A few years ago he was interested in this and went to their AGM. After the meeting he decided he did not have enough confidence in management. Debt load was high and management didn’t have the skill level he was looking at for a turnaround. Since then, they have been hammered by commodity prices. Nickel prices are down at a 5-6 year low. It would not surprise him to see them go bankrupt. It really needs cooperation from commodity prices. Very, very dangerous situation.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$1.270
Owned Owned
No

COMMENT

His view is that this will survive. The balance sheet has been fixed. If nickel prices stay below $5 for more than 2.5-3 years, they may have some issues. Nickel prices have been very low for a long time, but this company is at the 50th percentile in terms of costs. Half of the world can’t produce nickel at current prices and make cash money. The thinks it is a pretty reasonable bet that nickel will be in deficit in 2016.

integrated mines

His view is that this will survive. The balance sheet has been fixed. If nickel prices stay below $5 for more than 2.5-3 years, they may have some issues. Nickel prices have been very low for a long time, but this company is at the 50th percentile in terms of costs. Half of the world can’t produce nickel at current prices and make cash money. The thinks it is a pretty reasonable bet that nickel will be in deficit in 2016.

integrated mines
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$1.340
Owned Owned
No

COMMENT

Just hit a record low. They had a change of management and he is not up to speed on the reasons. Between the nickel situation in Cuba and Madagascar, it is just too scary. Madagascar hasn’t gotten up to speed quite as fast as it needs to. There is a huge amount of debt. Way too difficult for him to figure out.

integrated mines

Just hit a record low. They had a change of management and he is not up to speed on the reasons. Between the nickel situation in Cuba and Madagascar, it is just too scary. Madagascar hasn’t gotten up to speed quite as fast as it needs to. There is a huge amount of debt. Way too difficult for him to figure out.

integrated mines
Bill Harris, CFA

Portfolio Manager, Avenue Investment Ma...

PricePrice
$1.350
Owned Owned
No

PAST TOP PICK

(A Top Pick Sept 3/14. Down 67.82%.) The story is that they are building the big mine in Madagascar. They built the mine expecting nickel prices were going to go up. That was working for a while, but then China slowed down greater than had been expected. They also have a lot of debt. A bit of a dicey situation right now. Sold his holdings at a loss.

integrated mines

(A Top Pick Sept 3/14. Down 67.82%.) The story is that they are building the big mine in Madagascar. They built the mine expecting nickel prices were going to go up. That was working for a while, but then China slowed down greater than had been expected. They also have a lot of debt. A bit of a dicey situation right now. Sold his holdings at a loss.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$1.350
Owned Owned
No

DON'T BUY

This, with a $10 Book Value, has something like an $8-$9 asset value. The stock is cheap. This is nickel which has been getting hit, oil and gas which has been getting hit and it is coal which is getting hit. It is completely out of favour. Have had cost overruns in Madagascar, but are getting closer to getting it fixed. There are better places to be.

integrated mines

This, with a $10 Book Value, has something like an $8-$9 asset value. The stock is cheap. This is nickel which has been getting hit, oil and gas which has been getting hit and it is coal which is getting hit. It is completely out of favour. Have had cost overruns in Madagascar, but are getting closer to getting it fixed. There are better places to be.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$1.350
Owned Owned
No

DON'T BUY

It has been beaten up but he does not like the debt load and is not overly impressed with the management.  Maybe he will look more closely at the end of the year.

integrated mines

It has been beaten up but he does not like the debt load and is not overly impressed with the management.  Maybe he will look more closely at the end of the year.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.230
Owned Owned
No

DON'T BUY

This company has always had headwinds and is underperforming its peers. Chart shows a downward channel, and he would just avoid it and consider it as dead money.

integrated mines

This company has always had headwinds and is underperforming its peers. Chart shows a downward channel, and he would just avoid it and consider it as dead money.

integrated mines
Bill Carrigan

Technical Analyst, Getting Technical In...

PricePrice
$2.470
Owned Owned
Unknown

DON'T BUY

Would you buy their 8% - 2017 bond? He likes the bond side, simply because when they owned the Saskatchewan metallurgical coal deposits, if Cuba and Madagascar failed, he would at least have an asset that he could grab and would make him whole. They have since sold the Saskatchewan holdings and are now left with Madagascar and Cuba, so you are now dealing with the underlying commodity price that keeps rolling off. The bond is being offered out at around 9% in today’s market, which tells you it is distressed. High-yield bonds should be trading at around 7%. Secondly you are going to have to deal with Madagascar, where the operations seem to be coming on, but there was a big delay.

integrated mines

Would you buy their 8% - 2017 bond? He likes the bond side, simply because when they owned the Saskatchewan metallurgical coal deposits, if Cuba and Madagascar failed, he would at least have an asset that he could grab and would make him whole. They have since sold the Saskatchewan holdings and are now left with Madagascar and Cuba, so you are now dealing with the underlying commodity price that keeps rolling off. The bond is being offered out at around 9% in today’s market, which tells you it is distressed. High-yield bonds should be trading at around 7%. Secondly you are going to have to deal with Madagascar, where the operations seem to be coming on, but there was a big delay.

integrated mines
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$2.540
Owned Owned
No

PAST TOP PICK

(A Top Pick May 12/14. Down 40.54%.) The thesis was based on their leverage to the nickel price. In the meantime, Indonesia decided they were not going to export raw ore to China, which is 25% of the total supply. Also, the Chinese economy has slowed down more than he thought it would. Sold his holdings, but that is not to say he won’t get back in.

integrated mines

(A Top Pick May 12/14. Down 40.54%.) The thesis was based on their leverage to the nickel price. In the meantime, Indonesia decided they were not going to export raw ore to China, which is 25% of the total supply. Also, the Chinese economy has slowed down more than he thought it would. Sold his holdings, but that is not to say he won’t get back in.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$2.770
Owned Owned
No

COMMENT

Looked at this closely, but didn’t have a tremendous amount of confidence in management. This is based on the price of nickel, what is going on in Cuba and what is happening in Madagascar. It has a lot of potential.

integrated mines

Looked at this closely, but didn’t have a tremendous amount of confidence in management. This is based on the price of nickel, what is going on in Cuba and what is happening in Madagascar. It has a lot of potential.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$3.050
Owned Owned
No

PARTIAL BUY

Still an attractive company. Cuban relations seem to be improving with the US. The Ambatovy nickel project seems to be moving forward. He can’t see any reason why you wouldn’t consider a small allocation of this.

integrated mines

Still an attractive company. Cuban relations seem to be improving with the US. The Ambatovy nickel project seems to be moving forward. He can’t see any reason why you wouldn’t consider a small allocation of this.

integrated mines
John Stephenson

President & CEO, Stephenson & Company...

PricePrice
$3.040
Owned Owned
No

COMMENT

If you do an asset value, you get a vote $8 on it. He owns the fixed income on this. It is moving nicely. Nickel prices have finally rebounded this week. Ambatovy just achieved 90 and 90, meaning running at 90% capacity of the mine for 90 days. That is a big deal, and costs came down. If they can keep that going and costs come down a bit further, the stock probably goes into the mid-$3.

integrated mines

If you do an asset value, you get a vote $8 on it. He owns the fixed income on this. It is moving nicely. Nickel prices have finally rebounded this week. Ambatovy just achieved 90 and 90, meaning running at 90% capacity of the mine for 90 days. That is a big deal, and costs came down. If they can keep that going and costs come down a bit further, the stock probably goes into the mid-$3.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$2.660
Owned Owned
Yes

DON'T BUY

Bonds? He doesn’t own any thing in this company because of 1) the big Ambatovy mine in Madagascar took a little longer and the overall nickel market is terrible. 2.) He had owned their bonds because of their Saskatchewan assets, but once they sold off, it became a lot riskier. The underlying commodity has now sewered. For the bond, they have enough cash flow to do all right, but you need a recovery in the price of nickel.

integrated mines

Bonds? He doesn’t own any thing in this company because of 1) the big Ambatovy mine in Madagascar took a little longer and the overall nickel market is terrible. 2.) He had owned their bonds because of their Saskatchewan assets, but once they sold off, it became a lot riskier. The underlying commodity has now sewered. For the bond, they have enough cash flow to do all right, but you need a recovery in the price of nickel.

integrated mines
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$2.090
Owned Owned
No

DON'T BUY

Lots of difficulties.  He did not come away from the AGM with their management.  It could be a success but right now he is just too scared.  They likely won’t go bankrupt but he does not have confidence in their management.

integrated mines

Lots of difficulties.  He did not come away from the AGM with their management.  It could be a success but right now he is just too scared.  They likely won’t go bankrupt but he does not have confidence in their management.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.210
Owned Owned
Unknown

BUY

Nickel is necessary to make stainless steel.  The problem is relatively weak demand and good supply.  Nickel is fine and S-T would be a way to play it.

integrated mines

Nickel is necessary to make stainless steel.  The problem is relatively weak demand and good supply.  Nickel is fine and S-T would be a way to play it.

integrated mines
John Stephenson

President & CEO, Stephenson & Company...

PricePrice
$2.290
Owned Owned
No

COMMENT

One of the big issues around nickel as a commodity is the export ban in Indonesia. They would like to have smelters built within the country for more value added revenue, rather than just exporting raw material. This has provided a bit of a support mechanism for nickel. This company is a very unique way to play the nickel side of the market. They sold their thermal coal royalty business, so really putting themselves in a more leveraged nickel business. Their Ambatovy mine in Madagascar is still in the ramp up stage, so there is still the sensitivity in ramp up risks. He sees good progress. With a couple more quarters of ramp up progress, with no negative surprises, this is something he might look at in the 4th quarter going into a stronger market in 2016.

integrated mines

One of the big issues around nickel as a commodity is the export ban in Indonesia. They would like to have smelters built within the country for more value added revenue, rather than just exporting raw material. This has provided a bit of a support mechanism for nickel. This company is a very unique way to play the nickel side of the market. They sold their thermal coal royalty business, so really putting themselves in a more leveraged nickel business. Their Ambatovy mine in Madagascar is still in the ramp up stage, so there is still the sensitivity in ramp up risks. He sees good progress. With a couple more quarters of ramp up progress, with no negative surprises, this is something he might look at in the 4th quarter going into a stronger market in 2016.

integrated mines
Dennis da Silva

Managing Director & Sr Portfolio Manager, Middlefield Capital ...

PricePrice
$2.390
Owned Owned
No

COMMENT

It will be interesting to see what the new rapprochement between Cuba and the US, will actually mean for this company over the next while. Not surprised the company has taken a bit of a hit since that announcement. Speculation might be that Freeport-McMoran (FCX-N) may want their property back, but he thinks that is a long ways from actually happening.

integrated mines

It will be interesting to see what the new rapprochement between Cuba and the US, will actually mean for this company over the next while. Not surprised the company has taken a bit of a hit since that announcement. Speculation might be that Freeport-McMoran (FCX-N) may want their property back, but he thinks that is a long ways from actually happening.

integrated mines
Brendan Caldwell

President, Caldwell Securities...

PricePrice
$2.330
Owned Owned
Unknown

PAST TOP PICK

(A Top Pick Feb 24/14. Up 2.9%.) Sept 24, 2020, 7.5%. He still likes this. Did a great job of terming out their debt right before the meltdown.

integrated mines

(A Top Pick Feb 24/14. Up 2.9%.) Sept 24, 2020, 7.5%. He still likes this. Did a great job of terming out their debt right before the meltdown.

integrated mines
Joey Mack

Director, Fixed Income, ScotiaCapital...

PricePrice
$2.140
Owned Owned
Yes

HOLD

His company has it with a sector outperform, but with a high level of risk. Target of $4 in 12 months. He hasn’t had any base metals for a while. Nickel prices are going to be in check because of the rise of the US$.

integrated mines

His company has it with a sector outperform, but with a high level of risk. Target of $4 in 12 months. He hasn’t had any base metals for a while. Nickel prices are going to be in check because of the rise of the US$.

integrated mines
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$2.150
Owned Owned
No

HOLD

The world demand for nickel of this type has gotten really subdued.  The key is how good their margins are going to be in Madagascar.  He considers it interesting, but is not comfortable with the risk.

integrated mines

The world demand for nickel of this type has gotten really subdued.  The key is how good their margins are going to be in Madagascar.  He considers it interesting, but is not comfortable with the risk.

integrated mines
David Cockfield

Managing Director, Northland Wealth Man...

PricePrice
$2.200
Owned Owned
Unknown

COMMENT

The stock has fallen, but not because the company is doing anything different. The mining space has been quite volatile. Especially with the oil price falling you see a lot of volatility in the mining space. They continue to ramp up their project in Madagascar and are set to produce a lot more nickel this year, which will drastically improve their earnings profile. Also, the partial lifting of sanctions to Cuba by the US is going to help them.

integrated mines

The stock has fallen, but not because the company is doing anything different. The mining space has been quite volatile. Especially with the oil price falling you see a lot of volatility in the mining space. They continue to ramp up their project in Madagascar and are set to produce a lot more nickel this year, which will drastically improve their earnings profile. Also, the partial lifting of sanctions to Cuba by the US is going to help them.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$2.790
Owned Owned
Yes

COMMENT

Kicked the tires on this one. Went to the AGM and management didn’t make him jump for joy. Doesn’t like the debt load. He is wary of it. Has a lot of potential upside, but there is a lot of danger.

integrated mines

Kicked the tires on this one. Went to the AGM and management didn’t make him jump for joy. Doesn’t like the debt load. He is wary of it. Has a lot of potential upside, but there is a lot of danger.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.880
Owned Owned
No

Showing 1 to 60 of 699 entries
<< < 1 2 3 4 5 > >>

No Comments.


You must be logged in to comment.

Successfully Saved Company