DBRS Releases Report on Sherritt International Corporation

DBRS has today released a report on Sherritt International Corporation (Sherritt or the Company) that provides further detail on DBRS’s June 21, 2013, confirmation of the Company’s ratings at BB (high) but with a change of the trends to Negative from Stable.

Sherritt’s diverse operations have allowed it to generate steady operating earnings and cash flow in comparison with many other mining companies, but earnings in 2012 declined significantly and 2013 is expected to be an even more challenging year. That said, Sherritt faces high ongoing cash outlays in a period of constrained financial flexibility as it completes its Ambatovy project, a large-scale nickel and cobalt development project in Madagascar that is ramping up production to commercial levels. The bulk of the Company’s short-term liquidity is in its $442 million cash and short-term investments and its revolving credit facilities. Any unforeseen events that would strain liquidity or utilize or restrict cash flow could be significantly challenging to the Company.

Today’s report and the June 21, 2013, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.

Note:
All figures are in Canadian dollars unless otherwise noted.