CORRECTED-Canadian miner Sherritt posts wider loss as nickel prices drop

Tue Jul 28, 2015 9:59pm EDT
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(Corrects to remove coal production in fifth paragraph. Sherritt sold coal business in 2014)

July 28 (Reuters) - Canadian miner Sherritt International Corp reported a bigger loss for the second quarter, hurt by lower nickel prices.

The Toronto-based company said on Tuesday its adjusted net loss from continuing operations widened to C$75.2 million ($58.2 million), or 25 Canadian cents per share, in the three months ended June 30 from C$56.2 million, or 19 Canadian cents per share, a year earlier.

Sherritt operates nickel mines in Madagascar and Cuba.

Average realized prices for nickel fell about 19 percent to $7.13 per pound in the quarter, the company said.

Sherritt, which also produces oil and gas, said its combined revenue fell about 12 percent to C$268.4 million.

Sherritt said it expected total production of 78,000-82,000 tonnes of nickel in 2015, down from a previous estimate of 80,000-86,000. The company cut the estimate for the Ambatovy mine in Madagascar to 45,000-48,000 tonnes from 47,000-52,000.

Sherritt has a 40 percent stake in the Ambatovy mine and a 50 percent stake in the Moa nickel-cobalt operation in Cuba.

Sherritt and other nickel miners have been grappling with a plunge in the price of nickel, which is mainly used to make stainless steel, due to a supply glut and softer demand from China, the largest consumer of the metal.   Continued...