October 26, 2011 / 12:07 PM / 7 years ago

UPDATE 2-Sherritt's profit lifted by coal, oil business

* Revenue up 13 percent at C$466.4 million

* Ambatovy on track for first production in Q1 2012

* Shares up 4.5 percent on TSX (Adds share price, details)

Oct 26 (Reuters) - Diversified miner Sherritt International Corp (S.TO) said on Wednesday its quarterly profit more than doubled as strength in its coal and oil business offset price declines in nickel and cobalt.

Shares were up 4.51 percent at C$5.10 on the Toronto Stock Exchange after the company said third-quarter net income rose to C$45.5 million, or 15 Canadian cents a share, up from a year-earlier profit of C$22.5 million, or 7 Canadian cents.

Revenue rose 13 percent to C$466.4 million.

Sherritt, which has operations in Canada, Cuba, Madagascar, Pakistan and Spain, said it sold 9.4 million pounds of nickel, 1.1 million pounds of cobalt, 9.1 million tonnes of thermal coal and 1.1 million barrels of oil in the quarter ended Sept. 30.

Metal revenues slipped to C$122.9 million from C$127.8 million in the year-earlier quarter, while revenues in the coal division rose to C$247.2 million from C$217.8 million.

The Toronto-based miner boosted full-year metal production forecats for its Moa nickel/cobalt joint venture in Cuba by 1 percent. At the same time it cut the outlook for coal production at its operations on the Canadian Prairies by 3 percent due to adverse weather conditions.

The company also said primary construction at its Ambatovy nickel project in Madagascar is complete with all major process plant modules having been turned over to commissioning teams.

Sherritt said all areas of the project are either in pre-commissioning, commissioning, or start-up phase, and first production is expected to begin in the first quarter of 2012.

Ambatovy, which is a joint venture with Sumitomo Corp (8053.T) and Korea Resources Corp, is expected to produce 60,000 tonnes of nickel and 5,600 tonnes of cobalt a year once it is at capacity.

Separately, the company said it would issue C$300 million in debt, which will be used to pay off outstanding debt that comes due in Nov. 2012.

$1=$1.01 Canadian Reporting by Euan Rocha and Julie Gordon in Toronto; editing by Peter Galloway

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