October 28, 2009 / 12:41 PM / 9 years ago

UPDATE 2-Sherritt profit falls, shares slide

* Q3 EPS C$0.19 vs C$0.45 a year earlier

* Q3 revenue down 18.5 pct

* Stock drops 12.8 pct as metal prices weaken (Adds share reaction, details. In U.S. dollars, unless noted)

TORONTO, Oct 28 (Reuters) - Canada’s Sherritt International Corp (S.TO) said on Wednesday its third-quarter earnings fell 58 percent due to lower realized prices on its nickel, cobalt, coal and crude oil sales.

The company’s shares fell nearly 13 percent following release of the results, although much of the fall may have been due to weak base metals prices, which pressured shares of other Toronto-listed miners.

Sherritt’s net income for the quarter was C$55.9 million, or 19 Canadian cents a share, compared with a year-earlier profit of C$133.1 million, or 45 Canadian cents a share.

Sherritt, a diversified natural resource company, has assets in Canada, Madagascar and Cuba, along with stakes in projects in Spain and Pakistan.

Quarterly revenue fell 18.5 percent to C$389.6 million.

The company said its capital expenditures were C$397 million for third-quarter 2009, 84 percent of which was related to its 40 percent-owned Ambatovy nickel project in Madagascar.

The $4.5 billion project is expected to be completed late next year and to eventually produce 60,000 tonnes of nickel and 5,600 tonnes of cobalt a year.

Sherritt’s partners in the project are Japan’s Sumitomo Corp [SUMTME.UL], Korea Resources Corp, and Canadian engineering firm SNC-Lavalin (SNC.TO).

Sherritt’s cash position was C$1.3 billion at the end of the quarter, with about half of that ticketed for Ambatovy.

The stock was down 93 Canadian cents at C$6.32 on the Toronto Stock Exchange on Wednesday as metal prices weakened following an unexpected decline in U.S. new home sales data. ($1=$1.07 Canadian) (Reporting by Euan Rocha and Cameron French; editing by Peter Galloway)

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