Wednesday, April 27, 2011

Sherritt profits rise despite flat nickel sales

Sherritt profits rise despite flat nickel sales

Mainly thanks to rising nickel and oil prices, Canadian mining and
energy concern Sherritt International reported a 116-percent rise in
profit on a 29-5-percent increase in revenues in the first quarter.

Sherritt is Cuba's single largest private foreign investor and a main
driver of nickel export revenues.

Nickel sales by volume stagnated around 9.4 million pounds, but average
realized prices rose from $9.20 per pound in Q1 2010 to $11.73 this
quarter. Meanwhile, cobalt sales by volume rose from 907,000 pounds to
1.014 million pounds, but prices per pound dropped from $20.16 to $17.55.

Electricity sales of Sherritt's Energas power plants in Cuba dropped 14
percent, from 172 gigawatt-hours to 148 gw/h. The company blamed turbine
and rotor failures at the Boca de Jaruco facility and "intermittent gas
supply shortages" at the Varadero power plant.

Total revenues were $474.5 million for the quarter, up from S366.4
million in the same quarter last year. Net income rose to $63.6 million,
from $29.4 million.

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