Sherritt International Corporation Announces Production Results for the Year 2017; Provides Production and Capital Spending Guidance for the Year 2018
In 2018, nickel and cobalt production at the Moa JV is forecasted at between 31,500 and 32,500 tonnes and 3,500 and 3,800 tonnes, respectively, on a 100% basis. Gross oil production in Cuba is forecasted at between 4,300 and 4,800 barrels per day in 2018. Nickel and cobalt production at Ambatovy in 2018 is forecasted at between 40,000 tonnes and 43,000 tonnes and 3,900 tonnes and 4,200 tonnes, respectively, on a 100% basis. The Power Unit is forecasted to produce between 750 and 800 megawatt hours of electricity in 2018. The total is below 2017 production results due to natural oil reservoir declines and the resulting reduction of gas production available for power generation.
For the year 2018, Capital spending at the Moa JV is forecasted at $41 million in 2018, up significantly from 2017. The increase is largely due to the carry forward of unspent capital on activities and purchase of equipment deferred to 2018. Capital spending in 2018 is also planned for the replacement of aging trucks and infrastructure, including a fertilizer conveyor and a demineralized water system.