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For immediate release Sherritt Outlines Moa JV Expansion Strategy and Reports Q3 Results NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S. Toronto - November 3 , 2021 - Sherritt International Corporation ( " Sherritt ” , the " Corporation " , the " Company " ) ( TSX : S ) , a world leader in the mining and hydrometallurgical refining of nickel and cobalt from lateritic ores , today reported its financial results for the three and nine months ended September 30 , 2021 , and announced it is embarking on an expansion strategy with its Cuban partners to capitalize on the growing demand for high purity nickel and cobalt being driven by the accelerated adoption of electric vehicles . The strategy , which will build on the 26 - year successful track record of the Moa Joint Venture , centres on growing finished nickel and cobalt production by 15 to 20 % per year from the 34,876 tonnes produced in 2020 and extending the life of mine at Moa beyond 2040 through the conversion of mineral resources into reserves using an economic cut - off grade . " Backed by a strengthened balance sheet and a favourable outlook for nickel and cobalt , we are moving forward with a multi- pronged strategy focused on generating incremental cash flow and transformative growth , " said Leon Binedell , President and CEO of Sherritt International Corporation . " In addition to commercializing projects developed by Sherritt Technologies , our growth will centre on brownfield opportunities , where working in close collaboration with our Cuban partners , we plan to increase finished nickel and cobalt production and extend Moa's mine life . Preliminary economics of the brownfield projects identified are quite encouraging and suggest a high rate of return on investment and low capital intensity . " By taking advantage of embedded growth opportunities , Sherritt will be better positioned to capitalize on the expected strong demand for green metals in the coming years and significantly grow shareholder value . " Expansion plans for the Moa JV consist of a multi - phased approach , and includes completion of the new slurry preparation plant and other expansion circuits at Moa , installation of new equipment and upgrading existing equipment at the refinery in Fort Saskatchewan , Alberta , updating the 43-101 Technical Report published in June 2019 that reported more than 158 million tonnes of measured and indicated resources at 1 % nickel and 0.13 % cobalt at Moa to reflect production based on economic rather than a fixed , cut - off grade , and leveraging the expertise of Sherritt Technologies to optimize mine planning and performance . Sherritt and its Cuban partners are currently finalizing timelines , capital estimates , and economics of the various projects , including identifying financing alternatives . Sherritt expects to provide an update on the rollout of the Moa JV expansion strategy by the end of the first quarter of 2022 . SELECTED Q3 2021 DEVELOPMENTS • • • • Received US $ 10 million in distributions from the Moa JV representing Sherritt's 50 % share of distributions declared by the Moa JV . Through September 30 , Sherritt has received a total of US $ 43 million in direct and re - directed distributions from the Moa JV and its partner . Adjusted EBITDA ( 1 ) was $ 17.6 million , up 14 % from last year . The higher total was indicative of improved nickel and cobalt prices , but offset by increased input costs , $ 3.1 million in other contractual benefits expenses and $ 0.5 million of accelerated share - based compensation expenses , both of which relate to the departure of senior executives . Sherritt's share of finished nickel production at the Moa JV was 2,908 tonnes , down 22 % from last year while Sherritt's share of finished cobalt production was 334 tonnes , down 18 % . Finished nickel and cobalt production were negatively impacted by a combination of factors , including the spread of COVID - 19 , timing of the full - facility shutdown at the refinery in Fort Saskatchewan , Alberta , and unplanned maintenance activities that temporarily disrupted production activities . All production has since resumed to normal , and Sherritt has adjusted its production guidance for 2021 to reflect Q3 developments and anticipated production for the balance of the year . Net Direct Cash Cost ( NDCC ) ( 1 ) at the Moa JV was US $ 4.53 / lb , up 12 % from last year . Despite a 52 % improvement in cobalt by - product credits , unit costs per pound of finished nickel sold were impacted by the 126 % increase in sulphur prices , 69 % increase in fuel oil prices , and 59 % increase in natural gas prices as well as by lower sales volumes . NDCC guidance for 2021 remains unchanged at US $ 4.25 to $ 4.75 per pound of nickel sold as the recent rise in cobalt prices partially offsets the rise in input costs . Received US $ 6.4 million in Cuban energy payments . Sherritt anticipates continued variability in the timing of collections through the remainder of 2021 , and is working with its Cuban partners to ensure timely receipts . Sherritt International Corporation 1