TORONTO, ON — February 10, 2026 — Leads & Copy — Sherritt International Corporation reported its financial results for the three months and year ended December 31, 2025, and provided its 2026 guidance. All amounts are in Canadian dollars unless otherwise noted.
Dr. Peter Hancock, Interim Chief Executive Officer of Sherritt, said that following recent changes to management and the Board, Sherritt is focusing on maximizing the performance and potential of the Moa Joint Venture, particularly through optimizing mining operations. According to Hancock, a comprehensive operational review of the Moa mine identified key improvement opportunities, and the company is taking action to address them through investments in equipment, expertise, and process optimization.
Dr. Hancock added that the company is implementing a turnaround plan that includes new mining equipment, additional technical expertise, and debottlenecking projects to improve efficiency and reliability. Hancock said that while ramping up production of mixed sulphides will take time, the company is confident that this plan will support increased output utilizing recently completed expansion projects and unlock significant value over the mine’s long life.
John Ewing has stepped down from Sherritt’s board of directors effective today in order to dedicate his full attention to his role as Chief Investment Officer of Ewing Morris & Co. Investment Partners.
Ewing said it has been a privilege to serve on Sherritt’s Board during an important period of transition and renewal. He added that he is pleased with how the Board has been strengthened and has full confidence in Dr. Peter Hancock as Interim Chief Executive Officer and in the leadership team’s ability to execute Sherritt’s strategy going forward and that Ewing Morris remains an engaged shareholder.
Brian Imrie, Chair of the Board, extended his appreciation to John for his contributions to the Board and said he looks forward to continued engagement with him as a shareholder.
Finished nickel and cobalt production at the Moa Joint Venture (“Moa JV”) in Q4 2025 was 3,816 tonnes and 424 tonnes, respectively, (Sherritt’s share). Full year 2025 production reached 25,240 tonnes of nickel and 2,728 tonnes of cobalt (100% basis) both within revised annual guidance ranges.
Finished nickel and cobalt sales in Q4 2025 were 3,710 tonnes and 437 tonnes, respectively. Full year 2025 sales totaled 13,145 tonnes and 1,535 tonnes, respectively.
Net direct cash cost (“NDCC”) was US$6.01/lb in Q4 2025. Full year 2025 NDCC of US$5.96/lb was within the original guidance range, benefitting from higher cobalt by-product credits and ongoing cost optimization initiatives.
Electricity production reached 210 GWh in Q4 2025. Full year 2025 production totaled 799 GWh, largely in line with the annual guidance range of 800 GWh to 850 GWh. The Boca de Jaruco facility operated in frequency control in December at the request of Unión Eléctrica (“UNE”) which had not been factored into guidance. Energas was fully compensated for this reduction.
Electricity unit operating cost was $23.48/MWh in Q4 2025. Full year 2025 unit operating cost of $23.33/MWh was at the low end of the annual guidance range.
Net loss from continuing operations was $15.7 million, or $(0.03) per share in Q4 2025 and $65.4 million, or $(0.14) per share for the full year 2025.
Adjusted net loss from continuing operations was $13.9 million or $(0.03) per share in Q4 2025 and $77.2 million or $(0.17) per share for the full year. Q4 2025, adjusted net loss from continuing operations primarily excludes foreign exchange and net revaluation gains and losses and the $3.5 million loss from operations of Sherritt’s Oil and Gas division. Full year 2025, adjusted net loss from continuing operations primarily excludes a $32.4 million gain on debt and equity transactions (“Debt and Equity Transactions”) and $11.7 million of net revaluation gains and losses partially offset by the $22.0 million loss from Oil and Gas division operations (primarily due to updates to contractually obligated environmental rehabilitation costs on legacy assets in Spain).
Adjusted EBITDA was $(1.5) million in Q4 2025 and $7.1 million for the full year 2025.
Available liquidity in Canada as of December 31, 2025 was $43.7 million.
Power division dividends in Canada from Energas were $7.8 million in Q4 2025 bringing full year 2025 dividends to $26.0 million – double the $13.0 million received in 2024 and in line with prior disclosure.
Cost reduction initiatives were implemented in Q3 2025, which included a further workforce reduction with a focus on non-operating roles across Canadian operations. The cost reduction initiatives are expected to deliver approximately $20.0 million in annual savings (100% basis) and are in addition to the $17.0 million in annual savings (100% basis) achieved through the 2024 initiatives.
Debt restructuring completed in April 2025 consolidated the Corporation’s debt, extended the maturity to November 2031, reduced debt obligations by $68.0 million and decreased annual interest expense by approximately $3.0 million.
In early 2026 Sherritt and its joint venture partner completed an operational review of the Moa mine, establishing the foundation for an actionable turnaround plan aimed at stabilizing operations and restoring mixed sulphides production to pre-2025 levels. The review identified key opportunities for improvement, including optimizing mining operations to increase production rates, enhancing workforce stability and technical expertise, and reducing maintenance downtime at the Moa processing facility.
To address these priorities, Sherritt has initiated a comprehensive turnaround plan that includes investing in additional mining equipment, deploying experienced technical personnel, a revised mining plan and allocating resources to improve operational performance and maintenance efficiency. Sherritt is also advancing several debottlenecking initiatives to enhance production efficiency. Sherritt’s share of the 2026 turnaround investments is included in its spending on capital guidance.
As these initiatives progress through 2026, Sherritt expects mixed sulphides production to recover steadily, reaching pre-2025 levels by year-end. Following the completion of the operational turnaround, Sherritt will focus on ramping up production to realize the full benefits of its expansion program.
Finished nickel and cobalt production are expected to be 26,000 to 28,000 tonnes (100% basis) and 2,750 to 2,850 tonnes (100% basis), respectively. Nickel production is up from 2025 as a result of higher mixed sulphides production which is expected to be 30,000 to 32,000 tonnes (100% basis) of contained nickel and cobalt weighted to the second half of the year as the operational turnaround plan takes effect.
NDCC is expected to be US$5.75 to US$6.25 per pound of nickel sold, consistent with 2025 levels benefitting from higher expected production and sales volumes, ongoing cost optimization initiatives, and higher cobalt by-product credits, partially offset by higher sulphur prices. NDCC guidance for 2026 is based on a forecast cobalt reference price of US$23.50 per pound and forecast sulphur price of US$439.00 per tonne including freight and handling.
Based on 2026 guidance estimates for production volumes, unit operating costs and spending on capital as well as consensus 2026 prices for nickel and cobalt, Sherritt does not expect to receive any cash or cobalt distributions under the Cobalt Swap agreement. As defined by the agreement, any shortfall in the annual minimum payment amount will be added to the following year.
Power dividends in Canada from Energas are expected to be $20.0 million to $25.0 million.
Consistent with the Corporation’s strategic focus on core operations and cost discipline, Sherritt eliminated the position of Chief Commercial Officer in early 2026. As part of ongoing cost optimization initiatives, Sherritt’s executive management team has been streamlined from seven members at the beginning of 2024 to four, optimizing the organization for operational focus and efficiency.
As part of its disciplined risk management approach, Sherritt purchased put options on 3,750 tonnes of nickel, or 625 tonnes per month, at an exercise price of US$7.48/lb (US$16,500/tonne) at a cost of $2.4 million for the six-month period from February 1, 2026 to July 31, 2026. Settlements are received in cash monthly based on the average monthly nickel price on the London Metal Exchange. The put options provide Sherritt with full exposure to upward changes in nickel prices, while protecting against downward changes during periods of high volatility by providing a minimum price of US$7.48/lb on a portion of nickel production from the Moa JV during the six-month period.
In early 2026, Venezuela ceased oil exports to Cuba as a result of recent geopolitical turmoil in the country. Venezuela has historically been a major supplier of oil to Cuba, and this supply disruption may exacerbate Cuba’s existing economic challenges. In addition, on January 29, 2026, the U.S. government issued an Executive Order declaring a national emergency with respect to the government of Cuba and authorized the imposition of tariffs on countries that supply oil to Cuba, which may further heighten the risk of oil supply disruption to Cuba.
Sherritt announces that John Ewing has stepped down from the Board effective today in order to dedicate his full attention to his role as Chief Investment Officer of Ewing Morris & Co. Investment Partners.
Sherritt will hold its conference call and webcast February 11, 2026, at 10:00 a.m. Eastern Time to review its fourth quarter and full year 2025 results.
Sherritt’s consolidated financial statements and MD&A for the year ended December 31, 2025 are available at www.sherritt.com or on SEDAR+ at www.sedarplus.ca. and should be read in conjunction with this news release.
Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition. The Corporation operates a strategically important refinery in Alberta, Canada.
The Corporation’s Power division, through its ownership in Energas, is the largest independent energy producer in Cuba with installed electrical generating capacity of 506 MW, representing approximately 10% of the national electrical generating capacity in Cuba. Sherritt’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
Source: Sherritt International Corporation
