Sunday, 14 February 2016

Sherritt International 4th Quarter 2015 earnings

Sherritt International declared their 4th Quarter 2015 earnings last week, which can be found here.

Sherritt International has had a rough few years with the steady decline of commodities pricing across the globe. Aside from being focused on Nickel, with some of the largest and lowest cost mines around, they also have exposure to Oil & Gas through their operations in Cuba.

Cuba is one reason I hold on to Sherritt, aside from the speculation that at some point, commodities will rebound and as a lower cost producer, they will benefit. With Nickel, Oil, and power operations in Cuba, and the island watching the US embargo melt away, I think there's opportunity for Sherritt to see some knock on benefits down the road as the economy there matures and expands, particularly in power production. Currently, Sherritt is the only foreign power producer in Cuba and as such has tremendous upside potential as the island upgrades its power infrastructure.

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