Sherritt to Sell Coal Business to Focus on Nickel and Oil

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Sherritt International Corp is moving on. The Canadian miner “posted a bigger fourth-quarter loss due to an impairment charge of C$466.8 million ($426 million) related to the pending sale of its coal mines, and it slashed its quarterly dividend,” reports Reuters.

“Sherritt is selling its coal business for C$946 million to focus on nickel and oil. The company said on Wednesday it expected to close the deal in the current quarter.”

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“The coal business has been struggling as weak demand drags down thermal coal prices.”

“Sherritt’s fourth-quarter loss widened to C$673.8 million, or C$2.27 per share, from C$16.9 million, or 6 Canadian cents, a year earlier. Excluding items, the company posted a loss of 13 Canadian cents per share.”

In metal price news for stainless steel and nickel…

The nickel 3-month price saw a 0.9 percent increase on Tuesday, February 18, reaching $14,390 per metric ton on the LME and making it the biggest mover for the day. On the LME, the spot price of nickel rose 0.8 percent to $14,335 per metric ton. The cash price of primary Indian nickel rose 0.3 percent.

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Chinese stainless steel prices were mixed for the day. The price of Chinese ferro-chrome was unchanged. For the fifth day in a row, the price of Chinese ferro-moly remained essentially flat.

The price of Chinese primary nickel weakened by 0.2 percent. The price of Chinese 316 stainless coil saw little movement. For the fifth consecutive day, the price of Chinese 304 stainless coil held flat. The price of Chinese 316 stainless steel scrap remained essentially flat. The price of Chinese 304 stainless steel scrap continues to hover for the fifth day in a row.