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To: LoneClone who wrote (140527)	3/6/2020 3:08:34 PM
From: LoneClone	Read Replies (1) \| Respond to of 193231

Nickel, cobalt: Sherritt seeks exit from Ambatovy roskill.com Posted 6th March 2020 in ?Industry news. By Olivier Masson Canadian mining group Sherritt is seeking to improve its capital structure by offering its existing bondholders new notes equivalent up to 53% of the face value of the old notes. This transaction, if agreed by bondholders, would reduce the company’s debt level. At the same time, Sherritt is offering to exchange its 12% stake in the Ambatovy nickel and cobalt refinery in Madagascar for its partner loans in the operation. If this part of the deal is agreed, Sherritt would no longer have any remaining interest in the Madagascan plant. Roskill View The Ambatovy nickel and cobalt refinery eventually started production in 2012 after suffering delays and cost over-runs. Although the the refinery has ramped up since then, its annual production has never approached design capacity of 60ktpy. The highest annual output was 47.3kt in 2015 and, subsequently, annual output has remained below this level for a variety of reasons. As a result, Sherritt struck a deal with Korea Resources and Sumitomo to restructure Ambatovy in 2017—related debt in exchange for a reduction in Sherritt’s share to 12%, down from 40% previously. This resulted in Korea Resources’ and Sumitomo’s shares rising to 40.3% and to 47.7% respectively. Sherrit’s latest move is, therefore, a further attempt to cut its overall debt level while extricating itself fully from the Ambatovy project. Roskill’s NEW Nickel (16th Edition) and Nickel Sulphate (3rd Edition) reports are due to be published in April 2020 and will forecast trends in supply, demand and pricing over the next decade. Roskill’s Cobalt (15th Edition) report was published in August 2019. Click to download the brochure and sample pages for each report, or to access further information. Roskill’s NEW Cobalt, Nickel & Manganese Mining Project Analysis; Technical and Financial Evaluation report has reviewed the plans of developers evaluating greenfield projects that could contribute to supply in the 2020s. The study aims to help readers understand the potential of new sources of raw materials in these complex commodity markets. Contact the author This article was written by Olivier Masson. Please get in touch below if you wish to discuss further: Contact the author