Sherritt profits from global resource growth

Article Excerpt

SHERRITT INTERNATIONAL CORP. $8.76 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704-6698; www.sherritt.com; Shares outstanding: 294.3 million; Market cap: $2.6 billion; Dividend yield: 1.7%) is a diversified natural-resource company that produces nickel, cobalt, thermal coal, oil and gas. It also licenses its own mining technologies to other metals companies, and manages 376 megawatts of power-generation capacity in Cuba. Toronto-based Sherritt is a major nickel producer, with operations in Cuba and Canada. It is also close to completing a mine at its 40%-owned Ambatovy project on the island nation of Madagascar, off the east coast of Africa. As well, Sherritt produces oil and gas in Cuba, Spain and Pakistan. The company is the largest producer of thermal coal in Canada. (Many power plants burn thermal coal to generate electricity.) The company is also developing Canada’s first coal-gasification project, near Camrose, Alberta. This process converts coal into a gas that can be used in place of natural gas. Profits, dividends are up In the three months ended September 30,…