Sherritt cuts its debt

Article Excerpt

SHERRITT INTERNATIONAL $1.28 (Toronto symbol S; TSINetwork Rating: Speculative) (1- 800-704-6698; www.sherritt.com; Shares o/s: 295.1 million; Market cap: $377.7 million; No dividends paid) is now focused on nickel production, with operations in Cuba and Canada. As well, it holds 12% of the Ambatovy nickel mine in Madagascar, off Africa’s east coast. Sherrit’s shares are up almost 60% since mid-August 2017 on higher nickel prices. The company also slashed $1.4 billion from its balance sheet earlier this year when it cut its interest in Ambatovy from 40% to 12%. Its debt of $832.8 million is still a high 2.2 times its market cap, but it holds cash of 274.2 million. Rising nickel prices and lower debt-servicing costs could let Sherritt report positive cash flow in 2018. Sherritt is a buy for aggressive investors. investors…