Sherritt posts loss on lower nickel sales, price

Sherritt posts loss on lower nickel sales, price

Reuters



(Reuters) - Canadian miner Sherritt International Corp posted a

third-quarter loss on Wednesday as lower nickel prices and sales

volumes, and lower exports of thermal coal weighed on revenue.



The miner's net loss was C$22.6 million, or 8 Canadian cents a share, in

the quarter ended Sept 30. That compared with a profit of C$45.5

million, or 16 cents a share, in the year-earlier period.



Adjusted to remove one-time items, earnings were 3 Canadian cents a

share, compared with average analyst expectations of 9 Canadian cents a

shares, according to Thomson Reuters I/B/E/S.



Revenue dropped 9 percent to C$422.2 million as nickel sales volumes

fell 9 percent to 8.6 million pounds and thermal coal sales volumes fell

7 percent to 8.5 million tonnes.



Sherritt said the ramp-up at its Ambatovy nickel mine in Madagascar is

progressing, with full commercial production expected in early 2013. The

project, which is a joint venture with Sumitomo Corp <8053.T> and Korea

Resources Corp , is on track to remain within its $5.5 billion capital

budget.



Sherritt owns nickel operations in Canada, Cuba, Indonesia and

Madagascar, along with numerous coal mines in Canada and energy projects

in Cuba.



(Reporting by Julie Gordon; Editing by Gerald E. McCormick)



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