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Sherritt misses 2020 nickel production target due to disruptions in Cuba

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(Kitco News) - Sherritt International (TSX:S), a major producer of nickel and cobalt, today announced production results for the fourth-quarter and full-year ended December 31, 2020.

In a statement, the company said that finished nickel production at the Moa joint venture, located in Cuba, on a 100% basis was 31,506 tonnes in 2020, which is slightly lower than the guidance of 32,000 to 33,000 tonnes for the year. Production was negatively impacted by railway service disruptions in Q1, an extended plant shutdown in Q3 due to additional found work scope and reduced contractor availability due to COVID-19, and by unplanned repairs to autoclaves in Q4.

Finished cobalt production was 3,370 tonnes on a 100% basis, consistent with the guidance of between 3,300 – 3,400 tonnes for the year.

Finished nickel production in 2021 is expected to be 32,000 – 34,000 tonnes on a 100% basis and finished cobalt production in 2021 is expected to be 3,300 – 3,600 tonnes on a 100% basis.

Net direct cash costs at the Moa JV are forecasted to be in the range of US$4.25 and US$4.75 per pound of finished nickel sold in 2021.

Sherritt is a world leader in the mining and refining of nickel and cobalt from lateritic ores with projects and operations in Canada and Cuba. Sherritt licenses its proprietary technologies and provides metallurgical services to mining and refining operations worldwide.

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