Sherritt International Corporation posted a net loss from continuing operations of $71.1 million, or $0.10 per share, for the second quarter of 2026, compared to earnings of $10.4 million in the same period of 2025.

The weaker financial performance coincided with severe operational disruptions stemming from a U.S. Executive Order issued on May 1, 2026, which expanded sanctions against persons and companies conducting business in Cuba. In response, Sherritt suspended its direct participation in both its Moa Joint Venture and Energas joint venture activities in Cuba on May 7, 2026.

Fuel supply disruptions in Cuba and challenges in procuring other input commodities at the mine site resulted in the depletion of feed inventory at the company's refinery in Fort Saskatchewan, Alberta, on June 22, 2026. Consequently, mining and processing operations at Moa ceased near the end of the quarter.

Finished nickel production at the Moa Joint Venture fell 62% to 1,319 tonnes in the second quarter of 2026, down from 3,431 tonnes in the prior-year period. Net direct cash cost for nickel rose 39% to US$7.31 per pound, up from US$5.27 per pound in the second quarter of 2025, driven by higher input commodity prices and the allocation of fixed costs over significantly reduced sales volumes. Adjusted EBITDA for the quarter dropped to $(2.0) million from $2.6 million a year earlier.

To address ongoing liquidity pressures, Sherritt entered into a non-binding term sheet and a subsequent 120-day exclusivity agreement with Gillon Capital, LLC on June 15, 2026, regarding a proposed private placement of common share purchase warrants that would result in Gillon Capital owning 55% of the issued and outstanding common shares upon exercise.

The company also faced pressures on its credit facility, reporting a borrowing base deficiency of $43.1 million against aggregate borrowings of $76.3 million as of June 30, 2026. Sherritt subsequently repaid 50% of the deficiency, amounting to $16.6 million, post-period end after lenders agreed to withhold action on default notices. Available liquidity in Canada stood at $80.1 million as of June 30, 2026.

“The second quarter was marked by significant challenges and disruption,” said Peter Hancock, Interim President and Chief Executive Officer. “Against this backdrop, we remained focused on preserving liquidity, maintaining safety, maximizing fertilizer production, and advancing stakeholder engagement and strategic initiatives necessary to prepare for a restart of our critical minerals mining and refining operations subject to U.S. government approval. We are continuing to work with urgency and discipline to deliver a solution that supports the long-term stability and viability of our business.”

Sherritt holds a 50% interest in the Moa Joint Venture, alongside 100% interests in utility and fertilizer operations in Fort Saskatchewan, Alberta. Under court orders granted pursuant to the Canada Business Corporations Act, Sherritt is permitted to operate with its current board composition, operate without an external auditor, and hold its annual meeting of shareholders no later than September 30, 2026.

Read the full announcement: Sherritt Reports Second Quarter 2026 Results