Sherritt International Corporation continues to operate under constrained liquidity conditions and faces material uncertainty regarding its ability to continue as a going concern following severe operational disruptions in Cuba and Canada.

The financial strain stems 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 joint venture activities in Cuba on May 7, 2026, and ceased metals refining operations at its facility in Fort Saskatchewan, Alberta, on June 22, 2026.

The sanctions and subsequent operational stoppages constituted a material and progressive adverse change to the business. This change entitled the administrative agent for the lenders to call an event of default under Sherritt’s revolving-term credit facility, which is scheduled to mature on April 30, 2027. While no formal demand for repayment has been made to date, an acceleration of indebtedness under the credit facility could trigger holders of at least 25% of the outstanding amended senior secured notes to declare those notes immediately due and payable.

In response to these pressures, Sherritt is advancing a comprehensive recapitalization and remains in active discussions with all of its lenders. The primary objectives are securing interim financing and obtaining the significant new capital required to restart operations and restore normal functioning. Alongside these lender talks, the corporation is pursuing government support and other strategic capital sources, though there is no assurance that any financing will be completed on acceptable terms, in a timely manner, or at all.

These developments follow a challenging second quarter in 2026. Sherritt reported a net loss of $71.1 million on August 12, 2026, which coincided with the initial suspension of its Cuban joint venture activities.

Despite the current operational standstill, the asset base remains strategically significant. Sherritt’s Moa Joint Venture produces critical minerals and carries an estimated mine life of approximately 25 years. Meanwhile, the Fort Saskatchewan refinery in Alberta is recognized as the only significant cobalt refinery and one of just three nickel refineries in North America.

Looking toward corporate governance milestones, Sherritt has scheduled a combined annual and requisitioned special meeting of shareholders for December 15, 2026, with a record date set for October 30, 2026.

Read the full announcement: Sherritt Provides Update on Financial and Liquidity Position