SMM2, March 14: Sherritt recently released its fourth quarter 2019 results, with its Moa joint venture producing 8098 tons of nickel and 822 tons of cobalt in the fourth quarter of 2019. In 2019, the annual output of nickel was 33108 tons and that of cobalt was 3376 tons.
The total reflects the success of the strategy implemented by Sherritt during the quarter to offset the negative impact of the CN railway strike on the transport of mixed sulphide in Canada and the reduction in diesel fuel supply in Cuba on Moa operations.
Nickel and cobalt production at the Moa joint venture is expected to maintain strong growth in 2019, reflecting continued earnings from Sherritt's excellent operating plan.
By 2020, the net direct cash cost of the Moa joint venture is expected to be between $4.0 and $4.50 per pound of finished nickel, in line with the 2019 guidance.
Sherritt expects total capital expenditure to be $41 million in 2020. The total amount will be used primarily for the replacement of existing equipment and infrastructure in the Moa joint venture and does not include any substantive expenditure in block 10.
Production guidance for 2020:
