Sherritt Nickel and Cobalt Production Declines in Q1 2025

Sherritt International

Sherritt nickel and cobalt production dropped significantly in the first quarter of 2025. The Canadian miner reported an 18% decline in nickel output to 2,947 tonnes and a 6% decrease in cobalt production to 323 tonnes. Despite these setbacks, the company maintained its raised full-year guidance, signaling confidence in its operational outlook. The Sherritt nickel and cobalt production update reflects both current challenges and anticipated recovery.

Moa Expansion Faces Sanctions but Offers Hope

Operations at Sherritt’s Moa joint venture in Cuba were affected by intensified U.S. sanctions, limiting output capacity. However, the company initiated Phase 2 of its expansion project at the site. Full ramp-up is expected in the second half of the year, which could restore Sherritt nickel and cobalt production to targeted levels. CEO Leon Binedell emphasized that this expansion is critical to meeting future demand, especially in energy transition sectors.

Cobalt Sales Rise Despite Falling Prices

While production declined, cobalt sales rose 26% to 456 tonnes, outpacing actual output. This suggests strong downstream demand, particularly from battery manufacturers. In contrast, nickel sales fell 15% to 3,439 tonnes. Price trends diverged: cobalt’s average realized price fell 8% to C$13.29/lb, while nickel edged up 1% to C$9.98/lb. Sherritt expects cobalt prices to rebound in the second quarter, potentially improving margins.

The company posted a C$40.6 million loss, nearly flat from a year earlier. However, revenue rose 33% to C$38.4 million, supported by strategic inventory sales and resilient market demand. This financial performance demonstrates that even amid operational pressure, Sherritt’s market positioning remains strong.

The Metalnomist Commentary

Sherritt’s first-quarter results highlight the fragility of critical mineral supply chains under geopolitical stress. Yet its decisive investment in Moa and steady demand for cobalt offer a realistic path to recovery in 2025.