Sherritt Reports Fourth Quarter and Full Year 2025 Results; Provides 2026 Guidance
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Sherritt Reports Fourth Quarter and Full Year 2025 Results; Provides 2026 Guidance
TORONTO – February 10, 2026 – Sherritt International Corporation (“Sherritt”, the “Corporation”) (TSX: S), a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition – today reported its financial results for the three months and year ended December 31, 2025 and provided its 2026 guidance. All amounts are in Canadian dollars unless otherwise noted.
Dr. Peter Hancock, Interim Chief Executive Officer of Sherritt commented, “Following recent changes to management and the Board, Sherritt is sharpening its focus on maximizing the performance and potential of the Moa Joint Venture, particularly through optimizing mining operations. Our comprehensive operational review of the Moa mine identified key improvement opportunities, and we are taking decisive action to address them through targeted investments in equipment, expertise, and process optimization.”
Dr. Hancock continued: “We are implementing a multi-faceted turnaround plan that includes new mining equipment, additional technical expertise, and debottlenecking projects to improve efficiency and reliability. While ramping up production of mixed sulphides will take time, we are confident this plan will support increased output utilizing our recently completed expansion projects and unlock significant value over the mine’s long life.”
In addition, Sherritt announces that John Ewing has stepped down from its board of directors (the “Board”) effective today in order to dedicate his full attention to his role as Chief Investment Officer of Ewing Morris & Co. Investment Partners.
Mr. Ewing commented, “It has been a privilege to serve on Sherritt’s Board during an important period of transition and renewal. I’m pleased with how the Board has been strengthened and I have full confidence in Dr. Peter Hancock as Interim Chief Executive Officer and in the leadership team’s ability to execute Sherritt’s strategy going forward. Ewing Morris remains an engaged shareholder, and we look forward to what the future holds for the company.”
Brian Imrie, Chair of the Board commented, “I would like to extend my sincere appreciation to John for his valuable contributions to the Board and look forward to our continued engagement with him in his capacity as a valued shareholder.”
FOURTH QUARTER AND FULL YEAR 2025 RESULTS AND SELECTED DEVELOPMENTS(1)
Operational Performance
- Finished nickel and cobalt production at the Moa Joint Venture (“Moa JV”) in Q4 2025 was 3,816 tonnes and 424 tonnes, respectively, (Sherritt’s share(1)). Full year 2025 production reached 25,240 tonnes of nickel and 2,728 tonnes of cobalt (100% basis) both within revised annual guidance ranges(2).
- Finished nickel and cobalt sales in Q4 2025 were 3,710 tonnes and 437 tonnes, respectively. Full year 2025 sales totaled 13,145 tonnes and 1,535 tonnes, respectively.
- Net direct cash cost (“NDCC”)(3) was US$6.01/lb in Q4 2025. Full year 2025 NDCC(3) of US$5.96/lb was within the original guidance range, benefitting from higher cobalt by-product credits and ongoing cost optimization initiatives.
- Electricity production reached 210 GWh in Q4 2025. Full year 2025 production totaled 799 GWh, largely in line with the annual guidance range of 800 GWh to 850 GWh. The Boca de Jaruco facility operated in frequency control in December at the request of Unión Eléctrica (“UNE”) which had not been factored into guidance. Energas was fully compensated for this reduction.
- Electricity unit operating cost(3) was $23.48/MWh in Q4 2025. Full year 2025 unit operating cost(3) of $23.33/MWh was at the low end of the annual guidance range.
Financial Performance
- Net loss from continuing operations was $15.7 million, or $(0.03) per share in Q4 2025 and $65.4 million, or $(0.14) per share for the full year 2025.
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- Adjusted net loss from continuing operations(3) was $13.9 million or $(0.03) per share in Q4 2025 and $77.2 million or $(0.17) per share for the full year. Q4 2025, adjusted net loss from continuing operations primarily excludes foreign exchange and net revaluation gains and losses and the $3.5 million loss from operations of Sherritt’s Oil and Gas division. Full year 2025, adjusted net loss from continuing operations primarily excludes a $32.4 million gain on debt and equity transactions (“Debt and Equity Transactions”) and $11.7 million of net revaluation gains and losses partially offset by the $22.0 million loss from Oil and Gas division operations (primarily due to updates to contractually obligated environmental rehabilitation costs on legacy assets in Spain).
- Adjusted EBITDA(3) was $(1.5) million in Q4 2025 and $7.1 million for the full year 2025.
- Available liquidity in Canada as of December 31, 2025 was $43.7 million.
Strategic and Organizational Developments
- Power division dividends in Canada from Energas were $7.8 million in Q4 2025 bringing full year 2025 dividends to $26.0 million – double the $13.0 million received in 2024 and in line with prior disclosure.
- Cost reduction initiatives were implemented in Q3 2025, which included a further workforce reduction with a focus on non-operating roles across Canadian operations. The cost reduction initiatives are expected to deliver approximately $20.0 million in annual savings (100% basis) and are in addition to the $17.0 million in annual savings (100% basis) achieved through the 2024 initiatives.
- Debt restructuring completed in April 2025 consolidated the Corporation’s debt, extended the maturity to November 2031, reduced debt obligations by $68.0 million(4) and decreased annual interest expense by approximately $3.0 million.
- Board and leadership transition: In November 2025, Brian Imrie was appointed as independent director and Chair of the Board, bringing extensive leadership, capital markets and mining-sector experience. In December, the Board also welcomed Brett Richards, an experienced mining executive with more than 37 years of industry experience, as an independent director. Dr. Peter Hancock, a seasoned mining industry executive with more than 35 years of experience that includes overseeing nickel mining operations, was appointed Interim Chief Executive Officer. Dr. Hancock previously served as an independent director since November 2021 and Chair of the Reserves, Operations and Capital Sustainability Committee since March 2022. The Board has launched a comprehensive search for a permanent Chief Executive Officer, which will include consultation with shareholders and other stakeholders.
(1) References to operational and financial metrics in this press release, unless otherwise indicated, are to “Sherritt’s share” which is consistent with the Corporation’s definition of reportable segments for financial statement purposes. Sherritt’s share of “Metals” includes the Corporation’s 50% interest in the Moa JV, its 100% interest in the utility and fertilizer operations in Fort Saskatchewan (“Fort Site”) and its 100% interests in subsidiaries established to buy, market and sell certain of the Moa JV’s nickel and cobalt production and the Corporation’s cobalt inventory received under the Cobalt Swap agreement (“Metals Marketing”). Sherritt’s share of Power includes the Corporation’s 33⅓% interest in Energas. References to Corporate and Other and Oil and Gas includes the Corporation’s 100% interest in these businesses. Corporate and Other refers to the Corporate head office and growth and market development support. Fort Site refers to the Corporation’s 100% interest in the utility and fertilizer operations.
(2) Guidance refers to 2025 guidance as most recently updated and disclosed in the Corporation’s Management Discussion and Analysis for the three and nine months ended September 30, 2025. See the Outlook section for more information.
(3) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(4) Principal amount of Second Lien Notes and PIK Notes at the transaction date and the premium required to be paid on maturity of the Second Lien Notes in November 2026, net of the principal amount of Amended Senior Secured Notes issued. See the Capital Resources section of the Corporation’s Management Discussion and Analysis for the year ended December 31, 2025 (“MD&A”) for details.
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OPERATIONAL UPDATE AND 2026 GUIDANCE
Operational update
In early 2026 Sherritt and its joint venture partner completed an operational review of the Moa mine, establishing the foundation for an actionable turnaround plan aimed at stabilizing operations and restoring mixed sulphides production to pre-2025 levels. The review identified key opportunities for improvement, including optimizing mining operations to increase production rates, enhancing workforce stability and technical expertise, and reducing maintenance downtime at the Moa processing facility.
To address these priorities, Sherritt has initiated a comprehensive turnaround plan that includes investing in additional mining equipment, deploying experienced technical personnel, a revised mining plan and allocating resources to improve operational performance and maintenance efficiency. Sherritt is also advancing several debottlenecking initiatives to enhance production efficiency. Sherritt’s share of the 2026 turnaround investments is included in its spending on capital(1) guidance.
As these initiatives progress through 2026, Sherritt expects mixed sulphides production to recover steadily, reaching pre-2025 levels by year-end. Following the completion of the operational turnaround, Sherritt will focus on ramping up production to realize the full benefits of its expansion program.
2026 Guidance
Metals
- Finished nickel and cobalt production are expected to be 26,000 to 28,000 tonnes (100% basis) and 2,750 to 2,850 tonnes (100% basis), respectively. Nickel production is up from 2025 as a result of higher mixed sulphides production which is expected to be 30,000 to 32,000 tonnes (100% basis) of contained nickel and cobalt weighted to the second half of the year as the operational turnaround plan takes effect.
- NDCC(1) is expected to be US$5.75 to US$6.25 per pound of nickel sold, consistent with 2025 levels benefitting from higher expected production and sales volumes, ongoing cost optimization initiatives, and higher cobalt by-product credits, partially offset by higher sulphur prices. NDCC(1) guidance for 2026 is based on a forecast cobalt reference price of US$23.50 per pound and forecast sulphur price of US$439.00 per tonne including freight and handling.
- Sustaining spending on capital(1):
- Expected to be $35.0 to $40.0 million (Moa JV 50% basis, Fort Site 100% basis), including additional mining equipment and refurbishment of various equipment as part of the operational turnaround plan at Moa.
- Tailings facility – expected to be $25.0 to $30.0 million (50% basis) related to the Moa JV’s tailings management project which incorporates savings and deferred spending to 2027 through design optimization, improved material sourcing, and strategic procurement, while maintaining the expected date for commencing operations at year-end 2026.
- Growth spending on capital(1):
- Improvement debottlenecking projects – expected to be $2.5 to $5.0 million (50% basis) which includes projects to enhance processing performance at Moa so the full benefit of the expansion program can be realized.
Efforts are underway to finance the Metals division’s capital requirements.
Power
- Electricity production is expected to be 825 to 875 GWh (33⅓% basis), reflecting expectations that the Varadero facility will operate in frequency control for the majority of 2026.
- Electricity unit operating cost(1) is expected to be $27.25 to $28.75 per MWh slightly above 2025 levels due to planned maintenance activities weighted toward the first half of the year.
- Spending on capital(1) is expected to be $3.0 million (33⅓% basis).
This guidance is based on current expectations, assumptions and projections about future events, including commodity and product prices and demand, the ability to successfully source required input commodities, operational performance, and other factors. Refer to the Forward-Looking Statements for further information.
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Dividends and distributions
Based on 2026 guidance estimates for production volumes, unit operating costs(1) and spending on capital(1) as well as consensus 2026 prices for nickel and cobalt:
- Sherritt does not expect to receive any cash or cobalt distributions under the Cobalt Swap agreement. As defined by the agreement, any shortfall in the annual minimum payment amount will be added to the following year.
- Power dividends in Canada from Energas are expected to be $20.0 million to $25.0 million.
Refer to the risks related to Sherritt’s corporate structure in the Corporation’s 2024 Annual Information Form for further information on risks related to distributions from the Moa JV and dividends in Canada from Energas.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
DEVELOPMENTS SUBSEQUENT TO THE QUARTER
Organizational restructuring and cost optimization
Consistent with the Corporation’s strategic focus on core operations and cost discipline, Sherritt eliminated the position of Chief Commercial Officer in early 2026. As part of ongoing cost optimization initiatives, Sherritt’s executive management team has been streamlined from seven members at the beginning of 2024 to four, optimizing the organization for operational focus and efficiency.
Nickel put options
As part of its disciplined risk management approach, Sherritt purchased put options on 3,750 tonnes of nickel, or 625 tonnes per month, at an exercise price of US$7.48/lb (US$16,500/tonne) at a cost of $2.4 million for the six-month period from February 1, 2026 to July 31, 2026. Settlements are received in cash monthly based on the average monthly nickel price on the London Metal Exchange. The put options provide Sherritt with full exposure to upward changes in nickel prices, while protecting against downward changes during periods of high volatility by providing a minimum price of US$7.48/lb on a portion of nickel production from the Moa JV during the six-month period.
Geopolitical update
In early 2026, Venezuela ceased oil exports to Cuba as a result of recent geopolitical turmoil in the country. Venezuela has historically been a major supplier of oil to Cuba, and this supply disruption may exacerbate Cuba’s existing economic challenges. In addition, on January 29, 2026, the U.S. government issued an Executive Order declaring a national emergency with respect to the government of Cuba and authorized the imposition of tariffs on countries that supply oil to Cuba, which may further heighten the risk of oil supply disruption to Cuba. The Corporation continues to monitor geopolitical and regulatory developments and to engage with its Cuban joint venture partner as appropriate.
Board update
Sherritt announces that John Ewing has stepped down from the Board effective today in order to dedicate his full attention to his role as Chief Investment Officer of Ewing Morris & Co. Investment Partners.
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Q4 2025 FINANCIAL HIGHLIGHTS
For the three months ended For the year ended
| 2025 | 2024 | 2025 | 2024 | |||
| $ millions, except per share amount | December 31 | December 31 | Change | December 31 | December 31 | Change |
| Revenue | $ 55.5 $ | 45.7 | 21% $ | 177.3 $ | 158.8 | 12% |
| Combined revenue(1) | 163.2 | 160.3 | 2% | 532.9 | 577.6 | (8%) |
| Loss from operations and joint venture | (10.7) | (16.9) | 37% | (74.5) | (43.5) | (71%) |
| Net loss from continuing operations | (15.7) | (22.5) | 30% | (65.4) | (73.1) | 11% |
| Net loss for the period | (15.8) | (22.9) | 31% | (65.7) | (72.8) | 10% |
| Adjusted EBITDA(1) | (1.5) | 14.4 | (110%) | 7.1 | 32.4 | (78%) |
| Adjusted loss from continuing operations(1) | (13.9) | (10.2) | (36%) | (77.2) | (56.3) | (37%) |
| Net loss from continuing operations ($ per share) | (0.03) | (0.06) | 50% | (0.14) | (0.18) | 22% |
| Adjusted loss from continuing operations ($ per share)(1) | (0.03) | (0.03) | - | (0.17) | (0.14) | (21%) |
Cash provided (used) by continuing operations for operating
| activities | 12.1 | (21.5) | 156% | 21.2 | (25.9) | 182% |
| Combined free cash flow(1) | 7.5 | (20.2) | 137% | (20.3) | (19.2) | (6%) |
| Average exchange rate (CAD/US$) | 1.395 | 1.398 | - | 1.398 | 1.370 | 2% |
2025 2024 $ millions, as at December 31 December 31 Change
Cash and cash equivalents
| Canada | $ 13.4 $ | 32.1 | (58%) |
| Cuba(2) | 109.4 | 113.0 | (3%) |
| Other | 2.1 | 0.6 | 250% |
| 124.9 | 145.7 | (14%) | |
| Loans and borrowings | 316.0 | 372.5 | (15%) |
The Corporation's share of cash and cash equivalents in the Moa Joint Venture, not included in the above balances: $ 12.8 $ 5.7 124%
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) As at December 31, 2025, $103.3 million of the Corporation’s cash and cash equivalents was held by Energas (December 31, 2024 - $111.4 million).
Cash and cash equivalents were $124.9 million as at December 31, 2025 compared to $120.2 million at September 30, 2025 and $145.7 million at December 31, 2024. As at December 31, 2025, total available liquidity in Canada was $43.7 million, composed of cash and cash equivalents in Canada of $13.4 million and available credit facilities of $30.3 million.
During the quarter, significant cash inflows included $7.8 million of dividends in Canada from Energas and $12.1 million cash provided by continuing operations primarily reflecting timing of working capital receipts and payments, including $8.2 million of fertilizer spring season pre-buys at Fort Site and $12.3 million payment of interest on the Amended Senior Secured Notes. In addition, Sherritt had $5.8 million of expenditures on property, plant and equipment.
During the year, significant cash inflows included $26.0 million of dividends in Canada from Energas and $21.2 million cash provided by continuing operations primarily reflecting timing of working capital receipts and payments, including $6.2 million of proceeds on the sale of cobalt it received under the Cobalt Swap in 2024 offset by $21.0 million in payments of interest on the Second Lien and Amended Senior Secured Notes and Sherritt paid $12.1 million on contractually obligated rehabilitation and closure costs related to legacy Oil and Gas assets in Spain. In addition, Sherritt had $16.0 million of expenditures on property, plant and equipment and $15.9 million of transaction costs related to the Debt and Equity Transactions.
As at December 31, 2025, the Corporation was in compliance with all its debt covenants.
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REVIEW OF OPERATIONS
Metals
For the three months ended For the year ended 2025 2024 2025 2024 $ millions (Sherritt's share), except as otherwise noted December 31 December 31 Change December 31 December 31 Change
FINANCIAL HIGHLIGHTS(1)
| Revenue | $ 149.1 $ | 148.3 | 1% $ | 481.6 $ | 526.6 | (9%) |
| Cost of sales | 165.5 | 146.6 | 13% | 521.5 | 532.3 | (2%) |
| (Loss) earnings from operations | (18.0) | (1.0) | nm(3) | (48.4) | (18.5) (162%) | |
| Adjusted EBITDA(2) | (0.5) | 14.6 (103%) | 11.3 | 40.0 | (72%) |
CASH FLOW(1)
Cash provided by continuing operations for operating activities(2) $ 20.9 $ 5.9 254% $ 53.6 $ 93.1 (42%) Free cash flow(2) 7.2 (0.3) nm(3) 7.1 59.1 (88%)
PRODUCTION VOLUMES (tonnes)
| Mixed sulphides ("MSP")(4) | 2,535 | 3,552 | (29%) | 12,650 | 15,847 | (20%) |
| Finished nickel | 3,816 | 3,853 | (1%) | 12,620 | 15,166 | (17%) |
| Finished cobalt | 424 | 465 | (9%) | 1,364 | 1,603 | (15%) |
| Fertilizer | 57,486 | 67,648 | (15%) | 227,766 | 250,272 | (9%) |
| NICKEL RECOVERY(5)(%) | 82% | 84% | (2%) | 83% | 86% | (3%) |
SALES VOLUMES (tonnes)
| Finished nickel | 3,710 | 4,326 | (14%) | 13,145 | 15,678 | (16%) |
| Finished cobalt | 437 | 465 | (6%) | 1,535 | 1,638 | (6%) |
| Fertilizer | 61,135 | 63,299 | (3%) | 166,817 | 179,135 | (7%) |
AVERAGE-REFERENCE PRICE(6) (US$ per pound)
Nickel $ 6.75 $ 7.27 (7%) $ 6.88 $ 7.63 (10%) Cobalt 23.10 11.59 99% 17.69 12.77 39%
AVERAGE-REALIZED PRICE(2) (CAD)
Nickel ($ per pound) $ 9.51 $ 9.98 (5%) $ 9.63 $ 10.30 (7%) 25.26 12.30 105% 18.80 13.30 41% Cobalt ($ per pound)
553.68 502.93 10% 565.02 503.19 12% Fertilizer ($ per tonne)
UNIT OPERATING COST(2) (US$)
Nickel - net direct cash cost (US$ per pound) $ 6.01 $ 5.44 10% $ 5.96 $ 5.94 -
SPENDING ON CAPITAL(2)(CAD)
Sustaining
| Moa JV (50% basis), Fort Site (100% basis) | $ | 5.9 $ | 1.4 | 321% $ | 27.2 $ | 15.2 | 79% |
| Moa JV - Tailings facility (50% basis) | 7.3 | 4.6 | 59% | 24.3 | 13.1 | 85% | |
| Growth - Moa JV (50% basis) | 1.1 | 5.3 | (79%) | 7.4 | 11.4 | (35%) | |
| $ | 14.3 $ | 11.3 | 27% $ | 58.9 $ | 39.7 | 48% |
(1) The amounts included in the Financial Highlights, and cash flow sections for Metals above include the combined results of the Moa JV, Fort Site and Metals Marketing. Breakdowns of revenue, Adjusted EBITDA, and the components of free cash flow (cash provided (used) by continuing operations for operating activities and Property, plant and equipment expenditures) for each of these operations are included in the Combined Revenue, Adjusted EBITDA and Free cash flow reconciliations, respectively, in the Non-GAAP and other financial measures section of this press release.
(2) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(3) Not meaningful (“nm”).
(4) Mixed sulphides = mixed sulphide precipitate (MSP).
(5) The nickel recovery rate measures the amount of finished nickel that is produced compared to the original nickel content of the ore that was mined.
(6) Reference sources: Nickel – London Metal Exchange (“LME”). Cobalt - Average chemical-grade cobalt price published per Argus.
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For the three months ended December 31, 2025
Revenue
Metals revenue was $149.1 million compared to $148.3 million in the prior year period.
Nickel revenue was $77.8 million compared to $95.3 million in the prior year period. Nickel revenue was lower due to lower sales volume and a lower average-realized price(1) of nickel. Sales volume was 3,710 tonnes compared to 4,326 tonnes primarily due to lower finished production outlined below. The average-realized price(1) of nickel was $9.51/lb compared to $9.98/lb in the prior year period.
Cobalt revenue was $24.3 million compared to $12.6 million in the prior year period. Cobalt revenue was higher as the higher average-realized price(1) of cobalt more than offset the lower sales volume. Sales volume was 437 tonnes compared to 465 tonnes in the prior year period primarily due to lower finished production outlined below. The average-realized price(1) of cobalt was $25.26/lb compared to $12.30/lb in the prior year period with the 105% increase primarily due to the Democratic Republic of the Congo’s cobalt export ban implemented in February 2025 and replaced by the quota system which began in October 2025 restricting global supply.
Fertilizer revenue was $33.9 million compared to $31.8 million in the prior year period. Fertilizer revenue was higher due to the higher average-realized price(1) of fertilizers which more than offset lower sales volume. The average-realized price(1) of fertilizers was $553.68/tonne compared to $502.93/tonne the prior year period while sales volume of 61,135 tonnes compared to 63,299 tonnes consistent with lower metals production.
In addition, Metals had higher sulphuric acid revenue compared to the prior year as a result of higher sales volume and prices.
Production
Mixed sulphides production at the Moa JV was 2,535 tonnes of contained nickel and cobalt compared to 3,552 tonnes in the prior year period. Lower production was primarily due to below-plan mined ore volume, lower leach train availability, a delay in fuel oil procurement, national grid power outages and periods of reduced operating rates following Hurricane Melissa.
The continuation of lower-than-expected production of mixed sulphides at Moa impacted feed availability at the refinery in the quarter. Sherritt’s share of finished nickel and cobalt production of 3,816 tonnes and 424 tonnes, respectively, was only marginally lower compared to 3,853 tonnes and 465 tonnes in the prior year period as the refinery drew down its MSP inventory from Q3 2025. Sherritt did not acquire additional third-party feed given high payabilities in the intermediate market.
Fertilizer production of 57,486 tonnes was lower compared to 67,648 tonnes in the prior year period primarily due to the planned biennial ammonia plant turnaround.
NDCC(1)
NDCC(1) per pound of nickel sold was US$6.01/lb compared to US$5.44/lb in the prior year period.
MPR/lb was higher primarily as a result of higher input commodity prices driven by sulphur and natural gas prices which were 90% and 71% higher, respectively, compared to Q4 2024. Fuel oil and diesel prices were relatively unchanged in the current year period. Higher MPR/lb was also, in part, due to lower nickel sales volume compared to the prior year period. MPR/lb was positively impacted by the benefits from ongoing cost optimization initiatives. Higher MPR/lb was partly offset by lower thirdparty feed costs.
Cobalt by-product credits were higher primarily as a result of the 105% improvement in average-realized cobalt price(1) which offset lower cobalt sales volume. Fertilizer net by-product credits were lower as marginally higher fertilizer revenue was more than offset by higher production costs primarily due to higher natural gas prices and higher planned maintenance.
Spending on capital(1)
Sustaining spending on capital of $5.9 million was higher compared to $1.4 million in the prior year period.
Sustaining spending on capital related to the tailings facility was $7.3 million compared to $4.6 million in the prior year period.
Growth spending on capital was $1.1 million compared to $5.3 million in the prior year period as final spending on the Moa JV expansion program was completed during the quarter.
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For the year ended December 31, 2025
Revenue
Metals revenue was $481.6 million compared to $526.6 million in the prior year.
Nickel revenue was $279.0 million compared to $355.9 million in the prior year. Nickel revenue was lower due to lower sales volume and a lower average-realized price(1) of nickel. Sales volume was 13,145 tonnes compared to 15,678 tonnes primarily due to lower finished production outlined below. The average-realized price(1) of nickel was $9.63/lb compared to $10.30/lb in the prior year.
Cobalt revenue was $63.6 million compared to $48.0 million in the prior year. Cobalt revenue was higher as the higher averagerealized price(1) of cobalt more than offset the lower sales volume. Sales volume was 1,535 tonnes compared to 1,638 tonnes in the prior year primarily due to lower finished production outlined below. The average-realized price(1) of cobalt of $18.80/lb was 41% higher compared to $13.30/lb in the prior year.
Fertilizer revenue was $94.3 million compared to $90.1 million in the prior year. Fertilizer revenue was higher due to a higher average-realized price(1) of fertilizers which more than offset lower sales volume. The average-realized price(1) of fertilizers was $565.02/tonne compared to $503.19/tonne in the prior year while sales volume was 166,817 tonnes compared to 179,135 tonnes consistent with lower metals production.
In addition, Metals had higher sulphuric acid revenue compared to the prior year as a result of higher sales volume and prices.
Production
Mixed sulphides production at the Moa JV was 12,650 tonnes of contained nickel and cobalt compared to 15,847 tonnes in the prior year. Lower production was primarily due to below-plan mined ore volume, unplanned maintenance of the processing facilities in Moa and the ongoing challenging economic conditions and operating environment in Cuba.
In 2025, continued lower-than-expected production of mixed sulphides at Moa impacted feed availability at the refinery. Sherritt’s share of finished nickel and cobalt production was 12,620 tonnes and 1,364 tonnes, respectively, compared to 15,166 tonnes and 1,603 tonnes in the prior year. As well, primarily in the second half of 2025, Sherritt did not acquire additional third-party feed. Finished nickel and cobalt production were at the lower ends of their revised 2025 guidance ranges.
Fertilizer production of 227,766 tonnes was lower compared to 250,272 tonnes in the prior year primarily due to lower metals production and the planned biennial ammonia plant turnaround.
NDCC(1)
NDCC(1) per pound of nickel sold was US$5.96/lb compared to US$5.94/lb in the prior year. NDCC(1) was within the guidance range originally disclosed at the start of the year.
MPR/lb was higher, driven primarily by higher input commodity prices and the impact of lower nickel sales volume on per unit cost. During the year, sulphur and natural gas prices were 54% and 29% higher, respectively, compared to 2024. Fuel oil and diesel prices were slightly lower in the current year. MPR/lb also benefitted from ongoing cost optimization initiatives.
Cobalt by-product credits were higher primarily as a result of the 41% higher average-realized price(1) of cobalt which offset lower cobalt sales volume.
Spending on capital(1)
Sustaining spending on capital was $27.2 million compared to $15.2 million in the prior year with higher spending in 2025 partially attributable to higher mining equipment replacement costs to improve mining operations. Sustaining spending on capital for the year however was lower than revised guidance as Sherritt continued to prudently manage capital spending in light of low nickel prices during 2025.
Sustaining spending on capital related to the tailings facility was $24.3 million compared to $13.1 million in the prior year and was lower than revised guidance as the joint venture delayed non-essential spending in an effort to manage liquidity. Expenditures in 2025 included costs associated with the construction of the embankments and materials and supplies required for the tailings pipelines. This prudent approach to managing liquidity, design optimization, improved material sourcing, and strategic procurement has deferred some spending to 2027 which is not expected to affect commencement of operations by the end of 2026.
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Growth spending on capital was $7.4 million compared to $11.4 million in the prior year as the Moa JV expansion program was completed in the year.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
For the three months ended For the year ended 2025 2024 2025 2024 $ millions (33 ⅓% basis), except as otherwise noted December 31 December 31 Change December 31 December 31 Change
FINANCIAL HIGHLIGHTS
| Revenue | $ 13.3 $ | 11.1 | 20% $ | 49.2 $ | 47.8 | 3% |
| Cost of sales | 5.5 | 5.9 | (7%) | 20.8 | 30.1 | (31%) |
| Earnings from operations | 6.6 | 4.8 | 38% | 22.2 | 13.5 | 64% |
| Adjusted EBITDA(1) | 7.3 | 5.5 | 33% | 24.8 | 16.0 | 55% |
CASH FLOW
Cash provided (used) by continuing operations for operating activities(1) $ 13.1 $ (1.1) nm(3) $ 34.2 $ (9.8) 449% Free cash flow(1) 12.6 (1.6) 888% 32.6 (12.7) 357%
PRODUCTION AND SALES
Electricity (GWh(2)) 210 171 23% 799 816 (2%)
AVERAGE-REALIZED PRICE(1)
Electricity ($/MWh(2)) $ 52.99 $ 53.19 - $ 53.03 $ 52.01 2%
UNIT OPERATING COSTS(1)
Electricity ($/MWh) $ 23.48 $ 30.64 (23%) $ 23.33 $ 34.29 (32%)
SPENDING ON CAPITAL(1)
Sustaining $ 0.5 $ 0.3 67% $ 1.6 $ 2.9 (45%)
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
(2) Gigawatt hours (“GWh”), Megawatt hours (“MWh”).
(3) Not meaningful (“nm”).
Frequency control
As a result of the nationwide power outages in Cuba and challenges facing the national power grid, the government agency UNE required Energas to operate certain facilities in frequency control to help stabilize the power grid. Energas has been fully compensated for the reductions in production at its facilities and as a result there has been no impact to Power’s Adjusted EBITDA(1), earnings from operations or dividends from Energas to Sherritt in Canada.
For the three months ended December 31, 2025
Revenue
Revenue of $13.3 million was higher than the prior year period of $11.1 million primarily due to higher electricity production as discussed below.
Production
Electricity production of 210 GWh was higher than the prior year period of 171 GWh benefiting from the increased natural gas being supplied to Energas’ facilities including the new gas well that was brought online in Q4 2024 and the replacement gas well that was brought online in Q3 2025 to offset the loss of gas production from a legacy CUPET well.
Unit operating cost(1)
Unit operating cost(1) was $23.48/MWh improving from $30.64/MWh during the prior year period primarily as a result of lower maintenance costs.
Spending on capital(1)
Spending on capital(1) was $0.5 million.
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Dividends from Energas
Sherritt received $7.8 million of dividends in Canada from Energas in Q4 2025 compared to $7.0 million in Q4 2024.
For the year ended December 31, 2025
Revenue
Revenue of $49.2 million was higher than the prior year of $47.8 million primarily due to higher compensation received from the Energas facilities operating in frequency control and higher average-realized prices(1) largely offset slightly lower electricity production.
Production
Electricity production was 799 GWh compared to 816 GWh in the prior year and was largely in line with the low end of the 2025 guidance range. While capable of producing more, the Boca de Jaruco facility was required by UNE to operate in frequency control for periods toward the end of 2025 to help stabilize the national power grid which had not been factored into Sherritt’s guidance. Energas was fully compensated for this reduction. The lower electricity production compared to the prior year was primarily due to operating in frequency control partially offset by increased natural gas being supplied from new and existing wells as described above.
Unit operating cost(1)
Unit operating cost(1) was $23.33/MWh improving from $34.29/MWh in the prior year and was at the lower end of the 2025 guidance range. The lower unit operating cost(1) was primarily as a result of lower maintenance costs. In the current year, maintenance costs included only one major turbine inspection which was completed in the first quarter. In the prior year, higher planned maintenance work in Q2 2024 and Q3 2024 included major inspections on three gas turbines and included bringing online another turbine to process gas being received from the new well that was brought into production in Q4 2024.
Spending on capital(1)
Spending on capital(1) was $1.6 million in line with 2025 guidance.
Dividends from Energas
Sherritt received $26.0 million in 2025 which was double the $13.0 million received in 2024 in line with Sherritt’s prior disclosure.
(1) Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release.
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OUTLOOK
2025 and 2026 production volumes, unit operating costs(1) and spending on capital(1) guidance
Year-to-date 2025 actual to 2026 Production volumes, unit operating costs(1) and spending on capital(1) Guidance(2) December 31, 2025 Guidance
Production volumes
Metals - Moa JV (100% basis, tonnes)
| Nickel, finished | 25,000 - 26,000 | 25,240 | 26,000 - 28,000 |
| Cobalt, finished | 2,700 - 2,800 | 2,728 | 2,750 - 2,850 |
| Electricity (33⅓% basis, GWh) | 800 - 850 | 799 | 825 - 875 |
Unit operating costs(1)
Metals - NDCC (US$ per pound) $5.75 - $6.25 $5.96 $5.75 - $6.25 Electricity - unit operating cost ($ per MWh) $23.00 - $24.50 $23.33 $27.25 - $28.75
Spending on capital(1)($ millions)
Sustaining
| Metals - Moa JV (50% basis), Fort Site (100% basis) | $30.0 | $27.2 | $35.0 - $40.0 |
| Metals - Moa JV (50% basis) - Tailings facility | $30.0 | $24.3 | $25.0 - $30.0 |
| Power (33⅓% basis) | $2.0 | $1.6 | $3.0 |
Growth
| Metals - Moa JV (50% basis) - Expansion | $7.0 | $7.4 | - |
| Metals - Moa JV (50% basis) - Improvement debottlenecking projects | - | - | $2.5 - $5.0 |
| Spending on capital(3) | $69.0 | $60.5 | $65.5 - $78.0 |
(1) Non-GAAP financial measures. For additional information, see the Non-GAAP and other financial measures section.
(2) Guidance refers to 2025 guidance as most recently updated and disclosed in the Corporation’s Management Discussion and Analysis for the three and nine months ended September 30, 2025. Original 2025 production guidance for finished nickel and finished cobalt was 31,000 – 33.000 tonnes and 3,300 – 3,600 tonnes, respectively (100% basis). Original guidance for sustaining spending on capital was: Moa JV (ex-tailings facility) $35.0 million, Moa JV tailings facility $40.0 million. Original growth spending on capital at Moa JV was $5.0 million. 2025 Guidance for electricity production, NDCC(1), electricity unit operating cost(1) and Power sustaining spending on capital were unchanged during the year.
(3) Excludes negligible spending on capital of the Metals Marketing, Oil and Gas and Corporate and Other segments.
2026 Guidance
Metals
- Finished nickel and cobalt production are expected to be 26,000 to 28,000 tonnes (100% basis) and 2,750 to 2,850 tonnes (100% basis), respectively. Nickel production is up from 2025 as a result of higher mixed sulphides production which is expected to be 30,000 to 32,000 tonnes (100% basis) of contained nickel and cobalt weighted to the second half of the year as the operational turnaround plan takes effect.
- NDCC(1) is expected to be US$5.75 to US$6.25 per pound of nickel sold, consistent with 2025 levels benefitting from higher expected production and sales volumes, ongoing cost optimization initiatives, and higher cobalt by-product credits, partially offset by higher sulphur prices. NDCC(1) guidance for 2026 is based on a forecast cobalt reference price of US$23.50 per pound and forecast sulphur price of US$439.00 per tonne including freight and handling.
- Sustaining spending on capital(1):
- Expected to be $35.0 to $40.0 million (Moa JV 50% basis, Fort Site 100% basis), including additional mining equipment and refurbishment of various equipment as part of the operational turnaround plan at Moa.
- Tailings facility – expected to be $25.0 to $30.0 million (50% basis) related to the Moa JV’s tailings management project which incorporates savings and deferred spending to 2027 through design optimization, improved material sourcing, and strategic procurement, while maintaining the expected date for commencing operations at year-end 2026.
- Growth spending on capital(1):
- Improvement debottlenecking projects – expected to be $2.5 to $5.0 million (50% basis) which includes projects to enhance processing performance at Moa so the full benefit of the expansion program can be realized.
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Efforts are underway to finance the Metals division’s capital requirements.
- Electricity production is expected to be 825 to 875 GWh (33⅓% basis), reflecting expectations that the Varadero facility will operate in frequency control for the majority of 2026.
- Electricity unit operating cost(1) is expected to be $27.25 to $28.75 per MWh slightly above 2025 levels due to planned maintenance activities weighted toward the first half of the year.
- Spending on capital(1) is expected to be $3.0 million (33⅓% basis).
This guidance is based on current expectations, assumptions and projections about future events, including commodity and product prices and demand, the ability to successfully source required input commodities, operational performance, and other factors. Refer to the Forward-Looking Statements for further information.
Dividends and distributions
Based on 2026 guidance estimates for production volumes, unit operating costs(1) and spending on capital(1) as well as consensus 2026 prices for nickel and cobalt:
- Sherritt does not expect to receive any cash or cobalt distributions under the Cobalt Swap agreement. As defined by the agreement, any shortfall in the annual minimum payment amount will be added to the following year.
- Power dividends in Canada from Energas are expected to be $20.0 million to $25.0 million.
Refer to the risks related to Sherritt’s corporate structure in the Corporation’s 2024 Annual Information Form for further information on risks related to distributions from the Moa JV and dividends in Canada from Energas.
CONFERENCE CALL AND WEBCAST
Sherritt will hold its conference call and webcast February 11, 2026, at 10:00 a.m. Eastern Time to review its fourth quarter and full year 2025 results. Dial-in and webcast details are as follows:
North American callers, please dial: 1 (800) 717-1738
International callers, please dial: 1 (289) 514-5100
Passcode 99379
Webcast and slide presentation: www.sherritt.com
A recording of the webcast will be available on Sherritt’s website following the conference call.
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