Wednesday, February 25, 2009

Sherritt Shows Loss After Impairment Charges

Sherritt International Corp. the Canadian natural resource company, reported a loss for the fourth quarter, after a large goodwill impairment charge of C$473.3million.

The company's fourth-quarter net loss was C$592.1 million, compared to net earnings of C$83.5 million in the same period last year.

The impairment charge was the full amount of the goodwill of C$463.3 million related to the Ambatovy Project plus asset impairment charges of C$30.1 million, receivable impairment charges of C$72.9 million, fair value adjustment of C$41.7 million, inventory impairments of C$11.7 million and other adjustments of C$48.4 million.

On an adjusted basis, net loss was C$20.8 million for the fourth-quarter.

Total revenue for the quarter increased to C$379.0 million from C$323.6 million in the comparable quarter last year.

Source: RTT News
Revenue from the Metals division declined to C$96.0 million from C$176.9 million in the same quarter last year due to lower nickel and cobalt prices. Nickel production during the quarter was 4,337 tonnes, compared to 4,344 tonnes in the last year. Cobalt production was 464 tonnes, below last year's 483 tonnes.

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