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Site of Sherritt's Ambatovy mining project in Madagascar (Geoffrey York)
Site of Sherritt's Ambatovy mining project in Madagascar (Geoffrey York)

Sherritt profit down on one-time charges Add to ...

Sherritt International Corp. reported Wednesday a second-quarter profit of $15.7-million, reduced from year-earlier earnings of $24.4-million after the diversified resource company booked a number of large one-time charges.

Toronto-based Sherritt - a miner, oil and gas producer and power company - said the profit amounted to 5 cents a share, compared with 8 cents in the second-quarter of 2009.

Adjusted earnings, however, came in at a much higher $52.9-million or 18 cents per share. Those excluded $37.2-million worth of one-time items, including a foreign exchange loss of $18.1-million and a $15.3-million provision for income taxes.

Revenues rose to $430.9-million from $358.8-million as sales volumes totalled 8.3 million pounds of nickel, one million pounds of cobalt, 8.2 million tonnes of thermal coal, 1.1 million barrels of oil and 171 gigawatt hours of electricity.

Sherritt produces nickel from lateritic ore, with operations in Cuba and Canada, and a project under development in Madagascar.

The company is also the largest thermal coal producer in Canada, with nine surface mines, producing coal for power plants, mainly in Alberta and Saskatchewan. It is also developing Canada's first coal gasification project.

The company also produces oil in Cuba, Spain and Pakistan, and manages 376 megawatts of power generation plants in Cuba.

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