Sherritt Reports Third Quarter 2025 Results; Moa JV Expansion Complete; Phase Two Ramp Up Advancing

Dow Jones Newswires

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO--(BUSINESS WIRE)--November 05, 2025--

Sherritt International Corporation ("Sherritt", the "Corporation") , 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 and nine months ended September 30, 2025. All amounts are in Canadian dollars unless otherwise noted.

Leon Binedell, Executive Chairman, President and CEO of Sherritt commented, "Sherritt hit an important milestone this quarter with the completion of our Moa expansion project with the sixth leach train commencing its ramp up. The foundation of maximizing the use of existing assets as a platform to build our future success is now complete, with significant dividends flowing to Canada from our Power division and the Metals business now expanded on the back of the extended mine life and the new life-of-mine tailings management facility which is well underway providing certainty on the continuity of operations.

"Our focus on increasing margins during the multi-year low pricing environment will benefit from the further cost reduction initiatives implemented in the quarter inclusive of the reduction in personnel. We anticipate approximately $20 million in annual savings from these measures on top of the $17 million implemented last year. These measures will allow Sherritt to materially benefit from nickel and cobalt price recoveries which we are starting to see in cobalt with the DRC's new quota system implemented in October. We are pleased to see governments recognizing the value of key refining assets and critical mineral value chains outside of Chinese control and anticipate that Sherritt will benefit in the long term from geopolitical interventions.

"In the near-term, we continue to implement the recovery plan at Moa, which included the mobilization of additional expatriate personnel during the quarter. Overcoming the challenges in the Cuban operating environment remains complex and will take some time to fully resolve in pursuing the necessary steps to restore operations at Moa in line with the planned expansion volumes to fill the refinery," concluded Mr. Binedell.

THIRD QUARTER 2025 SELECTED DEVELOPMENTS

Significant organizational cost reductions were implemented during the quarter which included a further workforce reduction with a focus on non-operating roles across Canadian operations. The cost reduction initiatives are anticipated 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.
Finished nickel and cobalt production at the Moa Joint Venture ("Moa JV") was 2,426 tonnes and 228 tonnes, respectively, (Sherritt's share(1)) reflecting the planned annual plant shutdown occurring at the refinery during the quarter.
Finished nickel and cobalt sales were 2,740 tonnes and 262 tonnes, respectively.
Net direct cash cost ("NDCC")(2) was US$6.67/lb with lower nickel production and sales and higher input commodity prices contributing to higher costs partially offset by ongoing cost optimization initiatives.
Electricity production was 243 GWh benefitting from a new gas well that was brought online in Q4 2024, additional gas provided from existing wells and a replacement gas well that was brought online in Q3 2025 to offset the loss of gas production from the legacy CUPET well. Electricity production in Q3 2025 also reflects the Varadero facility returning to normal operations during July and August without frequency control.
Electricity unit operating cost(2) was $12.23/MWh primarily reflecting lower planned maintenance and higher electricity production and sales.
Net loss from continuing operations was $19.5 million, or $(0.04) per share.
Adjusted net loss from continuing operations(2) was $15.5 million or $(0.03) per share which primarily excludes $3.6 million of severance expense (Sherritt's share) related to the workforce reduction in the quarter and the impact of other revaluation gains and losses.
Adjusted EBITDA(2) was $1.6 million.
Updates to 2025 Guidance:
-- At Metals, during the quarter, significant challenges in the
general operating environment in Cuba continued to result in lower than expected production of mixed sulphides, impacting feed availability at the refinery. As well, Sherritt did not acquire additional third-party feed given the high payabilities in the intermediate market. In late October, subsequent to the quarter end, Hurricane Melissa brought heavy rainfall and power outages to the Moa region resulting in the processing facilities at Moa operating at a reduced rate. All environmental protection and safety activities at sites in Cuba continued uninterrupted, and there were no environmental incidents or injuries reported among personnel or significant damage to mining infrastructure. The processing facilities at Moa are currently operating at a reduced capacity and expected to ramp up to full capacity in the next week. The impact on finished metals production is expected to be partially mitigated by mixed sulphides inventory built up at the refinery during the planned annual plant shutdown. Although Sherritt continues to anticipate production of mixed sulphides will benefit from the ramp up of the sixth leach train at Moa and the implementation of the recovery plan for Moa operations, the mixed sulphides inventory available at the refinery during the fourth quarter will be lower than originally anticipated. As a result, Sherritt is revising its full year 2025 production guidance range for finished nickel from 27,000 to 29,000 tonnes to 25,000 to 26,000 tonnes and finished cobalt from 3,000 to 3,200 tonnes to 2,700 to 2,800 tonnes.
-- NDCC(2) guidance of US$5.75/lb to US$6.25/lb, remains unchanged,
benefiting from the ongoing cost optimization initiatives and higher cobalt by-product credits, offsetting the lower nickel production and sales and higher sulphur prices.
-- At Power, guidance for production volumes, unit operating costs(2)
and spending on capital(2) remain unchanged.
-- Total spending on capital(2) for 2025 is now expected to be $69.0
million slightly below the previously provided guidance of $72.0 million with spending related to the tailings facility slightly lower and growth spending slightly higher.
Available liquidity in Canada as at September 30, 2025 was $45.2 million.
Power dividends in Canada were $8.3 million in Q3 2025, totaling $18.2 million for the nine months ended September 30, 2025.
Phase two of the Moa JV expansion in ramp up. During the quarter, the sixth leach train was tested and successfully demonstrated the operability of the train and following the quarter end in October, commissioning was completed.

(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 331/3% 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)  Non-GAAP financial measures. For additional information see the Non-GAAP 
     and other financial measures section of this press release. 
(3)  For additional information on the Cobalt Swap, see Note 12 -- Advances, 
     loans receivable and other financial assets of the consolidated financial 
     statements for the year ended December 31, 2024.

DEVELOPMENTS SUBSEQUENT TO THE QUARTER Subsequent to the quarter end, Sherritt paid $12.3 million in interest on its Amended Senior Secured Notes.

 
Q3 2025 FINANCIAL HIGHLIGHTS 
 
                      For the three months                 For the nine months 
                                     ended                               ended 
$ millions,              2025         2024                   2025         2024 
except per share    September    September              September    September 
amount                     30           30     Change          30           30     Change 
-----------------   ---------    ---------   --------   ---------    ---------   -------- 
 
Revenue            $     39.7   $     32.9     21%     $    121.8   $    113.1      8% 
Combined 
 revenue(1)             108.4        126.4    (14%)         369.7        417.3    (11%) 
Loss from 
 operations and 
 joint venture          (12.6)        (2.3)  (448%)         (63.8)       (26.6)  (140%) 
Net (loss) 
 earnings from 
 continuing 
 operations             (19.5)         1.8      nm(2)       (49.7)       (50.6)     2% 
Net (loss) 
 earnings for the 
 period                 (19.5)         2.1      nm(2)       (49.9)       (49.9)     - 
Adjusted 
 EBITDA(1)                1.6         10.5    (85%)           8.6         17.0    (49%) 
Adjusted loss 
 from continuing 
 operations(1)          (15.5)       (11.5)   (35%)         (63.3)       (46.1)   (37%) 
Net (loss) 
 earnings from 
 continuing 
 operations ($ 
 per share)             (0.04)        0.00      -           (0.11)       (0.13)    15% 
Adjusted loss 
 from continuing 
 operations ($ 
 per share)(1)          (0.03)       (0.03)     -           (0.14)       (0.12)   (17%) 
 
Cash provided 
 (used) by 
 continuing 
 operations for 
 operating 
 activities               2.5         20.4    (88%)           9.1         (4.4)   307% 
Combined free 
 cash flow(1)           (24.0)        10.2   (335%)         (27.8)        (1.0)     nm(2) 
Average exchange 
 rate (CAD/US$)         1.377        1.366      1%          1.399        1.362      3% 
-----------------   ---------    ---------   ----       ---------    ---------   ---- 
 
 
                               2025       2024 
$ millions, as            September   December 
at                               30         31    Change 
--------------           ----------  ---------  -------- 
 
Cash and cash 
equivalents 
   Canada                $     14.9  $    32.1   (54%) 
   Cuba(3)                    103.8      113.0    (8%) 
   Other                        1.5        0.6   150% 
-----------------------   ---------   --------  ---- 
                              120.2      145.7   (18%) 
 
Loans and borrowings          316.2      372.5   (15%) 
-----------------------   ---------   --------  ---- 
 
The Corporation's 
 share of cash and 
 cash equivalents in 
 the Moa Joint 
 Venture, not 
 included in the 
 above balances:         $      5.0  $     5.7   (13%) 
---------------------     ---------   --------  ---- 
 
 
   (1)  Non-GAAP financial measures. For additional information see the 
        Non-GAAP and other financial measures section of this press release. 
   (2)  Not meaningful ("nm"). 
   (3)  As at September 30, 2025, $102.6 million of the Corporation's cash and 
        cash equivalents was held by Energas (December 31, 2024 - $111.4 
        million).

Cash and cash equivalents were $120.2 million as at September 30, 2025 compared to $121.6 million as at June 30, 2025.

As at September 30, 2025, total available liquidity in Canada was $45.2 million, composed of cash and cash equivalents in Canada of $14.9 million and available credit facilities of $30.3 million which was unchanged from June 30, 2025. During the quarter, cash inflows included $8.3 million of dividends in Canada from Energas for a total of $18.2 million during the nine month period ended September 30, 2025 and cash provided by operating activities primarily reflecting timing of working capital receipts and payments, including fertilizer sales receipts and $17.7 million of fertilizer pre-buys at Fort Site. Offsetting these inflows were $3.0 million of transaction costs related to the Debt and Equity Transactions and $2.7 million of expenditures on property, plant and equipment.

At current spot prices and based on revised 2025 guidance for Metals production volumes and spending on capital(1) disclosed in the Outlook section of this press release, the Corporation no longer expects cobalt or cash distributions to be received under the Cobalt Swap agreement in the fourth quarter of 2025. As previously disclosed and as defined by the Cobalt Swap agreement, the expected shortfall in the annual minimum payment in 2025 will be added to the annual minimum payment in 2026.

The Corporation expects to provide an update regarding anticipated distributions under the Cobalt Swap agreement when it publishes its 2026 guidance in early 2026.

The Moa JV's cash and cobalt distributions to the Corporation are determined based on available cash in excess of liquidity requirements. Determinants of the Moa JV's liquidity include but are not limited to, anticipated nickel and cobalt prices and sales volumes, spending on capital at the Moa JV, financing, working capital, and other liquidity requirements. Available cash is also impacted by changes in working capital primarily related to changes in inventory, and timing of receipts and payments, including receipts on nickel and cobalt sales subsequent to shipment.

Consistent with the Corporation's expectations in the second quarter and based on 2025 guidance for Power, which anticipates electricity production at the lower end of the guidance range, Sherritt expects total dividends in Canada from Energas in 2025 to be at the lower end of its previously disclosed range of $25.0 million to $30.0 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.

As at September 30, 2025, the Corporation was in compliance with all its debt covenants.

REVIEW OF OPERATIONS

 
Metals 
 
                          For the three months 
                                         ended             For the nine months ended 
$ millions 
(Sherritt's share),          2025         2024                    2025          2024 
except as otherwise     September    September               September     September 
noted                          30           30    Change            30            30    Change 
--------------------  -----------  -----------  --------  ------------  ------------  -------- 
 
FINANCIAL 
HIGHLIGHTS(1) 
Revenue               $  94.1      $ 112.6       (16%)    $  332.5      $  378.3       (12%) 
Cost of sales           106.8        110.1        (3%)       356.0         385.7        (8%) 
(Loss) earnings from 
 operations             (14.4)         0.8         nm(3)     (30.4)        (17.5)      (74%) 
Adjusted EBITDA(2)       (1.5)        14.9      (110%)        11.8          25.4       (54%) 
 
CASH FLOW(1) 
Cash provided by 
 continuing 
 operations for 
 operating 
 activities(2)        $  (9.2)     $  34.8      (126%)    $   32.7      $   87.2       (63%) 
Free cash flow(2)       (17.9)        24.2      (174%)        (0.1)         59.4      (100%) 
 
PRODUCTION VOLUMES 
(tonnes) 
Mixed sulphides 
 ("MSP")(4)             3,720        4,148       (10%)      10,115        12,295       (18%) 
Finished nickel         2,426        4,333       (44%)       8,804        11,313       (22%) 
Finished cobalt           228          454       (50%)         940         1,138       (17%) 
Fertilizer             49,253       65,205       (24%)     170,280       182,624        (7%) 
 
NICKEL RECOVERY(5) 
 (%)                       82%          85%       (4%)          83%           87%       (5%) 
 
SALES VOLUMES 
(tonnes) 
Finished nickel         2,740        3,538       (23%)       9,435        11,352       (17%) 
Finished cobalt           262          421       (38%)       1,098         1,173        (6%) 
Fertilizer             27,948       31,245       (11%)     105,682       115,836        (9%) 
 
AVERAGE-REFERENCE 
PRICE(6) (US$ per 
pound) 
Nickel                $  6.81      $  7.37        (8%)    $   6.92      $   7.74       (11%) 
Cobalt                  17.17        12.25        40%        15.86         13.16        21% 
 
AVERAGE-REALIZED 
PRICE(2) (CAD) 
Nickel ($ per pound)  $  9.42      $ 10.11        (7%)    $   9.67      $  10.41        (7%) 
Cobalt ($ per pound)    18.52        12.42        49%        16.23         13.70        18% 
Fertilizer ($ per 
 tonne)                517.25       434.58        19%       571.57        503.33        14% 
 
UNIT OPERATING 
COST(2) (US$) 
Nickel - net direct 
 cash cost (US$ per 
 pound)               $  6.67      $  5.16        29%     $   5.95      $   6.10        (2%) 
 
SPENDING ON 
CAPITAL(2) (CAD) 
Sustaining 
   Moa JV (50% 
    basis), Fort 
    Site (100% 
    basis)            $   4.9      $   2.8        75%     $   21.3      $   13.8        54% 
   Moa JV - Tailings 
    facility (50% 
    basis)                7.2          4.7        53%         17.0           8.5       100% 
Growth - Moa JV (50% 
 basis)                   2.3          3.7       (38%)         6.3           6.1         3% 
--------------------   ------       ------      ----       -------       -------      ---- 
                      $  14.4      $  11.2        29%     $   44.6      $   28.4        57% 
--------------------   ------       ------      ----       -------       -------      ---- 
 
 
   (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.

Revenue

Metals revenue in Q3 2025 was $94.1 million compared to $112.6 million in Q3 2024.

Nickel revenue in Q3 2025 was $56.9 million compared to $78.8 million in Q3 2024. Revenue was lower primarily due to lower nickel sales volume and average-realized price(1) . Sales volume of 2,740 tonnes compared to 3,538 tonnes in Q3 2024 primarily as a result of lower finished production outlined below. The average-realized price(1) of nickel of $9.42/lb was 7% lower compared to Q3 2024.

Cobalt revenue in Q3 2025 was $10.7 million compared to $11.5 million in Q3 2024 due to lower sales volume partially offset by higher average-realized price(1) . Sales volume was 262 tonnes compared to 421 tonnes in Q3 2024. The average-realized price(1) of cobalt of $18.52/lb was 49% higher compared to Q3 2024.

Fertilizer revenue in Q3 2025 was $14.5 million compared to $13.6 million in Q3 2024. Fertilizer revenue was higher due to the higher average-realized price(1) , partially offset by lower sales volume. The average-realized price(1) of fertilizers of $517.25/tonne was 19% higher compared to Q3 2024. Sales volume of 27,948 tonnes compared to 31,245 tonnes in Q3 2024. Lower sales volume reflects the lower fertilizer production in Q3 2025 consistent with lower metals production.

Cobalt Swap

There were no sales of cobalt from the Cobalt Swap in either Q3 2025 or Q3 2024.

Variances in cobalt sales volumes, revenue and cost of sales are, in part, dependent upon the timing of receipts of cobalt and their subsequent sale by Sherritt under the Cobalt Swap agreement compared to sales of cobalt produced and sold directly by the Moa JV. Sales volumes, revenue and costs of sales of cobalt received by Sherritt under the Cobalt Swap agreement are recognized by Sherritt on a 100% basis versus a 50% basis for cobalt produced and sold directly by the Moa JV.

While the timing of the sales under the Cobalt Swap or by Moa JV directly results in variances in sales volumes, revenue and cost of sales, it does not have a material impact on earnings from operations, average-realized prices(1) , cobalt by-product credits(2) , or NDCC(1) . This is because the variance in revenue and costs of Sherritt's share of cobalt under the Cobalt Swap is offset by Sherritt's share of revenue and costs of the Moa JV and the cost of cobalt sold on volumes of cobalt redirected from GNC is determined based on the in-kind value of cobalt calculated as the cobalt reference price from the month preceding distribution less a mutually agreed selling cost adjustment.

The Corporation expects to provide an update regarding anticipated distributions under the Cobalt Swap agreement when it publishes its 2026 guidance in early 2026.

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.

Production

Mixed sulphides production at the Moa JV in Q3 2025 was 3,720 tonnes compared to 4,148 tonnes in Q3 2024. Lower production in Q3 2025 was mainly the result of the ongoing challenging economic conditions and operating environment in Cuba including a nationwide power outage in September 2025 and unplanned maintenance of the processing facilities in Moa.

Sherritt and its Cuban partner continue to pursue a long-term recovery plan that was announced in July 2025 to address and mitigate ongoing operational challenges which are a result of the current economic conditions in Cuba. Immediate priorities included increasing expatriate technical support for the slurry preparation plants and adding additional expatriate personnel with mining operations, maintenance and optimization expertise to improve equipment availability and reduce maintenance downtime. The joint venture is currently expediting these solutions to drive higher mixed sulphides production.

Sherritt's share of finished nickel and cobalt production in Q3 2025 was 2,426 tonnes and 228 tonnes, compared to 4,333 tonnes and 454 tonnes, respectively, in Q3 2024. In Q3 2025 production was lower due to the planned annual refinery maintenance shutdown. The annual shutdown occurred during the second quarter in 2024. Lower mixed sulphides feed availability from the mine site, a disruption in hydrogen supply from a third party and unplanned maintenance to processing equipment at the refinery also resulted in lower finished production. During the quarter, Sherritt processed previously contracted available third-party feed but did not acquire additional third-party feeds given the high payabilities in the intermediate market.

Fertilizer production in Q3 2025 was 49,253 tonnes compared to 65,205 tonnes in Q3 2024 primarily due to lower metals production.

NDCC(1)

NDCC(1) per pound of nickel sold in Q3 2025 was US$6.67/lb compared to US$5.16/lb in Q3 2024. In 2025, lower nickel sales volume compared to 2024 impacted NDCC(1) .

MPR/lb was slightly higher driven by higher input commodity prices. In Q3 2025, sulphur prices were 75% higher while fuel oil natural gas, and diesel prices were 17%, 16% and 7% lower, respectively. MRP/lb in Q3 2025 also includes the impact of annual maintenance shutdown which was completed during the quarter compared to 2024 when the annual maintenance shutdown occurred during the second quarter. Partially offsetting these impacts were benefits from ongoing cost optimization initiatives. Third-party feed costs were higher as a result of processing more previously contracted third-party feed compared to Q3 2024. Cobalt by-product credits were higher primarily as a result of 49% higher average-realized cobalt price(1) and the impact of lower nickel sales volume which offset lower cobalt sales volumes. Fertilizer net by-product credits were lower in Q3 2025 driven by the impact of lower fertilizer sales volume and higher planned maintenance costs, partly offset by higher fertilizer prices.

Spending on capital(1)

Sustaining spending on capital in Q3 2025 was $4.9 million compared to $2.8 million in Q3 2024 primarily related to receipt of additional mining equipment.

Sustaining spending on capital related to the tailings facility in Q3 2025 was $7.2 million compared to $4.7 million in Q3 2024 and in line with the planned ramp up in project activity.

Growth spending on capital in Q3 2025 was $2.3 million compared to $3.7 million in Q3 2024.

 
   (1)  Non-GAAP financial measures. For additional information see the 
        Non-GAAP and other financial measures section of this press release. 
   (2)  Cobalt by-product credits include Sherritt's share of cobalt revenue 
        per pound of nickel sold only.

Expansion program and strategic developments

Moa JV expansion program

During the quarter, commissioning of phase two of the Moa JV expansion was completed and the ramp up commenced. The sixth leach train was tested and successfully demonstrated the operability of the train and following the quarter end in October, commissioning was completed. The operating conditions will continue to be evaluated and optimized as capacity of the sixth leach train is increased as overall plant operating conditions allow. MSP from the ramp up of phase two of the expansion is expected to begin to be processed at the refinery in the fourth quarter of this year.

With the completion of phase two commissioning, current expansion plans are now complete. The benefit from the Moa expansion is expected to improve utilization of the refinery and ultimately replace lower margin third-party feed. The pace of the expected increase in MSP production is being hampered in the near-term by the general challenging operating conditions in Cuba as outlined in the Metals operating overview.

 
Power 
 
                      For the three months                For the nine months 
                                     ended                              ended 
$ millions (33 
1/3% basis),             2025         2024                  2025         2024 
except as           September    September             September    September 
otherwise noted            30           30    Change          30           30    Change 
-----------------  ----------  -----------  --------  ----------  -----------  -------- 
 
FINANCIAL 
HIGHLIGHTS 
Revenue            $     13.9   $    12.9      8%     $     35.9   $    36.7     (2%) 
Cost of sales             3.4        10.9    (69%)          15.3        24.2    (37%) 
Earnings from 
 operations               8.6         0.4      nm(3)        15.6         8.7     79% 
Adjusted 
 EBITDA(1)                9.1         1.1    727%           17.5        10.5     67% 
 
CASH FLOW 
Cash provided 
 (used) by 
 continuing 
 operations for 
 operating 
 activities(1)     $      4.2   $    (8.6)   149%     $     21.1   $    (6.7)   415% 
Free cash flow(1)         4.0        (8.9)   145%           20.0       (11.1)   280% 
 
PRODUCTION AND 
SALES 
Electricity 
 (GWh(2) )                243         230      6%            589         645     (9%) 
 
AVERAGE-REALIZED 
PRICE(1) 
Electricity 
 ($/MWh(2) )       $    52.33   $   51.85      1%     $    53.04   $   51.70      3% 
 
UNIT OPERATING 
COSTS(1) 
Electricity 
 ($/MWh)           $    12.23   $   44.95    (73%)    $    23.27   $   35.26    (34%) 
 
SPENDING ON CAPITAL(1) 
Sustaining         $      0.2   $    (1.5)   113%     $      1.1   $     2.6    (58%) 
-----------------   ---------      ------   ----       ---------      ------   ---- 
 
 
   (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 at Varadero

As a result of the nationwide power outages in Cuba and challenges facing the national power grid beginning in 2024, the government agency Unión Eléctrica ("UNE") required Energas to operate the Varadero facility in frequency control to help support the stability of the power grid. The Varadero facility returned to normal operations in July and August to support summer power grid needs but reverted to operating in frequency control in September. Energas expects that the Varadero facility will continue to operate in frequency control throughout the balance of 2025 and that it will be fully compensated for this reduction. As a result, Sherritt expects there will be no impact to Power's Adjusted EBITDA(1) , earnings from operations or dividends from Energas to Sherritt in Canada. Energas' other facilities are expected to continue operating as usual.

Revenue

Revenue in Q3 2025 was $13.9 million compared to $12.9 million in Q3 2024. Revenue for Q3 2025 was higher compared to Q3 2024 primarily due to increased electricity production as discussed below.

Production

Production volume in Q3 2025 was 243 GWh compared to 230 GWh in Q3 2024. Electricity production in Q3 2025 benefited from a new gas well that was brought online in Q4 2024, additional gas provided from existing wells and a replacement gas well that was brought online in Q3 2025 to offset the loss of gas production from the legacy CUPET well. Electricity production in Q3 2025 also reflects the Varadero facility returning to normal operations during July and August without frequency control.

The nationwide power outage that occurred in Cuba in September 2025 did not have a material impact on electricity production and Energas was again instrumental in contributing to efforts to quickly restore power to the national grid.

Unit operating cost(1)

Unit operating cost(1) in Q3 2025 was $12.23/MWh compared to $44.95/MWh in Q3 2024 primarily as a result of lower maintenance. In Q3 2025, there were no major turbine inspections while 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.

There are no additional major inspections planned during the balance of the year.

Spending on capital(1)

Spending on capital(1) was $0.2 million in Q3 2025.

Dividends from Energas

Sherritt received $8.3 million of dividends in Canada from Energas in Q3 2025 for a total of $18.2 million in the nine months ended September 30, 2025 marking the commencement of expected material dividends flowing from this business to Sherritt. Consistent with the Corporation's expectations in the second quarter and based on 2025 guidance for Power, which anticipates electricity production at the lower end of the guidance range, Sherritt expects total dividends in Canada from Energas in 2025 to be at the lower end of its previously disclosed range of $25.0 million to $30.0 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 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.

OUTLOOK

2025 production volumes, unit operating costs and spending on capital guidance

 
 
Production volumes, unit              Guidance  Year-to-date          Updated 
operating costs and                for 2025 -     actuals -    2025 guidance - 
spending on capital                      Total         Total             Total 
-------------------------  -------------------  ------------  ---------------- 
 
Production volumes 
Metals - Moa JV (100% 
basis, tonnes) 
   Finished nickel         27,000 -- 29,000(1)        17,608  25,000 -- 26,000 
   Finished cobalt           3,000 -- 3,200(1)         1,880    2,700 -- 2,800 
Power - Electricity 
 (331/3% basis, GWh)                800 -- 850           589         No change 
 
Unit operating costs(2) 
Metals -- NDCC(2) (US$ 
per pound)                      $5.75 -- $6.25         $5.95         No change 
Electricity -- unit 
operating cost(2) ($ per 
MWh)                          $23.00 -- $24.50        $23.27         No change 
 
Spending on capital(2)(3) 
($ millions) 
Sustaining 
   Metals - Moa JV (50% 
    basis), Fort Site 
    (100% basis)                      $30.0(1)         $21.3         No change 
   Metals - Moa JV -- 
    Tailings facility 
    (50% basis)                       $35.0(1)         $17.0             $30.0 
   Power (331/3% basis)                   $2.0          $1.1         No change 
Growth 
   Metals - Moa JV (50% 
    basis)                                $5.0          $6.3              $7.0 
-------------------------  -------------------  ------------  ---------------- 
Spending on capital(2)                $72.0(1)         $45.7             $69.0 
-------------------------  -------------------  ------------  ---------------- 
 
 
   (1)  2025 guidance updated July 29, 2025. 
   (2)  Non-GAAP financial measures. For additional information see the 
        Non-GAAP and other financial measures section of this press release. 
   (3)  Excludes spending on capital of the Metals Marketing, Oil and Gas, 
        Technologies and Corporate segments.

Metals Updates:

During Q3 2025, significant challenges in the general operating environment in Cuba continued to result in lower than expected production of mixed sulphides, impacting feed availability at the refinery. As well, Sherritt did not acquire additional third-party feed given the high payabilities in the intermediate market. In late October, subsequent to the quarter end, Hurricane Melissa brought heavy rainfall and power outages to the Moa region resulting in the processing facilities at Moa operating at a reduced rate. All environmental protection and safety activities at sites in Cuba continued uninterrupted, and there were no environmental incidents or injuries reported among personnel or significant damage to mining infrastructure. The processing facilities at Moa are currently operating at a reduced capacity and expected to ramp up to full capacity in the next week. The impact on finished metals production is expected to be partially mitigated by mixed sulphides inventory built up at the refinery during the planned annual plant shutdown. Although Sherritt continues to anticipate production of mixed sulphides will benefit from the ramp up of the sixth leach train at Moa and the implementation of the recovery plan for Moa operations, the mixed sulphides inventory available at the refinery during the fourth quarter will be lower than originally anticipated. As a result, Sherritt is revising its full year 2025 production guidance range for finished nickel from 27,000 to 29,000 tonnes to 25,000 to 26,000 tonnes and finished cobalt from 3,000 to 3,200 tonnes to 2,700 to 2,800 tonnes.

Total spending on capital(1) for 2025 is expected to be slightly below the previously provided guidance. Guidance for sustaining spending on capital(1) , excluding spending related to the tailings facility, remains unchanged and includes spending on equipment at the mine site that is expected to result in improvements in operational efficiency and support increased production in the near term. Spending related to the tailings facility is expected to be $30.0 million, slightly below the previous guidance of $35.0 million (Moa JV 50% basis) primarily due to timing of expenditures with certain spending initially planned for the fourth quarter of 2025, now anticipated in early 2026. The tailings facility remains on track with commissioning expected in the second half of 2026. Growth spending on capital(1) is expected to be $7.0 million, slightly above the previous guidance of $5.0 million (Moa JV 50% basis) due to delays in procurement of additional parts and supplies that affected the timeline for commissioning which is now complete.

Based on NDCC(1) for the nine months ended September 30, 2025 and estimated production and sales volumes and costs to the end of the year, NDCC range of US$5.75/lb to US$6.25/lb, remains unchanged, benefiting from the ongoing cost optimization initiatives and higher cobalt by-product credits, offsetting the lower nickel production and sales and higher sulphur prices.

Power Updates:

2025 guidance for production volumes, unit operating costs(1) and spending on capital(1) remain unchanged.

 
   (1)  Non-GAAP and other financial measures. For additional information, see 
        the Non-GAAP and other financial measures section of this press 
        release.

CONFERENCE CALL AND WEBCAST Sherritt will hold its conference call and webcast November 6, 2025, at 10:00 a.m. Eastern Time to review its third quarter 2025 results. Dial-in and webcast details are as follows:

 
   North American callers, please dial:  1 (800) 717-1738 Passcode: 66873 
   International callers, please dial:   1 (289) 514-5100 Passcode: 66873 
   Live webcast:                         www.sherritt.com

Please dial in 15 minutes before the start of the call to secure a line. Alternatively, listeners can access the conference call and presentation via the webcast available on Sherritt's website.

An archive of the webcast and replay of the conference call will also be available on the website.

FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")

Sherritt's condensed consolidated financial statements and MD&A for the three and nine months ended September 30, 2025 are available at www.sherritt.com or on SEDAR+ at www.sedarplus.ca and should be read in conjunction with this news release. Financial and operating data can also be viewed in the investor relations section of Sherritt's website.

NON-GAAP AND OTHER FINANCIAL MEASURES

Management uses the following non-GAAP and other financial measures in this press release and other documents: combined revenue, adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"), average-realized price, unit operating cost/net direct cash cost (NDCC), adjusted net earnings/loss from continuing operations, adjusted net earnings/loss from continuing operations per share, spending on capital, combined cash provided (used) by continuing operations for operating activities and combined free cash flow.

Management uses these measures to monitor the financial performance of the Corporation and its operating divisions and believes these measures enable investors and analysts to compare the Corporation's financial performance with its competitors and/or evaluate the results of its underlying business. These measures are intended to provide additional information, not to replace IFRS(R) Accounting Standards ("IFRS") measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies.

The non-GAAP and other financial measures are reconciled to their most directly comparable IFRS measures in the Appendix below.

ABOUT SHERRITT

Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt — metals deemed critical for the energy transition. Leveraging its technical expertise and decades of experience in critical minerals processing, Sherritt is committed to expanding domestic refining capacity and reducing reliance on foreign sources. The Corporation operates a strategically important refinery in Alberta, Canada, recognized as the only significant cobalt refinery and one of just three nickel refineries in North America. Sherritt's Moa JV has an estimated mine life of approximately 25 years and has recently completed an expansion that is set to increase its annual mixed sulphate precipitate production by 20% of contained nickel and cobalt.

The Corporation's Power division, through its ownership in Energas, is the largest independent energy producer in Cuba with installed electrical generating capacity of 506 MW, representing approximately 10% of the national electrical generating capacity in Cuba. The Energas facilities are comprised of two combined cycle plants that produce low-cost electricity from one of the lowest carbon emitting sources of power in Cuba. Sherritt's common shares are listed on the Toronto Stock Exchange under the symbol "S".

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements. Forward-looking statements can generally be identified by the use of statements that include such words as "believe", "expect", "anticipate", "intend", "plan", "forecast", "likely", "may", "will", "could", "should", "suspect", "outlook", "potential", "projected", "continue" or other similar words or phrases. Specifically, forward-looking statements in this document include, but are not limited to, statements regarding strategies, plans and estimated production amounts resulting from expansion of mining operations at the Moa JV; growing and increasing nickel and cobalt production, including increasing MSP production; the Moa JV expansion program update as it relates to the Processing Plant; statements set out in the "Outlook" section of this press release; certain expectations regarding production volumes and increases, inventory levels, operating costs, capital spending and intensity, including amount and timing of spending on tailings management; sales volumes; revenue, costs and earnings; significant liquidity improvement following completion of debt and equity transactions reducing outstanding debt and extending maturities; the availability of additional gas supplies and timing for addressing the current supply interruption of gas to be used for power generation; the amount and timing of dividend distributions from the Moa JV, including in the form of finished cobalt or cash under the Cobalt Swap; the amount and timing of dividend distributions from Energas; growing shareholder value; expected annualized savings from cost reduction measures and workforce reduction; sufficiency of working capital management and capital project funding; strengthening the Corporation's capital structure and amounts of certain other commitments.

Forward-looking statements are not based on historical facts, but rather on current expectations, assumptions and projections about future events, including commodity and product prices and demand; the level of liquidity and access to funding; share price volatility; nickel, cobalt and fertilizer production results and realized prices; current and future demand products produced by Sherritt; global demand for electric vehicles and the anticipated corresponding demand for cobalt and nickel; revenues and net operating results; environmental risks and liabilities; compliance with applicable environmental laws and regulations; advancements in environmental and greenhouse gas ("GHG") reduction technology; GHG emissions reduction goals and the anticipated timing of achieving such goals, if at all; statistics and metrics relating to Environmental, Social and Governance ("ESG") matters which are based on assumptions or developing standards; environmental rehabilitation provisions; risks related to the U.S. government policy toward Cuba; current and future economic conditions in Cuba; the level of liquidity and access to funding; Sherritt share price volatility; and certain corporate objectives, goals and plans for 2025. By their nature, forward-looking statements require the Corporation to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that the assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections.

The Corporation cautions readers of this press release not to place undue reliance on any forward-looking statement as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, commodity risks related to the production and sale of nickel cobalt and fertilizers; security market fluctuations and price volatility; level of liquidity of Sherritt, including access to capital and financing; the ability of the Moa JV to pay dividends; the risk to Sherritt's entitlements to future distributions (including pursuant to the Cobalt Swap) from the Moa JV; risks related to Sherritt's operations in Cuba; risks related to the U.S. government policy toward Cuba, including the U.S. embargo on Cuba and the Helms-Burton legislation; political, economic and other risks of foreign operations, including the impact of geopolitical events on global prices for nickel, cobalt, fertilizers, or certain other commodities; uncertainty in the ability of the Corporation to enforce legal rights in foreign jurisdictions; uncertainty regarding the interpretation and/or application of the applicable laws in foreign jurisdictions; risk of future non-compliance with debt restrictions and covenants; risks related to environmental liabilities including liability for reclamation costs, tailings facility failures and toxic gas releases; compliance with applicable environment, health and safety legislation and other associated matters; risks associated with governmental regulations regarding climate change and greenhouse gas emissions; risks relating to community relations; maintaining social license to grow and operate; uncertainty about the pace of technological advancements required in relation to achieving ESG targets; risks to information technologies systems and cybersecurity; risks associated with the operation of large projects generally; risks related to the accuracy of capital and operating cost estimates; the possibility of equipment and other failure; potential interruptions in transportation; identification and management of growth opportunities; the ability to replace depleted mineral reserves; risks associated with the Corporation's joint venture partners; variability in production at Sherritt's operations in Cuba; risks associated with mining, processing and refining activities; risks associated with the operation of large projects generally; risks related to the accuracy of capital and operating cost estimates; the possibility of equipment and other failures; uncertainty of gas supply for electrical generation; reliance on key personnel and skilled workers; growth opportunity risks; uncertainty of resources and reserve estimates; the potential for shortages of equipment and supplies, including diesel; supplies quality issues; risks related to the Corporation's corporate structure; foreign exchange and pricing risks; credit risks; competition in product markets; future market access; interest rate changes; risks in obtaining insurance; uncertainties in labour relations; legal contingencies; risks related to the Corporation's accounting policies; uncertainty in the ability of the Corporation to obtain government permits; failure to comply with, or changes to, applicable government regulations; bribery and corruption risks, including failure to comply with the Corruption of Foreign Public Officials Act or applicable local anti-corruption law; the ability to accomplish corporate objectives, goals and plans for 2025; and the ability to meet other factors listed from time to time in the Corporation's continuous disclosure documents.

The Corporation, together with its Moa JV, is pursuing a range of growth and expansion opportunities, including without limitation, process technology solutions, development projects, commercial implementation opportunities, life of mine extension opportunities and the conversion of mineral resources to reserves. In addition to the risks noted above, factors that could, alone or in combination, prevent the Corporation from successfully achieving these opportunities may include, without limitation: identifying suitable commercialization and other partners; successfully advancing discussions and successfully concluding applicable agreements with external parties and/or partners; successfully attracting required financing; successfully developing and proving technology required for the potential opportunity; successfully overcoming technical and technological challenges; successful environmental assessment and stakeholder engagement; successfully obtaining intellectual property protection; successfully completing test work and engineering studies, prefeasibility and feasibility studies, piloting, scaling from small scale to large scale production, procurement, construction, commissioning, ramp-up to commercial scale production and completion; and securing regulatory and government approvals. There can be no assurance that any opportunity will be successful, commercially viable, completed on time or on budget, or will generate any meaningful revenues, savings or earnings, as the case may be, for the Corporation. In addition, the Corporation will incur costs in pursuing any particular opportunity, which may be significant.

Readers are cautioned that the foregoing list of factors is not exhaustive and should be considered in conjunction with the risk factors described in the Corporation's other documents filed with the Canadian securities authorities, including without limitation the "Managing Risk" section of the Management's Discussion and Analysis for the three and nine months ended September 30, 2025 and the Annual Information Form of the Corporation dated March 24, 2025 for the period ending December 31, 2024, which is available on SEDAR+ at www.sedarplus.ca.

The Corporation may, from time to time, make oral forward-looking statements. The Corporation advises that the above paragraph and the risk factors described in this press release and in the Corporation's other documents filed with the Canadian securities authorities should be read for a description of certain factors that could cause the actual results of the Corporation to differ materially from those in the oral forward-looking statements. The forward-looking information and statements contained in this press release are made as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any oral or written forward-looking information or statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.

APPENDIX — NON-GAAP AND OTHER FINANCIAL MEASURES

Management uses the measures below to monitor the financial performance of the Corporation and its operating divisions and believes these measures enable investors and analysts to compare the Corporation's financial performance with its competitors and/or evaluate the results of its underlying business. These measures are intended to provide additional information, not to replace IFRS Accounting Standards measures, and do not have a standard definition under IFRS Accounting Standards and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies.

The non-GAAP and other financial measures are reconciled in the sections below to the most directly comparable IFRS Accounting Standards as presented in the condensed consolidated financial statements for the three and nine months ended September 30, 2025.

Combined revenue

The Corporation uses combined revenue as a measure to help management assess the Corporation's financial performance across its core operations. Combined revenue includes the Corporation's consolidated revenue, less Oil and Gas revenue, and includes the revenue of the Moa JV within the Metals reportable segment on a 50% basis. Revenue of the Moa JV is included in share of earnings of Moa Joint Venture, net of tax, as a result of the equity method of accounting and excluded from the Corporation's consolidated revenue.

Revenue at Oil and Gas is excluded from Combined revenue as the segment is not currently exploring for or producing oil and gas and its revenue relate to ancillary drilling services, provided to a customer and agencies of the Government of Cuba, which is not reflective of the Corporation's core operating activities or revenue generation potential.

Management uses this measure to reflect the Corporation's economic interest in its operations prior to the application of equity accounting to help allocate financial resources and provide investors with information that it believes is useful in understanding the scope of Sherritt's business, based on its economic interest, irrespective of the accounting treatment.

The table below reconciles combined revenue to revenue per the financial statements:

 
 
                 For the three months                 For the nine months 
                                ended                               ended 
                    2025         2024                   2025         2024 
               September    September              September    September 
$ millions            30           30    Change           30           30    Change 
-----------  -----------  -----------  --------  -----------  -----------  -------- 
 
Revenue by 
reportable 
segment 
Metals(1)     $    94.1    $   112.6    (16%)     $   332.5    $   378.3    (12%) 
Power              13.9         12.9      8%           35.9         36.7     (2%) 
Corporate 
 and Other          0.4          0.9    (56%)           1.3          2.3    (43%) 
-----------      ------       ------   ----          ------       ------   ---- 
Combined 
 revenue      $   108.4    $   126.4    (14%)     $   369.7    $   417.3    (11%) 
-----------      ------       ------   ----          ------       ------   ---- 
Adjustment 
 for Moa 
 Joint 
 Venture          (73.9)       (96.9)                (257.0)      (318.9) 
Adjustment 
 for Oil 
 and Gas            5.2          3.4     53%            9.1         14.7    (38%) 
-----------      ------       ------   ----          ------       ------   ---- 
Financial 
 statement 
 revenue      $    39.7    $    32.9     21%      $   121.8    $   113.1      8% 
-----------      ------       ------   ----          ------       ------   ---- 
 
 
   (1)  Revenue of Metals for the three months ended September 30, 2025 is 
        composed of revenue recognized by the Moa JV of $73.9 million (50% 
        basis), which is equity-accounted and included in share of earnings of 
        Moa JV, net of tax, coupled with revenue recognized by Fort Site of 
        $19.3 million and Metals Marketing of $0.9 million, both of which are 
        included in consolidated revenue (for the three months ended September 
        30, 2024 - $96.9 million, $14.7 million and $1.0 million, 
        respectively). Revenue of Metals for the nine months ended September 
        30, 2025 is composed of revenue recognized by the Moa JV of $257.0 
        million (50% basis), coupled with revenue recognized by Fort Site of 
        $68.0 million and Metals Marketing of $7.5 million (for the nine 
        months ended September 30, 2024 - $318.9 million, $55.5 million and 
        $3.9 million, respectively).

Adjusted EBITDA

The Corporation defines Adjusted EBITDA as earnings/loss from operations and joint venture, which excludes net finance expense, income tax expense and loss from discontinued operations, net of tax, as reported in the financial statements for the period, adjusted for: depletion, depreciation and amortization; impairment losses on non-current non-financial assets and investments; and gains or losses on disposal of property, plant and equipment of the Corporation and the Moa JV. The exclusion of impairment losses eliminates the non-cash impact of the losses.

Earnings/loss from operations at Oil and Gas (net of depletion, depreciation and amortization and impairment, if applicable) is deducted from/added back to Adjusted EBITDA as the segment is not currently exploring for or producing oil and gas and its financial results relate to ancillary drilling services, provided to a customer and agencies of the Government of Cuba, and environmental rehabilitation costs for legacy assets, which are not reflective of the Corporation's core operating activities or cash generation potential.

Management uses Adjusted EBITDA internally to evaluate the cash generation potential of Sherritt's operating divisions on a combined and segment basis as an indicator of ability to fund working capital needs, meet covenant obligations, service debt and fund capital expenditures, as well as provide a level of comparability to similar entities. Management believes that Adjusted EBITDA provides useful information to investors in evaluating the Corporation's operating results in the same manner as management and the Board of Directors.

The tables below reconcile loss from operations and joint venture per the financial statements to Adjusted EBITDA:

 
$ millions, for the three 
months ended September 30                                                           2025 
-----------------------------      ---   -----      ---------      ----------   -------- 
                                                                   Adjustment 
                                           Oil      Corporate        for Moa 
                                           and           and            Joint 
                    Metals(1)    Power     Gas          Other         Venture      Total 
----------------  -----------  -------  ------  -------------  --------------  --------- 
 
(Loss) earnings 
 from operations 
 and joint 
 venture per 
 financial 
 statements        $   (14.4)   $  8.6  $ 0.5    $   (6.2)      $   (1.1)      $(12.6) 
Add (deduct): 
   Depletion, 
    depreciation 
    and 
    amortization         2.4       0.5    0.1         0.2              -          3.2 
   Oil and Gas 
    earnings 
    from 
    operations, 
    net of 
    depletion, 
    depreciation 
    and 
    amortization           -         -   (0.6)          -              -         (0.6) 
Adjustments for 
share of 
earnings of Moa 
Joint Venture: 
   Depletion, 
    depreciation 
    and 
    amortization        10.5         -      -           -              -         10.5 
   Net finance 
    expense                -         -      -           -            0.7          0.7 
   Income tax 
    expense                -         -      -           -            0.4          0.4 
----------------      ------       ---   ----       -----          -----  ---   ----- 
Adjusted EBITDA    $    (1.5)   $  9.1  $   -    $   (6.0)      $      -       $  1.6 
----------------      ------       ---   ----       -----          -----  ---   ----- 
 
 
$ millions, for the three 
months ended September 30                                                          2024 
-----------------------------      ---   -----      ---------      ----------  -------- 
                                                                   Adjustment 
                                           Oil      Corporate        for Moa 
                                           and           and            Joint 
                    Metals(1)    Power     Gas          Other         Venture     Total 
----------------  -----------  -------  ------  -------------  --------------  -------- 
 
Earnings (loss) 
 from operations 
 and joint 
 venture per 
 financial 
 statements        $      0.8   $  0.4  $ 1.1    $   (5.7)      $    1.1       $(2.3) 
Add (deduct): 
   Depletion, 
    depreciation 
    and 
    amortization          2.4      0.7      -         0.2              -         3.3 
   Oil and Gas 
    earnings 
    from 
    operations, 
    net of 
    depletion, 
    depreciation 
    and 
    amortization            -        -   (1.1)          -              -        (1.1) 
Adjustments for 
share of 
earnings of Moa 
Joint Venture: 
   Depletion, 
    depreciation 
    and 
    amortization         11.7        -      -           -              -        11.7 
   Net finance 
    expense                 -        -      -           -            1.4         1.4 
   Income tax 
    expense                 -        -      -           -           (2.5)       (2.5) 
----------------      -------      ---   ----       -----          -----        ---- 
Adjusted EBITDA    $     14.9   $  1.1  $   -    $   (5.5)      $      -       $10.5 
----------------      -------      ---   ----       -----          -----  ---   ---- 
 
 
$ millions, for the nine months ended 
September 30                                                                       2025 
--------------------------------------   ------      -------      ----------   -------- 
                                                                  Adjustment 
                                                   Corporate        for Moa 
                                        Oil and         and            Joint 
                      Metals(2)  Power      Gas        Other         Venture      Total 
----------------    -----------  -----  -------  -----------  --------------  --------- 
 
(Loss) earnings 
 from operations 
 and joint venture 
 per financial 
 statements          $   (30.4)  $15.6  $(18.5)   $   (21.3)   $   (9.2)      $(63.8) 
Add (deduct): 
   Depletion, 
    depreciation 
    and 
    amortization           7.4     1.9     0.1          0.6           -         10.0 
   Oil and Gas 
    loss from 
    operations, 
    net of 
    depletion, 
    depreciation 
    and 
    amortization             -       -    18.4            -           -         18.4 
Adjustments for 
share of 
earnings of Moa 
Joint Venture: 
   Depletion, 
    depreciation 
    and 
    amortization          34.8       -       -            -           -         34.8 
   Net finance 
    expense                  -       -       -            -         6.9          6.9 
   Income tax 
    expense                  -       -       -            -         2.3          2.3 
------------------      ------    ----   -----       ------       -----  ---   ----- 
Adjusted EBITDA      $    11.8   $17.5  $    -    $   (20.7)   $      -       $  8.6 
------------------      ------    ----   -----       ------       -----  ---   ----- 
 
 
$ millions, for the nine months ended 
September 30                                                                      2024 
--------------------------------------   -----      -------      ----------  --------- 
                                                                 Adjustment 
                                           Oil    Corporate        for Moa 
                                           and         and            Joint 
                      Metals(2)  Power     Gas        Other         Venture      Total 
----------------    -----------  -----  ------  -----------  --------------  --------- 
 
(Loss) earnings 
 from operations 
 and joint venture 
 per financial 
 statements          $   (17.5)  $ 8.7  $ 0.5    $   (19.6)   $    1.3       $(26.6) 
Add (deduct): 
   Depletion, 
    depreciation 
    and 
    amortization           7.7     1.8    0.1          0.7           -         10.3 
   Oil and Gas 
    loss from 
    operations, 
    net of 
    depletion, 
    depreciation 
    and 
    amortization             -       -   (0.6)           -           -         (0.6) 
Adjustments for 
share of 
earnings of Moa 
Joint Venture: 
   Depletion, 
    depreciation 
    and 
    amortization          34.7       -      -            -           -         34.7 
   Impairment of 
    property, 
    plant and 
    equipment              0.5       -      -            -           -          0.5 
   Net finance 
    income                   -       -      -            -         0.3          0.3 
   Income tax 
    expense                  -       -      -            -        (1.6)        (1.6) 
------------------      ------    ----   ----       ------       -----        ----- 
Adjusted EBITDA      $    25.4   $10.5  $   -    $   (18.9)   $      -       $ 17.0 
------------------      ------    ----   ----       ------       -----  ---   ----- 
 
 
   (1)  Adjusted EBITDA of Metals for the three months ended September 30, 
        2025 is composed of Adjusted EBITDA at Moa JV of $(4.1) million (50% 
        basis), Adjusted EBITDA at Fort Site of $3.4 million and Adjusted 
        EBITDA at Metals Marketing of $(0.8) million (for the three months 
        ended September 30, 2024 - $8.7 million, $6.6 million and $(0.4) 
        million, respectively). 
   (2)  Adjusted EBITDA of Metals for the nine months ended September 30, 2025 
        is composed of Adjusted EBITDA at Moa JV of $(1.8) million (50% 
        basis), Adjusted EBITDA at Fort Site of $16.7 million and Adjusted 
        EBITDA at Metals Marketing of $(3.1) million (for the nine months 
        ended September 30, 2024 - $18.5 million, $8.9 million and $(2.0) 
        million, respectively).

Average-realized price

Average-realized price is generally calculated by dividing revenue by sales volume for the given product in a given segment. The average-realized price for power excludes frequency control, by-product and other revenue, as this revenue is not earned directly for power generation. Refer to the Power Review of operations section for further details on frequency control revenue, which Energas receives in compensation for lost sales of electricity as a result of frequency control.

Management uses this measure, and believes investors use this measure, to compare the relationship between the revenue per unit and direct costs on a per unit basis in each reporting period for nickel, cobalt, fertilizer and power and provide comparability with other similar external operations.

Average-realized price for fertilizer is the weighted-average realized price of ammonia and various ammonium sulphate products.

Average-realized price for nickel and cobalt are expressed in Canadian dollars per pound sold, while fertilizer is expressed in Canadian dollars per tonne sold and electricity is expressed in Canadian dollars per megawatt hour sold.

The tables below reconcile revenue per the financial statements to average-realized price:

 
$ millions, except average-realized price and sales volume, for the three 
months ended September 30                                                                      2025 
---------------------------------------------------------------------------      ----------   ----- 
                                Metals 
                   -------------------------------- 
                                                                             Adjustment for 
                                                                                  Moa Joint 
                      Nickel     Cobalt  Fertilizer        Power   Other(1)         Venture   Total 
-----------------  ---------  ---------  ----------  -----------   --------  --------------   ----- 
 
Revenue per 
 financial 
 statements        $    56.9  $    10.7  $     14.5  $  13.9      $    17.6   $   (73.9)     $ 39.7 
Adjustments to 
revenue: 
Frequency 
 control, 
 by-product and 
 other revenue             -          -           -     (1.2) 
-----------------   --------   --------   ---------   ------       --------      ----------   ----- 
Revenue for 
 purposes of 
 average-realized 
 price 
 calculation            56.9       10.7        14.5     12.7 
 
Sales volume for 
 the period              6.0        0.6        27.9      243 
-----------------   --------   --------   ---------   ------       --------      ----------   ----- 
                    Millions   Millions   Thousands 
                          of         of          of     Gigawatt 
Volume units          pounds     pounds      tonnes        hours 
-----------------   --------   --------   ---------   ----------   --------      ----------   ----- 
Average-realized 
 price(2)(3)(4)    $    9.42  $   18.52  $   517.25  $ 52.33 
-----------------   --------   --------   ---------   ------       --------      ----------   ----- 
 
 
$ millions, except average-realized price and sales volume, for the three 
months ended September 30                                                                      2024 
---------------------------------------------------------------------------      ----------   ----- 
                                Metals 
                   -------------------------------- 
                                                                             Adjustment for 
                                                                                  Moa Joint 
                      Nickel     Cobalt  Fertilizer        Power   Other(1)         Venture   Total 
-----------------  ---------  ---------  ----------  -----------   --------  --------------   ----- 
 
Revenue per 
 financial 
 statements        $    78.8  $    11.5  $     13.6  $  12.9      $    13.0   $   (96.9)     $ 32.9 
Adjustments to 
revenue: 
By-product and 
 other revenue             -          -           -     (1.0) 
-----------------   --------   --------   ---------   ------       --------      ----------   ----- 
Revenue for 
 purposes of 
 average-realized 
 price 
 calculation            78.8       11.5        13.6     11.9 
 
Sales volume for 
 the period              7.8        0.9        31.2      230 
-----------------   --------   --------   ---------   ------       --------      ----------   ----- 
                    Millions   Millions   Thousands 
                          of         of          of     Gigawatt 
Volume units          pounds     pounds      tonnes        hours 
-----------------   --------   --------   ---------   ----------   --------      ----------   ----- 
Average-realized 
 price(2)(3)(4)    $   10.11  $   12.42  $   434.58  $ 51.85 
-----------------   --------   --------   ---------   ------       --------      ----------   ----- 
 
 
$ millions, except average-realized price and sales volume, for the nine 
months ended September 30                                                                    2025 
---------------------------------------------------------------------------      --------   ----- 
                                Metals 
                   -------------------------------- 
                                                                               Adjustment 
                                                                                  for Moa 
                                                                                    Joint 
                      Nickel     Cobalt  Fertilizer        Power   Other(1)       Venture   Total 
-----------------  ---------  ---------  ----------  -----------   --------  ------------   ----- 
 
Revenue per 
 financial 
 statements        $   201.2  $    39.3  $     60.4  $  35.9      $    42.0   $   (257.0)  $121.8 
Adjustments to 
revenue: 
Frequency 
 control, 
 by-product and 
 other revenue             -          -           -     (4.7) 
-----------------   --------   --------   ---------   ------       --------      --------   ----- 
Revenue for 
 purposes of 
 average-realized 
 price 
 calculation           201.2       39.3        60.4     31.2 
 
Sales volume for 
 the period             20.8        2.4       105.7      589 
-----------------   --------   --------   ---------   ------       --------      --------   ----- 
                    Millions   Millions   Thousands 
                          of         of          of     Gigawatt 
Volume units          pounds     pounds      tonnes        hours 
-----------------   --------   --------   ---------   ----------   --------      --------   ----- 
Average-realized 
 price(2)(3)(4)    $    9.67  $   16.23  $   571.57  $ 53.04 
-----------------   --------   --------   ---------   ------       --------      --------   ----- 
 
 
$ millions, except average-realized price and sales volume, for the nine 
months ended September 30                                                                    2024 
---------------------------------------------------------------------------      --------   ----- 
                                Metals 
                   -------------------------------- 
                                                                               Adjustment 
                                                                                  for Moa 
                                                                                    Joint 
                      Nickel     Cobalt  Fertilizer        Power   Other(1)       Venture   Total 
-----------------  ---------  ---------  ----------   ----------   --------  ------------   ----- 
 
Revenue per 
 financial 
 statements        $   260.6  $    35.4  $     58.3  $  36.7      $    41.0   $   (318.9)  $113.1 
Adjustments to 
revenue: 
By-product and 
 other revenue             -          -           -     (3.4) 
-----------------   --------   --------   ---------   ------       --------      --------   ----- 
Revenue for 
 purposes of 
 average-realized 
 price 
 calculation           260.6       35.4        58.3     33.3 
 
Sales volume for 
 the period             25.0        2.6       115.8      645 
-----------------   --------   --------   ---------   ------       --------      --------   ----- 
                    Millions   Millions   Thousands 
                          of         of          of     Gigawatt 
Volume units          pounds     pounds      tonnes        hours 
-----------------   --------   --------   ---------   ----------   --------      --------   ----- 
Average-realized 
 price(2)(3)(4)    $   10.41  $   13.70  $   503.33  $ 51.70 
-----------------   --------   --------   ---------   ------       --------      --------   ----- 
 
 
   (1)  Other revenue includes other revenue from the Metals reportable 
        segment, revenue from the Oil and Gas reportable segment, a non-core 
        reportable segment, and revenue from the Corporate and Other 
        reportable segment. 
   (2)  Average-realized price may not calculate exactly based on amounts 
        presented due to foreign exchange and rounding. 
   (3)  Power, average-realized price per MWh. 
   (4)  Fertilizer, average-realized price per tonne.

Unit operating cost/Net direct cash cost

With the exception of Metals, which uses NDCC, unit operating cost is generally calculated by dividing cost of sales as reported in the financial statements, less depreciation, depletion and amortization in cost of sales, the impact of impairment losses, gains and losses on disposal of property, plant, and equipment and exploration and evaluation assets and certain other non-production related costs, by the number of units sold.

Metals' NDCC is calculated by dividing cost of sales, as reported in the financial statements, adjusted for the following: depreciation, depletion, amortization and impairment losses in cost of sales; cobalt by-product, fertilizer by-product and other revenue; cobalt gain/loss pursuant to the Cobalt Swap; realized gain/loss on natural gas swaps; royalties/territorial contributions; and other costs primarily related to the impact of opening and closing inventory values, by the number of finished nickel pounds sold in the period.

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