NEW YORK Sherritt International Corp. returned to profitability in the third quarter despite a drop in revenue compared with a year earlier.
Toronto-based Sherritt posted net income of Canadian $1.1 million ($1.05 million) for the three months ended Sept. 30 in contrast to a net loss of C$22.6 million in the same period last year on revenue that slid 16.2 percent to C$286.2 million ($274.47 million).
The company attributed the positive earnings in part to a call option on the Ambatovy nickel-cobalt project in Madagascar, which brought a non-cash gain of C$11.2 million ($10.74 million) in the quarter vs. a C$3.2-million non-cash loss a year earlier.
Sherritt said that finished metal production was "significantly higher than the prior-year period due to the addition of Ambatovy production and production increases at the Moa joint venture," but noted that higher finished metal sales volumes "were partially offset by the impact of lower nickel and export coal prices."
The company posted net income of C$13.5 million ($12.95 million) for the first nine months of the year, down 73.3 percent from C$50.6 million a year ago, on sales that fell 15.5 percent to C$911.2 million ($873.87 million) in the same comparison.