(Reuters) – Canadian miner Sherritt International Corp reported a bigger loss for the second quarter, injure by lower nickel prices.
The Toronto-based company said on Tuesday its adjusted net loss from continuing operations widened to C$75.2 million ($58.2 million), or 25 Canadian cents per share, in the three months ended June 30 from C$56.2 million, or 19 Canadian cents per share, a year earlier.
Sherritt operates nickel mines in Madagascar & Cuba.
Average realized prices for nickel fell approximately 19 percent to $7.13 per pound in the quarter, the company said.
Sherritt, which moreover produces oil & gas, said its combined revenue fell approximately 12 percent to C$268.4 million.
Sherritt said it expected total production of 78,000-82,000 tonnes of nickel in 2015, down from a previous estimate of 80,000-86,000. The company cut the estimate for the Ambatovy mine in Madagascar to 45,000-48,000 tonnes from 47,000-52,000.
Sherritt has a 40 percent stake in the Ambatovy mine & a 50 percent stake in the Moa nickel-cobalt operation in Cuba.
Sherritt & other nickel miners have been grappling with a plunge in the price of nickel, which is mainly used to make stainless steel, due to a supply glut & softer demand from China, the largest consumer of the metal.
Benchmark nickel prices fell 3.34 percent in the April-June quarter.
Sherritt, which moreover produces fertilizer, said earlier on Tuesday that David Bacon will become chief financial officer in November. Bacon, who will join the company on Sept. 9, replaces Dean Chambers.
Up to Tuesday's close, Sherritt's stock had fallen approximately 55 percent this year.
(This story was corrected to to remove coal production in the fifth paragraph. Sherritt sold its coal business in 2014)
(Reporting by Tanvi Mehta in Bengaluru; Editing by Ted Kerr)