Pitch: A levered play on strong nickel/cobalt prices. S.TO mines in Cuba and refines in Canada, concessions are in 50/50 JV with Cuban gov company. Cheap at current commodity prices with more upside from production increases and removal of Cuba sanctions.
Valuation: At current nickel spot prices of $15/lb, Sherritt would generate $320m of EBITDA (1.5x EV/EBITDA) and be net-debt-free by mid-2023. At US$10/lb nickel price trades at ~3x EV/EBITDA.
Exp. gain: Multiples from current levels
Full S.TO write-up (free guest account required):