Cobalt and 11% Yields Lure Risk-Takers to This Canadian Miner
- Sherritt International’s bonds show double-digit yields
- CEO’s restructuring efforts have shed debt but not doubts
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Sherritt International Corp.’s double-digit bond yields are beginning to lure investors, even as questions linger about whether the Canadian miner has unloaded enough debt and turned around its sputtering projects.
The Toronto-based firm restructured its Ambatovy mining joint venture in Madagascar last month, cutting debt by about C$1.3 billion ($1 billion) and ceding most of its stake in the money-losing business. But the nickel mine has never met production goals, and meanwhile an oil and gas venture with the Cuban state oil company has been delayed after failing to reach its first-round drilling target.