TORONTO - Sherritt International Corp. (TSX:S), which is embroiled in a fight with a group of dissident shareholders seeking seats on its board and other changes, said Wednesday it lost $48.2 million in its latest quarter.
The mining company said its results were affected by higher financing costs related to foreign exchange losses as a result of a lower Canadian dollar and costs related to the start of commercial production at its Ambatovy project.
Sherritt said the loss amounted to 16 cents per diluted share for the quarter ended March 31 compared with a profit of $23.1 million or eight cents per share a year ago.
Revenue increased to $120.9 million from $107 million.
Sherritt president and chief executive David Pathe said the company is building momentum with the commercial production at the nickel and cobalt mine Ambatovy in Madagascar, and the recent completion of the sale of its coal business this week.
"The market has begun to recognize the progress we have made in our business and the improvements in our operating environment," Pathe said in a statement.
"Our near-term focus continues to be paying down debt, meeting our cost reduction targets, and moving Ambatovy forward."
The dissident group of shareholders, led by Clarke chief executive George Armoyan, is seeking three seats on the Sherritt board as well as changes to company's bylaws to require unanimous board support for any major acquisition and to how both Sherritt directors and executives are paid.
The group has also said that they believe Pathe, who became CEO at the beginning of 2012, needs to be replaced.
The Clarke-led group holds a 5.4 per cent stake in Sherritt.
Last week, proxy advisory firms ISS and Glass Lewis recommended shareholders support the management nominees for the board.
Glass Lewis also recommended shareholders support management in its fight against all of the dissidents other proposals to be voted on at Sherritt's annual meeting.
However, ISS said shareholders should back a dissident motion to stop "special payments to directors that are not aligned with shareholder value."
Sherritt's annual meeting is set for May 6 in Toronto.