Turmoil Hits Sherritt International Amid Auditor and CFO Exits

Sherritt International announced on Wednesday that its external auditor has resigned, and its finance chief has left, resulting in an anticipated delay in first-quarter financial filings. This could potentially lead to a trading halt of its shares in Canada.

Recently, the Toronto-based mining and energy company faced repercussions from a U.S. executive order expanding sanctions against Cuba, which also targeted Moa Nickel, Sherritt's joint venture with Cuba's state-owned nickel company. In response, Sherritt has suspended its direct participation in the venture.

Sherritt reported that Deloitte resigned as its auditor effective May 12, and the company is now in the process of finding a replacement. The resignation, Sherritt clarified, was not due to any accounting principle, financial disclosure, or audit procedure disagreements. Despite these staff changes, Sherritt assured that Deloitte's past reports were free of adverse or disclaimer opinions.

The company also confirmed that Yasmin Gabriel resigned as its CFO without providing a reason or naming a successor. Sherritt expects to miss its first-quarter financial statement deadline of May 15. The U.S. sanctions may hinder some audit firms' willingness to undertake work with Sherritt, as per the company's statement.

(With inputs from agencies.)