Dissident group sends out an SOS

by James Kwantes, World of Mining

That would be “Save Our Sherritt,” the name of a new website launched by the Concerned Shareholders of Sherritt. The dissident group is led by Clarke CEO George Armoyan, who wants a seat on the Sherritt board for himself and two other nominees, David Wood and Ashwath Mehra. The latter is a mining and metals veteran with international experience, including 10 years running Glencore’s nickel and cobalt division.

A meeting requisitioned by Armoyan’s Concerned Shareholders is scheduled for May 6 in Toronto, where shareholders will vote on the three nominees as well as four resolutions addressing executive and director compensation as well as corporate governance. The Concerned Shareholders group owns about 5.5% of Sherritt’s outstanding common shares, compared to less than a quarter of one per cent combined (yes, you read that correctly) held by current executives and directors. Sherritt produces nickel at mines in Madagascar and Cuba and has extensive oil and gas operations in Cuba as well.

The Save Our Sherritt website has a host of information about the nominees, reasons for the proxy fight, and details of the considerable efforts Armoyan apparently went through with Sherritt’s management and executives before taking his fight public in December. Armoyan’s letter to shareholders is a good summary. The site also contains this chart, one that doesn’t bode well for advocates of the status quo at Sherritt.

Disclosure: I own shares in Clarke and Sherritt. This is not investment advice and all investors should do their own due diligence. Please read my disclaimer.

Related reading: Sherritt and Clarke: Nickel for your thoughts | World of Mining

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