Pala Requisitions Shareholder Meeting of Sherritt International Corporation, Nominates Two Highly Qualified Directors

Core Viewpoint - Pala Assets Holdings Limited is calling for the replacement of CEO Leon Binedell and former Lead Independent Director Shelley Brown due to persistent underperformance and destruction of shareholder value at Sherritt International Corporation [1][4][6] Governance and Leadership Concerns - Pala emphasizes the need for substantial changes in governance and management, arguing that mere cosmetic changes will not address the core issues affecting Sherritt's performance [2][4][6] - The Board's recent actions, including appointing a new Chair without removing Binedell, are seen as inadequate and merely an attempt to maintain the status quo [2][6][14] Operational Performance Issues - Sherritt has faced significant operational challenges, including record-low nickel and cobalt production and deteriorating liquidity, which have not been adequately addressed by the current management [9][22] - The company's production guidance for 2025 has been cut twice, with expectations of producing 20% less than originally planned [22] Shareholder Sentiment - There is substantial support among shareholders for a new CEO and a credible operational turnaround plan, with many expressing frustration over management's performance [10][11] - Pala has engaged with other significant shareholders, representing over 30% of Sherritt's outstanding shares, who share concerns about the company's direction [10][11] Financial Performance - Since Binedell's appointment as CEO on June 1, 2021, Sherritt's share price has declined by approximately 75%, while peer companies have seen an average increase of 136% [16][17] - Total executive compensation rose by 15% from 2023 to 2024, including a 24% increase in Binedell's compensation to C$2.9 million, despite the company's ongoing underperformance [24] Proposed Changes - Pala has requisitioned a special meeting of shareholders to nominate James Scarlett and Brett Richards for the Board, advocating for a leadership change to drive operational improvements [1][26] - The proposed new leadership is expected to bring operational mining expertise and a focus on shareholder interests [3][26] Call to Action - Pala urges the remaining Board members to act as independent fiduciaries and work towards an orderly transition that includes Binedell's resignation and the appointment of a qualified turnaround CEO [28]