Down 41% this year amid a consistent stock slide, putting shares at 1/3
early-2011 levels, Sherritt (S.T) is getting out of the coal business so
it can focus on nickel. Canada's biggest thermal-coal producer is
selling its operating assets to Westmoreland (WLB) for C$312M plus
assumed leases while a group led by investor and royalty holder Altius
(ALS.T) will pay C$481M for S.T's royalty portfolio and stakes in
coal-development assets. S.T, which got into the coal business 12 years
ago and also has been a Cuban oil producer for 20 years, can cut debt
while also growing core operations and possibly return cash to
shareholders with the proceeds. For its part, WLB is making the purchase
amid a 67% stock pop this year.