Yesterday in a surprise announcement the United States announced plans to begin the process of establishing normalize diplomatic relations and open economic and travel ties with Cuba,. This was also announced in Cuba. Such a shift in US policy could if enacted have material implications for Sherritt in terms of investability, access to technology and the ability to buy and sell assets with the removal of potential legal overhang for historical assets. That said there has been swift negative reaction to the news and no timeline for when full economic relations would normalize. As such it could be some time before Sherritt could benefit from such a shift however it does bode well for the medium term as it would remove the so called Cuba discount. While this has always been a potential catalysts for Sherritt we have never assumed it would occur. …show more content…
As part of the resuming diplomatic relations with Cuba, the U.S announced plans that it will soon reopen an embassy in the capital of Havana and carry out high-level exchanges and visits between the governments. The U.S. is also easing travel bans to Cuba, including for family visits, official U.S. government business, and educational activities, through tourist travel remains banned. The U.S. is also increasing the amount of money Americans can send to Cubans from $500 to $2,000 per quarter. Secretary of State John Kerry is also launching a review of Cuba's designation as a state sponsor of terror. That said major opposition has already emerged to try and block this proposal and as such no assurance can be made that it will occur. We note only Congress can lift the economic sanctions and such it may take some time for things to actually