Wishful thinking from castro's Canadian business partners

Sherritt International is a Canadian firm that's been in bed with castro, inc. for many years now. This is from their quarterly report which was released yesterday:

[Sherritt's] Oil and Gas [division] has historically sold all of its Cuban oil production to an agency of the Government of Cuba. As at September 30, 2008, the Oil and Gas credit risk exposure related to its share of accounts receivable with its businesses in Cuba was approximately $392.8 million...

Although the past hurricane season and the current global economic conditions have negatively impacted Cuba, the Cuban Government has stated its intention to work with the Corporation and its businesses in order to provide for the appropriate agencies to meet their respective financial obligations to the Corporation. As part of these deliberations, the Corporation believes that an acceptable framework for the orderly collection of revenues and an appropriate capital spending program will be agreed to prior to the initiation of the 2009 drilling season.

The Power [division's] credit risk exposure related to its share of cash, accounts receivable and loans associated with its businesses in Cuba was approximately $20.4 million as at September 30, 2008. Power is party to a similar series of arrangements as Oil and Gas with agencies of the Government of Cuba that provide for an orderly payment of receivables.

The Cuban government owes Sherritt just shy of half a billion dollars but "The corporation believes that orderly collection of revenue will be agreed to..."

Yeah agreed to, but agreeing and paying are two different things. Suckers!

No comment yet from Sherritt's U.S. lobbyist, Phil Peters.

From the disclaimer:

There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that those assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections. Sherritt cautions readers of this press release not to place undue reliance on any forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. By their nature, forward-looking statements require Sherritt to make assumptions and are subject to inherent risks and uncertainties. Key factors that may result in material differences between actual results and developments and those contemplated by this press release include business and economic conditions in Canada, Cuba, Madagascar, and the principal markets for Sherritt’s products. Other such factors include, but are not limited to... risks related to collecting accounts receivable and repatriating profits and dividends from Cuba; risks related to foreign-exchange controls on Cuban government enterprises to transact in foreign currency; risks associated with the United States embargo on Cuba and the Helms-Burton legislation...

Sherritt's shareholders? Double suckers.

Posted by Henry Louis Gomez at October 30, 2008 05:59 AM