Sherritt International Corp., one of Cuba’s largest foreign investors, warned that its going‑concern status is in doubt after President Donald Trump widened U.S. sanctions on the island. The sanctions trigger a default clause in the miner’s C$79.5 million ($56 million) credit facility, allowing lenders to demand immediate repayment. Sherritt said it lacks the cash to meet such a demand and could force bankruptcy ultimately.

Operations halted in February when an energy crisis forced the shutdown of Sherritt’s nickel‑cobalt mine in eastern Cuba. The company later delayed its Q1 results and saw its CFO and auditor resign. Seeking liquidity, Sherritt entered exclusive talks with Texas‑based Gillon Capital, a family office linked to a former Trump adviser, to sell a controlling stake in early 2024.

With Cuban ore supply exhausted, Sherritt idled its Alberta refinery—the only North American plant that also refines cobalt—further tightening cash flow. The miner announced cost cuts, workforce reductions, payment deferrals and a recent equity injection, yet the combined impact of the production halt and sanctions leaves material uncertainty over its ability to refinance debt. Creditors now face heightened risk for the near term.