Flagged up: a new era in US-Cuba relations
Sherritt to cash in on Cuba move
Canadian explorer Sherritt Energy, which has a portfolio of Cuban assets, looks set to cash in after the White House said it would ease some of the restrictions it has imposed on the Communist-run island.
Sherritt's shares surged yesterday on the news as the company has assets in Cuba it may choose to monetise.
The Obama administration said yesterday that Cuban-Americans will be allowed to make unlimited trips and money transfers to their families in Cuba, adding that other restrictions - including allowing US telecommunications players to operate in Cuba - will also be eased. signalled a change in Washington's attitude toward Cuba.
The move raised hopes that the US government might take further steps and even lift its trade embargo on Cuba. It follows a long history of US sanctions against Cuba after Fidel Castro took power on 1 January 1959.
News of the easing of restrictions on US telecommunications companies sent Sherritt shares soaring on hopes that the US might make similar concessions for companies in the energy and mining sectors. Sherritt's stock rose 57 cents to C$3.80 on the Toronto Stock Exchange on Monday afternoon.
"Every time (there's been a rumor) that (Fidel) Castro has died, which has been half a dozen times in the last 10 or 15 years, Sherritt's shares go up about 3%, so clearly the market thinks that an easing of US restrictions on Cuba is good for Sherritt," Salman Partners analyst Raymond Goldie told Reuters.
"What's backing that up is ... that Sherritt may find buyers for some of their Cuban assets, particularly the oil and gas ones," he added.