It is true, as Gwaihir says, that Sharku's quote refers to the breaking of the world after the Last Battle.
From the (somewhat notorious) Second Prophecy of Mandos in HoME V:
Quote:
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Thereafter shall Earth be broken and re-made, and the Silmarils shall be recovered out of Air and Earth and Sea; for Earendil shall descend and yield up the flame which he hath had in keeping.
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While I would be extrememly hesitent to accept whole of the Second Prophecy as Canon, I think it at least makes it clear what Tolkien was refering to in the quote from the Silmarillion.