Itafos (TSX VENTURE: IFOS) (the “
Company”)
reported today its Q3 2019 financial results and operational
highlights. The Financial Statements and Management’s Discussion
and Analysis for the quarter ended September 30, 2019 are available
under the Company’s profile at www.sedar.com and under the
Investors – Financial Statements page of the Company’s website,
www.itafos.com. All dollar values referenced in this news release
are unaudited amounts in thousands of US Dollars except as
otherwise noted.
Overall Highlights
For the three months ended September 30, 2019,
the Company’s overall highlights were as follows:
- experienced significant and continued downward pressure on
fertilizer prices in key markets including North America and
Brazil;
- continued strong operational and environmental, health and
safety performance at Itafos Conda;
- launched new semi-specialty fertilizer product MAP+ at Itafos
Conda;
- implemented plan at Itafos Arraias to optimize finished
fertilizer production and launched a multi-product portfolio of
higher grade SSP and SSP+ and premium PK compounds (the
“Repurpose Plan”);
- advanced development of Itafos Farim, with focus on permitting,
negotiating offtake agreements, finalizing works contractors and
procurement packages and securing project financing;
- completed $15,000 capital raise in the form of convertible
unsecured promissory notes issued to CLF (the “CLF
Promissory Note”);
- executed the fourth amendment (the “Fourth
Amendment”) to the secured term credit facility (the
“Facility”) to sculpt financial covenants and
provide additional flexibility to raise working capital financings
at Itafos Conda and Itafos Arraias;
- launched aggressive corporate wide cost savings initiative;
and
- advanced capital raising initiatives.
Subsequent to the three months ended September
30, 2019, the Company’s overall highlights were as follows:
- announced the results of the Itafos Conda Technical Report
concluding increased resources from existing mines and defining
Husky 1/North Dry Ridge (“H1/NDR”) as the
Company’s path forward for mine development;
- closed a $20,000 secured working capital facility (the
“Revolving Facility”) at Itafos Conda and expanded
commercial relationship with Gavilon Fertilizer, LLC
(“Gavilon”), a subsidiary of The Gavilon Group,
LLC;
- announced the decision to idle Itafos Arraias and suspend the
Repurpose Plan at Itafos Arraias as part of a disciplined approach
to capital allocation considering the continued downward pressure
on global fertilizer prices; and
- announced the resignation of Brent de Jong as Chairman and
member of the Company’s Board of Directors and appointment of
Anthony Cina to serve as Chairman on an interim basis.
Financial Highlights
For the three and nine months ended
September 30, 2019 and 2018, the Company’s financial
highlights were as follows:
(unaudited in thousands of US Dollars |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
except for per share amounts) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues, net |
|
$ |
81,749 |
|
|
$ |
76,282 |
|
|
$ |
257,999 |
|
|
$ |
201,585 |
|
Operating income (loss) |
|
$ |
(14,343 |
) |
|
$ |
(2,547 |
) |
|
$ |
(34,432 |
) |
|
$ |
8,699 |
|
Net income (loss) |
|
|
(20,778 |
) |
|
|
(14,390 |
) |
|
|
(55,706 |
) |
|
|
41,670 |
|
Adjusted EBITDA |
|
|
975 |
|
|
|
6,279 |
|
|
|
505 |
|
|
|
27,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capex |
|
$ |
2,109 |
|
|
$ |
9,319 |
|
|
$ |
19,156 |
|
|
$ |
31,109 |
|
Growth capex |
|
|
9,327 |
|
|
|
4,878 |
|
|
|
15,507 |
|
|
|
19,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
$ |
(0.15 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.40 |
) |
|
$ |
0.30 |
|
Fully diluted income (loss) per share |
|
$ |
(0.15 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.40 |
) |
|
$ |
0.30 |
|
For the three and nine months ended
September 30, 2019 and 2018, the Company’s financial
highlights were explained as follows:
- revenues were up year-over-year primarily due to higher MAP and
SPA sales volumes as well as higher realized SPA prices, which were
partially offset by lower realized MAP prices, at Itafos Conda and
revenue contributions from Itafos Arraias during 2019, which had
not achieved commercial production during H1 2018;
- net income (loss) was down year-over-year primarily due to a
gain on the fair valuation of Itafos Conda and a gain from
investments in associates related to the GB Minerals Ltd.
(“GBL”) Arrangement during Q1 2018;
- adjusted EBITDA was down year-over-year primarily due to higher
input costs at Itafos Conda and constrained production due to the
implementation of the Repurpose Plan at Itafos Arraias during 2019,
which had not achieved commercial production during H1 2018;
- maintenance capex was down year-over-year primarily due to a
partial planned plant turnaround at Itafos Conda during 2019
compared to a full planned plant turnaround at Itafos Conda during
2018; and
- growth capex was down year-over-year primarily due to the
capitalization of costs at Itafos Arraias during H1 2018 ahead of
achieving commercial production, which were partially offset by
development activities at Itafos Farim, gyp stack expansion and
mine life extension activities at Itafos Conda during 2019.
As at September 30, 2019 and
December 31, 2018, the Company’s financial highlights were as
follows:
(unaudited in thousands of US Dollars) |
September 30,2019 |
|
|
December 31,2018 |
|
Total assets |
$ |
568,630 |
|
|
$ |
576,419 |
|
Total liabilities |
|
352,951 |
|
|
|
304,640 |
|
Net debt |
|
171,919 |
|
|
|
152,088 |
|
Total equity |
|
215,679 |
|
|
|
271,779 |
|
As at September 30, 2019 and December 31,
2018, the Company’s financial highlights were explained as
follows:
- total assets were down period-over-period primarily due to
decreases in receivables and inventory at Itafos Conda and
increases in depreciation of assets in service during 2019, which
were partially offset by an increase in property, plant and
equipment related to the application of IFRS 16 during 2019 and
growth capex during 2019;
- total liabilities were up period-over-period primarily due to
increases as a result of the recognition of lease liabilities
related to the application of IFRS 16, increases in long-term
provisions due to additions to asset retirement obligations at
Itafos Conda and higher trade payables during 2019;
- net debt was up period-over-period primarily due to the CLF
Promissory Note, paid-in-kind interest expense at corporate and
additional equipment financing at Itafos Conda during 2019;
and
- total equity was down period-over-period primarily due to an
increase in deficit due to the net loss and a decrease in share
capital due to the repurchase of shares through the Normal Course
Issuer Bid (“NCIB”) during 2019.
Itafos Conda Highlights
For the three and nine months ended September
30, 2019, Itafos Conda continued its strong operational performance
with overall production volumes up year-over-year. In addition,
Itafos Conda sustained environmental, health and safety excellence
including achievement of a notable milestone by exceeding one year
without a reportable injury prior to one recordable injury
occurring during Q3 2019 and continued avoidance of any chemical
releases during 2019. Unusually cold and wet weather conditions
across key growing regions affected short-term fertilizer buying
patterns in the US and caused many growers to defer fertilizer
purchases. These developments have elevated inventories to near
historic highs, putting significant downward pressure on fertilizer
prices in the short-term. SPA production and sales were constrained
due to increased amounts of unfavorable ore elements, shortage of
finished product rail cars and lack of sulfuric acid availability,
which were impacted by weather and logistical challenges and
correspondingly resulted in a shift to incremental MAP production.
The increase in unfavorable ore elements, most notably magnesium
oxide, resulted in evaporation capacity limitations, which
negatively impacted SPA production. To mitigate the potential
impact of unfavorable ore elements affecting future periods, Itafos
Conda is taking steps to further optimize ore blending and
evaluating selective beneficiation processes.
Itafos Conda’s margins were compressed
year-over-year primarily due to higher input costs, most notably
purchased sulfuric acid, ore and natural gas. The higher input
costs were related to sulfuric acid contract repricing in 2019,
higher ore feed costs driven by reduced ore volumes due to mine
sequencing and a spike in natural gas price driven by a supply
disruption due to an off-site pipeline explosion, which negatively
impacted the Sumas index in late 2018. To mitigate the potential
impact of input costs affecting future periods, Itafos Conda made
operational improvements to improve mining efficiencies during Q3
2019 and entered into a two-year fixed price natural gas supply
agreement during Q4 2019.
During Q3 2019, Itafos Conda completed a pilot
production run of a new semi-specialty fertilizer product, MAP+.
The Company expects that production and sales of MAP+ will improve
Itafos Conda’s margin profile by reducing exposure to diammonium
phosphate (“DAP”) New Orleans
(“NOLA”) price fluctuations, requiring less P2O5
per tonne and limiting the commercial impact of lower near-term SPA
production. Also during Q3 2019, Itafos Conda completed a
significant amount of exploratory drilling work in support of the
Itafos Conda Technical Report and environmental baselines in
support of the permitting process for H1/NDR.
Also during 2019, Itafos Conda completed a
partial planned plant turnaround compared to a full planned plant
turnaround during 2018. For the three and nine months ended
September 30, 2018, Itafos Conda’s business highlights consider the
period from the date of acquisition on January 12, 2018 through
September 30, 2018.
For the three and nine months ended
September 30, 2019, and 2018, Itafos Conda’s business
highlights were as follows:
(unaudited in thousands of US Dollars |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
except for volumes, prices and costs) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Production volumes (t) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAP |
|
|
94,323 |
|
|
|
96,979 |
|
|
|
285,326 |
|
|
|
270,663 |
|
MAP+ |
|
|
9,028 |
|
|
|
— |
|
|
|
9,028 |
|
|
|
— |
|
SPA |
|
|
36,523 |
|
|
|
42,529 |
|
|
|
109,054 |
|
|
|
110,079 |
|
MGA |
|
|
467 |
|
|
|
281 |
|
|
|
1,078 |
|
|
|
281 |
|
APP |
|
|
4,245 |
|
|
|
5,844 |
|
|
|
30,779 |
|
|
|
17,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales volumes (t) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAP |
|
|
108,243 |
|
|
|
64,335 |
|
|
|
307,006 |
|
|
|
226,199 |
|
MAP+ |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SPA |
|
|
28,636 |
|
|
|
28,793 |
|
|
|
96,275 |
|
|
|
87,290 |
|
MGA |
|
|
397 |
|
|
|
281 |
|
|
|
1,078 |
|
|
|
281 |
|
APP |
|
|
4,881 |
|
|
|
5,987 |
|
|
|
26,229 |
|
|
|
17,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price ($/t) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAP |
|
$ |
360 |
|
|
$ |
448 |
|
|
$ |
396 |
|
|
$ |
425 |
|
MAP+ |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
SPA |
|
$ |
938 |
|
|
$ |
927 |
|
|
$ |
982 |
|
|
$ |
912 |
|
MGA |
|
$ |
935 |
|
|
$ |
936 |
|
|
$ |
1,005 |
|
|
$ |
936 |
|
APP |
|
$ |
463 |
|
|
$ |
429 |
|
|
$ |
471 |
|
|
$ |
431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAP |
|
$ |
38,948 |
|
|
$ |
28,809 |
|
|
$ |
121,501 |
|
|
$ |
96,051 |
|
MAP+ |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
SPA, net |
|
$ |
26,869 |
|
|
$ |
26,685 |
|
|
$ |
94,584 |
|
|
$ |
79,588 |
|
MGA, net |
|
$ |
371 |
|
|
$ |
263 |
|
|
$ |
1,083 |
|
|
$ |
263 |
|
APP, net |
|
$ |
2,260 |
|
|
$ |
2,570 |
|
|
$ |
12,342 |
|
|
$ |
7,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per tonne P2O5 |
|
$ |
787 |
|
|
$ |
903 |
|
|
$ |
863 |
|
|
$ |
869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs per tonne P2O5 |
|
$ |
672 |
|
|
$ |
691 |
|
|
$ |
732 |
|
|
$ |
659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
8,532 |
|
|
$ |
13,592 |
|
|
$ |
30,357 |
|
|
$ |
43,855 |
|
For the three and nine months ended September
30, 2019 and 2018, Itafos Conda’s business highlights were
explained as follows:
- MAP production volumes were up year-over-year primarily due to
a shift to incremental MAP production as a result of SPA production
constraints and shortened 2018 due to acquisition timing and longer
plant turnaround;
- MAP sales volumes were up year-over-year despite delayed spring
demand due to higher MAP sales under the exclusive long-term MAP
offtake agreement with Nutrien;
- MAP realized prices were down year-over-year primarily due to
pressure on DAP NOLA to which the exclusive long-term MAP offtake
agreement with Nutrien is linked;
- MAP+ production volumes were up year-over-year due to pilot
production run during Q3 2019;
- SPA production volumes were flat year-over-year primarily due
to production constraints during 2019 and shortened 2018 due to
acquisition timing and longer plant turnaround;
- SPA sales volumes were up year-over-year primarily due to
greater demand for liquid products during 2019;
- SPA realized prices were up year-over-year primarily due to
favorable SPA market conditions relative to dry fertilizers;
- revenues per tonne P2O5 were down year-over-year primarily due
to lower MAP realized prices during 2019, which were partially
offset by higher SPA realized prices during 2019; and
- cash costs per tonne P2O5 were up year-over-year primarily due
to higher input costs in 2019.
Itafos Arraias Highlights
In July 2017, the Company completed the
recommissioning of Itafos Arraias. On July 3, 2018, Itafos Arraias
achieved commercial production. Despite having achieved commercial
production, Itafos Arraias experienced operational challenges post
declaration of commercial production resulting in lower than
optimal levels of capacity utilization. During Q3 2018, the Company
developed and implemented an efficiency improvement plan (the
“Efficiency Improvement Plan”) to address the
technical issues underlying the operational challenges and to
return Itafos Arraias to optimal levels of capacity utilization by
year end 2019. While certain of the operational challenges were
resolved and the business improved, the Efficiency Improvement Plan
did not achieve the results expected.
During 2019, the Company implemented the
Repurpose Plan at Itafos Arraias in order to optimize Itafos
Arraias’ finished fertilizer production with a multi-product
portfolio of higher grade SSP, SSP+ and premium PK compounds. The
Repurpose Plan at Itafos Arraias aimed to enhance Itafos Arraias’
competitive positioning and profitability while reducing its
operational and environmental risk profile. To enable the Repurpose
Plan, Itafos Arraias has been purchasing, receiving and processing
higher grade phosphate rock from third parties during 2019,
including entering into a multi-year phosphate rock supply
agreement to purchase higher grade phosphate rock from the OCP
Group. In addition, the Company has advanced other aspects of the
Repurpose Plan, including production and sales of higher grade SSP
and SSP+ and premium PK compounds, implementation of an efficient
logistics process related to third party phosphate rock,
reorganization of the site and commissioning of equipment. Also in
connection with advancing implementation of the Repurpose Plan,
during Q2 2019, the Company idled Itafos Arraias’ existing mines,
tailings dam and the beneficiation plant.
In November 2019, the Company announced its
decision to idle Itafos Arraias and to suspend the previously
announced Repurpose Plan at Itafos Arraias as part of a disciplined
approach to capital allocation considering the continued downward
pressure on global fertilizer prices. Notwithstanding the idling of
Itafos Arraias, Itafos Arraias has and will continue to maintain
all licenses and permits in good standing and compliance with
existing regulations.
For the three and nine months ended September
30, 2019, Itafos Arraias launched its new line of premium products
following the completion of initial production and sales of higher
grade SSP and SSP+ and premium PK compounds. Brazilian buyers
continued to curtail purchases of locally produced SSP in favor of
imported MAP product, taking advantage of global MAP oversupply.
Despite lower MAP CFR Brazil prices during 2019, Itafos Arraias’
realized prices of SSP and SSP+ remained strong, largely driven by
the shift in selling of higher grade SSP and a strong premium for
sulfur-based products.
For the three and nine months ended September
30, 2018, Itafos Arraias’ business highlights consider that Itafos
Arraias had not achieved commercial production during H1 2018.
For the three and nine months ended September
30, 2019 and 2018, Itafos Arraias’ business highlights were as
follows:
(unaudited in thousands of US Dollars |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
except for volumes, prices and costs) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Production volumes (t) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSP |
|
|
34,502 |
|
|
|
50,135 |
|
|
|
61,013 |
|
|
|
50,135 |
|
SSP+ |
|
|
17,431 |
|
|
|
15,756 |
|
|
|
58,077 |
|
|
|
15,756 |
|
PK compounds |
|
|
3,229 |
|
|
|
— |
|
|
|
3,229 |
|
|
|
— |
|
Excess sulfuric acid |
|
|
16,248 |
|
|
|
24,142 |
|
|
|
35,642 |
|
|
|
24,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales volumes (t) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSP |
|
|
29,039 |
|
|
|
89,695 |
|
|
|
51,089 |
|
|
|
89,695 |
|
SSP+ |
|
|
21,064 |
|
|
|
— |
|
|
|
54,277 |
|
|
|
— |
|
PK compounds |
|
|
119 |
|
|
|
— |
|
|
|
119 |
|
|
|
— |
|
Excess sulfuric acid |
|
|
16,248 |
|
|
|
24,142 |
|
|
|
35,642 |
|
|
|
24,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price ($/t) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSP |
|
$ |
193 |
|
|
$ |
161 |
|
|
$ |
197 |
|
|
$ |
161 |
|
SSP+ |
|
$ |
288 |
|
|
$ |
— |
|
|
$ |
263 |
|
|
$ |
— |
|
PK compounds |
|
$ |
412 |
|
|
$ |
— |
|
|
$ |
412 |
|
|
$ |
— |
|
Excess sulfuric acid |
|
$ |
98 |
|
|
$ |
144 |
|
|
$ |
116 |
|
|
$ |
144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSP, net |
|
$ |
5,591 |
|
|
$ |
14,484 |
|
|
$ |
10,055 |
|
|
$ |
14,484 |
|
SSP+, net |
|
$ |
6,073 |
|
|
$ |
— |
|
|
$ |
14,249 |
|
|
$ |
— |
|
PK compounds |
|
$ |
49 |
|
|
$ |
— |
|
|
$ |
49 |
|
|
$ |
— |
|
Excess sulfuric acid, net |
|
$ |
1,588 |
|
|
$ |
3,471 |
|
|
$ |
4,136 |
|
|
$ |
3,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues per tonne P2O5 |
|
$ |
1,485 |
|
|
$ |
1,178 |
|
|
$ |
1,498 |
|
|
$ |
1,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs per tonne P2O5 |
|
$ |
1,594 |
|
|
$ |
1,370 |
|
|
$ |
2,021 |
|
|
$ |
1,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(3,000 |
) |
|
$ |
(5,277 |
) |
|
$ |
(17,738 |
) |
|
$ |
(9,346 |
) |
For the three and nine months ended September
30, 2019, Itafos Arraias’ business highlights were as follows:
- SSP and SSP+ production and sales volumes were down
year-over-year primarily due to the implementation of the
Efficiency Improvement Plan and subsequent implementation of the
Repurpose Plan during 2019;
- SSP and SSP+ realized prices were up year-over-year primarily
due to the shift in selling of higher grade products during
2019;
- excess sulfuric acid production and sales volumes were down
year-over-year primarily due to a planned sulfuric acid plant
turnaround during Q1 2019 and an oversupplied market that limited
sales opportunities during 2019;
- excess sulfuric acid realized prices were down year-over-year
due to an oversupplied market during 2019;
- revenues per tonne P2O5 were up year-over-year primarily due to
the shift in selling of higher grade products during 2019; and
- cash costs per tonne P2O5 were up year-over-year primarily due
to lower than expected production and sales volumes as well as
higher input costs due to the shift in selling of higher grade
products during 2019.
Outlook
The Company is executing its strategy by
focusing on:
- extending Itafos Conda’s current mine life through advancing
permitting and development of H1/NDR;
- optimizing Itafos Conda’s EBITDA generation potential;
- idling Itafos Arraias and evaluating strategic alternatives for
the business;
- finalizing permitting, negotiating offtake agreements,
finalizing works contractors and procurement packages and securing
project financing for Itafos Farim;
- maintaining the integrity of the concessions and evaluating
strategic alternatives for Itafos Paris Hills, Itafos Santana,
Itafos Mantaro and Itafos Araxá;
- implementing aggressive corporate wide cost saving initiative;
and
- advancing capital raising initiatives.
About Itafos
The Company is a vertically integrated phosphate
fertilizers and specialty products company with an attractive
portfolio of long-term strategic businesses and projects located in
key fertilizer markets worldwide.
The Company owns, operates and is developing the
following businesses and projects:
- Itafos Conda – a vertically integrated phosphate mine and
fertilizer business with production and sales capacity of
approximately 550kt per year of monoammonium phosphate
(“MAP”), MAP with micronutrients
(“MAP+”), superphosphoric acid
(“SPA”), merchant grade phosphoric acid
(“MGA”) and specialty products including ammonium
polyphosphate (“APP”) located in Idaho, US;
- Itafos Arraias – a phosphate fertilizer business with
production and sales capacity of approximately 500kt per year of
single superphosphate (“SSP”), SSP with
micronutrients (“SSP+”), premium PK compounds and
approximately 40kt per year of excess sulfuric acid located in
Tocantins, Brazil;
- Itafos Farim – a high-grade phosphate mine project located in
Farim, Guinea-Bissau;
- Itafos Paris Hills – a high-grade phosphate mine project
located in Idaho, US;
- Itafos Santana – a vertically integrated high-grade phosphate
mine and fertilizer plant project located in Pará, Brazil;
- Itafos Mantaro – a large phosphate mine project located in
Junin, Peru; and
- Itafos Araxá – a vertically integrated rare earth elements and
niobium mine and extraction plant project located in Minas Gerais,
Brazil.
For more information, or to join the Company’s
mailing list to receive notification of future news releases,
please visit the Company’s website, www.itafos.com.
Non-IFRS Financial Measures
The Company considers both IFRS and certain
non-IFRS measures to assess performance. Non-IFRS measures are a
numerical measure of a company’s performance, that either include
or exclude amounts that are not normally included or excluded from
the most directly comparable IFRS measures. In evaluating non-IFRS
measures, investors, analysts, lenders and others should consider
that non-IFRS measures do not have any standardized meaning under
IFRS and that the methodology applied by the Company in calculating
such non-IFRS measures may differ among companies and analysts. The
Company believes the non-IFRS measures provide useful supplemental
information to investors, analysts, lenders and others in order to
evaluate the Company’s operational and financial performance. These
non-IFRS financial measures should not be considered as a
substitute for, nor superior to, measures of financial performance
prepared in accordance with IFRS.
The Company defines:
- “EBITDA” as earnings before interest, taxes,
depreciation, depletion and amortization;
- “Adjusted EBITDA” as EBITDA adjusted for
non-cash, extraordinary, non-recurring and other items unrelated to
the Company’s core operating activities;
- “Total capex” as additions to property, plant
and equipment and mineral properties adjusted for additions to
asset retirement obligations, additions to right of use assets and
capitalized interest;
- “Maintenance capex” as that portion of total
capex relating to maintenance of ongoing operations of the
Company;
- “Growth capex” as that portion of total capex
relating to development of growth opportunities of the
Company;
- “Net debt” as debt and debentures less cash
and cash equivalents and short-term investments;
- “Realized price” as revenues, net divided by
sales volumes;
- “Revenues per tonne P2O5” as revenues, net
divided by sales volumes presented on P2O5 basis;
- “Cash costs” as cost of goods sold less net
realizable value adjustments, depreciation, depletion and
amortization; and
- “Cash cost per tonne P2O5” as cash costs
divided by sales volumes presented on P2O5 basis.
Forward Looking Information
Certain information contained in this news
release constitutes forward looking information. All information
other than information of historical fact is forward looking
information. The use of any of the words “intend”, “anticipate”,
“plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and similar
expressions are intended to identify forward looking information.
This information involves known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward looking
information. No assurance can be given that this information will
prove to be correct and such forward looking information included
in this news release should not be unduly relied upon.
Forward looking information is subject to a
number of risks and other factors that could cause actual results
and events to vary materially from that anticipated by such forward
looking information. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Factors that may cause actual
results to differ materially from expected results described in
forward-looking statements include, but are not limited to, those
risk factors set out in the Company’s Management Discussion and
Analysis and other disclosure documents available under the
Company’s profile at www.sedar.com. Readers are cautioned that the
foregoing list of risks, uncertainties and assumptions are not
exhaustive. The forward-looking information included in this news
release is expressly qualified by this cautionary statement and is
made as of the date of this news release. Itafos undertakes no
obligation to publicly update or revise any forward-looking
information except as required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please
contact:
Itafos Investor
Relationsinvestor@itafos.comwww.itafos.com
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