Itafos Inc. (TSX-V: IFOS) (the “Company”) reported today its Q4 and
FY 2022 financial and operational highlights. The Company’s
financial statements and management’s discussion and analysis and
annual information form for the year ended December 31, 2022 are
available under the Company’s profile at www.sedar.com and on the
Company’s website at www.itafos.com. All figures are in thousands
of US Dollars except as otherwise noted.
CEO Commentary
“We are pleased to report record safety
performance and financial results for 2022. The 2022 reported
revenues of $593.3 million and adjusted EBITDA of $224.8 million
were supported by strong production performance at our Conda
facility and improved market fundamentals for the agricultural
sector.”
“Over the last 24 months we have successfully
executed on our stated business objectives and implemented
solutions which have strengthened the Company for the future.
Included among those accomplishments were deploying strong free
cash flow toward deleveraging, including two debt refinancings
which have significantly reduced the Company’s net debt at the end
of 2022 to $88.3 million, a $129.4 million reduction from the prior
year-end. We have positioned Itafos for the next phase of
sustainable growth with the planned extension of the Conda (H1/NDR)
mine-life through 2037. Following the publication of the
Final Environmental Impact Statement in November, we continue to
advance the H1/NDR mine-life extension approval process, working
collaboratively with the relevant regulatory agencies, and expect a
decision in the coming months with capital work commencing
soon thereafter.”
“As a result of the significant progress made
over the last two years, the Company announced on March 13, 2023
that the Board has formed a committee of independent directors to
explore and evaluate various strategic alternatives. The board
believes that this is an appropriate time to consider the full
range of potential alternatives to enhance value for all Itafos
shareholders,” said G. David Delaney, CEO of Itafos.
Q4 2022 Key Highlights
- revenues of $135.2 million
- adjusted EBITDA of $50.1
million(1)
- net income of $29.3 million
- basic earnings of C$0.21/share
- free cash flow of $38.6
million(1)
FY 2022 Key Highlights
- revenues of $593.3 million
- adjusted EBITDA of $224.8
million(1)
- net income of $114.7 million
- basic earnings of C$0.79/share
- free cash flow of $187.9
million(1)
December 31, 2022 Key
Highlights
- trailing 12 months adjusted EBITDA
of $224.8 million(1)
- net debt of $88.3 million(1)
- net leverage ratio of 0.4x (1)
FY 2023 Guidance
- adjusted EBITDA guidance of $140 to
$180 million(1)
- net income guidance of $35 to $65
million
- basic earnings guidance of C$0.25
to $0.45/share
- maintenance capex guidance of $15
to 25 million(1)
- growth capex guidance of $40 to 50
million(1)
- free cash flow guidance of $70 to
$100 million(1)
___________________________________1 Adjusted
EBITDA, trailing 12 months adjusted EBITDA, maintenance capex,
growth capex, net debt, net leverage ratio and free cash flow are
each a non-International Financial Reporting Standards (“IFRS”)
financial measure. For additional information on non-IFRS and other
financial measures, see “Non-IFRS financial measures” below.
Q4 and FY 2022 Market
Highlights
Diammonium phosphate (“DAP”) New Orleans
(“NOLA”) prices averaged $672/short ton (“st”) in Q4 2022 compared
to $715/st in Q4 2021, down 6% year-over-year. Although prices are
marginally below the comparative period last year, pricing remains
elevated relative to historical norms. DAP NOLA prices averaged
$772/st in FY 2022 compared to $602/st in FY 2021, up 28%
year-over-year.
Specific factors impacting DAP NOLA prices were
as follows:
- limited phosphate capacity
additions;
- multi-year low stocks-to-use ratios
for global coarse grains and oilseeds supporting fertilizer
relative affordability;
- historically high crop prices in
2022;
- the breakout of war in Ukraine;
and
- continued restrictions and controls
on exports of phosphate from China.
Q4 2022 Financial
Highlights
For Q4 2022, the Company’s financial highlights
were as follows:
- revenues of $135.2 million in Q4
2022 compared to $116.8 million in Q4 2021;
- adjusted EBITDA of $50.1 million in
Q4 2022 compared to $47.9 million in Q4 2021;
- net income of $29.3 million in Q4
2022 compared to $24.3 million in Q4 2021;
- basic earnings of C$0.21/share in
Q4 2022 compared to C$0.16/share in Q4 2021; and
- free cash flow of $38.6 million in
Q4 2022 compared to $28.8 million in Q4 2021.
The increase in the Company’s Q4 2022 financial
performance compared to Q4 2021 was primarily due to higher
realized MAP prices (priced on a three-month lag under the terms of
the MAP offtake agreement) and sales volumes at Conda, which were
partially offset by higher input costs. The increase in net income
was primarily due to lower finance and income tax expenses.
The Company’s total capex(2) spend in Q4 2022
was $9.9 million compared to $6.3 million in Q4 2021 with the
increase primarily due to timing of projects at Conda.
FY 2022 Financial
Highlights
For FY 2022, the Company’s financial highlights
were as follows:
- revenues of $593.3 million in FY
2022 compared to $413.2 million in FY 2021;
- adjusted EBITDA of $224.8 million
in FY 2022 compared to $143.4 million in FY 2021;
- net income of $114.7 million in FY
2022 compared to $51.4 million in FY 2021;
- basic earnings of C$0.79/share in
FY 2022 compared to C$0.35/share in FY 2021; and
- free cash flow of $187.9 million in
FY 2022 compared to $71.3 million in FY 2021.
The increase in the Company’s FY 2022 financial
performance compared to FY 2021 was primarily due to higher
realized prices and sales volumes at Conda, which were partially
offset by higher input costs.
The Company’s total capex spend in FY 2022 was
$39.9 million compared to $34.8 million in FY 2021 with the
increase primarily due to activities related to the initiative to
produce and sell HFSA at Conda and maintenance activities at
Arraias related to the restart of the sulfuric acid plant, which
were partially offset by a shorter turnaround at Conda in 2022
compared to 2021.
________________________________2 Total capex is
a non-IFRS financial measure. For additional information on
non-IFRS and other financial measures, see “Non-IFRS financial
measures” below.
Final Environmental Impact Statement for
Conda Mine Life Extension
On November 18, 2022, the Company announced the
publication of the Final Environmental Impact Statement (“Final
EIS”) for the Husky 1/North Dry Ridge (“H1/NDR”) mine development
project. This represents a significant milestone in the extension
of Conda’s mine life. The Company will continue to work through the
remaining regulatory approval process and expect to begin capital
work on the mine extension in the middle part of the year.
Strategic Alternative Review
Process
On March 13, 2023, the Company announced the
commencement of the process to explore and evaluate various
strategic alternatives in an effort to enhance shareholder
value.
Anthony Cina, Chairman of Itafos, commented:
“Itafos continues to successfully execute on its long-term plan.
Over the last year, Itafos has taken decisive actions to strengthen
the operational efficiency of the Company, including working to
extend the life of the Conda mine, extending the maturity and
reducing the cost of the Company’s debt, improving its capital
structure through significant deleveraging and strengthening the
Company’s management and Board. We expect significant shareholder
benefits from these initiatives and believe now is an opportune
time to consider the full range of potential strategic alternatives
to enhance value for all Itafos shareholders.”
CL Fertilizers Holding LLC, an entity owned by
funds managed by Castlelake L.P. and the Company’s largest
shareholder, supports the Company’s process to review strategic
alternatives.
December 31, 2022
Highlights
As at December 31, 2022, the Company had
trailing 12 -month adjusted EBITDA of $224.8 million compared to
$143.4 million at the end of 2021 with the increase primarily due
to higher realized prices and increased sales volumes at Conda
partially offset by higher input costs.
Also, as at December 31, 2022, the Company had
net debt of $88.3 million compared to $217.7 million at the end of
2021, with the reduction due to the repayment of principal debt
outstanding and higher cash and cash equivalents from free cash
flows generated during 2022. The Company also closed during FY
2022, a term loan and asset-based revolving credit facility, which
proceeds were used to refinance the 2021 secured term loan, the
Company’s unsecured and subordinated promissory note, Conda’s
secured working capital facility and the Canadian debentures. The
Company’s net debt as at December 31, 2022, was comprised of $42.8
million in cash and $131.1 million in debt (gross of deferred
financing costs). As at December 31, 2022, the Company’s net
leverage ratio was 0.4x compared to 1.5x at the end of 2021.
As at December 31, 2022, the Company had
liquidity(3) of $64.3 million comprised of $42.8 million in cash
and $21.5 million undrawn borrowing capacity under the ABL
Facility.
Q4 2022 Operational
Highlights
Environmental, Health and Safety (“EHS”)
- sustained EHS excellence, including
no reportable environmental releases and one recordable incident;
and
- continued corporate-wide risk
mitigation measures to address potential impacts to employees,
contractors and operations as a result of the COVID-19 pandemic,
which resulted in no material impact to operations.
Conda
- produced 89,226 tonnes P2O5 at
Conda in Q4 2022 compared to 84,808 tonnes P2O5 in Q4 2021 with the
increase primarily due to 2021 disruption in sulfuric acid
supply;
- generated revenues of $129.3
million at Conda in Q4 2022 compared to $116.8 million in Q4 2021
with the increase primarily due to higher realized MAP prices
(priced on a three-month lag under the terms of the MAP offtake
agreement) and increased sales volumes, which were partially offset
by lower realized SPA prices;
- generated adjusted EBITDA at Conda
of $54.8 million in Q4 2022 compared to $52.8 million in Q4 2021
with the increase primarily due to the same factors that resulted
in higher revenues, which were partially offset by higher input
costs;
- advanced activities related to the
extension of Conda's mine life through permitting and development
of H1/NDR, including a significant milestone on Conda’s mine life
extension with the publication of the Final EIS for H1/NDR on
November 18, 2022.
__________________________________3 Liquidity is a non-IFRS
financial measure. For additional information on non-IFRS and other
financial measures, see “Non-IFRS financial measures” below.
FY 2022 Operational
Highlights
EHS
- sustained EHS excellence, including
no reportable environmental releases and one recordable incident,
which resulted in a consolidated total recordable incident
frequency rate of 0.24, representing a new Company record;
- received national recognition
during the 87th North American Wildlife and Natural Resources
Conference as the Bureau of Land Management awarded the
Conservation Leadership Partner Award to the Southeast Idaho
Habitat Mitigation Fund, which was developed and funded by
Conda;
- continued corporate-wide risk
mitigation measures to address potential impacts to employees,
contractors and operations as a result of the COVID-19 pandemic,
which resulted in no material impact to operations; and
- received a notice of violation
(“NOV”) at Conda from the Idaho Department of Environmental Quality
(“DEQ”) related to a failed air stack emissions test in May 2021.
Conda investigated and corrected the issues during 2021. The NOV
was formally received from the DEQ in May 2022 and resolved in July
2022.
Conda
- completed a scheduled plant
turnaround at Conda and returned to full production capacity;
- produced 343,526 tonnes P2O5 at
Conda in FY 2022 compared to 331,219 tonnes P2O5 in FY 2021 with
the increase primarily due to a shorter plant turnaround in 2022
compared to 2021;
- generated revenues of $571.1
million at Conda in FY 2022 compared to $413.2 million in FY 2021
primarily due to higher realized prices and sales volumes;
- generated adjusted EBITDA at Conda
of $240.2 million in FY 2022 compared to $160.6 million in FY 2021
primarily due to the same factors that resulted in higher revenues,
which were partially offset by higher input costs;
- reached a settlement with insurers
on a business interruption claim related to the 2020 disruption in
sulfuric acid supply to Conda, which resulted in receipt of net
insurance proceeds of $8.7 million;
- reached a settlement agreement
related to shared environmental and asset retirement obligations at
Conda’s Lanes Creek mine;
- advanced activities related to the
extension of Conda’s mine life through permitting and development
of H1/NDR, including a significant milestone on Conda’s mine life
extension with the publication of the Final EIS for H1/NDR on
November 18, 2022; and
- advanced activities related to the
optimization of Conda's EBITDA generation, including beginning
production and sales of hydrofluorosilicic acid (“HFSA”).
Q4 Other Highlights
- produced 35,895
tonnes of sulfuric acid at Arraias in Q4 2022 compared to zero
production in Q4 2021;
- generated adjusted EBITDA at
Arraias of $0 in Q4 2022 compared to a loss of $1.1 million in Q4
2021 with the reduced loss due to the restart of the sulfuric acid
plant; and
- continued evaluation of strategic
alternatives for non-North American assets.
FY 2022 Other Highlights
- produced 99,030 tonnes of sulfuric
acid at Arraias in 2022 compared to no production in 2021;
- generated adjusted EBITDA at
Arraias of $0 in 2022 compared to a $3.8 million loss in 2021 with
the reduced deficit due to the restart of the sulfuric acid
plant;
- continued evaluation of strategic
alternatives for non-North American assets;
- announced the appointment of
Stephen Shapiro and Isaiah Toback to the Company’s Board of
Directors (the “Board”). Mr. Toback replaced Rory O'Neill as a
nominee to the Board by its principal shareholder, CL Fertilizer
Holdings, LLC; and
- on August 11, 2022, announced the
appointment of Matthew O’Neill as Chief Financial Officer (“CFO”).
Mr. O’Neill succeeded George Burdette who served as CFO since April
2018.
Subsequent Events
- Subsequent to December 31, 2022,
the Company approved the grant of up to, in aggregate, 3,507,846
restricted share units (“RSUs”) under its RSU Plan. The grants were
made to directors, officers, management, employees, and contractors
of the Company.
Market Outlook
The Company expects the current strength in
global agriculture and phosphate fertilizer fundamentals to
continue, although 2023 prices are expected to moderate off the
historically high 2022 prices. Accordingly, the Company expects
continued stability in prices and volume fundamentals in the
phosphate fertilizer markets.
Specific factors the Company expects to support
the continued strength in the global phosphate fertilizer markets
through 2023 are as follows:
- no significant phosphate supply
capacity additions
- sustained crop price levels
- improved phosphate application
following historically high pricing; and
- ongoing phosphate export
restrictions from China.
The Company expects the sulfur and sulfuric acid
market to remain soft globally through 2023 due to increased
refinery activity and reduced demand from phosphate producers and
metals consumers.
Financial Outlook
The Company’s guidance for 2023 is as
follows:
|
(in millions of US Dollars |
|
| except
as otherwise noted) |
FY 2023 |
|
Adjusted EBITDA |
$140 to $180 |
| Net income |
$35 to $65 |
| Basic earnings (C$/share) |
$0.25 to $0.45 |
| Maintenance capex |
$15 to $25 |
| Growth capex |
$40 to $50 |
| Free
cash flow |
$70 to $100 |
Business Outlook
The Company continues to focus on the following
key objectives to drive long-term value and shareholder
returns:
- improving financial and operational
performance;
- deleveraging the balance
sheet;
- extending Conda’s current mine life
through permitting and development of H1/NDR; and
- conducting the strategic
alternatives review process (including evaluating potential
strategic alternatives for the company as outlined in the news
release dated 13 March, 2023).
About Itafos
The Company is a phosphate and specialty
fertilizer company. The Company’s businesses and projects are as
follows:
- Conda – a vertically integrated
phosphate fertilizer business located in Idaho, US with production
capacity as follows:
- approximately 550kt per year of
monoammonium phosphate (“MAP”), MAP with micronutrients (“MAP+”),
superphosphoric acid (“SPA”), merchant grade phosphoric acid
(“MGA”) and ammonium polyphosphate (“APP”); and
- approximately 27kt per year of
hydrofluorosilicic acid (“HFSA”);
- Arraias – a vertically integrated
phosphate fertilizer business located in Tocantins, Brazil with
production capacity as follows:
- approximately 500kt per year of
single superphosphate (“SSP”) and SSP with micronutrients (“SSP+”);
and
- approximately 40kt per year of
excess sulfuric acid (220kt per year gross sulfuric acid production
capacity);
- Farim – a high-grade phosphate mine
project located in Farim, Guinea-Bissau;
- Santana – a vertically integrated
high-grade phosphate mine and fertilizer plant project located in
Pará, Brazil; and
- Araxá – a vertically integrated
rare earth elements and niobium mine and extraction plant project
located in Minas Gerais, Brazil.
In addition to the businesses and projects
described above, the Company also owns Mantaro (Junin, Peru), a
phosphate mine project that is in the process of being wound
down.
The Company is a Delaware corporation that is
headquartered in Houston, TX. The Company’s shares trade on the TSX
Venture Exchange (“TSX-V”) under the ticker symbol “IFOS”. The
Company’s principal shareholder is CL Fertilizers Holding LLC
(“CLF”). CLF is an affiliate of Castlelake, L.P., a global private
investment firm.
For more information, or to join the Company’s
mailing list to receive notification of future news releases,
please visit the Company’s website at www.itafos.com.
Forward-Looking Information
Certain information contained in this news
release constitutes forward-looking information, including
statements with respect to: the exploration and evaluation of
strategic alternatives; the timing for the extension of the life of
the Conda mine; and the continued strength in the global phosphate
fertilizer markets. All information other than information of
historical fact is forward-looking information. Statements that
address activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future
include, but are not limited to, statements regarding estimates
and/or assumptions in respect of the Company’s financial and
business outlook are 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,
uncertainties of estimates of capital and operating costs and
production estimates; the ability of the Company to meet its
financial obligations and minimum commitments, fund capital
expenditures and comply with covenants contained in the agreements
that govern indebtedness; fluctuations in foreign exchange or
interest rates and stock market volatility; the continued supply of
sulfuric acid to Conda from its primary supplier; the risk that the
strategic alternatives review process will not result in the
Company pursuing any transaction or that any alternative will be
available to the Company; and those risk factors set out in the
Company’s annual information form and other disclosure documents
available under the Company’s profile on SEDAR at www.sedar.com and
on the Company’s website at www.itafos.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. The Company
undertakes no obligation to publicly update or revise any
forward-looking information except as required by applicable
securities laws.
This news release contains future oriented
financial information and financial outlook information (together,
“FOFI”) about the Company’s prospective results of operations,
including statements regarding expected adjusted EBITDA, net
income, basic earnings per share, maintenance capex, growth capex
and free cash flow. FOFI is subject to the same assumptions, risk
factors, limitations and qualifications as set forth in the above
paragraph. The Company has included the FOFI to provide an outlook
of management’s expectations regarding anticipated activities and
results, and such information may not be appropriate for other
purposes. The Company and management believe that the FOFI has been
prepared on a reasonable basis, reflecting management’s reasonable
estimates and judgements; however, actual results of operations and
the resulting financial results may vary from the amounts set forth
herein. Any financial outlook information speaks only as of the
date on which it is made and the Company undertakes no obligation
to publicly update or revise any financial outlook information
except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-V)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS
RELEASE.
For further information, please
contact:
Matthew O’NeillItafos Investor
Relationsinvestor@itafos.com713-242-8446
Non-IFRS Financial Measures
This press release contains both IFRS and
certain non-IFRS measures that management considers to evaluate the
Company’s operational and financial 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.
Management believes that the non-IFRS measures provide useful
supplemental information to investors, analysts, lenders and
others. 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. Non-IFRS measures should not
be considered as a substitute for, nor superior to, measures of
financial performance prepared in accordance with IFRS. Definitions
and reconciliations of non-IFRS measures to the most directly
comparable IFRS measures are included below.
DEFINITIONS
The Company defines its non-IFRS measures as
follows:
|
Non-IFRS Measure |
Definition |
Most Directly Comparable IFRS Measure |
|
EBITDA |
Earnings before interest, taxes, depreciation, depletion and
amortization |
Net income (loss) and operating income (loss) |
|
Adjusted EBITDA |
EBITDA adjusted for non-cash, extraordinary, non-recurring and
other items unrelated to the Company’s core operating
activities |
Net income (loss) and operating income (loss) |
|
Trailing 12 months adjusted EBITDA |
Adjusted EBITDA for the current and preceding three quarters |
Net income (loss) and operating income (loss) for the current and
preceding three quarters |
|
Total capex |
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 |
Additions to property, plant and equipment and mineral
properties |
|
Maintenance capex |
Portion of total capex relating to the maintenance of ongoing
operations |
Additions to property, plant and equipment and mineral
properties |
|
Growth capex |
Portion of total capex relating to the development of growth
opportunities |
Additions to property, plant and equipment and mineral
properties |
|
Cash growth capex |
Growth capex less accrued growth capex |
Additions to property, plant and equipment and mineral
properties |
|
Net debt |
Debt less cash and cash equivalents plus deferred financing costs
(does not consider lease liabilities) |
Current debt, long-term debt and cash and cash equivalents |
|
Net leverage ratio |
Net debt divided by trailing 12 months adjusted EBITDA |
Current debt, long-term debt and cash and cash equivalents; net
income (loss) and operating income (loss) for the current and
preceding three quarters |
|
Liquidity |
Cash and cash equivalents plus undrawn committed borrowing
capacity |
Cash and cash equivalents |
|
Free cash flow |
Cash flows from operating activities, which excludes payment of
interest expense, plus cash flows from investing activities less
cash growth capex |
Cash flows from operating activities and cash flows from investing
activities |
|
|
|
|
EBITDA, ADJUSTED EBITDA AND TRAILING 12
MONTHS ADJUSTED EBITDA
EBITDA is a non-IFRS measure that excludes
interest, taxes, depreciation, depletion and amortization from
earnings. Management believes that EBITDA is a valuable indicator
of the Company’s ability to generate operating income.
Adjusted EBITDA is a non-IFRS measure that
excludes non-cash, extraordinary, non-recurring and other items
unrelated to the Company’s core operating activities from EBITDA
(non-IFRS measure). Management believes that adjusted EBITDA is a
valuable indicator of the Company’s ability to generate operating
income from its core operating activities normalized to remove the
impact of non-cash, extraordinary and non-recurring items. The
Company provides guidance on adjusted EBITDA as useful supplemental
information to investors, analysts, lenders and others.
Trailing 12 months adjusted EBITDA is a non-IFRS
measure that includes adjusted EBITDA (non-IFRS measure) for the
current and preceding three quarters.
For the three months ended December 31,
2022 and 2021
For the three months ended December 31, 2022,
the Company had EBITDA and adjusted EBITDA by segment as
follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Net income (loss) |
|
$ |
35,321 |
|
|
$ |
(116 |
) |
|
$ |
59 |
|
|
$ |
(5,942 |
) |
|
$ |
29,322 |
|
| Finance (income) expense,
net |
|
|
1,164 |
|
|
|
(122 |
) |
|
|
(2 |
) |
|
|
4,771 |
|
|
|
5,811 |
|
| Current and deferred income tax
expense (recovery) |
|
|
9,595 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,660 |
) |
|
|
5,935 |
|
| Depreciation and depletion |
|
|
8,354 |
|
|
|
585 |
|
|
|
3 |
|
|
|
47 |
|
|
|
8,989 |
|
| EBITDA |
|
$ |
54,434 |
|
|
$ |
347 |
|
|
$ |
60 |
|
|
$ |
(4,784 |
) |
|
$ |
50,057 |
|
| Unrealized foreign exchange
(gain) loss |
|
|
400 |
|
|
|
(124 |
) |
|
|
(568 |
) |
|
|
578 |
|
|
|
286 |
|
| Share-based payment recovery |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(133 |
) |
|
|
(133 |
) |
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
214 |
|
|
|
229 |
|
| Gain on settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other income, net |
|
|
(11 |
) |
|
|
(223 |
) |
|
|
(74 |
) |
|
|
(1 |
) |
|
|
(309 |
) |
|
Adjusted EBITDA |
|
$ |
54,823 |
|
|
$ |
— |
|
|
$ |
(567 |
) |
|
$ |
(4,126 |
) |
|
$ |
50,130 |
|
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Operating income (loss) |
|
$ |
46,558 |
|
|
$ |
(585 |
) |
|
$ |
(585 |
) |
|
$ |
(4,254 |
) |
|
$ |
41,134 |
|
| Depreciation and depletion |
|
|
8,354 |
|
|
|
585 |
|
|
|
3 |
|
|
|
47 |
|
|
|
8,989 |
|
| Foreign exchange loss -
realized |
|
|
(89 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(89 |
) |
| Share-based payment recovery |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(133 |
) |
|
|
(133 |
) |
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
214 |
|
|
|
229 |
|
| Gain on settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted EBITDA |
|
$ |
54,823 |
|
|
$ |
|
|
|
$ |
(567 |
) |
|
$ |
(4,126 |
) |
|
$ |
50,130 |
|
For the three months ended December 31, 2021,
the Company had EBITDA and adjusted EBITDA by segment as
follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Net income (loss) |
|
$ |
34,914 |
|
|
$ |
(1,204 |
) |
|
$ |
(507 |
) |
|
$ |
(8,923 |
) |
|
$ |
24,280 |
|
| Finance expense, net |
|
|
848 |
|
|
|
64 |
|
|
|
2 |
|
|
|
7,375 |
|
|
|
8,289 |
|
| Current and deferred income tax
expense (recovery) |
|
|
10,160 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,880 |
) |
|
|
7,280 |
|
| Depreciation and depletion |
|
|
6,943 |
|
|
|
64 |
|
|
|
4 |
|
|
|
46 |
|
|
|
7,057 |
|
| EBITDA |
|
$ |
52,865 |
|
|
$ |
(1,076 |
) |
|
$ |
(501 |
) |
|
$ |
(4,382 |
) |
|
|
46,906 |
|
| Unrealized foreign exchange
(gain) loss |
|
|
(15 |
) |
|
|
98 |
|
|
|
58 |
|
|
|
(145 |
) |
|
|
(4 |
) |
| Share-based payment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
904 |
|
|
|
904 |
|
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
316 |
|
|
|
316 |
|
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other income |
|
|
(1 |
) |
|
|
(138 |
) |
|
|
(44 |
) |
|
|
— |
|
|
|
(183 |
) |
|
Adjusted EBITDA |
|
$ |
52,849 |
|
|
$ |
(1,116 |
) |
|
$ |
(487 |
) |
|
$ |
(3,307 |
) |
|
$ |
47,939 |
|
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Operating income (loss) |
|
$ |
45,755 |
|
|
$ |
(1,180 |
) |
|
$ |
(556 |
) |
|
$ |
(4,587 |
) |
|
$ |
39,432 |
|
| Depreciation and depletion |
|
|
6,943 |
|
|
|
64 |
|
|
|
4 |
|
|
|
46 |
|
|
|
7,057 |
|
| Foreign exchange gain -
realized |
|
|
151 |
|
|
|
— |
|
|
|
65 |
|
|
|
14 |
|
|
|
230 |
|
| Share-based payment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
904 |
|
|
|
904 |
|
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
316 |
|
|
|
316 |
|
| Technical Studies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted EBITDA |
|
$ |
52,849 |
|
|
$ |
(1,116 |
) |
|
$ |
(487 |
) |
|
$ |
(3,307 |
) |
|
$ |
47,939 |
|
For the year ended December 31,
2022 and 2021
For the year ended December 31, 2022, the
Company had EBITDA and adjusted EBITDA by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Net income (loss) |
|
$ |
162,107 |
|
|
$ |
(2,304 |
) |
|
$ |
(397 |
) |
|
$ |
(44,706 |
) |
|
$ |
114,700 |
|
| Finance (income) expense,
net |
|
|
5,020 |
|
|
|
(131 |
) |
|
|
4 |
|
|
|
41,031 |
|
|
|
45,924 |
|
| Current and deferred income tax
expense (recovery) |
|
|
50,895 |
|
|
|
— |
|
|
|
— |
|
|
|
(18,741 |
) |
|
|
32,154 |
|
| Depreciation and depletion |
|
|
31,453 |
|
|
|
2,048 |
|
|
|
14 |
|
|
|
190 |
|
|
|
33,705 |
|
| EBITDA |
|
$ |
249,475 |
|
|
$ |
(387 |
) |
|
$ |
(379 |
) |
|
$ |
(22,226 |
) |
|
$ |
226,483 |
|
| Unrealized foreign exchange
(gain) loss |
|
|
400 |
|
|
|
872 |
|
|
|
(900 |
) |
|
|
1,068 |
|
|
|
1,440 |
|
| Share-based payment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,850 |
|
|
|
4,850 |
|
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
140 |
|
|
|
719 |
|
|
|
859 |
|
| Gain on settlement |
|
|
(1,352 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,352 |
) |
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,511 |
|
|
|
1,511 |
|
| Other income, net |
|
|
(8,354 |
) |
|
|
(551 |
) |
|
|
(94 |
) |
|
|
(34 |
) |
|
|
(9,033 |
) |
|
Adjusted EBITDA |
|
$ |
240,169 |
|
|
$ |
(66 |
) |
|
$ |
(1,233 |
) |
|
$ |
(14,112 |
) |
|
$ |
224,758 |
|
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Operating income (loss) |
|
$ |
210,246 |
|
|
$ |
(2,114 |
) |
|
$ |
(1,387 |
) |
|
$ |
(21,361 |
) |
|
$ |
185,384 |
|
| Depreciation and depletion |
|
|
31,453 |
|
|
|
2,048 |
|
|
|
14 |
|
|
|
190 |
|
|
|
33,705 |
|
| Realized foreign exchange
loss |
|
|
(178 |
) |
|
|
— |
|
|
|
— |
|
|
|
(21 |
) |
|
|
(199 |
) |
| Share-based payment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,850 |
|
|
|
4,850 |
|
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
140 |
|
|
|
719 |
|
|
|
859 |
|
| Gain on settlement |
|
|
(1,352 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,352 |
) |
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,511 |
|
|
|
1,511 |
|
|
Adjusted EBITDA |
|
$ |
240,169 |
|
|
$ |
(66 |
) |
|
$ |
(1,233 |
) |
|
$ |
(14,112 |
) |
|
$ |
224,758 |
|
For the year ended December 31, 2021, the
Company had EBITDA and adjusted EBITDA by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Net income (loss) |
|
$ |
102,794 |
|
|
$ |
(3,459 |
) |
|
$ |
(2,044 |
) |
|
$ |
(45,852 |
) |
|
$ |
51,439 |
|
| Finance expense, net |
|
|
3,073 |
|
|
|
123 |
|
|
|
7 |
|
|
|
34,041 |
|
|
|
37,244 |
|
| Current and deferred income tax
expense (recovery) |
|
|
28,913 |
|
|
|
— |
|
|
|
— |
|
|
|
(6,807 |
) |
|
|
22,106 |
|
| Depreciation and depletion |
|
|
25,213 |
|
|
|
405 |
|
|
|
49 |
|
|
|
177 |
|
|
|
25,844 |
|
| EBITDA |
|
$ |
159,993 |
|
|
$ |
(2,931 |
) |
|
$ |
(1,988 |
) |
|
$ |
(18,441 |
) |
|
|
136,633 |
|
| Unrealized foreign exchange
(gain) loss |
|
|
621 |
|
|
|
(599 |
) |
|
|
543 |
|
|
|
459 |
|
|
|
1,024 |
|
| Share-based payment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,127 |
|
|
|
4,127 |
|
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,029 |
|
|
|
2,029 |
|
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
21 |
|
|
|
56 |
|
| Other income |
|
|
(32 |
) |
|
|
(284 |
) |
|
|
(128 |
) |
|
|
— |
|
|
|
(444 |
) |
|
Adjusted EBITDA |
|
$ |
160,582 |
|
|
$ |
(3,814 |
) |
|
$ |
(1,538 |
) |
|
$ |
(11,805 |
) |
|
$ |
143,425 |
|
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Operating income (loss) |
|
$ |
135,148 |
|
|
$ |
(4,219 |
) |
|
$ |
(1,777 |
) |
|
$ |
(18,173 |
) |
|
$ |
110,979 |
|
| Depreciation and depletion |
|
|
25,213 |
|
|
|
405 |
|
|
|
49 |
|
|
|
177 |
|
|
|
25,844 |
|
| Foreign exchange gain -
realized |
|
|
221 |
|
|
|
— |
|
|
|
155 |
|
|
|
14 |
|
|
|
390 |
|
| Share-based payment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,127 |
|
|
|
4,127 |
|
| Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,029 |
|
|
|
2,029 |
|
| Technical Studies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Non-recurring compensation
expenses |
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
21 |
|
|
|
56 |
|
|
Adjusted EBITDA |
|
$ |
160,582 |
|
|
$ |
(3,814 |
) |
|
$ |
(1,538 |
) |
|
$ |
(11,805 |
) |
|
$ |
143,425 |
|
As at December 31, 2022 and December 31,
2021
As at December 31, 2022, the Company had
trailing 12 months adjusted EBITDA as follows:
| (in
thousands of US Dollars) |
Total |
|
|
For the three months ended December 31, 2022 |
$ |
50,130 |
|
| For the three months ended
September 30, 2022 |
|
50,656 |
|
| For the three months ended
June 30, 2022 |
|
63,591 |
|
| For the three months ended March
31, 2022 |
|
60,381 |
|
|
Trailing 12 months adjusted EBITDA |
$ |
224,758 |
|
As at December 31, 2021, the Company had
trailing 12 months adjusted EBITDA as follows:
| (in
thousands of US Dollars) |
Total |
|
|
For the three months ended December 31, 2021 |
$ |
47,939 |
|
| For the three months ended
September 30, 2021 |
|
41,174 |
|
| For the three months ended June
30, 2021 |
|
33,696 |
|
| For the three months ended March
31, 2021 |
|
20,616 |
|
|
Trailing 12 months adjusted EBITDA |
$ |
143,425 |
|
TOTAL CAPEX
Total capex is a non-IFRS measure that includes
additions to property, plant, and equipment and mineral properties,
which are adjusted for additions to asset retirement obligations,
additions to right-of-use assets and capitalized interest.
Maintenance capex is a non-IFRS measure that
includes the portion of total capex (non-IFRS measure) relating to
the maintenance of ongoing operations. Management believes that
maintenance capex is a valuable indicator of the Company’s required
capital expenditures to sustain operations at existing levels.
Growth capex is a non-IFRS measure that includes
the portion of total capex (non-IFRS measure) relating to the
development of growth opportunities. Management believe that growth
capex is a valuable indicator of the Company’s capital expenditures
related to growth opportunities.
The Company provides guidance on both
maintenance capex and growth capex as useful supplemental
information to investors, analysts, lenders and others.
For the three months ended
December 31, 2022 and 2021
For the three months ended December 31,
2022, the Company had capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Additions to property, plant and equipment |
|
$ |
(21,435 |
) |
|
$ |
(1,935 |
) |
|
$ |
22 |
|
|
$ |
— |
|
|
$ |
(23,348 |
) |
| Additions to mineral
properties |
|
|
2,297 |
|
|
|
— |
|
|
|
210 |
|
|
|
— |
|
|
|
2,507 |
|
| Additions to property, plant
and equipment related to asset retirement obligations |
|
|
32,660 |
|
|
|
2,202 |
|
|
|
— |
|
|
|
— |
|
|
|
34,862 |
|
| Additions to right of use
assets |
|
|
(4,010 |
) |
|
|
(83 |
) |
|
|
(23 |
) |
|
|
— |
|
|
|
(4,116 |
) |
|
Total capex |
|
$ |
9,512 |
|
|
$ |
184 |
|
|
$ |
209 |
|
|
$ |
— |
|
|
$ |
9,905 |
|
|
Maintenance capex |
|
|
3,689 |
|
|
|
70 |
|
|
|
— |
|
|
|
— |
|
|
|
3,759 |
|
| Growth
capex |
|
|
5,823 |
|
|
|
114 |
|
|
|
209 |
|
|
|
— |
|
|
|
6,146 |
|
For the three months ended December 31,
2021, the Company had capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Additions to property, plant and equipment |
|
$ |
95,156 |
|
|
$ |
1,531 |
|
|
$ |
38 |
|
|
$ |
51 |
|
|
$ |
96,776 |
|
| Additions to mineral
properties |
|
|
(82 |
) |
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
(72 |
) |
| Additions to property, plant
and equipment related to asset retirement obligations |
|
|
(90,037 |
) |
|
|
(326 |
) |
|
|
— |
|
|
|
— |
|
|
|
(90,363 |
) |
| Additions to right of use
assets |
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
Total capex |
|
$ |
5,037 |
|
|
$ |
1,208 |
|
|
$ |
48 |
|
|
$ |
51 |
|
|
$ |
6,344 |
|
|
Maintenance capex |
|
|
1,924 |
|
|
|
1,238 |
|
|
|
— |
|
|
|
31 |
|
|
|
3,193 |
|
| Growth
capex |
|
|
3,113 |
|
|
|
(30 |
) |
|
|
48 |
|
|
|
20 |
|
|
|
3,151 |
|
For the years ended December 31, 2022
and 2021
For the year ended December 31, 2022, the
Company had capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Additions to property, plant and equipment |
|
$ |
2,524 |
|
|
$ |
484 |
|
|
$ |
22 |
|
|
$ |
19 |
|
|
$ |
3,049 |
|
| Additions to mineral
properties |
|
|
7,163 |
|
|
|
— |
|
|
|
1,485 |
|
|
|
— |
|
|
|
8,648 |
|
| Additions to asset retirement
obligations |
|
|
30,349 |
|
|
|
2,020 |
|
|
|
— |
|
|
|
— |
|
|
|
32,369 |
|
| Additions to Right of Use
assets |
|
|
(4,010 |
) |
|
|
(117 |
) |
|
|
(23 |
) |
|
|
— |
|
|
|
(4,150 |
) |
|
Total capex |
|
$ |
36,026 |
|
|
$ |
2,387 |
|
|
$ |
1,484 |
|
|
$ |
19 |
|
|
$ |
39,916 |
|
|
Maintenance capex |
|
|
19,386 |
|
|
|
1,497 |
|
|
|
— |
|
|
|
19 |
|
|
|
20,902 |
|
| Growth
capex |
|
|
16,640 |
|
|
|
890 |
|
|
|
1,484 |
|
|
|
— |
|
|
|
19,014 |
|
For the year ended December 31, 2021, the
Company had capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Additions to property, plant and equipment |
|
$ |
122,317 |
|
|
$ |
1,532 |
|
|
$ |
54 |
|
|
$ |
464 |
|
|
$ |
124,367 |
|
| Additions to mineral
properties |
|
|
3,031 |
|
|
|
— |
|
|
|
604 |
|
|
|
— |
|
|
|
3,635 |
|
| Additions to asset retirement
obligations |
|
|
(93,038 |
) |
|
|
202 |
|
|
|
— |
|
|
|
— |
|
|
|
(92,836 |
) |
| Additions to Right of Use
assets |
|
|
— |
|
|
|
16 |
|
|
|
(13 |
) |
|
|
(367 |
) |
|
|
(364 |
) |
|
Total capex |
|
$ |
32,310 |
|
|
$ |
1,750 |
|
|
$ |
645 |
|
|
$ |
97 |
|
|
$ |
34,802 |
|
|
Maintenance capex |
|
|
21,986 |
|
|
|
1,238 |
|
|
|
— |
|
|
|
77 |
|
|
|
23,301 |
|
| Growth
capex |
|
|
10,324 |
|
|
|
512 |
|
|
|
645 |
|
|
|
20 |
|
|
|
11,501 |
|
CASH GROWTH CAPEX
Cash growth capex is a non-IFRS measures that
excludes accrued capex from growth capex (non-IFRS measure). The
Company uses cash growth capex in the calculation of free cash flow
(non-IFRS measure).
For the three months ended
December 31, 2022 and 2021
For the three months ended December 31,
2022, the Company had cash growth capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Growth capex |
|
$ |
5,823 |
|
|
$ |
114 |
|
|
$ |
209 |
|
|
$ |
— |
|
|
$ |
6,146 |
|
| Accrued growth capex |
|
|
386 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
386 |
|
|
Cash growth capex |
|
$ |
6,209 |
|
|
$ |
114 |
|
|
$ |
209 |
|
|
$ |
— |
|
|
$ |
6,532 |
|
For the three months ended December 31,
2021, the Company had cash growth capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Growth capex |
|
$ |
3,113 |
|
|
$ |
(30 |
) |
|
$ |
48 |
|
|
$ |
20 |
|
|
$ |
3,151 |
|
| Accrued growth capex |
|
|
(281 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(281 |
) |
|
Cash growth capex |
|
$ |
2,832 |
|
|
$ |
(30 |
) |
|
$ |
48 |
|
|
$ |
20 |
|
|
$ |
2,870 |
|
For the years ended December 31,
2022 and 2021
For the year ended December 31, 2022, the
Company had cash growth capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Growth capex |
|
$ |
16,640 |
|
|
$ |
890 |
|
|
$ |
1,484 |
|
|
$ |
— |
|
|
$ |
19,014 |
|
| Accrued growth capex |
|
|
(526 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(526 |
) |
|
Cash growth capex |
|
$ |
16,114 |
|
|
$ |
890 |
|
|
$ |
1,484 |
|
|
$ |
— |
|
|
$ |
18,488 |
|
For the year ended December 31, 2021, the
Company had cash growth capex by segment as follows:
| (in
thousands of US Dollars) |
|
Conda |
|
|
Arraias |
|
|
Developmentandexploration |
|
|
Corporate |
|
|
Total |
|
|
Growth capex |
|
$ |
10,324 |
|
|
$ |
512 |
|
|
$ |
645 |
|
|
$ |
20 |
|
|
$ |
11,501 |
|
| Accrued growth capex |
|
|
(634 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(634 |
) |
|
Cash growth capex |
|
$ |
9,690 |
|
|
$ |
512 |
|
|
$ |
645 |
|
|
$ |
20 |
|
|
$ |
10,867 |
|
NET DEBT and NET LEVERAGE
RATIO
Net debt is a non-IFRS measure that includes
debt less cash and cash equivalents and excludes deferred financing
costs from debt. The Company’s net debt does not include lease
liabilities. Management believes that net debt is a valuable
indicator of the Company’s net debt position as it removes the
impact of deferring financing costs.
Net leverage ratio is a non-IFRS measure that
considers net debt (non-IFRS measure) divided by trailing 12 months
adjusted EBITDA (non-IFRS measure). Management believes that the
Company’s net leverage ratio is a valuable indicator of its ability
to service its debt from its core operating activities.
As at December 31, 2022 and December 31, 2021,
the Company had net debt as follows:
| |
|
December 31, |
|
|
December 31, |
|
| (in
thousands of US Dollars) |
|
2022 |
|
|
2021 |
|
|
Current debt |
|
$ |
29,217 |
|
|
$ |
52,838 |
|
| Long-term debt |
|
|
98,907 |
|
|
|
187,010 |
|
| Cash and cash equivalents |
|
|
(42,811 |
) |
|
|
(31,565 |
) |
| Deferred financing costs related
to the Credit Facilities |
|
|
3,006 |
|
|
|
— |
|
| Deferred financing costs related
to the Term Loan |
|
|
— |
|
|
|
9,423 |
|
|
Net debt |
|
$ |
88,319 |
|
|
$ |
217,706 |
|
As at December 31, 2022 and December 31,
2021, the Company’s net leverage ratio was as follows:
| (in thousands of US
Dollars |
|
December 31, |
|
|
December 31, |
|
| except
as otherwise noted) |
|
2022 |
|
|
2021 |
|
|
Net debt |
|
$ |
88,319 |
|
|
$ |
217,706 |
|
| Trailing 12 months adjusted
EBITDA |
|
|
224,758 |
|
|
|
143,425 |
|
|
Net leverage ratio |
|
0.4x |
|
|
1.5x |
|
LIQUIDITY
Liquidity is a non-IFRS measure that includes
cash and cash equivalents plus undrawn committed borrowing
capacity. Management believes that liquidity is a valuable
indicator of the Company’s liquidity.
As at December 31, 2022 and December 31, 2021,
the Company had liquidity as follows:
| |
|
December 31, |
|
|
December 31, |
|
| (in
thousands of US Dollars) |
|
2022 |
|
|
2021 |
|
|
Cash and cash equivalents |
|
$ |
42,811 |
|
|
$ |
31,565 |
|
| ABL Facility undrawn borrowing
capacity |
|
|
21,447 |
|
|
|
— |
|
| Conda ABL undrawn borrowing
capacity |
|
|
— |
|
|
|
5,870 |
|
|
Liquidity |
|
$ |
64,258 |
|
|
$ |
37,435 |
|
FREE CASH FLOW
Free cash flow is a non-IFRS measure that
includes cash flows from operating activities (which excludes
payment of interest expense) and cash flows from investing
activities less cash growth capex (non-IFRS measure). Management
believes that free cash flow is a valuable indicator of the
Company’s ability to generate cash flows from operations after
giving effect to required capital expenditures to sustain
operations at existing levels. Management further believes that
free cash flow is a valuable indicator of the Company’s cash flow
available for debt service or to fund growth opportunities. The
Company provides guidance on free cash flow as useful supplemental
information to investors, analysts, lenders and others.
For the three months and years ended December
31, 2022 and 2021, the Company had free cash flow as follows:
| |
|
For the three months ended December 31, |
|
|
For the year ended December 31, |
|
| (in
thousands of US Dollars) |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
Cash flows from operating activities |
|
$ |
42,245 |
|
$ |
32,333 |
|
|
$ |
208,369 |
|
$ |
94,499 |
|
| Cash flows used by investing
activities |
|
|
(10,162 |
) |
|
(6,355 |
) |
|
|
(39,003 |
) |
|
(34,076 |
) |
| Less: Cash growth capex |
|
|
6,532 |
|
|
2,870 |
|
|
|
18,488 |
|
|
10,867 |
|
|
Free cash flow |
|
$ |
38,615 |
|
$ |
28,848 |
|
|
$ |
187,854 |
|
$ |
71,290 |
|
Itafos (TSXV:IFOS)
Historical Stock Chart
From Nov 2024 to Dec 2024
Itafos (TSXV:IFOS)
Historical Stock Chart
From Dec 2023 to Dec 2024
