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- Globe and Mail
Itafos Continues to Deliver Strong Operational and Financial Performance - Q2 2025 Operational and Financial Results
HOUSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the 'Company') today reported its Q2 2025 financial results and provided a corporate update. The Company's financial statements and management's discussion and analysis for the three and six months ended June 30, 2025 are available under the Company's profile at and on the Company's website at All figures are in thousands of US Dollars except as otherwise noted. A recorded webcast of management's commentary reviewing the Q2 2025 financial results and an update on the business will be available on the Company's website on Monday, August 11, 2025 (see details below). Chief Executive Officer David Delaney commented, 'we are pleased to report another highly successful quarter in which the Company maintained its exceptional safety performance and posted higher production volumes at both Conda and Arraias compared to the same period last year. We completed our annual planned turnaround at Conda on time and on budget and the plant was back to running at full capacity as we exited the quarter. At Arraias, the granulation circuit was successfully restarted and the Company delivered the initial volumes of its new granulated fertilizer product, SuperForte Gran to the local market. Operating margins declined year-over-year for Q2, with higher revenues offset by higher input costs at Conda, particularly for sulfur and sulfuric acid. While reference phosphate prices increased significantly during the second quarter, due to the nature of the Company's monoammonium phosphate ('MAP') offtake contract, the full benefit of the increased prices will not be realized until the second half of the year. The infrastructure build-out of our Husky 1 / North Dry Ridge ('H1/NDR') mines in Idaho is progressing as planned with first ore shipments to the Conda plant scheduled for later this year. Moreover, the Board of Directors recently approved a capital project to construct a new processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2 O 5 production capacity at the plant. Phosphate prices increased steadily during second quarter and the positive supply and demand fundamentals suggest fertilizer prices are likely to remain at elevated levels, leaving us well positioned for the second half of the year.' Q2 2025 Financial Highlights For Q2 2025, the Company's financial highlights were as follows: Revenues of $126.8 million in Q2 2025 compared to $105.1 million in Q2 2024; Adjusted EBITDA 1 of $31.8 million in Q2 2025 compared to $32.8 million in Q2 2024; Net income of $24.8 million in Q2 2025 compared to $16.2 million in Q2 2024; Basic earnings of C$0.18/share in Q2 2025 compared to C$0.12/share in Q2 2024; and Free cash flow 1 of $10.8 million in Q2 2024 compared to $42.5 million in Q2 2024. The marginal decrease in the Company's Q2 2025 adjusted EBITDA compared to the corresponding period in the prior year was due to higher sulfur and sulfuric acid costs at Conda and share-based based payment expense, partially offset by higher revenues. The increase in the Company's Q2 2025 net income compared to Q2 2024 was primarily due to fair value gain on investments, lower finance expenses, and lower income tax expense. The Company's total capex 1 spend in Q2 2025 was $28.8 million compared to $30.2 million in Q2 2024 with the decrease primarily due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) at Conda and sulfuric acid plant turnaround in 2024 at Arraias, partially offset by an increase in growth capex 1. ________________________________ 1 Adjusted EBITDA, free cash flow, total capex, and growth capex are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below. International Financial Reporting Standards ('IFRS'). H1 2025 Financial Highlights For H1 2025, the Company's financial highlights were as follows: Revenues of $262.5 million in H1 2025 compared to $233.1 million in H1 2024; Adjusted EBITDA of $71.1 million in H1 2025 compared to $76.0 million in H1 2024; Net income of $60.7 million in H1 2025 compared to $39.9 million in H1 2024; Basic earnings of C$0.44/share in H1 2025 compared to C$0.28/share in H1 2024; and Free cash flow of $42.1 million in H1 2025 compared to $60.2 million in H1 2024. The decrease in the Company's H1 2025 adjusted EBITDA compared to H1 2024 was primarily due to higher sulfur and sulfuric acid costs at Conda, which were partially offset by higher revenues. The increase in the Company's H1 2025 net income compared to H1 2024 was primarily due to the gain on the sale of the Araxá project, fair value gain on investment, and lower finance expenses, which were partially offset by withholding tax expenses related to the sale of the Araxá project. The Company's total capex spend in H1 2025 was $38.7 million compared to $36.6 million in H1 2024 with the increase primarily due to development activities at Conda (H1/NDR and magnesium oxide reduction initiatives), and activities related to the Fertilizer Restart Program at Arraias (the 'Fertilizer Restart Program'). As of June 30, 2025, the Company's financial highlights were as follows: Trailing 12 months Adjusted EBITDA 2 of $154.6 million; Net debt 2 of $(2.5) million; and Net leverage ratio 2 of (0.0)x. ________________________________ 2 Trailing 12 months Adjusted EBITDA, net debt, and net leverage ratio are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below. FY 2025 Market and Financial Outlook Market Outlook Phosphate fertilizer prices increased significantly in Q2 2025 from the previous quarter due to lower than expected diammonium phosphate ('DAP') and MAP exports from China and continued high demand in key import markets, including India, Brazil and Ethiopia. In the US, the implementation of tariffs caused a slowdown in imports, resulting in higher US phosphate prices. Due to the nature of the Company's MAP offtake agreement, the full benefit of the higher pricing will be reflected in the second half of 2025. Global grain and oilseed pricing remains soft, despite a very low stocks-to-use ratio outside of China. Low grain prices are challenging phosphate affordability globally, as overall affordability is now the weakest since the 2008 financial crash, though the phosphate market is supply limited and remains constructive. Inventories of grains and oilseeds outside of China are expected to decrease through the current crop year, resulting in a stock-to-use ratio that is projected to be comparable to those levels experienced during the food crises in 2007 and 2008. Despite those factors, crop prices have been limited in appreciation due to the large planted corn acreage in the US and uncertainty around tariffs and international demand for US grain. The Company expects phosphate pricing to remain strong through the second half of 2025, supported by the following factors: sustained global fertilizer demand, mainly from government-backed purchasing programs, and low global inventory levels; ongoing export restrictions from China; and limited imports into the US due to evolving tariff policies. Financial Outlook The Company maintained its guidance for 2025 as follows: (in millions of US Dollars Projected except as otherwise noted) FY 2025 Sales Volumes (thousands of tonnes P 2 O 5) 3 340-360 Corporate selling, general and administrative expenses 4 $17-20 Maintenance capex 4 $13-23 Growth capex 4 $63-83 Environmental and asset retirement obligations payments $5-7 Q2 and H1 2025 Market Highlights MAP New Orleans ('NOLA') prices averaged $690/st in Q2 2025 compared to $558/st in Q2 2024, up 24% year-over-year, and averaged $643/st in H1 2025 compared to $591/st in H1 2024, up 9% year-over-year. Specific factors driving the year-over-year increase in MAP NOLA prices were as follows: weaker than expected Chinese exports of MAP; continued strong global demand, particularly from Africa, India and Brazil; and uncertainty surrounding US trade policy. June 30, 2025, Highlights As of June 30, 2025, the Company had trailing 12 months Adjusted EBITDA of $154.6 million compared to $159.5 million as of December 31, 2024 with the decrease primarily due to the same factors that resulted in lower Adjusted EBITDA during Q2 2025 as compared to Q2 2024 described above. As of June 30, 2025, the Company had net debt of $(2.5) million compared to $26.8 million as of December 31, 2024, with the reduction primarily due to higher cash and cash equivalents and lower debt. The Company's net debt as of June 30, 2025 was comprised of $98.1 million in cash and $95.6 million in debt (gross of deferred financing costs). As of June 30, 2025 and the end of 2024, the Company's net leverage ratio was (0.0)x and 0.2x, respectively. As of June 30, 2025, the Company had liquidity 4 of $178.1 million comprised of $98.1 million in cash and $80.0 million in undrawn borrowing capacity under its $80.0 million asset-based revolving credit facility ('ABL Facility'). Operations Highlights and Mine Development Environmental, Health, and Safety ('EHS') For Q2 2025, the Company sustained EHS performance, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated total recordable incident frequency rate ('TRIFR') of 0.47. For H1 2025, the Company sustained EHS performance, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated TRIFR of 0.47. Conda In Q2 2025, Conda Produced 79,606 tonnes P 2 O 5 compared to 69,532 tonnes P 2 O 5 in Q2 2024 with the increase due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days); Generated revenues of $116.6 million compared to $101.8 million in Q2 2024 with the increase primarily due to higher SPA realized prices resulting from improved market dynamics and higher sales volumes; and Generated Adjusted EBITDA of $32.9 million compared to $37.2 million in Q2 2024 with the decrease primarily due to lower cash margin per tonne P 2 O 5 driven by higher cash costs due to sulfur market dynamics. ________________________________ 3 Sales volumes reflect quantity in P2O5 of Conda sales projections. 4 Corporate selling, general and administrative expenses, maintenance capex, growth capex and liquidity are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below. In H1 2025, Conda: Produced 170,806 tonnes P 2 O 5 compared to 159,778 tonnes P 2 O 5 in H1 2024 with the increase primarily due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) and a shift from MAP to SPA production, resulting in higher P 2 O 5 production from similar throughput; Generated revenues of $244.9 million compared to $224.7 million in H1 2024 primarily due to higher SPA realized prices resulting from improved market dynamics and higher sales volumes; and Generated Adjusted EBITDA of $73.8 million compared to $83.8 million in H1 2024 with the decrease primarily due to lower cash margin per tonne P 2 O 5 driven by higher cash costs due to sulfur market dynamics. MgO Reduction Project In June 2025, the Company received authorization from the Board of Directors to proceed with a capital project to construct a new processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2 O 5 production capacity at the plant (the 'MgO Reduction Project'). Exploration and Appraisal Program at Conda As capital work at H1/NDR continues with first ore shipments expected in 2H 2025, the Company is focused on identifying and pursuing opportunities to add additional resources and reserves to the project to extend mine life beyond the current NI 43-101 - Standards of Disclosures for Mineral Projects ('NI 43-101') estimate of mid-2037. To pursue this objective, the Company has commenced a multi-year, multi-lease exploration program, resource evaluation and permitting program at Conda with an expected annual cost of approximately $6-8 million. The in-fill drilling program is focused on further delineating upside potential of the Husky 1 Lease through a targeted reserve delineation appraisal that will reduce drill spacing to 250ft on center versus current spacing at 500ft. Construction of the main access road on the previously unexplored Dry Ridge Lease started in Q3 and is ahead of schedule, allowing for initial resource delineation drilling on the Dry Ridge Lease to begin in mid Q3 2025. The initial drill program will consist of drilling on 2,400ft centers to gain crucial geologic and metallurgical information that will be used to generate initial resource models that will drive future mine planning resource estimation and permitting studies. Core drilling and geologic modeling of the Husky 3 and Husky 4 Leases is ahead of schedule with the Bureau of Land Management and US Forest Service issuing Approval of the Exploration Plan of Operations and Environmental Assessment in late July, paving the way for exploration core drilling to begin in September, ahead of the previously proposed plan. This initial drilling will identify the site geology and characterize the resource for future mine development along the current mine trend. In addition to these activities, preliminary work has commenced on environmental baseline resource studies that will be required for future National Environmental Policy Act permitting and regulatory approvals. These geographically near-field opportunities have the potential to extend mine life beyond the current NI 43-101 estimate of mid-2037 in an efficient manner with the objective of utilizing the current infrastructure being built out at H1/NDR. Arraias In Q2 2025, Arraias: Produced 36,349 tonnes of sulfuric acid compared to 16,652 tonnes in Q2 2024 with the increase due to higher customer demand and acid consumption with the start of Partially Acidulated Phosphate Rock ('PAPR') and Granulated Partially Acidulated Phosphate Rock ('G-PAPR') production. In addition, production volumes were lower in Q2 2024 due to planned 45-day sulfuric acid plant turnaround; Produced 10,194 tonnes P 2 O 5, compared to 3,794 tonnes P 2 O 5 in Q2 2024, with the increase due to ramp up of Direct Application Phosphate Rock ('DAPR') and PAPR production and the restart of the granulation plant to produce the granulated product G-PAPR, as part of the Fertilizer Restart Program; and Generated Adjusted EBITDA of $3.4 million compared to a loss of $(0.5) million in Q2 2024 with the increase primarily due to sulfuric acid gross margin improvement driven by higher sales prices and higher production volume. In addition, Adjusted EBITDA increased due to higher dry products sales during Q2 2025. In H1 2025, Arraias: Produced 74,050 tonnes of sulfuric acid compared to 49,868 tonnes in H1 2024 driven by higher customer demand and avid consumption with the start of PAPR and G-PAPR production; Produced 10,727 tonnes P 2 O 5 of DAPR and PAPR compared to 3,794 tonnes P 2 O 5 in H1 2024, with the increase due to the ramp up of DAPR and PAPR production and the restart of the granulation plant to produce the granulated product G-PAPR, as part of the Fertilizer Restart Program; and Generated Adjusted EBITDA of $5.4 million compared to a loss of $(0.1) million in H1 2024 with the increase primarily due to sulfuric acid gross margin improvement driven by higher sales prices and higher production volume. In addition, Adjusted EBITDA increased due to higher dry products sales in 2025. Q2 2025 Financial Results and Business Update Webcast An on-demand recorded webcast of management commentary that reviews the Q2 2025 financial results, provides an update on the business and addresses analysts' and investors' recent frequently asked questions will be available on Monday, August 11, 2025 at 4:30 p.m. ET. The webcast will be available on the Presentations & Events page of the Company's website and will be available for 90 days. About Itafos The Company is a phosphate and specialty fertilizer company with businesses and projects spanning three continents: Conda – a vertically integrated phosphate fertilizer business located in Idaho, US, with the following production capacity: approximately 550kt per year of MAP, MAP with micronutrients ('MAP+'), superphosphoric acid ('SPA'), merchant grade phosphoric acid ('MGA') and ammonium polyphosphate ('APP') approximately 27kt per year of hydrofluorosilicic acid ('HFSA') Arraias – a vertically integrated phosphate fertilizer business located in Tocantins,Brazil, with the following production capacity: approximately 500kt per year of single superphosphate ('SSP') and SSP with micronutrients ('SSP+') 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; and Santana – a vertically integrated high-grade phosphate mine and fertilizer plant project located in Pará, Brazil The Company is a Delaware corporation headquartered in Houston, Texas. The Company's shares trade on the TSX-V under the ticker 'IFOS'. The Company's shares also trade in the US on the OTCQX® Best Market ('OTCQX') under the ticker symbol 'ITFS'. The Company's principal shareholder is CL Fertilizers Holding LLC ('CLF'). CLF is an affiliate of global private investment firm Castlelake, L.P. For more information, or to join the Company's mailing list, please visit Forward-Looking Information Certain information contained in this news release constitutes forward-looking information, including statements with respect to: import and export tariffs; the Company's planned operations, strategies and projects, including the MgO Reduction Project; the timing for the commencement of operations and first ore at H1/NDR; the expected resource life of H1/NDR; exploration activities to extend mine life; and economic and market trends with respect to the global agriculture and 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. The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management, some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions, assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company's expectations and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company's mineral reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; foreign operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks related to asset retirement obligations, general economic changes, including inflation and foreign exchange rates; the actions of the Company's competitors and counterparties; financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation and infrastructure; changes to equipment and suppliers; concentration risks, adverse litigation; changes to permitting and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious acts; market and stock price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage, the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is not exhaustive. Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Additional risks and uncertainties affecting the forward-looking information contained in this news release are described in greater detail in the Company's Annual Information Form and current Management's Discussion and Analysis available under the Company's profile on SEDAR+ at and on the Company's website at There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable securities law. 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. 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, corporate selling, general and administrative expenses, 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. Contacts: For Investor Relations: Matthew O'Neill Executive Vice President & Chief Financial Officer investor@ 713-242-8446 For Media: Alliance Advisors IR Fatema Bhabrawala Director, Media Relations fbhabrawala@ 647-620-5002 Scientific and Technical Information The scientific and technical information contained in this news release related to Mineral Resources for Conda has been reviewed and approved by Jerry DeWolfe, Professional Geologist ( with the Association of Professional Engineers and Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and technical information contained in this news release related to Mineral Reserves for Conda has been reviewed and approved by Terry Kremmel, Professional Engineer (P.E.) licensed by the States of Missouri and North Carolina. Mr. Kremmel is a full-time employee of WSP USA, Inc. and is independent of the Company. The Company's latest technical report in respect of Conda is entitled, 'NI 43-101 Technical Report Itafos Conda Project, Idaho, USA,' with an effective date of July 1, 2023 and is available under the Company's website at and under the Company's profile on SEDAR+ at 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. Non-IFRS measure Definition Most directly comparable IFRS measure Why the Company uses the measure EBITDA Earnings before interest, taxes, depreciation, depletion and amortization Net income (loss) and operating income (loss) EBITDA is a valuable indicator of the Company's ability to generate operating income 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) 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 Adjusted EBITDA for the current and preceding three quarters Net income (loss) and operating income (loss) for the current and preceding three quarters The Company uses the trailing 12 months Adjusted EBITDA in the calculation of the net leverage ratio (non-IFRS measure) 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 The Company uses total capex in the calculation of total cash capex (non-IFRS measure) Maintenance capex Portion of total capex relating to the maintenance of ongoing operations Additions to property, plant and equipment and mineral properties Maintenance capex is a valuable indicator of the Company's required capital expenditures to sustain operations at existing levels Growth capex Portion of total capex relating to the development of growth opportunities Additions to property, plant and equipment and mineral properties Growth capex is a valuable indicator of the Company's capital expenditures related to growth opportunities. Total cash capex Total capex less accrued capex Additions to property, plant and equipment and mineral properties The Company uses total cash capex in the calculation of cash growth capex (non-IFRS measure) Cash maintenance capex Maintenance capex less accrued maintenance capex Additions to property, plant and equipment and mineral properties The Company uses cash maintenance capex in the calculation of cash growth capex (non-IFRS measure) Cash growth capex Growth capex less accrued growth capex Additions to property, plant and equipment and mineral properties The Company uses cash growth capex in the calculation of free cash flow (non-IFRS measure). 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 debt is a valuable indicator of the Company's net debt position as it removes the impact of deferring financing costs. 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 The Company's net leverage ratio is a valuable indicator of its ability to service its debt from its core operating activities. Liquidity Cash and cash equivalents plus undrawn committed borrowing capacity Cash and cash equivalents Liquidity is a valuable indicator of the Company's liquidity Free cash flow Cash flows from operating activities, which excludes payment of interest expense, plus cash flows from investing activities Cash flows from operating activities and cash flows from investing activities 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. 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. Corporate selling, general and administrative expenses Corporate selling, general and administrative less share-based payments expense. Selling, general and administrative expenses The Company uses corporate selling, general and administrative expenses to assess corporate performance. For the three months ended June 30, 2025 and 2024 For the three months ended June 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 20,698 $ 2,614 $ (418) $ 1,925 $ 24,819 Finance (income) expense, net 1,393 (138) — 1,162 2,417 Current and deferred income tax expense (recovery) 5,377 — — (4,451) 926 Depreciation and depletion 5,136 679 — 77 5,892 EBITDA $ 32,604 $ 3,155 $ (418) $ (1,287) $ 34,054 Unrealized foreign exchange loss — 113 104 — 217 Share-based payment expense — — — 1,380 1,380 Transaction costs — — — 12 12 Other (income) expense, net 278 170 — (4,284) (3,836) Adjusted EBITDA $ 32,882 $ 3,438 $ (314) $ (4,179) $ 31,827 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 27,746 $ 2,759 $ (314) $ (5,384) $ 24,807 Depreciation and depletion 5,136 679 — 77 5,892 Realized foreign exchange gain — — — (264) (264) Share-based payment expense — — — 1,380 1,380 Transaction costs — — — 12 12 Adjusted EBITDA $ 32,882 $ 3,438 $ (314) $ (4,179) $ 31,827 For the three months ended June 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 22,471 $ (1,768) $ (35) $ (4,462) $ 16,206 Finance (income) expense, net 954 (206) — 2,435 3,183 Current and deferred income tax expense (recovery) 7,286 — — (2,062) 5,224 Depreciation and depletion 5,835 494 5 83 6,417 EBITDA $ 36,546 $ (1,480) $ (30) $ (4,006) 31,030 Unrealized foreign exchange (gain) loss — 1,039 (253) — 786 Share-based payment expense — — — 435 435 Other (income) expense, net 653 (57) 3 (40) 559 Adjusted EBITDA $ 37,199 $ (498) $ (280) $ (3,611) $ 32,810 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 31,372 $ (992) $ (285) $ (4,120) $ 25,975 Depreciation and depletion 5,835 494 5 83 6,417 Realized foreign exchange gain (8) — — (9) (17) Share-based payment expense — — — 435 435 For the six months ended June 30, 2025 and 2024 For the six months ended June 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 43,416 $ 4,480 $ (862) $ 13,656 $ 60,690 Finance (income) expense, net 2,470 (305) — 2,500 4,665 Current and deferred income tax expense 12,016 — — 1,953 13,969 Depreciation and depletion 15,374 1,293 — 154 16,821 EBITDA $ 73,276 $ 5,468 $ (862) $ 18,263 $ 96,145 Unrealized foreign exchange (gain) loss — (258) 264 — 6 Share-based payment expense — — — 3,877 3,877 Transaction costs — — — 104 104 Other (income) expense, net 511 212 — (29,749) (29,026) Adjusted EBITDA $ 73,787 $ 5,422 $ (598) $ (7,505) $ 71,106 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 58,417 $ 4,129 $ (598) $ (11,356) $ 50,592 Depreciation and depletion 15,374 1,293 — 154 16,821 Realized foreign exchange loss (4) — — (284) (288) Share-based payment expense — — — 3,877 3,877 Transaction costs — — — 104 104 Adjusted EBITDA $ 73,787 $ 5,422 $ (598) $ (7,505) $ 71,106 For the six months ended June 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 51,983 $ (1,491) $ (228) $ (10,341) $ 39,923 Finance (income) expense, net 2,387 (458) 1 4,822 6,752 Current and deferred income tax expense (recovery) 13,770 — — (4,392) 9,378 Depreciation and depletion 14,761 1,195 10 168 16,134 EBITDA $ 82,901 $ (754) $ (217) $ (9,743) 72,187 Unrealized foreign exchange (gain) loss — 1,650 (320) — 1,330 Share-based payment expense — — — 857 857 Transaction costs — — — 227 227 Non-recurring compensation expenses — — — 1,560 1,560 Other (income) expense, net 864 (1,012) 4 (40) (184) Adjusted EBITDA $ 83,765 $ (116) $ (533) $ (7,139) $ 75,977 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 69,009 $ (1,311) $ (543) $ (9,942) $ 57,213 Depreciation and depletion 14,761 1,195 10 168 16,134 Realized foreign exchange gain (5) — — (9) (14) Share-based payment expense — — — 857 857 Transaction costs — — — 227 227 Non-recurring compensation expenses — — — 1,560 1,560 Adjusted EBITDA $ 83,765 $ (116) $ (533) $ (7,139) $ 75,977 As of June 30, 2025 and December 31, 2024 As of June 30, 2025, and December 31, 2024 the Company had trailing 12 months Adjusted EBITDA 5 as follows: (unaudited in thousands of US Dollars) June 30, 2025 December 31, 2024 For the three months ended June 30, 2025 $ 31,827 $ — For the three months ended March 31, 2025 39,279 — For the three months ended December 31, 2024 45,473 45,473 For the three months ended September 30, 2024 38,011 38,011 For the three months ended June 30, 2024 — 32,810 For the three months ended March 31, 2024 — 43,167 Trailing 12 months Adjusted EBITDA $ 154,590 $ 159,461 TOTAL CAPEX For the three months ended June 30, 2025 and 2024 For the three months ended June 30, 2025, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 36,024 $ 3,211 $ 6 $ — $ 39,241 Additions to mineral properties 510 — 400 — 910 Additions to property, plant and equipment related asset retirement obligations 2,098 (262) — — 1,836 Additions to right-of-use assets (11,710) (51) — — (11,761) Capitalized interest in property, plant, and equipment and mineral properties (1,418) — — — (1,418) Total capex $ 25,504 $ 2,898 $ 406 $ — $ 28,808 Accrued capex (4,034) — — — (4,034) Total cash capex $ 21,470 $ 2,898 $ 406 $ — $ 24,774 Maintenance capex $ 11,877 $ 63 $ — $ — $ 11,940 Accrued maintenance capex (542) — — — (542) Cash maintenance capex $ 11,335 $ 63 $ — $ — $ 11,398 Growth capex $ 13,627 $ 2,835 $ 406 $ — $ 16,868 Accrued growth capex (3,492) — — — (3,492) Cash growth capex $ 10,135 $ 2,835 $ 406 $ — $ 13,376 ________________________________ 5 Please refer to the press releases issued by the Company relating to the filings for the March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024 periods for the quantitative reconciliation. For the three months ended June 30, 2024, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 22,285 $ 1,906 $ (1) $ 3 $ 24,193 Additions to mineral properties 7,085 — 387 — 7,472 Additions to property, plant and equipment related asset retirement obligations (1,897) 589 — — (1,308) Additions to right-of-use assets — (179) 1 — (178) Total capex $ 27,473 $ 2,316 $ 387 $ 3 $ 30,179 Accrued capex (11,009) — — — (11,009) Total cash capex $ 16,464 $ 2,316 $ 387 $ 3 $ 19,170 Maintenance capex $ 20,297 $ 1,965 $ — $ 3 $ 22,265 Accrued maintenance capex (9,467) — — — (9,467) Cash maintenance capex $ 10,830 $ 1,965 $ — $ 3 $ 12,798 Growth capex $ 7,176 $ 351 $ 387 $ — $ 7,914 Accrued growth capex (1,542) — — — (1,542) Cash growth capex $ 5,634 $ 351 $ 387 $ — $ 6,372 For the six months ended June 30, 2025 and 2024 For the six months ended June 30, 2025, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 40,683 $ 5,404 $ 21 $ — $ 46,108 Additions to mineral properties 8,497 225 414 — 9,136 Additions to asset retirement obligations (1,008) (632) — — (1,640) Additions to right-of-use assets (11,710) (311) (15) — (12,036) Capitalized interest in property, plant, and equipment and mineral properties (2,839) — — — (2,839) Total capex $ 33,623 $ 4,686 $ 420 $ — $ 38,729 Accrued capex (5,912) — — — (5,912) Total cash capex $ 27,711 $ 4,686 $ 420 $ — $ 32,817 Maintenance capex $ 12,324 $ 111 $ — $ — $ 12,435 Accrued maintenance capex (575) — — — (575) Cash maintenance capex $ 11,749 $ 111 $ — $ — $ 11,860 Growth capex $ 21,299 $ 4,575 $ 420 $ — $ 26,294 Accrued growth capex (5,337) — — — (5,337) Cash growth capex $ 15,962 $ 4,575 $ 420 $ — $ 20,957 For the six months ended June 30, 2024, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 20,842 $ 3,015 $ (2) $ 3 $ 23,858 Additions to mineral properties 10,847 — 387 — 11,234 Additions to asset retirement obligations 1,090 766 — — 1,856 Additions to right-of-use assets — (341) 2 — (339) Total capex $ 32,779 $ 3,440 $ 387 $ 3 $ 36,609 Accrued capex (13,063) — — — (13,063) Total cash capex $ 19,716 $ 3,440 $ 387 $ 3 $ 23,546 Maintenance capex $ 20,716 $ 2,373 $ — $ 3 $ 23,092 Accrued maintenance capex (9,646) — — — (9,646) Cash maintenance capex $ 11,070 $ 2,373 $ — $ 3 $ 13,446 Growth capex $ 12,063 $ 1,067 $ 387 $ — $ 13,517 Accrued growth capex (3,417) — — — (3,417) Cash growth capex $ 8,646 $ 1,067 $ 387 $ — $ 10,100 NET DEBT AND NET LEVERAGE RATIO As of June 30, 2025, and December 31, 2024 the Company had net debt and net leverage ratio as follows: (unaudited in thousands of US Dollars June 30, December 31, except as otherwise noted) 2025 2024 Current debt $ 11,011 $ 11,163 Long-term debt 82,142 86,804 Cash and cash equivalents (98,055) (74,372) Deferred financing costs related to the Credit Facilities 2,400 3,207 Net debt $ (2,502) $ 26,802 Trailing 12 months Adjusted EBITDA $ 154,590 $ 159,461 Net leverage ratio (0.0)x 0.2x LIQUIDITY As of June 30, 2025, and December 31, 2024 the Company had liquidity as follows: June 30, December 31, (unaudited in thousands of US Dollars) 2025 2024 Cash and cash equivalents $ 98,055 $ 74,372 ABL Facility undrawn borrowing capacity 80,000 80,000 Liquidity $ 178,055 $ 154,372 FREE CASH FLOW For the three and six months ended June 30, 2025 and 2024, the Company had free cash flow as follows: CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES For the three and six months ended June 30, 2025 and 2024, the Company had corporate selling, general and administrative expenses as follows:
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07-05-2025
- Business
- Yahoo
Itafos Reports Outstanding Operational and Financial Q1 2025 Results
Free cash flow 1 of $31.3 million in Q1 2025 compared to $17.7 million in Q1 2024. Basic earnings of C$0.27/share in Q1 2025 compared to C$0.17/share in Q1 2024; and Net income of $35.9 million in Q1 2025 compared to $23.7 million in Q1 2024; Adjusted EBITDA of $39.3 million in Q1 2025 compared to $43.2 million in Q1 2024; Revenues of $135.7 million in Q1 2025 compared to $128.0 million in Q1 2024; For Q1 2025, the Company's financial highlights were as follows: The Company was also pleased to announce the successful closure of the Araxa project sale during the quarter and the declaration of a special dividend associated with the sale. We remain committed to creating long-term value for our shareholders and will continue to evaluate additional value creation / capital return opportunities.' During Q1 2025, the Company achieved a significant milestone when our net debt 1 was reduced to below $0 helping us weather the near-term market uncertainties and allowing us to continue to fund our capital requirements. We continue to make progress on our mine life extension program at Husky 1 / North Dry Ridge ('H1/NDR') in Idaho and reiterate our expectation to deliver the first ore shipments to the Conda plant in the second half of this year. Uncertainty surrounding the US tariff policy and international trade flows have created volatility in commodity prices resulting in market prices increasing in Q2 2025 to date. These higher prices coupled with constructive long-term supply and demand fundamentals in phosphate markets continue to be positive for the performance of the Company. In the near term, higher product prices are likely to be largely offset by higher non controllable input costs (particularly sulfur) impacting gross margin realizations. Chief Executive Officer David Delaney commented, 'the Company recorded another outstanding quarter from an operational perspective, with production volumes exceeding prior year levels at both Conda and Arraias. This was achieved without incurring a recordable incident at the Company. Our continued emphasis on safety and operational efficiency directly led to another strong quarter of financial results including revenue growth of 6 percent on a year-over-year basis and adjusted EBITDA 1 of over $39 million despite meaningfully higher non controllable input costs. HOUSTON, May 07, 2025 (GLOBE NEWSWIRE) -- Itafos Inc. (TSX-V: IFOS) (the 'Company') today reported its Q1 2025 financial results and provided a corporate update. The Company's financial statements and management's discussion and analysis for the three months ended March 31, 2025 are available under the Company's profile at and on the Company's website at . All figures are in thousands of US Dollars except as otherwise noted. Story Continues The decrease in the Company's Q1 2025 adjusted EBITDA compared to Q1 2024 was primarily due to higher input costs at Conda due to sulfur market dynamics, which were partially offset by higher revenues. The increase in the Company's Q1 2025 net income compared to Q1 2024 was primarily due to the gain on sale of the Araxá project, as explained below, and lower finance expenses, which were partially offset by higher withholding tax expenses related to the sale of the Araxá project. The Company's total capex1 spend in Q1 2025 was $9.9 million compared to $6.4 million in Q1 2024 with the increase primarily due to development activities at H1/NDR, magnesium oxide reduction initiatives at Conda, and activities related to the Fertilizer Restart program at Arraias. As of March 31, 2025, the Company's financial highlights were as follows: Trailing 12 months Adjusted EBITDA 1 of $155.6 million; Net debt 1 of $(1.7) million; and Net leverage ratio1 of (0.0)x. ________________________________ 1Adjusted EBITDA, trailing 12 months Adjusted EBITDA, total capex, net debt, net leverage ratio and free cash flow are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below. International Financial Reporting Standards ('IFRS'). Sale of the Araxá Project On August 5, 2024, the Company entered into an agreement to sell its 100% interest in the Araxá project to a wholly-owned subsidiary of St George Mining Limited ('St George') (ASX: SGQ) in exchange for cash payments totaling $21 million (paid over time in three (3) tranches) and securities of St George (the 'Transaction'). As a result of the Transaction, St George indirectly acquired all of the outstanding securities of Itafos Araxá Mineração e Fertilizantes S.A. The Transaction closed on February 26, 2025. The Company recorded a gain on disposal of subsidiary of $27.9 million. Recent Developments On April 3, 2025, the Company received the vesting notice from St. George related to the 11,111,100 performance rights received from St. George as part of the Transaction; and On April 25, 2025, the Company paid the C$0.05 per share special dividend to shareholders of record as of the close of business on April 9, 2025. FY 2025 Market and Financial Outlook Market Outlook Phosphate pricing decreased marginally in Q1 2025 from elevated levels in the second half of 2024, consistent with seasonal factors moving into spring. Domestic pricing through Q1 has remained largely flat, though the Company has seen recent price increases in response to the potential impacts of tariffs on US phosphate imports. From the beginning of the second quarter, uncertainty surrounding US tariff policy and international trade flows have created volatility in commodity prices resulting in phosphate prices increasing. Crop fundamentals remain constructive, with inventories of grains and oilseeds outside of China expected to decrease through the current crop year, resulting in a declining stock-to-use ratio that is projected to decline to levels comparable to those experienced during the food crises in 2007/2008. That being said, crop prices have been limited in appreciation due to the uncertainty around tariffs and international demand for US grain. Moving forward, the Company expects phosphate pricing to remain strong through 2025, supported by the following factors: Strong global demand for phosphates and increasing international prices; Limited phosphate imports and subsequent limited supply into the US due to evolving tariff policies; and Ongoing export restrictions from China. Financial Outlook The Company maintained its guidance for 2025 as follows: (in millions of US Dollars Projected except as otherwise noted) FY 2025 Sales Volumes (thousands of tonnes P 2 O 5 )2 340-360 Corporate selling, general and administrative expenses3 $17-20 Maintenance capex3 $13-23 Growth capex3 $63-83 Environmental and asset retirement obligations payments $5-7 ________________________________ 2Sales volumes reflect quantity in P2O5 of Conda sales projections. 3Corporate selling, general and administrative expenses, maintenance capex and growth capex are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below. Q1 2025 Market Highlights MAP New Orleans ('NOLA') prices averaged $596/st in Q1 2025 compared to $624/st in Q1 2024, down 4% year-over-year. Specific factors driving the year-over-year decrease in MAP NOLA prices were as follows: A measured price correction to align more closely with international market levels after a period of relatively elevated pricing; and A relatively high volume of MAP imports into the US in Q4 2024 and Q1 2025. March 31, 2025, Highlights As of March 31, 2025, the Company had trailing 12 months Adjusted EBITDA of $155.6 million compared to $159.5 million as of December 31, 2024 with the decrease primarily due to the same factors that resulted in lower Adjusted EBITDA during Q1 2025 as compared to Q1 2024 described above. As of March 31, 2025, the Company had net debt of $(1.7) million compared to $26.8 million as of December 31, 2024, with the reduction primarily due to higher cash and cash equivalents. The Company's net debt as of March 31, 2025 was comprised of $100.3 million in cash and $98.6 million in debt (gross of deferred financing costs). As of March 31, 2025 and the end of 2024, the Company's net leverage ratio was (0.0)x and 0.2x, respectively. As of March 31, 2025, the Company had liquidity4 of $180.3 million comprised of $100.3 million in cash and $80 million in undrawn borrowing capacity under its $80 million asset-based revolving credit facility ('ABL Facility'). ________________________________ 4Liquidity is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below. Operations Highlights and Mine Development Environmental, Health, and Safety ('EHS') For Q1 2025, the Company continued strong EHS performance, including no reportable environmental releases and no recordable incidents, which resulted in a consolidated TRIFR of 0.58. Conda In Q1 2025, Conda: Produced 91,200 tonnes P 2 O 5 compared to 90,246 tonnes P 2 O 5 in Q1 2024; Generated revenues of $128.3 million compared to $122.8 million in Q1 2024; and Generated Adjusted EBITDA of $40.9 million compared to $46.6 million in Q1 2024 with the decrease primarily due to higher input costs. Exploration and Appraisal Program at Conda As capital work at H1/NDR continues with first ore shipments expected in 2H 2025, the Company is focused on identifying and pursuing opportunities to add additional resources and reserves to the project to extend mine life beyond the current NI 43-101 estimate of mid-2037. To pursue this objective, the Company has commenced a multi-year exploration, resource evaluation and permitting program at Conda with an expected annual cost of approximately $6-8 million. The program is focused on further delineating upside potential of the Husky 1 Lease through resource delineation appraisal drilling at 250ft spacing (current spacing at 500ft), delineation drilling on the Dry Ridge Lease on 2400ft centers to gain crucial geologic and metallurgical information to be used in resource modeling that will drive future mine planning resource estimation and permitting studies. Core drilling and geologic modeling of the Husky 3 and 4 Leases is planned for late Q3/early Q4 2025 upon permit approval by Federal Agencies to identify resource potential for future mine development along the current mine trend. In addition to these activities, work will commence on baseline resource studies required for future National Environmental Policy Act permitting and regulatory approvals. These near field opportunities have the potential to extend mine life beyond the current NI 43-101 estimate of mid 2037 in an efficient manner with the objective of utilizing the current infrastructure being built out at H1/NDR. Arraias In Q1 2025, Arraias: Produced 37,701 tonnes of sulfuric acid compared to 33,216 tonnes in Q1 2024 driven by higher customer demand; Produced 533 tonnes P 2 O 5 of DAPR and PAPR compared to 0 tonnes P 2 O 5 in Q1 2024, as activity commenced under the Fertilizer Restart Program; and Generated Adjusted EBITDA of $2.0 million compared to $0.4 million in Q1 2024 with the improvement due to higher sulfuric acid sales volumes and gross margin and incremental P 2 O 5 volumes resulting from progress made under the Fertilizer Restart Program. About Itafos The Company is a phosphate and specialty fertilizer company with businesses and projects spanning three continents: Conda – a vertically integrated phosphate fertilizer business located in Idaho, US, with the following production capacity: approximately 550kt per year of MAP, MAP with micronutrients ('MAP+'), superphosphoric acid ('SPA'), merchant grade phosphoric acid ('MGA') and ammonium polyphosphate ('APP') approximately 27kt per year of hydrofluorosilicic acid ('HFSA') Arraias – a vertically integrated phosphate fertilizer business located in Tocantins, Brazil, with the following production capacity: approximately 500kt per year of single superphosphate ('SSP') and SSP with micronutrients ('SSP+') 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; and Santana – a vertically integrated high-grade phosphate mine and fertilizer plant project located in Pará, Brazil The Company is a Delaware corporation headquartered in Houston, Texas. The Company's shares trade on the TSX-V under the ticker 'IFOS'. The Company's principal shareholder is CL Fertilizers Holding LLC ('CLF'). CLF is an affiliate of global private investment firm Castlelake, L.P. For more information, or to join the Company's mailing list, please visit . Forward-Looking Information Certain information contained in this news release constitutes forward-looking information, including statements with respect to: import and export tariffs; the Company's planned operations and strategies; the timing for the commencement of operations and first ore at H1/NDR; the expected resource life of H1/NDR; exploration activities to extend mine life; and economic and market trends with respect to the global agriculture and 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. The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management, some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions, assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company's expectations and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company's mineral reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; foreign operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks related to asset retirement obligations, general economic changes, including inflation and foreign exchange rates; the actions of the Company's competitors and counterparties; financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation and infrastructure; changes to equipment and suppliers; concentration risks, adverse litigation; changes to permitting and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious acts; market and stock price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage, the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is not exhaustive. Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Additional risks and uncertainties affecting the forward-looking information contained in this news release are described in greater detail in the Company's Annual Information Form and current Management's Discussion and Analysis available under the Company's profile on SEDAR+ at and on the Company's website at . There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable securities law. 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. 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, corporate selling, general and administrative expenses, 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. Contacts: For Investor Relations: Matthew O'Neill Executive Vice President & Chief Financial Officer investor@ 713-242-8446 For Media: Alliance Advisors IR Fatema Bhabrawala Director, Media Relations fbhabrawala@ 647-620-5002 Scientific and Technical Information The scientific and technical information contained in this news release related to Mineral Resources for Conda has been reviewed and approved by Jerry DeWolfe, Professional Geologist ( with the Association of Professional Engineers and Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and technical information contained in this news release related to Mineral Reserves for Conda has been reviewed and approved by Terry Kremmel, Professional Engineer (P.E.) licensed by the States of Missouri and North Carolina. Mr. Kremmel is a full-time employee of WSP USA, Inc. and is independent of the Company. The Company's latest technical report in respect of Conda is entitled, 'NI 43-101 Technical Report Itafos Conda Project, Idaho, USA,' with an effective date of July 1, 2023 and is available under the Company's website at and under the Company's profile on SEDAR+ at . 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 Why the Company uses the measure EBITDA Earnings before interest, taxes, depreciation, depletion and amortization Net income (loss) and operating income (loss) EBITDA is a valuable indicator of the Company's ability to generate operating income 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) 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 Adjusted EBITDA for the current and preceding three quarters Net income (loss) and operating income (loss) for the current and preceding three quarters The Company uses the trailing 12 months Adjusted EBITDA in the calculation of the net leverage ratio (non-IFRS measure) 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 The Company uses total capex in the calculation of total cash capex (non-IFRS measure) Maintenance capex Portion of total capex relating to the maintenance of ongoing operations Additions to property, plant and equipment and mineral properties Maintenance capex is a valuable indicator of the Company's required capital expenditures to sustain operations at existing levels Growth capex Portion of total capex relating to the development of growth opportunities Additions to property, plant and equipment and mineral properties Growth capex is a valuable indicator of the Company's capital expenditures related to growth opportunities. 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 debt is a valuable indicator of the Company's net debt position as it removes the impact of deferring financing costs. 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 The Company's net leverage ratio is a valuable indicator of its ability to service its debt from its core operating activities. Liquidity Cash and cash equivalents plus undrawn committed borrowing capacity Cash and cash equivalents Liquidity is a valuable indicator of the Company's liquidity Free cash flow Cash flows from operating activities, which excludes payment of interest expense, plus cash flows from investing activities Cash flows from operating activities and cash flows from investing activities 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. 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. Corporate selling, general and administrative expenses Corporate selling, general and administrative less share-based payments expense. Selling, general and administrative expenses The Company uses corporate selling, general and administrative expenses to assess corporate performance. EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA For the three months ended March 31, 2025 and 2024 For the three months ended March 31, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 22,718 $ 1,866 $ (444 ) $ 11,731 $ 35,871 Finance (income) expense, net 1,077 (167 ) — 1,338 2,248 Current and deferred income tax expense 6,639 — — 6,404 13,043 Depreciation and depletion 10,238 614 — 77 10,929 EBITDA $ 40,672 $ 2,313 $ (444 ) $ 19,550 $ 62,091 Unrealized foreign exchange (gain) loss — (371 ) 160 — (211 ) Share-based payment expense — — — 2,497 2,497 Transaction costs — — — 92 92 Other (income) expense, net 233 42 — (25,465 ) (25,190 ) Adjusted EBITDA $ 40,905 $ 1,984 $ (284 ) $ (3,326 ) $ 39,279 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 30,671 $ 1,370 $ (284 ) $ (5,972 ) $ 25,785 Depreciation and depletion 10,238 614 — 77 10,929 Realized foreign exchange loss (4 ) — — (20 ) (24 ) Share-based payment expense — — — 2,497 2,497 Transaction costs — — — 92 92 Adjusted EBITDA $ 40,905 $ 1,984 $ (284 ) $ (3,326 ) $ 39,279 For the three months ended March 31, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 29,512 $ 277 $ (193 ) $ (5,879 ) $ 23,717 Finance (income) expense, net 1,433 (252 ) 1 2,387 3,569 Current and deferred income tax expense (recovery) 6,484 — — (2,330 ) 4,154 Depreciation and depletion 8,926 701 5 85 9,717 EBITDA $ 46,355 $ 726 $ (187 ) $ (5,737 ) 41,157 Unrealized foreign exchange (gain) loss — 611 (67 ) — 544 Share-based payment expense — — — 422 422 Transaction costs — — — 227 227 Non-recurring compensation expenses — — — 1,560 1,560 Other (income) expense, net 211 (955 ) 1 — (743 ) Adjusted EBITDA $ 46,566 $ 382 $ (253 ) $ (3,528 ) $ 43,167 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 37,637 $ (319 ) $ (258 ) $ (5,822 ) $ 31,238 Depreciation and depletion 8,926 701 5 85 9,717 Realized foreign exchange gain 3 — — — 3 Share-based payment expense — — — 422 422 Transaction costs — — — 227 227 Non-recurring compensation expenses — — — 1,560 1,560 Adjusted EBITDA $ 46,566 $ 382 $ (253 ) $ (3,528 ) $ 43,167 As of March 31, 2025 and December 31, 2024 As of March 31, 2025, and December 31, 2024, the Company had trailing 12 months Adjusted EBITDA5 as follows: (unaudited in thousands of US Dollars) March 31, 2025 December 31, 2024 For the three months ended March 31, 2025 $ 39,279 $ — For the three months ended December 31, 2024 45,473 45,473 For the three months ended September 30, 2024 38,011 38,011 For the three months ended June 30, 2024 32,810 32,810 For the three months ended March 31, 2024 — 43,167 Trailing 12 months Adjusted EBITDA $ 155,573 $ 159,461 ________________________________ 5Please refer to the press releases issued by the Company relating to the filings for the December 31, 2024, September 30, 2024 and June 30, 2024 periods for the quantitative reconciliation. TOTAL CAPEX For the three months ended March 31, 2025 and 2024 For the three months ended March 31, 2025, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 4,659 $ 2,193 $ 15 $ — $ 6,867 Additions to mineral properties 7,987 225 14 — 8,226 Additions to asset retirement obligations (3,106 ) (370 ) — — (3,476 ) Additions to right-of-use assets — (260 ) (15 ) — (275 ) Capitalized interest in property, plant, and equipment and mineral properties (1,421 ) — — — (1,421 ) Total capex $ 8,119 $ 1,788 $ 14 $ — $ 9,921 Accrued capex (1,878 ) — — — (1,878 ) Total cash capex $ 6,241 $ 1,788 $ 14 $ — $ 8,043 Maintenance capex $ 447 $ 48 $ — $ — $ 495 Accrued maintenance capex (33 ) — — — (33 ) Cash maintenance capex $ 414 $ 48 $ — $ — $ 462 Growth capex $ 7,672 $ 1,740 $ 14 $ — $ 9,426 Accrued growth capex (1,845 ) — — — (1,845 ) Cash growth capex $ 5,827 $ 1,740 $ 14 $ — $ 7,581 For the three months ended March 31, 2024, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ (1,443 ) $ 1,109 $ (1 ) $ — $ (335 ) Additions to mineral properties 3,762 — — — 3,762 Additions to asset retirement obligations 2,987 177 — — 3,164 Additions to right-of-use assets — (162 ) 1 — (161 ) Total capex $ 5,306 $ 1,124 $ — $ — $ 6,430 Accrued capex (2,054 ) — — — (2,054 ) Total cash capex $ 3,252 $ 1,124 $ — $ — $ 4,376 Maintenance capex $ 419 $ 408 $ — $ — $ 827 Accrued maintenance capex (179 ) — — — (179 ) Cash maintenance capex $ 240 $ 408 $ — $ — $ 648 Growth capex $ 4,887 $ 716 $ — $ — $ 5,603 Accrued growth capex (1,875 ) — — — (1,875 ) Cash growth capex $ 3,012 $ 716 $ — $ — $ 3,728 NET DEBT AND NET LEVERAGE RATIO As of March 31, 2025, and December 31, 2024, the Company had net debt and net leverage ratio as follows: (unaudited in thousands of US Dollars March 31, December 31, except as otherwise noted) 2025 2024 Current debt $ 11,310 $ 11,163 Long-term debt 84,474 86,804 Cash and cash equivalents (100,333 ) (74,372 ) Deferred financing costs related to the Credit Facilities 2,805 3,207 Net debt $ (1,744 ) $ 26,802 Trailing 12 months Adjusted EBITDA $ 155,573 $ 159,461 Net leverage ratio (0.0)x 0.2x LIQUIDITY As of March 31, 2025, and December 31, 2024, the Company had liquidity as follows: March 31, December 31, (unaudited in thousands of US Dollars) 2025 2024 Cash and cash equivalents $ 100,333 $ 74,372 ABL Facility undrawn borrowing capacity 80,000 80,000 Liquidity $ 180,333 $ 154,372 FREE CASH FLOW For the three months ended March 31, 2025 and 2024, the Company had free cash flow as follows: For the three months ended March 31, (unaudited in thousands of US Dollars) 2025 2024 Cash flows from operating activities $ 31,527 $ 21,555 Cash flows used by investing activities (194 ) (3,868 ) Free cash flow $ 31,333 $ 17,687 CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES For the three months ended March 31, 2025 and 2024, the Company had corporate selling, general and administrative expenses as follows: For the three months ended March 31, (unaudited in thousands of US Dollars) 2025 2024 Selling, general and administrative expenses $ 5,972 $ 5,822 Share-based payments expense (2,497 ) (422 ) Corporate selling, general and administrative expenses $ 3,475 $ 5,400
