For the three months ended December 31, 2019, the Company’s business highlights were as follows:
- continued strong operational performance at Itafos Conda with overall production volumes of 140,683t, representing a 2% decrease year-over-year;
- generated adjusted EBITDA of $7,909 at Itafos Conda, representing a 60% decrease year-over-year primarily due to higher input costs and significant and continued downward pressure on diammonium phosphate (“DAP”) New Orleans (“NOLA”) to which MAP sales prices are linked;
- incurred net loss of $(1,590) at Itafos Conda, representing a 111% decrease year-over-year primarily due to significant and continued downward pressure on DAP NOLA to which MAP sales prices are linked;
- completed the technical report titled “NI 43-101 Technical Report on the Itafos Conda and Itafos Paris Hills Mineral Projects, Idaho, USA” and dated as of July 1, 2019 (the “Itafos Conda Technical Report”), concluding one and a half to two years of additional mine life from existing mines and defining Husky 1/North Dry Ridge (“H1/NDR”) as the Company’s path forward for mine life extension;
- idled Itafos Arraias and suspended the previously announced repurpose plan (the “Repurpose Plan”) as part of a disciplined approach to capital allocation considering the significant and continued downward pressure on global fertilizer prices and the additional capital requirements to complete the Repurpose Plan; and
- advanced the development of Itafos Farim including advancing offtake agreement negotiations, completing front-end design and engineering, finalizing the mining contractor tender evaluation and advancing project financing.