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Cadiz Issues Shareholder Letter with Lookback on Q1
"Project development is on track; We picked up some strong tailwinds in Q1" LOS ANGELES, May 5, 2025 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP)
About this update from Cadiz, Inc.
[{"type":"text","content":"\"Project development is on track; We picked up some strong tailwinds in Q1\"\nLOS ANGELES, May 5, 2025 /PRNewswire/ -- Cadiz, Inc. (NASDAQ: CDZI / CDZIP) (\"Cadiz,\" the \"Company\"), a California water solutions company, today issued a letter to shareholders from Chairman and Chief Executive Officer Susan Kennedy with a lookback on the first quarter.\n-----\nFellow Shareholders,\nIn the last six months our team has been at work behind the scenes, navigating the ups, downs and opportunities of the new landscape. Here's a look back on Q1 with an update on key catalysts.\nOur overarching goal is to get pipelines built so the Company can begin generating revenues from our water supply and storage assets. We've set an aggressive schedule to complete construction on the Northern Pipeline at the end of 2026 and the Southern Pipeline (for storage) at the end of 2027. Actions taken year-to-date were aimed at keeping us on target for this aggressive timeline.\nOur primary objectives in Q1 were to establish the NewCos for project development and secure the lead project investor so we can raise project capital, move development costs off Cadiz' balance sheet, and fund construction. Despite the post-election chaos and some strategic detours, we made substantial progress on all fronts and remain on track to meet our construction timeline.\nHighlights from Q1:\nTransition – Q1 was dominated by transition in Washington, wildfires in Los Angeles and tariffs on steel. Looking back, the strategic decisions we made in Q4 following the election positioned the Company to navigate a rocky transition in Q1 and created some tailwinds for 2025:\nTariffs – In December, we closed a deal to purchase 180 miles of steel pipe from the abandoned Keystone XL project. In February, President Trump announced plans to hike tariffs on imported steel by 25%. With the Keystone steel already manufactured and in the U.S., this steel is not subject to import tariffs. The Company's ability to lock in steel at very favorable pricing shielded from tariffs eliminated what would have been a significant risk to project costs and which would have, in turn, impacted our ability to close project financing.\nPermits – Following the election, we delayed submission of permit applications to federal agencies until the new Administration was in place to not lose any momentum in the v...