Compass Minerals Intl Inc · NYSE:CMP
Compass Minerals Intl — Compass Minerals International — Corporate Update (July 2021)
22 slides from Compass Minerals Intl's corporate update, Jul 13, 2021
Slide 1: Lithium Resource Defined and Available
LITHIUM RESOURCE DEFINED AND AVAILABLE JULY 13, 2021
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the company’s strategic priorities, including its ability to build sustainable culture, ability to deliver on commitmen
Slide 3: An Essential Minerals Company
2020 GROSS SALES BY MARKET Salt Plant Nutrition SALT We are a leading salt producer in North America and the U.K., supplying products used in highway deicing, water care, animal nutrition, food production and chemical, consumer and industrial processes. PLANT NUTRITION We are the largest producer in
Slide 4: Advantaged Assets and Core Strengths
ADVANTAGED ASSETS Goderich mine: world’s largest underground salt mine Winsford mine: U.K.’s largest dedicated rock salt mine Great Salt Lake solar evaporation facility: in operation for 50+ years near Ogden, is the largest production site of SOP in Western Hemisphere CORE STRENGTHS FINANCIAL STABIL
Slide 5: Enterprise-Wide Strategic Priorities
BUILD SUSTAINABLE CULTURE Drive Zero Harm imperative for our people and environment Increase employee engagement and build execution muscle DELIVER ON COMMITMENTS Meet and then exceed customer and shareholder expectations Continue operational improvements at mines and plants Goderich mine production
Slide 6: Focus on Sustainability and Safety
FOCUS ON SUSTAINABILITY AND SAFETY ENERGY INTENSITY DOWN 15% OF U.S. WORKFORCE IS DIVERSE: BLACK, ASIAN, HISPANIC, NATIVE AMERICAN, HAWAIIAN AND/OR TWO OR MORE RACES 20% SCOPE 1+2 GHG EMISSIONS INTENSITY DOWN 12% FRESH WATER INTENSITY USE DOWN 18% 6 Management of ESG impacts and improvements occur t
Slide 7: Evolution of Ogden Facility
EVOLUTION OF OGDEN FACILITY 1960s 1962 – Lithium Corporation of America leased 55,000 acres of Great Salt Lake lakebed to prospect lithium for the Pentagon’s nuclear program 1970s 1970 – First ton of SOP produced 1990s 1993 – Compass Minerals acquired Ogden facility 1994 – First ponds constructed on
Slide 8: The Case for Development of This Essential Mineral: Why Lithium and Why Now?
THE CASE FOR DEVELOPMENT OF THIS ESSENTIAL MINERAL WHY LITHIUM AND WHY NOW?
Slide 9: Global Lithium Production and Resources
GLOBAL LITHIUM PRODUCTION AND RESOURCES1 1 USGS 2021; third party reports 9 When developed, our resource would materially support U.S. standing on a global scale (in metric tons Li)
Slide 10: Critical Minerals Development
CRITICAL MINERALS DEVELOPMENT Our resource would address the growing North American demand for battery-grade lithium THE POWERFUL POTENTIAL OF LITHIUM 10 “Advanced, lithium-based batteries play an integral role in 21st-century technologies such as electric vehicles, stationary grid storage, and defe
Slide 11: Lithium Market Fundamentals
11 “Having dropped sharply from the peak in 2018, lithium prices have stabilized during the pandemic and are up ~50% in the past six months”2 . LITHIUM MARKET FUNDAMENTALS 0 300 600 900 1200 2020 2021 2022 2023 2024 2025 Demand Supply “Forecast lithium demand to triple by 2025 to ~1mt (LCE); 27% CAG
Slide 12: Lithium Company Valuations and Recent Price Performance
12 49.1 45.7 25.2 20.3 10.5 Livent Ganfeng Albermarle SQM Compass Minerals 2021 EV/EBITDA2 Average = ~35x 1 FactSet performance as of 6/12/21; Major Lithium Producers index consists of Albemarle, Gangfeng, Livent, SQM; Junior Miners index consists of Orocobre, Galaxy Resources, Lithium Americas, Min
Slide 13: Our Resource Asset Advantage and Opportunity
OUR RESOURCE ASSET ADVANTAGE AND OPPORTUNITY
Slide 14: Defined Lithium Resource
~160K (acres) Leases on Great Salt Lake ~55K (acres) Existing Evaporation Ponds ~2.4M (metric tons LCE) Total Lithium Resource1 ~127K (metric tons LCE) Interstitial Brine Resource1 ~20-25K (metric tons LCE) Annual Target Production DEFINED LITHIUM RESOURCE 1 Technical Report Summary: Initial Assessm
Slide 15: Established Asset Position
ESTABLISHED ASSET POSITION Dove Creek East Ponds Ogden Site West Ponds (Representative Cross-Section) Current CMP Ponds Current CMP Property Current CMP Leases1 Current CMP Right of Way Union Pacific Railroad 160,000 acres on the Great Salt Lake Strategic access to highly concentrated brine in North
Slide 16: Strategic Advantages
STRATEGIC ADVANTAGES 16 1 Fraser Institute Annual Survey of Mining Companies 2020 2 Operational or to be completed gigafactories by 2023, CiC energiGUNE, 04/28/2021 Based near Ogden, Utah on the Great Salt Lake Utah ranked sixth-most attractive mineral extraction jurisdiction globally1 Significant r
Slide 17: Enhanced Technology
Solar Evaporation Crystallization F u tu re S ta te C u rr e n t P ro c e s s Solar Evaporation CrystallizationDLE Process Direct Lithium Extraction (DLE) technology has the potential to unlock the latent value of lithium in our existing brines used for SOP and magnesium chloride production while ma
Slide 18: Commercial Opportunities with DLE Technology
Direct Lithium Extraction (DLE) technology has the potential to unlock the latent value of lithium in our existing brines used for SOP and Magnesium Chloride production while allowing us to maintain our already-low environmental footprint COMMERCIAL OPPORTUNITIES LITHIUM CHLORIDE FROM BRINE CONCENTR
Slide 19: Assessing Options to Maximize Resource Value
19 EXPECT TO OPTIMIZE POSITION AS A DOMESTIC AND SUSTAINABLE ASSET ASSESSING OPTIONS TO MAXIMIZE RESOURCE VALUE MAXIMIZE RESOURCE VALUE Project Development/Ownership Compass Minerals Ownership Third-Party Development Partnership Customer Focus Electric Vehicle Manufacturers Battery Manufacturers Cat
Slide 20: Appendix
APPENDIX
Slide 21: Reconciliation of Non-GAAP Information
21 RECONCILIATION OF NON-GAAP INFORMATION Note on Non-GAAP Financial Measures This document includes certain non-GAAP financial measures. These measures should be viewed in addition to, and not in lieu of, the company’s operating performance and financial measures as calculated in accordance with GA
Slide 22: Reconciliation for EBITDA and Adjusted EBITDA
22 RECONCILIATION OF NON-GAAP INFORMATIONRECONCILIATION OF NON-G AP INFORMATION1 Reconciliation for EBITDA and Adjusted EBITDA (unaudited) (in millions) Twelve months ended December 30, 2020 Net earnings $ 44.5 Interest expense 56.4 Income tax expense 2.6 Depreciation, depletion and amortization 117
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