Cadiz, Inc. · NASDAQ:CDZI
Cadiz — B. Riley FBR Conference (May 2018)
15 slides from Cadiz's conference presentation, May 23, 2018
Slide 1: Cadiz Inc. Corporate Presentation
Cadiz Inc. Corporate Presentation B. Riley FBR - May 23, 2018
Slide 2: Safe Harbor Agreement
Safe Harbor Agreement May 2018 During the course of this presentation, we will make forward-looking statements. Any statement that is not a historical fact is a forward-looking statement. Forward-looking statements refer to expectations, projections or other characterizations of future events or cir
Slide 3: Cadiz Valley
Cadiz Valley ✸ 1,300 square-mile watershed in Mojave Desert. ✸ Aquifer system with > 20 million AF ~ Lake Mead. ✸ Cadiz Inc. owns 35,000 contiguous acres at base of watershed. ✸ Prolific opportunity to conserve groundwater for overlying agricultural and also regional 3 municipal use.
Slide 4: 25 Year History of Agricultural Use
25 Year History of Agricultural Use Cadiz owns 35,000 acres in Cadiz Valley w/ Ag approved land use on all properties. Similar climate and crop mix as Imperial, Palo Verde and Coachella Valleys. In 1993, County permitted ag development on 9,600 acres, including water rights to irrigate entire
Slide 5: Problem: Loss of Water at Dry Lakes
Problem: Loss of Water at Dry Lakes ✸ Cadiz/Fenner Watershed terminates at dry lakes where groundwater is lost to the atmosphere by evaporation. Bristol Dry Lake Crust Beneath Dry Lake Surface ✸ Groundwater beneath dry lake surface is highly saline (10 times the salinity of Pacific Ocean) 5
Slide 6: Solution: Conservation & Recovery
Solution: Conservation & Recovery State of the art groundwater conservation plan will save 50,000 AFY before it can evaporate. Apply the water to overlying ag land or treat to ambient quality in the CRA and export for municipal use. 6
Slide 7: Cadiz Water Project
Cadiz Water Project Innovative and Sustainable Water Source for Southern California Phase 1 Expand existing wellfield on Cadiz property to capture groundwater. Make available 2.5 MAF conserved over 50 years = water for 400,000 people a year. No environmental impacts. County authorization of
Slide 8: Phase 1&2 Connect CA's Major Water Transportation Routes
Phase 1&2 Connect CA’s Major Water Transportation Routes 8
Slide 9: Facilities, Costs & Construction
Facilities, Costs & Construction o Phase 1 build-out ~$250M, creates & supports 3,100 jobs. Well field and power facilities Treatment facilities 43-mile conveyance & related RR improvements Aqueduct intertie Monitoring facilities o Phase 2 (cost $TBD), creates and supports 2,900 jobs. Re
Slide 10: Project Development
Project Development 10
Slide 11: Recent Milestones
Recent Milestones ☀ Cadiz supported by national coalition of community groups, business and labor. ☀ Congressional leadership removes Feinstein rider requiring unique to Cadiz BLM review. ☀ US BLM rescinds errant 2015 evaluation, finding: ☀ project furthers railroad purposes ☀ project within scope o
Slide 12: Next Steps
Next Steps Participant Contracts ☀ Participating agencies execute contracts Metropolitan Water District transportation ☀ Treat to ambient water quality in CRA. ☀ Space available. Wat Code. §1810 ☀ Off-setting benefits; water softening ☀ Intake / Off-Take Construction Permitting & Planning ☀ En
Slide 13: Phase II
Phase II Cadiz Water Project Phase II ☀ What is it? – proposal to import and store surplus water on the Colorado River or CA State systems underground at Cadiz. Return stored water in future dry years. Capacity = 1 Million AF. ☀ Who participates? – State and CR contractors with excess supplies in
Slide 14: Timeline
Timeline 201 201 202 202 8 9 0 1 Contract negotiations Metropolitan WD application Engineering & Planning Final Construction Permits Phase 2 Permitting Phase 1 Construction Phase 2 Construction 14 (Estimated)
Slide 15: Financials
Financials (As of 3/31/18) Shares Outstanding 23.2 M Working Capital $8.6 M Debt – Sr. Secured * $63.2 M Debt – Convertible ** $70.5 M Lease buy-back Provision *** $14 M * Senior Secured Mortgage - 8% Interest (6% PIK and 2% cash quarterly), Maturity in May 2021 or “Springing Maturity Date” 91 days