Cadiz, Inc. · NASDAQ:CDZI
Cadiz — Investor Presentation (March 2019)
13 slides from Cadiz's investor presentation, March 2019
Slide 1: Cadiz Inc. Corporate Presentation 2019
Cadiz Inc. Corporate Presentation 2019
Slide 2: Safe Harbor Agreement
Safe Harbor Agreement March 2019 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 c
Slide 3: About Cadiz Inc.
About Cadiz Inc. Natural resources company (NASDAQ: CDZI) with California land and water rights including: Fee owner of 45,000 acres in San Bernardino County with appurtenant water rights. 35,000 acres at base of a protected, closed basin watershed with no competition. More groundwater in the
Slide 4: Water In California
Water In California Western U.S. suffers from a systemic imbalance of supply vs. demand (Shortage). Traditional imported supplies in CA from Colorado River, LA Aqueduct and State Water Project under pressure [DCP & Water Fix]. Climate extremes place added pressure on state water infrastructure
Slide 5: Cadiz Valley – Prolific Groundwater System
Cadiz Valley – Prolific Groundwater System Cadiz/Fenner Watershed terminates at dry lakes where groundwater is lost to the atmosphere by evaporation. Groundwater beneath dry lake surface is highly saline (10 times the salinity of Pacific Ocean) 5
Slide 6: Manage the basin & Create new supply
Manage the basin & Create new supply 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. Create 1 MAF gw storage capacity. No undesirable results
Slide 7: Cadiz Water Project - Status
Cadiz Water Project - Status California environmental review completed July 2012. County approves conservation plan in October 2012 Right to conserve and deliver average of 50,000 AFY for 50 years = water for 400,000 people a year. Review + Approvals upheld & validated by California Courts i
Slide 8: Next Steps - Construction
Next Steps - Construction Evaluate Northern Pipeline Conveyance and Delivery Opportunities. Process Metropolitan Water District transportation Terms & conditions Politics Pursue State Legislation Safe Harbor Construction Permitting & Planning Limited jurisdiction permits Final financ
Slide 9: Phase 1&2 Connect CA's Major Water Transportation Routes
Phase 1&2 Connect CA’s Major Water Transportation Routes 9
Slide 10: Phase 2 - Storage
Phase 2 - Storage Via pipelines, import water in wet years and store underground at Cadiz. Imports via 43-mile line from Colorado River Aqueduct and/or Northern Pipeline. Total storage capacity = 1 million acre-feet. Programmatic enviro review completed. Evaluate storage project and projec
Slide 11: Water Market Comps
Water Market Comps New Storage High Desert Water Bank 280,000 AF storage $130 Million up-front construction $2 Million/year recovery usage Semitropic 1.65 MAF Storage $1,500 per AF reserve capacity. Comparable pricing based upon dual input and outputs. IEUA Chino Basin Project 100,000 AF storage $38
Slide 12: Commitment to Sustainability
Commitment to Sustainability Cadiz as a sustainable business – Project (supply & storage) environmentally benign. (no impacts from operations) Desert Tortoise Conservation Bank Clean Water Fund $5M to DACs ICS in Colorado River System Water supply, conveyance and storage Reduced salinity
Slide 13: Financials
Financials (As of 12/31/18) Shares Outstanding 24.7 M Working Capital $12 M Debt – Sr. Secured * $67 M Debt – Convertible ** $73 M Lease buy-back Provision *** $15 M Enterprise Value $400 M * Senior Secured Mortgage - 8% Interest (6% PIK and 2% cash quarterly), Maturity in May 2021 or “Springing Mat