Cadiz, Inc. · NASDAQ:CDZI
Cadiz — Corporate Update (August 2020)
21 slides from Cadiz's corporate update, August 2020
Slide 1: Corporate Update
Corporate Update August 2020
Slide 2: Safe Harbor Agreement
Safe Harbor Agreement 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 circumstance
Slide 3: Corporate Summary
Corporate Summary 1 Control over and management of the western U.S.’s premier groundwater asset. 2 Cumulative investment to date has secured developed infrastructure for farming and ownership of 45,000 acres of land with water rights. 3 Significant legal clearance to utilize groundwater for supply,
Slide 4: About Cadiz
About Cadiz Founded in 1983, Cadiz Inc. (NASDAQ: CDZI) is a California-based business dedicated to delivering sustainable water and agricultural projects: • Fee owner of 45,000 acres (70 sq. miles) in San Bernardino County with appurtenant water rights & zoning for Ag use. • 35,000 acres at base of
Slide 5: Drivers: Water Supply Imbalance
Drivers: Water Supply Imbalance Southern California confronts long-term water supply – demand imbalance, inadequate infrastructure & communities short of access to clean water. • Increasing cutbacks to surface and groundwater supplies caused by climate change, regular drought conditions and regulato
Slide 6: Cyclical Weather Conditions in California
Cyclical Weather Conditions in California Since 1970, California has experienced drought conditions 27 times, or over 50% of that time period. 2020 YTD is currently 64% of average levels for this time of year. California Precipitation 1970 - 2019 California Yearly Drought Levels 6 Source: Departme
Slide 7: Solutions
Solutions Cadiz can address these challenges by offering sustainable solutions to California communities not served by the status quo. 7
Slide 8: Sizeable Private Water Source: Cadiz Valley Watershed
Sizeable Private Water Source: Cadiz Valley Watershed 1,300 square-mile watershed in Mojave Desert Aquifer system with > 20 million AF ~ Lake Mead Natural recharge from mountain precipitation. Watershed terminates at hypersaline dry-lake playas. 10X saltier than ocean. Significant evaporatio
Slide 9: Groundwater Now Wasted to Evaporation
Groundwater Now Wasted to Evaporation • 1,300 square-mile, topographically-diverse watershed surrounds Cadiz area. • Snowpack and rainfall in upper elevations recharges system. • Billions of gallons flow to dry lake playas at base, turn saline and evaporate. 9
Slide 10: The Cadiz Water Project
The Cadiz Water Project The Cadiz Valley Water Conservation, Recovery and Storage Project will intercept and conserve billions of gallons of renewable fresh ground water before it can be lost to salinity and evaporation to create a reliable water supply for Southern California. In a second phase, th
Slide 11: Court-Validated Environmental Review and County GW Entitlement
Court-Validated Environmental Review and County GW Entitlement The Cadiz Water Project successfully secured Court-validated environmental review and groundwater entitlements to support use and delivery of sustainable, high quality water supply and storage. Sustainable: Environmental review completed
Slide 12: Water Project – Southern Pipeline
Water Project – Southern Pipeline To convey conserved groundwater from the Cadiz wellfield to the Colorado River Aqueduct for distribution throughout Southern California communities, the project would construct a Southern Pipeline. • 43-miles Cadiz to Rice, CA at Colorado River Aqueduct. • Pipeline
Slide 13: Northern Pipeline
Northern Pipeline • Cadiz owns 96 miles of idle 30” steel pipeline between Cadiz and Barstow. • Acquired in 2018 an additional 124-miles of the pipeline extending from Barstow to Wheeler Ridge. The acquisition is conditioned on delivery of pending due diligence. • Entire 220-mile line has high press
Slide 14: Cadiz Interconnected with Southern California Water System
Cadiz Interconnected with Southern California Water System 14
Slide 15: Water Pricing
Water Pricing So Cal Wholesale Water Price Escalation 1200% $1,000 Wholesale Pricing (1) 1000% $800 800% $600 Water prices paid by Southern California water agencies 600% to acquire imported supplies have increased by 1,000%, 400% $400 or a 5.83% CAGR, since 1978. 200% $200 0% $- Pricing % Increase
Slide 16: Agricultural Operations: The Cadiz Ranch
Agricultural Operations: The Cadiz Ranch - Developed Hemp, Lemons and Veggies at Cadiz, June 2020. 16
Slide 17: About the Cadiz Ranch – 25 Years of Sustainable Agriculture
About the Cadiz Ranch – 25 Years of Sustainable Agriculture Cadiz Valley, site of water project, is currently farmed and irrigated with sustainable, naturally replenishing underlying aquifer. • Largest agricultural operation in SB County. • Similar climate and crop mix as Imperial, Palo Verde and Co
Slide 18: SoCal Hemp JV LLC
SoCal Hemp JV LLC 50/50 Joint Venture of two California farming companies – Cadiz & Glass House – created to be a national leader in the hemp industry: • cultivate, harvest, process and distribute hemp and hemp-derived products and solutions at a commercial scale. • meet growing business and consu
Slide 19: Agricultural Land Value
Agricultural Land Value • Value of agricultural land assets with water resources continues to appreciate over time. • Comparable developed land with water rights in Palo Verde and Imperial Valleys sells for approximately $14,000 per acre for developed farmland. • Large contiguous parcels can trade a
Slide 20: Current Capitalization
Current Capitalization Description Coupon Maturity ($ in millions except for stock price) Cash (1) $5.6 Senior Secured Term Loan (1)(2) 74.6 8.00% May-01-2022 Total Debt $74.6 Long Term Lease Buy Back (3) $18.7 Junior Convertible Preferred Stock (4) $25.0 Market Capitalization $353.6 Shares Outstand
Slide 21: For more information
For more information: www.cadizinc.com www.cadizwaterproject.com Email: ir@cadizinc.com Social: Twitter – @CadizWater Facebook – Cadiz Water Project 21