Itafos Inc · TSXV:IFOS
Itafos — Investor Presentation (April 2023)
25 slides from Itafos's investor presentation, April 2023
Slide 1: Corporate Presentation
Corporate Presentation April 2023 1
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING INFORMATION (“FLI”) This presentation contains FLI within the meaning of applicable Canadian securities legislation regarding future events or the future performance of Itafos Inc. (the “Company”). Except for statements of historical fact relating to the Company, informati
Slide 3: Itafos at a Glance
Itafos at a Glance Business Overview Consolidated Operational and Financial Highlights Itafos is a pure-play phosphate and specialty fertilizer business with five asset 2021A 2022A 2023 Guidance locations across three continents 1 Owner of Conda, a vertically-integrated phosphate fertilizer busin
Slide 4: The Phosphate Market is Underpinned by a Shift in Both Supply and Demand Dynamics
The Phosphate Market is Underpinned by a Shift in Both Supply and Demand Dynamics… A Mega-trends driving long-term phosphate demand • Growing population and decreasing arable land per capita requires increased crop yields • Rising purchasing power in developing markets is shifting dietary habits (i.
Slide 5: Itafos Creates Value as the Only Pure-Play Phosphate Producer in North America
… Which Enable Itafos to Create Value as the Only Pure-Play Phosphate Producer in North America C Scaled and highly cash-generative North American phosphate operations at Conda • One of only four North American phosphate producers and the only pure-play • 2022 adjusted EBITDA of $225mm (1) with indu
Slide 6: Mega-Trends Driving Long-Term Phosphate Demand
A Mega-Trends Driving Long-Term Phosphate Demand • Strong, long-term fertilizer dynamics driven by: Global Grain and 3.8 3.4 Growing global population and decreasing arable land per capita requires Oilseed Use (1): (Billion tonnes) 2022 / 23 2027 / 28 Highly attractive increased crop yields long-t
Slide 7: Current Industry Capacity Additions Insufficient to Meet Global Demand Growth
B Current Industry Capacity Additions Insufficient to Meet Global Demand Growth In the medium-term, P2O5 supply is expected to increase 4.6 From 2027 through 2040, an additional 11 million tonnes (1) of million tonnes (1) by 2027 P2O5 capacity will be required to meet anticipated growth in deman
Slide 8: Current Industry Capacity Additions Insufficient to Meet Global Demand Growth (Cont'd)
B Current Industry Capacity Additions Insufficient to Meet Global Demand Growth (Cont’d) The majority of announced new capacity additions are to replace existing mines and are not additive to capacity Phosphate North American Production Landscape Cost and Time to Build New Capacity (DAP / MAP / TSP)
Slide 9: Scaled and Highly Cash-Generative North American Phosphate Operations at Conda
C Scaled and Highly Cash-Generative North American Phosphate Operations at Conda • Phosphate rock is currently a scarce resource in U.S. P2O5 Producers by Production (2022A) (5) (Millions of tonnes of P2O5) the U.S., which accounts for only 1% of the world’s reserves yet 8% of the world’s imports (1
Slide 10: Strategic Location West of the Mississippi
D Strategic Location West of the Mississippi One of only three (3) SPA producers in the U.S. Close to key premium markets, which account for ~68% of North American phosphate demand Strategically located West of the Mississippi river Highly technical farming (canola, wheat) 16% Pocatello Wester
Slide 11: H1 / NDR Mine Life Extension and Development Underway
E H1 / NDR Mine Life Extension and Development Underway with Preliminary Estimated Mineral Resource Mine Life to 2037; Potential for Additional Mineral Resources Through Leases and Third-party Agreements 1 Rasmussen Valley Mine (“RVM”) end of life expected in mid-2025, with capability to supply 1 o
Slide 12: Potential Upside from Itafos' Portfolio of Undeveloped Overseas Assets
F Current Scarcity of Global Phosphate Resources Expected to Drive Attractive Potential Upside from Itafos’ Portfolio of Undeveloped Overseas Assets Conda Farim One of the few producing phosphate Highest known sedimentary grade phosphate fertilizer businesses in North America greenfield project with
Slide 13: Proven Management Team with History of Delivering Value for Stakeholders
G Proven Management Team with History of Delivering Value for Stakeholders Name & Title Biography Significant Progression Under Management Team Itafos CEO since November 2020 Oversaw 16 sites as COO & EVP of PotashCorp High level of safety through behavior based approach and other Over 30 year
Slide 14: Itafos Financial Update
ITAF..S Itafos Financial Update
Slide 15: Itafos Public Market Snapshot
Itafos Public Market Snapshot Key Statistics EV / 2023E Adj. EBITDA Multiple vs. Peers (2) Trading Metrics Exchange TSX-V Difference from 2.3x Peer Median: (2.7x) Ticker IFOS Share Price C$1.95 / US$1.46 Average Daily Trading Volume (thousands) (1) 50,449 5.3x Market Capitalization (millions) C$383.
Slide 16: Record 2022 Financial Performance
Record 2022 Financial Performance Adjusted EBITDA (1) Free Cash-Flow (2) Improved market fundamentals and focused business Significant growth in free cash-flow due to underlying strategy including: financial performance Improved pricing and higher volumes Resolution of 2020 business interrup
Slide 17: Itafos Guidance for 2023
Itafos Guidance for 2023 ($ in millions unless otherwise indicated) FY 2023 Guidance Adjusted EBITDA (1) $140 – $180 Net Income $35 – $65 Basic Earnings (C$ / share) C$0.25 – C$0.45 Maintenance Capex (1) $15 – $25 Growth Capex (1) $40 – $50 Free Cash-Flow (1) $70 – $100 17 Source: Company management
Slide 18: Itafos is a Pure-Play Phosphate Business Positioned to Benefit from Long-Term Market Tailwinds
Itafos is a Pure-Play Phosphate Business Positioned to Benefit from Long-Term Market Tailwinds A Mega-trends driving long-term phosphate demand B Current industry capacity additions insufficient to meet global demand growth C Scaled and highly cash-generative North American phosphate operations at C
Slide 19: Appendix
ITAF..S Appendix
Slide 20: Itafos is Supported by a Leading Board Focused on Appropriate Governance and Oversight
Itafos is Supported by a Leading Board Focused on Appropriate Governance and Oversight Name & Title Biography Name & Title Biography Board member since 2015 Board member since 2020 Former SVP at Yamana Gold Inc. Current Castlelake Managing Director Former CFO at Itafos Former Vice Presid
Slide 21: Conda Mineral Reserves and Mineral Resources Overview
Conda Mineral Reserves and Mineral Resources Overview Rasmussen Valley / Lanes Creek Item Tons (Mmt) Grade (%) P2O5 (Mmt) Mineral Reserves 13.1 26.6% 3.4 Measured and Indicated Mineral Resources (including Mineral Reserves) (1) 16.2 26.6% 4.4 Inferred Mineral Resources 0.2 25.7% 0.1 H1 / NDR Item To
Slide 22: Arraias Mineral Reserves and Mineral Resources Overview
Arraias Mineral Reserves and Mineral Resources Overview Near Mine Item Tons (Mmt) Grade (%) P2O5 (Mmt) Measured and Indicated Mineral Resources 24.6 4.3% 1.1 Inferred Mineral Resources 3.8 4.0% 0.2 Canabrava Item Tons (Mmt) Grade (%) P2O5 (Mmt) Measured and Indicated Mineral Resources 20.4 5.5% 1.1
Slide 23: Farim Mineral Reserves and Mineral Resources Overview
Farim Mineral Reserves and Mineral Resources Overview Total Item Tons (Mmt) Grade (%) P2O5 (Mmt) Mineral Reserves 44.0 30.0% 13.2 Measured and Indicated Mineral Resources 105.6 28.4% 30.0 Inferred Mineral Resources 37.6 27.7% 10.4 23 Source: Company management. Note: The Farim Technical Report is fi
Slide 24: EBITDA Reconciliation
EBITDA Reconciliation ($ in thousands unless otherwise indicated) FY 2022 FY 2021 FY 2020 Net Income (Loss) $114,700 $51,439 ($62,306) (+) Finance Expense, Net 45,924 37,244 28,030 (+) Income Tax Expenses (Recovery) 32,154 22,106 (9,742) (+) DD&A 33,705 25,844 38,985 EBITDA $226,483 $136,633 ($5,033
Slide 25: Free Cash-Flow Reconciliation
Free Cash-Flow Reconciliation ($ in thousands unless otherwise indicated) FY 2022 FY 2021 FY 2020 Cash-Flows from (Used By) Operating Activities $208,369 $94,499 ($2,609) Cash-Flow Used by Investing Activites (39,003) (34,076) (13,965) Less: Cash Growth Capex 18,488 10,867 7,138 Free Cash-Flow $187,