Intrepid Potash, Inc · NYSE:IPI
Intrepid Potash — Investor Presentation (September 2023)
31 slides from Intrepid Potash's investor presentation, Sep 20, 2023
Slide 1: Overview of Intrepid's Potash Operations
OVERVIEW OF INTREPID’S POTASH OPERATIONS September 2023 NYSE: IPI | intrepidpotash.com
Slide 2: Why Invest in IPI?
WHY INVEST IN IPI? Key Product Sees Steady Long-life Reserves & Resources Long-term Demand Growth Lowers Terminal Value Risk • Global potash demand has historically seen a CAGR of • Our reserves and resources support many decades of approximately 2%, closely tracking population growth production Inv
Slide 3: Overview of IPI's Potash Production
OVERVIEW OF IPI’S POTASH PRODUCTION September 2023 3
Slide 4: Key Takeaways
KEY TAKEAWAYS Revitalizing Our Potash Assets to Capitalize On Unique Positioning & Opportunity • We have high quality sylvinite ore at our Moab and HB potash solar solution mines (Wendover is a brine recovery mine) Long-life Reserves & Resources Support • The underlying reserves and resources suppor
Slide 5: Key Drivers of Potash Production
KEY DRIVERS OF POTASH PRODUCTION Our Capital Spending Has Been Focused On the Highest Impact Areas Potash Asset Key Drivers of Production Key Project Summaries • Eddy Shaft/Replacement Extraction Well projects • Maximizing Brine Availability → accomplished through high injection rates; our will targ
Slide 6: Our Potash Assets Have Very Long Production Lives
OUR POTASH ASSETS HAVE VERY LONG PRODUCTION LIVES Reserves to Drive Decades of Production; Resources Add Substantial Long-term Upside Estimated Potash Reserves Summary • Potash reserves are part of a 25-year mine plan which is Potash Reserves (mm tons) K2O Annual Prod.(1) Reserve Lives updated every
Slide 7: Moab Production Example
MOAB PRODUCTION EXAMPLE Consistent Injection → Max Brine Availability → More Residence Time → Higher Grade Moab Example: Potash Production at Varying KCl Grades & Evaporation Scenarios 175k Annual Potash Production (tons) Target KCl Grade 140k 105k 70k 35k 0k 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Brine Gra
Slide 8: Higher Potash Production Drives Improvement in Unit Economics
HIGHER POTASH PRODUCTION DRIVES IMPROVEMENT IN UNIT ECONOMICS Production of ~350k Tons Should Improve Our COGS per Ton by 20-30%(1) Potash Segment COGS/ Ton Has Inverse Relationship with Potash Production $400 $359 Potential COGS/ Ton Improvement at Higher Production $345 Potash COGS/Ton $/Ton Potas
Slide 9: Our Potash Assets
OUR POTASH ASSETS September 2023 9
Slide 10: HB Solar Solution Mine
HB SOLAR SOLUTION MINE Returning HB Production to Historical Highs Is Key for Improving Our Unit Economics Summary of Recent Projects & Key Opportunities Historical Production Since 2014 - First Year of Production • HB Injection Pipeline Phase 1: New 21-mile brine injection pipeline; designed to inc
Slide 11: Moab Solar Solution Mine
MOAB SOLAR SOLUTION MINE Our Most Consistent Potash Operation, Cavern 4 Provides for Completely New Ore(1) Summary of Recent Projects & Key Opportunities Historical Production Since Our IPO • Well 45 (Cavern 4): A newly designed, single-well cavern system with three interlocking laterals that 150k S
Slide 12: Wendover Brine Recovery Mine
WENDOVER BRINE RECOVERY MINE Targeting Higher Production; Byproducts Offer Upside (e.g. Lithium from Mag Brine(1)) Summary of Recent Projects & Key Opportunities Historical Production Since Our IPO • DBWs: In Q4/ 22, we drilled a new deep-brine well ("DBW") to enhance brine availability from the dee
Slide 13: Company & Market Overview
COMPANY & MARKET OVERVIEW September 2023 13
Slide 14: Intrepid's History
INTREPID’S HISTORY Intrepid Was Founded With the Goal of Consolidating the U.S. Potash Industry Wendover Solar Brine Recovery Potash Mine • Located in the Bonneville Salt Flats on the Nevada-Utah border Carlsbad Conventional East Trio® • Recognized as an area for sourcing potash in the early- Mine &
Slide 15: Our Business Segments
OUR BUSINESS SEGMENTS • ~57% of revenues(1) • ~35% of revenues(1) • ~8% of revenues(1) • Intrepid is the only producer of • Intrepid is one of two langbeinite • Our key asset is Intrepid South, muriate of potash (“potash” or producers in the world with a ~27% which comprises ~59.8k acres in “potassi
Slide 16: Our Competitive Advantages
OUR COMPETITIVE ADVANTAGES Historically Generate Higher Average Diversified Potash Sales Markets Potash NRSP vs. Peers • Over past five years, our average potash net realized • Sales into premium feed and industrial markets allow sales price/ton was 35% to 40% higher than key peers(1) for higher net
Slide 17: Overview of Global Potash Market
OVERVIEW OF GLOBAL POTASH MARKET Three Countries Comprise ~70% of Global Potash Production Annual Global Potash Production: 2% CAGR from 2019 to 2028E 90.0 78.4 80.0 76.9 80.0 73.1 Annual Global Potash Production 70.3 71.7 69.9 66.1 66.6 70.0 (millions of metric tons) 61.8 22.9 22.7 22.9 60.0 21.4 2
Slide 18: Potash Market Demand Projections
POTASH MARKET DEMAND PROJECTIONS Long-term Demand Growth Will Necessitate More Supply Coming to Market Long-term Potash Demand Projections 100.0 90.0 12.6 12.9 80.0 12.0 12.3 +13mm Tons by 2028E from 2023E (millions of metric tons) Annual Potash Demand 11.5 11.7 10.9 11.2 10.3 10.6 70.0 10.0 10.7 9.
Slide 19: IPI Common Stock vs. U.S. NOLA Potash
IPI COMMON STOCK VS. U.S. NOLA POTASH IPI Common Stock vs. U.S. NOLA Potash Price $900 $250 $800 Breakup of Belaruskali & Uralkali cartel in July-'13 marks start of sector weakness through 2020 U.S. NOLA Potash Price ($/short ton) $200 IPI Common Stock ($/share) $700 $600 $150 $500 Belarusian sancti
Slide 20: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements. Forward-looking statements include statements about our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, among other things. You can identi
Slide 21: Non-GAAP Reconciliations & Appendix
NON-GAAP RECONCILIATIONS & APPENDIX September 2023 21
Slide 22: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Potash Segment COGS per Ton Table 2017 2018 2019 2020 2021 2022 H1/23 Potash Segment COGS (in '000s) $72,229 $72,322 $73,401 $73,496 $87,281 $76,524 $60,025 Potash Segment Byproduct Revenue (in '000s) $12,377 $16,586 $21,245 $15,560 $21,291 $22,807 $11,500 Potash Sales (in 0
Slide 23: HB Production Method
HB PRODUCTION METHOD Production Summary At our HB solar solution mine in Carlsbad, New Mexico, we utilize solution mining to produce potash. Mining at HB recovers potash by first injecting saturated saline sodium chloride (“NaCl”) brine into the old mine workings to create underground leach lakes in
Slide 24: Moab Production Method
MOAB PRODUCTION METHOD Production Summary At our solar solution mine in Moab, Utah, we utilize selective solution mining to produce potash. Selective solution mining primarily dissolves the potassium chloride (“KCl”) component of the sylvinite and leaves the majority the sodium chloride (“NaCl”) com
Slide 25: Wendover Production Method
WENDOVER PRODUCTION METHOD Production Summary Potash at Wendover is produced through solar evaporation of naturally occurring brines collected from two primary sources: the shallow-brine aquifer and a deeper aquifer by means of deep-brine wells. The shallow-brine aquifer is also referred to as a “ne
Slide 26: Moab Potash Bed 9 Property
MOAB POTASH BED 9 PROPERTY Bed 9 (“Sylvinite 9”) Is Our Horizontal Caverns Key Highlights • Intrepid utilized the novel technology of horizontal potash drilling in 2002, with two new horizontal wells drilled in Cavern 1 •The third and fourth horizontal wells in Cavern 1 were drilled in 2005 and 2012
Slide 27: Moab Potash Bed 9 Reserves
MOAB POTASH BED 9 RESERVES High-Grade Ore & Key for Future Development Plans Key Highlights • Bed 9 sits deeper than Bed 5 and has higher grade KCl; Bed 9 is key for future development plans • The latest TRS for Bed 9 (as of 12/31/2021 and issued in February 2022) includes Caverns 1-3; Cavern 4 was
Slide 28: Moab Potash Bed 5 Property
MOAB POTASH BED 5 PROPERTY Bed 5 (“Sylvinite 5”) – Original Mine Workings Key Highlights • Conventional mining began in 1964, converted to solution mining/solar evaporation in 1971 •Intrepid drilled two new recovery wells in 2000 to revitalize Bed 5 production • The average depth of Bed 5 is approxi
Slide 29: Moab Potash Bed 5 Reserves
MOAB POTASH BED 5 RESERVES Bed 5 Still Has Significant Ore of High Grade K20 Key Highlights • Per the latest Technical Report Summary (TRS), Bed 5 measured mineral sylvinite resources totals approximately 70mm tons at an average K20 grade of 25% • Bed 5 indicated mineral sylvinite resources totals a
Slide 30: Carlsbad HB Cavern System
CARLSBAD HB CAVERN SYSTEM Higher Injection Rates Will Maximize Brine Availability Key Highlights • Our current brine injection/extraction is primarily focused on the HB Eddy, South, and North Caverns; the total potential flood area including the AMAX mine is 1.3x the size of Manhattan • The new inje
Slide 31: Wendover Property Map
WENDOVER PROPERTY MAP Large-scale Operation; Potash/Byproduct Production Upside Key Highlights • Wendover is a large-scale facility comprising approximately 90k acres (~141 sq. miles) • We utilize solar evaporation from naturally occurring brines collected from two primary sources: the shallow-brine
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