Cadiz, Inc. · NASDAQ:CDZI
Cadiz — Investor Presentation (September 2019)
25 slides from Cadiz's investor presentation, September 2019
Slide 1: Cadiz, Inc. Corporate Presentation September 2019
CADIZ CADIZ, INC. CORPORATE PRESENTATION</> SEPTEMBER 2019
Slide 2: Safe Harbor Agreement
Safe Harbor Agreement September 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
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 & zoning Ag use. 35,000 acres at base of a protected, closed basin watershed with no competition. Agricult
Slide 4: Cadiz Location: 200 Miles Northeast of Los Angeles
Cadiz Location: 200 Miles Northeast of Los Angeles Fresno Cadiz Project Site Las Vegas 15 5 Kingman Colorado River Bakersfield Aqueduct Barstow Santa Laughlin Barbara Needles 40 San Bernardino Los Angeles 15 10 5 El Centro San Diego 8 Yuma 4
Slide 5: Remote location, with access to critical highway, rail and aqueduct infrastructure
Remote location, with access to critical highway, rail and aqueduct infrastructure 5
Slide 6: 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) 6
Slide 7: Water Leaves System Via Evaporation
Water Leaves System Via Evaporation 7
Slide 8: Dry Lake Salt Mining
Dry Lake Salt Mining 8
Slide 9: Cadiz Water Project
Cadiz Water Project 9
Slide 10: Conserve Water for Beneficial Use
Conserve Water for Beneficial Use Intercept and conserve H2O before it can be lost to salinity and evaporation: ✷ Intercept and retrieve 50,000 AFY before evaporation. ✷ Conserve new 50- year supply for 400,000 throughout So. Cal. ✷ In-lieu storage up to 150,000 AF in wet yrs. ✷ Safe, sustainable op
Slide 11: Structure: Public-Private Partnership
Structure: Public-Private Partnership Cadiz partners with public agencies funding R&D, permitting and construction. No public dollars required. Public agencies have secured options and contracts with Cadiz to long-term supply and storage from the Project. Cadiz is approved to deliver 2.5 MAF ove
Slide 12: Phase 2 - Storage
Phase 2 - Storage Via pipelines, import water in wet years and store underground at Cadiz. Total storage capacity = 1 million acre-feet. Permitting – additional project level state environmental review. Construction: Repurpose existing 30” Northern Pipeline to water conveyance. Create re
Slide 13: Cadiz Water Project - Status
Cadiz Water Project - Status 2009 – 2011: Completed r&d and permitting documents. July 2012: California environmental impact report. October 2012: County approved conservation plan: • Right to conserve and deliver average of 50,000 AFY for 50 years = water for 400,000 people a year. 2014 - 2
Slide 14: Cadiz Water Project status
Cadiz Water Project status 2019: June: Federal Court ruling on 2017 ROW approval – remands back to BLM July: Addendum to FEIR approved and adopted - CEQA Lead agency July: SB 307 Legislation adopted, new state review of project science by State Agencies to be completed in 2020. Sept. into 20
Slide 15: 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 16: Cadiz Farming
Cadiz Farming 16
Slide 17: 25 Year History of Agricultural Use
25 Year History of Agricultural Use 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 acreage. Cadiz is largest agricultural operation in SB County. 2,100 acres curren
Slide 18: SoCal Hemp JV LLC
SoCal Hemp JV LLC Joint venture 50/50 partnership with CA-based GlassHouse Farms founded on July 31, 2019. JV operates under the name SoCal Hemp Co. Focused on cultivating organic, sun-grown, industrial hemp on up to 9,600 acres at the Cadiz Ranch. Ideal location for commercial production of
Slide 19: Why Hemp?
Why Hemp? • Reduces CO2: can help reduce global warming as it takes out large amounts of carbon dioxide per acre, 4X more than trees. • No pesticides: Hearty plant, or weed, that can grow in a variety of environments without the use of pesticides, better for air, soil and groundwater • Soil: Large t
Slide 20: The Many Uses of Hemp
THE MANY USES OF HEMP ° FIBER * Technical Fiber FLOWERS ‘% Concrete Reinforcement A ° Construction Materials + Pharmaceutical * Automotive Compression Molding r = Recreational + Fiberglass Replacements aN + Plastics Reinforcements & Fillers SEEDS 5 «Cordage “Paper = Biofuel *Mats = Food *Geotextiles
Slide 21: Competitive Advantage: Why Cadiz?
Competitive Advantage: Why Cadiz? • 35,000 acres of farmable acreage including 9600 acres permitted for • Cadiz operation AG already regulated & • Remote location in CA desert that compliant with can grow organic hemp, open-air local, state and (creates 365 supply chain) federal laws. • No cross-con
Slide 22: Hemp: Demand, Products, Market Size
Hemp: Demand, Products, Market Size • US Farm Bill 2018 (Dec.) made it legal to grow hemp in all 50 states. Hemp-derived products also legalized. • China, Canada historically largest suppliers, but US market now taking off. • Hemp product and seed from China subject to US tariffs. • In 2019, Hemp no
Slide 23: Hemp-derived CBD market opportunity
Hemp-derived CBD market opportunity • Hemp-derived CBD as an alternative to marijuana products gaining in popularity, in line with health, wellness, and anti-pharma trends. • Retail sales of these products expected to surge to $7.5 billion by 2023, up from about $1 billion this year. (source Hemp In
Slide 24: Cadiz's Hemp Program
Cadiz’s Hemp Program • 2019 Pilot Program: • 2020 Commercial Hemp Program: – Summer: Industrial hemp – Desert climate expected to research conducted on 5 acres. allow 3 cuttings per year. Various genetics (via seeds) are – Acreage expanded to total being planted. 1,280 acres (2 sections of land) – F
Slide 25: Financials
Financials (As of 6/30/19) Shares Outstanding 27 M Working Capital $17 M Debt – Sr. Secured * $70 M Debt – Convertible ** $70.5 M Lease buy-back Provision *** $15.5 M Enterprise Value $450 M * Senior Secured Mortgage - 8% Interest (6% PIK and 2% cash quarterly), Maturity in May 2021 or “Springing Ma