Itafos Inc · TSXV:IFOS
Itafos — Investor Presentation (April 2025)
31 slides from Itafos's investor presentation, April 2025
Slide 1: Powering Growth, Nourishing the Planet
TSX-V: IFOS POWERING GROWTH, NOURISHING THE PLANET April 2025
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING INFORMATION (“FL I”) MINERAL RESER VES AND MINERAL R ESOURCES This presentation contains FLI within the meaning of applicable Canadian securities legislation regarding future events or the future performance of Itafos Inc. This presentation uses Mineral Reserve and Mineral
Slide 3: Our Business, Our Purpose
CONDA (flagship vertically integrated OUR BUSINESS phosphate fertilizer production) A pure-play phosphate and FARIM specialty fertilizer company. (phosphate mine project) SANTANA (phosphate mine project) OUR PURPOSE ARRAIAS (vertically integrated phosphate Our purpose is to feed a growing fertilizer
Slide 4: Itafos continues to focus on creating long-term shareholder value
Itafos continues to Operational Excellence Disciplined Investment High-Grading Portfolio focus on creating long- term shareholder value High utilization Diligently maintaining Maximizing value of to close valuation gap assets to drive foreign assets to peers. Long-term offtake and performance supply
Slide 5: Operational Excellence
OPERATIONAL EXCELLENCE Top-tier execution that drives best in class operating margins Utilization(1) Adjusted EBITDA Margin(2,3) 120% 45% 2022 2023 2024 40% 2022 100% 2024 2022 35% 2023 2023 2022 2024 80% 30% 2023 2024 2022 2023 2022 2024 2023 25% 2024 60% 20% 40% 15% 10% 20% 5% 0% 0% Itafos Nutrien
Slide 6: Disciplined Investment
DISCIPLINED INVESTMENT Fortress balance sheet and ample liquidity to support current business and high-grade portfolio Net Debt(1) Liquidity Profile CAPEX(1) Net Debt ($ MM) Leverage Ratio Cash ($MM) Undrawn ABL Facility ($MM) Maintenance ($ MM) Growth ($ MM) $180 $180 $250 1.6x $160 $160 1.4x $140
Slide 7: Valuation Gap
VALUATION GAP Itafos trades at a significant multiple discount to peers EV / 2025E Adj. EBITDA Multiple vs. Peers (1) 9.0x Peer Average: 6.9x 8.0x (4.5x) difference 7.0x 6.0x 5.0x 4.0x 7.6x 8.0x 6.7x 3.0x 5.3x 2.0x 1.0x 2.4x 0.0x Source: Company management and FactSet as of March 4, 2025. 1. Source:
Slide 8: Market Dynamics
MARKET DYNAMICS TSX-V: IFOS | 8
Slide 9: Positive Crop Fundamentals
POSITIVE CROP FUNDAMENTALS Improving MAP affordability and increasing government spending help U.S. farmers U.S. MAP Affordability – Corn* U.S. Government Spending • Near long-term average, down from recent high • Emergency Farm Aid extended 2018 Farm Bill for one year • Direct government payments f
Slide 10: Stock:Use Ratio Remains Bullish
STOCK:USE RATIO REMAINS BULLISH World (Less China) Grain and Oilseed Stock:Use Stocks S:U Percentage Bearish Bullish Mil Tonnes % of use 500 20.0% 450 400 19.0% Global S:U ratio is 350 300 18.0% forecast to decline 250 17.0% to 15.4%, lowest 200 150 16.0% level since 2003 100 15.0% 50 0 14.0% Source
Slide 11: Phosphate Supply Constrained
PHOSPHATE SUPPLY CONSTRAINED U.S. production continuing downward trend, step change in Chinese export supply U.S. Phosphate Production Chinese Phosphate Exports • Declining phos rock supply • Focus on domestic markets • Prohibitive capital cost for incremental projects • Shift to non-fertilizer appl
Slide 12: Constructive Long-Term Phosphate Fundamentals
CONSTRUCTIVE LONG-TERM PHOSPHATE FUNDAMENTALS Global phosphoric acid supply and demand balance is expected to be tight through the decade Steady Demand Bolstered by Non-Fertilizer Applications Limited Incremental Supply Forces Elevated Operating Rates Mil Tonnes Global Capacity, Production and Opera
Slide 13: Our Assets
OUR ASSETS TSX-V: IFOS | 13
Slide 14: Conda: Flagship Business
CONDA: FLAGSHIP BUSINESS Flagship vertically integrated phosphate fertilizer business • Situated in Idaho, a mining-friendly jurisdiction • Itafos owns 100% • In operation for over 30 years • Strategic location offers multiple options to deliver P2O5 value to North America fertilizer markets • Husky
Slide 15: Conda: Husky 1 / North Dry Ridge Development
CONDA: HUSKY 1 / NORTH DRY RIDGE DEVELOPMENT Expanding mine life through 2037, ensuring stable ore supply for fertilizer production • May 8, 2023: received Notice to Proceed for the H1/NDR mine development project, initiating capital activities • April 29, 2024: filed the Conda Technical Report in a
Slide 16: Conda: Long-Term Exploration Opportunities
CONDA: LONG-TERM EXPLORATION OPPORTUNITIES Looking beyond 2037 Potential for Additional Mineral Reserves 1 Through Leases and Third-party Agreements 2 1 Purchased Dry Ridge lease subject to successful permitting and geologic validation 2 Ownership and exploration of Husky 2 / 2 Freeman Ridge leases
Slide 17: Arraias: Poised for Growth
ARRAIAS: POISED FOR GROWTH PHOTO: Arraias Business Vertically integrated phosphate fertilizer business in Tocantins, Brazil • Strategically located in Tocantins, Brazil, one of the world’s fastest growing fertilizer markets • Introduced new products to Brazilian fertilizer market, I-Active (DAPR) in
Slide 18: Arraias: Field Tests Demonstrate Value
ARRAIAS: FIELD TESTS DEMONSTRATE VALUE New products promote growth and root development Field Growth Root Development Source: Company management, TSX-V: IFOS | 18
Slide 19: High-Grading Portfolio
HIGH-GRADING PORTFOLIO Opportunistically monetizing assets, with intention of returning excess cash to shareholders over the long-term Sold (closed in February 2025) SANTANA Araxá, Brazil ARRAIAS • Combination of cash payments and future upside from retained minority interest • Initial proceeds used
Slide 20: Financial Results
FINANCIAL RESULTS TSX-V: IFOS | 20
Slide 21: Full Year 2024 Results
FULL YEAR 2024 RESULTS Consolidated results Revenues ($MM) Net Income ($MM) Adjusted EBITDA1 $491.2 $87.8 $159.5 Environmental, Health, and Safety Fertilizer Production (000s Tonnes P2O5)3 TRIFR2 400 349.0 349.4 1.00 0.89 350 0.80 300 250 0.57 0.60 200 0.40 150 100 0.20 50 0.00 0 FY 2023 FY 2024 FY
Slide 22: 2025 Guidance
2025 GUIDANCE Financial outlook Metric (in $MM unless otherwise noted) FY 2025 Projection Conda Sales Volumes (000s tonnes P2O5) 340 - 360 Corporate Selling, General and Administrative Expenses1 $17 - 20 Maintenance CAPEX1 $13 -23 Growth CAPEX1 $63 - 83 Environmental and Asset Retirement Obligations
Slide 23: A Pure-Play Phosphate and Specialty Fertilizer Company
A PURE-PLAY PHOSPHATE AND SPECIALTY FERTILIZER COMPANY Itafos continues to focus on creating long-term shareholder value to close valuation gap to peers. Operational Excellence Disciplined Investment High-Grading Portfolio High utilization Diligently maintaining assets Maximizing value of foreign to
Slide 24: Appendix
APPENDIX TSX-V: IFOS | 24
Slide 25: Management Team with a Proven History of Delivering Stakeholder Value
MANAGEMENT TEAM WITH A PROVEN HISTORY OF DELIVERING STAKEHOLDER VALUE David Delaney Tim Vedder Chief Executive Officer VP Operations & GM of Conda • Itafos CEO since November 2020 • Conda GM since January 2014 • Oversaw 16 sites as COO & EVP of PotashCorp • Over 20 years of experience in operational
Slide 26: Mineral Reserves and Mineral Resources Overview: Conda, U.S.
MINERAL RESERVES AND MINERAL RESOURCES OVERVIEW: CONDA, U.S. Rasmussen Valley Item Dry Tons (Mt) Grade (%) P2O5 (Mt) Mineral reserves 5.8 26.4 1.5 Measured and indicated mineral resources (including mineral reserves)i 5.9 25.9 1.5 Inferred mineral resources 0.02 26.7 0.01 H1/NDR Item Dry Tons (Mt) G
Slide 27: Mineral Reserves and Mineral Resources Overview: Brazil
MINERAL RESERVES AND MINERAL RESOURCES OVERVIEW: BRAZIL ARRAIAS Near Mine Domingos Item Tons (Mt) Grade (%) P2O5 (Mt) Item Tons (Mt) Grade (%) P2O5 (Mt) Measured and Indicated Mineral Resources 24.6 4.3 1.1 Measured and Indicated Mineral Resources 34.0 5.1 1.7 Inferred Mineral Resources 3.8 4.0 0.2
Slide 28: Mineral Reserves and Mineral Resources Overview: Farim, Guinea Bissau
MINERAL RESERVES AND MINERAL RESOURCES OVERVIEW: FARIM, GUINEA BISSAU Total Item Dry Tons (Mt) Grade (%) P2O5 (Mt) Mineral Reserves 43.8 30.0 13.1 Measured and Indicated Mineral Resources 102.5 28.5 29.2 Inferred Mineral Resources 31.1 28.1 8.7 Construction of Farim Camp Farim Camp Source: Company m
Slide 29: Public Market Snapshot
PUBLIC MARKET SNAPSHOT Trading Metrics Exchange TSX-V Ticker IFOS Share Price C$2.25 / US$1.59 Average Daily Trading Volume (thousands)(1) 25.9 Market Capitalization (millions) C$434.7 / US$307.2 Share Data Total Shares Outstanding 193,185,859 RSU’s Outstanding 4,256,742 Shareholder Breakdown Owners
Slide 30: Adjusted EBITDA Margin Reconciliation
ADJUSTED EBITDA MARGIN RECONCILIATION ($MMs) FY 2022 FY 2023 FY 2024 Itafos (Conda Segment) Adjusted EBITDA1 240 148 170 Revenues 571 448 468 Adjusted EBITDA Margin (Adjusted EBITDA / Revenues) 42.1% 33.1% 36.4% Mosaic (Phosphate Segment) Adjusted EBITDA2 2,219 1,227 1,191 Net Sales 6,184 4,724 4,51
Slide 31: TSX-V: IFOS
ITAFOS CORPORATE OFFICE 5151 San Felipe Street, Suite 2015 Houston, TX 77056 United States of America INVESTOR RELATIONS TSX-V: IFOS investor@itafos.com itafos.com TSX-V: IFOS | 31