Itafos Announces Idling of Itafos Arraias
ITAFOS ANNOUNCES IDLING OF ITAFOS ARRAIAS
TORONTO, ON – November 21, 201 9 – Itafos (TSX VENTURE: IFOS) ( the “Company”)
announced today its decision to idle Itafos Arraias and to suspend the previously announced
repurpose plan at Itafos Arraias. The decision comes as part of a disciplined approach to capital
allocation considering the continued downward pressure on global fertilizer prices.
“While we have demonstrated the viability of th e repurpose plan at Itafos Arraias , including
producing and commercializing new premium products, market prices have continued to decline
and have currently reached unsustainable levels. As a result of these external factors, we have
decided to idle Itafos Arraias to manage the cycle, while we evaluate strategic options for the
business,” said Dr. Mhamed Ibnabdeljalil, interim CEO of Itafos.
During 2019, the Company implemented the repurpose plan at Itafos Arraias in order to optimize
Itafos Arraias’ finished fertilizer production with a multi -product portfolio of higher grade single
superphosphate (“SSP”), SSP with micronutrients (“SSP+”) and premium PK compounds. The
repurpose plan at Itafos Arraias was intended to enhance Itafos Arraias’ competitive positioning
and profitability while reducing its operational and environmental risk profile. To enable the
repurpose plan, Itafos Arraias has been purchasin g, receiving and processing higher grade
phosphate rock from third parties during 2019, including entering into a multi-year phosphate rock
supply agreement to purchase higher grade phosphate rock from the OCP Group. In addition, the
Company has advanced other aspects of the repurpose plan, including production and sales of
higher grade SSP and SSP+ and premium PK compounds, implementation of an efficient logistics
process related to third party phosphate rock, reorganization of the site and commissioning of
equipment. Also in connection with advancing implementation of the repurpose plan, during Q2
2019, the Company idled Itafos Arraias’ existing mines, tailings dam and the beneficiation plant.
Notwithstanding the idling of Itafos Arraias , Itafos Arraias ha s and will continue to maintain all
licenses and permits in good standing and compliance with existing regulations.
About Itafos
The Company is a vertically integrated phosphate fertilizers and specialty products company with
an attractive portfolio of long -term strategic businesses and projects located in key fertilizer
markets worldwide.
The Company owns, operates and is developing the following businesses and projects:
▪ Itafos Conda – a vertically integrated phosphate mine and fertilizer business with
production and sales capacity of approximately 550kt per year of monoammonium
phosphate (“MAP”), MAP with micronutrients (“ MAP+”), superphosphoric acid (“ SPA”),
merchant grade phosphoric acid (“ MGA”) and specialty products includin g ammonium
polyphosphate (“APP”) located in Idaho, US;
▪ Itafos Arraias – a phosphate fertilizer business with production and sales capacity of
approximately 500kt per year of SSP, SSP+ and premium PK compounds and
approximately 40kt per year of excess sulfuric acid located in Tocantins, Brazil;
▪ Itafos Paris Hills – a high-grade phosphate mine project located in Idaho, US;
▪ Itafos Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau;
▪ Itafos Santana – a vertically integrated high -grade p hosphate mine and fertilizer plant
project located in Pará, Brazil;
▪ Itafos Mantaro – a large phosphate mine project located in Junin, Peru; and
▪ Itafos Araxá – a vertically integrated rare earth elements and niobium mine and extraction
plant project located in Minas Gerais, Brazil.
For more information, or to join the Company’s mailing list to receive notification of future news
releases, please visit the Company’s website, www.itafos.com.
Forward Looking Information
Certain information contained in this news release constitutes forward looking information. All
information other than information of historical fact is forward looking information. The use of any
of the words “intend”, “anticipate”, “plan”, “ continue”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to
identify forward looking information. This information involves known and unknown risks,
uncertainties and other factors that may cause actual results or events to differ materially from
those anticipated in such forward looking information. No assurance can be given that this
information will prove to be correct and such forward looking information inclu ded in this news
release should not be unduly relied upon.
Forward looking information is subject to a number of risks and other factors that could cause
actual results and events to vary materially from that anticipated by such forward looking
information. Although the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward -looking statements, there may
be other factors that cause results not to be as anticipated, estimated or intended. Factors that
may cause actual results to differ materially from expected results described in forward -looking
statements include, but are not limited to, those risk factors set out in the Company’s Management
Discussion and Analysis and other disclosure documents available under the Company’s profile
at www.sedar.com. Readers are cautioned that the foregoing list of risks, uncertainties and
assumptions are not exhaustive. The forward-looking information included in this news release is
expressly qualified by this cautionary statement and is made as of the date of this news release.
Itafos undertakes no obligation to publicly update or revise any forward-looking information except
as required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Itafos Investor Relations
www.itafos.com