Itafos Continues Momentum, Reporting Strong Q3 2024 Results
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TSX-V: IFOS
News Release
ITAFOS CONTINUES MOMENTUM, REPORTING STRONG Q3 2024 RESULTS
HOUSTON, TX – November 6, 2024 – Itafos Inc. (TSX-V: IFOS) (“Itafos” or the “Company”) today reported its Q3 2024 financial results
and provided a corporate update. The Company’s financial statements and management’s discussion and analysis for the three and nine
months ended September 30, 2024, are available under the Company’s profile at www.sedarplus.ca and on the Company’s website at
www.itafos.com. All figures are in thousands of US Dollars except as otherwise noted.
CEO Commentary
“We are pleased to report Itafos has continued its momentum of outstanding operational and financia l performance into Q3 2024. This
quarter, we delivered Adjusted EBITDA of $38 million, up 93% on the corresponding period last year. We also continue to make significant
progress on our strategic priorities with the H1/NDR project remaining on schedule for continuation of ore deliveries at our Conda facility
in 2025,” said David Delaney, Chief Executive Officer of Itafos. “During the quarter, we also announced the successful refinancing of our
credit facilities, providing additional liquidity and financial fl exibility to the Company. Finally, we were also pleased to an nounce that we
entered into an agreement to sell our Araxá project, which will unlock value associated with our overseas asset portfolio. The expected
closing of the sale has been moved back to Q1 2025 as the purchas er works to satisfy the conditions required for completion of the
transaction.”
Q3 2024 Financial Highlights
For Q3 2024, the Company’s financial highlights were as follows:
Revenues of $120.0 million in Q3 2024 compared to $110.8 million in Q3 2023;
Adjusted EBITDA 1 of $38.0 million in Q3 2024 compared to $19.7 million in Q3 2023;
Net income of $18.3 million in Q3 2024 compared to $3.1 million in Q3 2023;
Basic earnings of C$0.13/share in Q3 202 4 compared to C$0.02/share in Q3 2023; and
Free cash flow 1 of $(22.4) million in Q3 2024 compared to $(21.2) million in Q3 2023.
The improvement in the Company’s Q3 2024 financial performance compared to the corresponding period in the prior year was primarily
due to higher realized prices at Conda and higher sulfuric acid and dry product sales at Arraias, which were partially offset by lower sales
volumes at Conda which were impacted by the planned large scope turnaround in June 2024.
The Company’s total capex1 spend in Q3 2024 was $21.1 million compared to $16.3 m illion in Q3 2023, with the increase primarily due
to development activities at Husky 1 / North Dry Ridge (“H1/NDR”).
On September 6, 2024, the Company refi nanced its existing $85 million term loan (w ith $35.4 million outstanding) and $35 millio n letter
of credit facility (the “Existing Term Loan Agreement”) with a new $100 million commitment and $30 million letter of credit fac ility, while
also extending the maturity dates under its Existing Term Loa n Agreement and revolving asset-based credit facility (“Amended AB L
Facility”).
9M 2024 Financial Highlights
For 9M 2024, the Company’s financial highlights were as follows:
Revenues of $353.1 million in 9M 2024 com pared to $346.5 million in 9M 2023;
Adjusted EBITDA of $114.0 million in 9M 2024 compared to $102.3 million in 9M 2023;
Net income of $58.2 million in 9M 2024 compared to $51.7 million in 9M 2023;
Basic earnings of C$0.41/share in 9M 2024 compared to C$0.37/share in 9M 2023; and
Free cash flow of $37.8 million in 9M 2024 compared to $36.7 million in 9M 2023.
The improvement in the Company’s 9M 2024 financial performance compared to 9M 2023 was primarily due to higher realized prices at
Conda and higher sulfuric acid and dry product sales at Arraias, which were partially offset by lower sales volumes at Conda which are a
result of the planned large scope turnaround maintenance in Q2 2024.
1 Adjusted EBITDA, free cash flow, and total capex are each a non-International Financial Reporting Standards (“IFRS”) financial measure. The Company
reports non-IFRS financial measures to m anage and evaluate its business. See “Non-IFRS Financial Measures” section below for mo re information on
non-IFRS measures and a reconciliation to the most comparable IFRS financial measures.
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The Company’s total capex spend in 9M 2024 was $57.7 million compared to $37.2 million in 9M 202 3, with the increase primarily due
to development activities at H1/NDR and the planned large scope turnaround maintenance at Conda, as well as the planned sulfuric acid
plant turnaround maintenance at Arraias.
As of September 30, 2024, the Company’s financial highlights were as follows:
Trailing 12 months Adjusted EBITDA 2 of $143.5 million;
Net debt 2 of $39.1 million; and
Net leverage ratio 2 of 0.3x.
Recent Developments
Sale of the Araxá Project
On August 5, 2024, the Company entered in to an agreement to sell its 100% interest in the Araxá project to a wholly-owned
subsidiary of St George Mining Limited (“St George”) (ASX: SGQ) in exchange for a cash payment of $21 million and securities
of St George (the “Transaction”). Upon the closing of the Transaction, St George wi ll indirectly acquire all of the outstandin g
securities of Itafos Araxá Mineração e Fertilizantes S.A (“Itafos Araxá”). The Company and St G eorge are in the process of
negotiating certain amendments to the sale agreement for the sale of Itafos Araxá to allow St George additional time to satisfy
the conditions required for completion of the Transaction. While the key terms of t he sale agreement, including the purchase
price, are expected to remain unchanged, the amendments to the sale agreement will result in a delay in closing the Transaction.
The Transaction is now expected to close in Q1 2025.
FY 2024 Market and Financial Outlook
Market Outlook
Phosphate pricing increased in Q3 2024 following a rebound from late spring and early summer reset pricing in Q2 2024. Throughout the
fall application season, prices have largely remained resilient due to a lack of inventory in the market, good fall and winter on-farm
demand, and supply disruptions due to the hurricanes in the Southe ast US. Moving forward, the Company expects relatively flat p ricing
through Q4 2024 and into Q1 2025 as demand should remain strong and inventories low.
Specific factors the Company expects to support pricing in the global phosphate fertilizer markets through the end of 2024 are as follows:
Low inventory levels in the North American ma rket and continued strength in global demand;
Ongoing export restrictions from China; and
No significant adjustments in global trade fl ows, particularly to the North American market.
Financial Outlook
The Company revised its guidance for 2024 as follows:
(in millions of US Dollars Projected
except as otherwise noted) FY 2024
Sales Volumes (thousands of tonnes P2O5)3 330‐340
Corporate selling, general and administrative expenses2 $17‐19
Maintenance capex2 $20‐30
Growth capex2 $35‐45
2 Trailing 12 months Adjusted EBITDA, net debt, net leverage rati o, total capex; corporate selling, general and administrative e xpenses; maintenance
capex, and growth capex are each a non-IFRS financial measure. See “Non-IFRS Financial Measures” section below for more information on non-IFRS
measures and a reconciliation to the most comparable IFRS financial measures.
3 Sales volumes reflect quantity in P2O5 of Conda sales projections.
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Q3 and 9M 2024 Market Highlights
MAP New Orleans (“NOLA”) prices averaged $636/st in Q3 2024 compared to $589/st in Q3 2023, up 8% year-over-year, and averaged
$606/st in 9M 2024 compared to $560/st in 9M 2023, up 8% year-over-year.
Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:
The tightening of MAP supply into the Nort h American market and increased global demand;
Very low inventory throughout supply chain in the North American market; and
Continuing export restrictions from China.
September 30, 2024, Highlights
As at September 30, 2024, the Company had trailing 12 months Adjusted EBITDA of $143.5 million compared to $131.8 million at th e
end of 2023, with the increase primarily due to the same factors that resulted in higher Adjusted EBITDA.
As at September 30, 2024, the Company had net debt of $39.1 million compared to $61.3 million at the end of 2023, with the reduction
primarily due to higher cash and cash equivalents, which was par tially offset by higher debt due to the refinancing in Q3 2024. The
Company’s net debt as at September 30, 2024, was comprised of $65.3 million in cash and $104.4 million in debt (gross of deferr ed
financing costs). As at September 30, 2024, and December 31, 2023, the Company’s net leverage ratio was 0.3x and 0.5x, respectively.
As at September 30, 2024, the Company had liquidity 4 of $145.3 million comprised of $65.3 m illion in cash and $80 million in undrawn
borrowing capacity under its Amended ABL Facility compared to 40 million at the end of the corresponding period in the prior year.
Operations Highlights and Mine Development
Environmental, Health, and Safety (“EHS”)
For Q3 2024, sustained EHS performance, including no reportabl e environmental releases and two recordable incidents, which
resulted in a consolidated total recordable incident frequency rate (“TRIFR”) of 0.89.
For 9M 2024, sustained EHS performance, including no reportable environmental releases and eight recordable incidents, which
resulted in a consolidated TRIFR of 0.89.
Conda
In Idaho, the Company continues to build out infrastructure and work towards realizing the H1/NDR project and extending the mine life of
Conda to 2037, an estimate confirmed by the updated NI 43-101 Te chnical Report the Company received in April of this year. H1/N DR
remains on schedule, on budget and the Company continues to expect to deliver first ore from H1/NDR in the second half of 2025.
In Q3 2024, Conda:
Produced 92,311 tonnes P 2O5 compared to 87,976 tonnes P2O5 in Q3 2023, with the increase primarily due to higher recoveries
and reduced downtime after the successful planned large scope plant turnaround maintenance, which drove higher throughput;
Generated revenues of $110.7 million compared to $106.8 million in Q3 2023, with the increase primarily due to higher realized
prices resulting from improved market dynamics, which were partially offset by lower sales volumes; and
Generated Adjusted EBITDA of $37.7 million compared to $23.7 million in Q3 2023, with the increase pr imarily due to higher
realized prices and lower cash costs.
In 9M 2024, Conda:
Produced 252,090 tonnes P 2O5 compared to 253,311 tonnes P2O5 in 9M 2023;
Generated revenues of $335.4 million co mpared to $335.7 million in 9M 2023; and
Generated Adjusted EBITDA of $121.4 million compared to $115.8 million in 9M 2023 with the increase primarily due to higher
realized prices and lower cash costs, which were partially offset by lower sales volumes due to the planned large scope
turnaround maintenance.
4 Liquidity is a non-IFRS financial measure. See “Non-IFRS Financial Measures” section below for more information on non-IFRS measures and a
reconciliation to the most comparable IFRS financial measures.
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Arraias
In Q3 2024, Arraias:
Produced 37,650 tonnes of sulfuric acid compared to 25,851 tonnes in Q3 2023, with the increase primarily due to higher
customer demand in Q3 2024 and acid consumption with the start of Partially Acidulated Phosphate Rock (“PAPR”) production;
Produced 12,719 tonnes P 2O5 of Direct Application Phosphate Rock (“D APR”) and PAPR compared to 4,553 tonnes P 2O5 of
DAPR in Q3 2023, with the increase due to the full quarter of DAPR and PAPR production and sales per Fertilizer Restart
Program; and
Generated Adjusted EBITDA of $3. 7 million compared to $0.1 million loss in Q3 2023, with the improvement primarily due to
sulfuric acid gross margin increases driven by lower producti on cost, higher prices, higher production volume, and the start of
PAPR sales during Q3 2024.
In 9M 2024, Arraias:
Produced 87,518 tonnes of sulfuric acid compared to 54,988 to nnes in 9M 2023, with the in crease due to higher customer
demand and acid consumption with the start of PAPR production;
Produced 16,513 tonnes P 2O5 of DAPR and PAPR compared to 4,553 tonnes P2O5 of DAPR in 9M 2023, with the increase due
to the full half year of DAPR and PAPR production and sales per Fertilizer Restart Program; and
Generated Adjusted EBITDA of $3. 5 million compared to $0.7 million loss in 9M 2023, with the improvement due to sulfuric
acid gross margin increases driven by lower production cost, higher production volume, and the start of PAPR sales during Q3
2024.
About Itafos
Itafos is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:
Conda – a vertically integrated phosphate fertilizer business lo cated in Idaho, US, with the following production capacity:
- approximately 550kt per year of monoa mmonium phosphate (“MAP”), MAP with micronutrients (“MAP+”), superphosphoric
acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”)
- approximately 27kt per year of hydrofluorosilicic acid (“HFSA”)
Arraias – a vertically integrated phosp hate fertilizer business located in Tocantins, Brazil, with the following production capacity:
- approximately 500kt per year of single super phosphate (“SSP”) and SSP with micronutrients (“SSP+”)
- approximately 40kt per year of excess sulfuric acid (220 kt per year gross sulfuric acid production capacity)
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau
Santana – a vertically integrated hi gh-grade phosphate mine and fertilizer plant project located in Pará, Brazil
Araxá – a vertically integrated rare ear th elements and niobium mine and extraction plant project located in Minas Gerais, Brazil,
which the Company has entered into an agreement to sell to a wholly-owned subsidiary of St George Mining Limited.
Itafos is a Delaware corporation headquartered in Houston, Texa s, with shares trading on the T SX Venture Exchange under the tic ker
“IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”), an affiliate of global private investment fi rm
Castlelake, L.P.
For more information, or to join the Company’s mailing list, please visit www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitute s forward-looking information, including statements with respect t o: the
Company’s 2024 financial guidance; the sale of Araxá, including the timing for comple tion; the Company’s planned operations and
strategies; the timing for the infrastructure works at H1/NDR and first ore deliveries from H1/NDR; the expected resource life of H1/NDR;
and economic and market trends with respect to the global agriculture and phosphate fe rtilizer markets. All information other t han
information of historical fact is forward-looking information. Statements that address activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future include, but are not limited to, statements regarding estimate s and/or
assumptions in respect of the Company’s financial and business out look are forward-looking information. The use of any of the w ords
“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.
The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of managemen t,
which management believes are reasonable as at the date the stat ements are made. Those opinions , assumptions and estimates are
inherently subject to a variety of risks and uncertainties and ot her known and unknown factors that could cause actual events or results
to differ materially from those projected in the forward-looking information. These include the Company’s expectations and assumptions
with respect to the following: commodity prices; operating results; safety risks; changes to the Company’s mineral reserves and resources;
risk that timing of expected permitting will not be met; changes to mine development and completion; foreign operations risks; changes
to regulation; environmental risks; the impact of weather and clim ate change; risks related to asset retirement obligations, ge neral
economic changes, including inflation and foreign exchange rates; the actions of the Company’s competitors and counterparties;
financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation
and infrastructure; changes to equipment and suppliers; concentration risks, adverse litigation; changes to permitting and licensing; geo-
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political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious acts; market and
stock price volatility; changes to technolog y, innovation or artificial intelligence; changes to tax laws; the risk of operatin g in foreign
jurisdictions; the risks posed by a contro lling shareholder and other c onflicts of interest; risks re lated to reputational dama ge, the risk
associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to internal
controls over financial reporting risks. Readers are cautioned that t he foregoing list of risks, uncertainties and assumptions is not
exhaustive.
Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from
those described in the forward-looking information, there may be other factors that cause actions , events or results not to be as
anticipated, estimated or intended. Additional risks and uncertainties affecti ng the forward-looking info rmation contained in t his news
release are described in greater detail in the Company’s Annual Information Form and current Management’s Discussion and Analysis
available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.itafos.com. There can
be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company
undertakes no obligation to update forward-l ooking statements if circumst ances or management’s estimates, assumptions or opinions
should change, except as required by applicable securities law. 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.
This news release contains future-oriented financial information and financial outlook information (together, “FOFI”) about the
Company’s prospective results of operations, including statements regarding expected Adjusted EBITDA, net income, basic earnings
per share, maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and
qualifications as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management’s
expectations regarding anticipated activities and results, and such information may not be appropriate for other purposes. The
Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable
estimates and judgements; however, actual results of operations and the resulting financial results may vary from the amounts set forth
herein. Any financial outlook information speaks only as of the date on which it is made and the Company undertakes no obligation to
publicly update or revise any financial outlook information except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-
V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information, please contact:
Matthew O’Neill
Executive Vice President & Chief Financial Officer
713-242-8446
For Media and Investor Relations:
irlabs
Alyssa Barry
Principal and Co-Founder
1-833-947-5227
Scientific and Technical Information
The scientific and technical information contained in this news release related to Mineral Resources for Conda and Farim has be en
reviewed and approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and
Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and
technical information contained in this news release related to Mineral Reserves for Conda and Farim has been reviewed and approved
by Terry Kremmel, Professional Engineer (P.E.) licensed by the States of Missouri and North Carolina. Mr. Kremmel is a full-tim e
employee of WSP USA, Inc. and is independent of the Company. The Company’s latest technical report in respect of Conda is entitled,
“NI 43-101 Technical Report Itafos Conda Project, Idaho, USA,” with an effective date of July 1, 2023 (the “Conda Technical Report”) and
is available under the Company’s website at www.itafos.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Non-IFRS Financial Measures
This press release contains both IFRS and certain non-IFRS m easures that management consi ders to evaluate the Company’s
operational and financial performance. Non-IFRS measures are a numerical measure of a company’s performance, that either include or
exclude amounts that are not normally includ ed or excluded from the most directly co mparable IFRS measures. Management believes
that the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others. In evaluating non-IFRS
measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under
IFRS and that the methodology applied by t he Company in calculating such non-IFRS measures may differ among companies and
analysts. Non-IFRS measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared
in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to the most directly comparable IFRS measures are
included below.
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DEFINITIONS
The Company defines its non-IFRS measures as follows:
Non-IFRS
measure
Definition Most directly comparable IFRS
measure
Why the Company uses the
measure
EBITDA Earnings before interest, taxes,
depreciation, depletion and
amortization
Net income (loss) and operating income
(loss)
EBITDA is a valuable indicator of
the Company’s ability to generate
operating income
Adjusted EBITDA EBITDA adjusted for non-cash,
extraordinary, non-recurring and other
items unrelated to the Company’s core
operating activities
Net income (loss) and operating income
(loss)
Adjusted EBITDA is a valuable
indicator of the Company’s ability
to generate operating income
from its core operating activities
normalized to remove the impact
of non-cash, extraordinary and
non-recurring items. The
Company provides guidance on
Adjusted EBITDA as useful
supplemental information to
investors, analysts, lenders, and
others
Trailing 12
months Adjusted
EBITDA
Adjusted EBITDA for the current and
preceding three quarters
Net income (loss) and operating income
(loss) for the current and preceding three
quarters
The Company uses the trailing 12
months Adjusted EBITDA in the
calculation of the net leverage
ratio (non-IFRS measure)
Total capex Additions to property, plant, and
equipment and mineral properties
adjusted for additions to asset
retirement obligations, additions to
right-of-use assets and capitalized
interest
Additions to property, plant and
equipment and mineral properties
The Company uses total capex in
the calculation of total cash capex
(non-IFRS measure)
Maintenance
capex
Portion of total capex relating to the
maintenance of ongoing operations
Additions to property, plant and
equipment and mineral properties
Maintenance capex is a valuable
indicator of the Company’s
required capital expenditures to
sustain operations at existing
levels
Growth capex Portion of total capex relating to the
development of growth opportunities
Additions to property, plant and
equipment and mineral properties
Growth capex is a valuable
indicator of the Company’s capital
expenditures related to growth
opportunities.
Net debt Debt less cash and cash equivalents
plus deferred financing costs (does not
consider lease liabilities)
Current debt, long-term debt and cash
and cash equivalents
Net debt is a valuable indicator of
the Company’s net debt position
as it removes the impact of
deferring financing costs.
Net leverage ratio Net debt divided by trailing 12 months
Adjusted EBITDA
Current debt, long-term debt and cash
and cash equivalents; net income (loss)
and operating income (loss) for the
current and preceding three quarters
The Company’s net leverage ratio
is a valuable indicator of its ability
to service its debt from its core
operating activities.
Liquidity Cash and cash equivalents plus
undrawn committed borrowing
capacity
Cash and cash equivalents Liquidity is a valuable indicator of
the Company’s liquidity
Free cash flow Cash flows from operating activities,
which excludes payment of interest
expense, plus cash flows from
investing activities
Cash flows from operating activities and
cash flows from investing activities
Free cash flow is a valuable
indicator of the Company’s ability
to generate cash flows from
operations after giving effect to
required capital expenditures to
sustain operations at existing
levels. Free cash flow is a
valuable indicator of the
Company’s cash flow available
for debt service or to fund growth
opportunities. The Company
provides guidance on free cash
flow as useful supplemental
information to investors, analysts,
lenders, and others.
Corporate selling,
general and
administrative
expenses
Corporate selling, general and
administrative less share-based
payment expense.
Selling, general and administrative
expenses
The Company uses corporate
selling, general and
administrative expenses to
assess corporate performance.
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EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA
For the three months ended September 30, 2024 and 2023
For the three months ended September 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 17,928 $ 3,271 $ (11) $ (2,902) $ 18,286
Finance (income) expense, net 1,083 (139) 1 395 1,340
Current and deferred income tax expense
(recovery) 8,573 — — (2,175) 6,398
Depreciation and depletion 9,658 458 3 82 10,201
EBITDA $ 37,242 $ 3,590 $ (7) $ (4,600) $ 36,225
Unrealized foreign exchange loss — 54 60 — 114
Share-based payment expense — — — 734 734
Transaction costs — — — 481 481
Other expense, net 439 16 2 — 457
Adjusted EBITDA $ 37,681 $ 3,660 $ 55 $ (3,385) $ 38,011
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 28,021 $ 3,202 $ 52 $ (4,681) $ 26,594
Depreciation and depletion 9,658 458 3 82 10,201
Realized foreign exchange gain 2 — — (1) 1
Share-based payment expense — — — 734 734
Transaction costs — — — 481 481
Adjusted EBITDA $ 37,681 $ 3,660 $ 55 $ (3,385) $ 38,011
For the three months ended September 30, 2023, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 9,790 $ (1,235) $ (192) $ (5,285) $ 3,078
Finance (income) expense, net 1,423 (204) — 3,088 4,307
Current and deferred income tax expense
(recovery) 1,878 — — (2,289) (411 )
Depreciation and depletion 10,630 681 6 40 11,357
EBITDA $ 23,721 $ (758) $ (186) $ (4,446) 18,331
Unrealized foreign exchange (gain) loss — 672 (68) — 604
Share-based payment recovery — — — 223 223
Transaction costs — — — 488 488
Other expense — 6 3 — 9
Adjusted EBITDA $ 23,721 $ (80) $ (251) $ (3,735) $ 19,655
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 13,094 $ (761) $ (257) $ (4,487) $ 7,589
Depreciation and depletion 10,630 681 6 40 11,357
Realized foreign exchange gain (3) — — 1 (2)
Share-based payment recovery — — — 223 223
Transaction costs — — — 488 488
Adjusted EBITDA $ 23,721 $ (80) $ (251) $ (3,735) $ 19,655
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For the nine months ended September 30, 2024 and 2023
For the nine months ended September 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 69,911 $ 1,780 $ (239) $ (13,243) $ 58,209
Finance (income) expense, net 3,470 (597) 2 5,217 8,092
Current and deferred income tax expense
(recovery) 22,343 — — (6,567) 15,776
Depreciation and depletion 24,419 1,653 13 250 26,335
EBITDA $ 120,143 $ 2,836 $ (224) $ (14,343) $ 108,412
Unrealized foreign exchange (gain) loss — 1,704 (260) — 1,444
Share-based payment expense — — — 1,591 1,591
Transaction costs — — — 708 708
Non-recurring compensation expenses — — — 1,560 1,560
Other (income) expense, net 1,303 (996) 6 (40) 273
Adjusted EBITDA $ 121,446 $ 3,544 $ (478) $ (10,524) $ 113,988
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 97,030 $ 1,891 $ (491) $ (14,623) $ 83,807
Depreciation and depletion 24,419 1,653 13 250 26,335
Realized foreign exchange loss (3) — — (10) (13 )
Share-based payment expense — — — 1,591 1,591
Transaction costs — — — 708 708
Non-recurring compensation expenses — — — 1,560 1,560
Adjusted EBITDA $ 121,446 $ 3,544 $ (478) $ (10,524) $ 113,988
For the nine months ended September 30, 2023, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 64,973 $ (2,407) $ (977) $ (9,874) $ 51,715
Finance (income) expense, net 4,703 (475) 79 10,434 14,741
Current and deferred income tax expense
(recovery) 18,894 — — (17,159) 1,735
Depreciation and depletion 27,212 2,094 11 135 29,452
EBITDA $ 115,782 $ (788) $ (887) $ (16,464) 97,643
Unrealized foreign exchange loss — 164 131 — 295
Share-based payment expense — — — 2,825 2,825
Transaction costs — — — 1,652 1,652
Other income (24) (69) (29) — (122 )
Adjusted EBITDA $ 115,758 $ (693) $ (785) $ (11,987) $ 102,293
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 88,539 $ (2,787) $ (796) $ (16,601) $ 68,355
Depreciation and depletion 27,212 2,094 11 135 29,452
Realized foreign exchange gain 7 — — 2 9
Share-based payment expense — — — 2,825 2,825
Transaction costs — — — 1,652 1,652
Adjusted EBITDA $ 115,758 $ (693) $ (785) $ (11,987) $ 102,293