Itafos Continues to Deliver Strong Operational and Financial Performance – Q2 2025 Operational and Financial Results
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TSX-V: IFOS, OTCQX: ITFS
News Release
ITAFOS CONTINUES TO DELIVER STRONG OPERATIONAL AND FINANCIAL PERFORMANCE – Q2 2025 OPERATIONAL AND
FINANCIAL RESULTS
HOUSTON, TX – August 6, 2025 – Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company”) today reported its Q2 2025 financial
results and provided a corporate update. The Company’s financial statements and management’s discussion and analysis for the three
and six months ended June 30, 2025 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. A recorded webcast of management’s commentary
reviewing the Q2 2025 financial results and an update on the busi ness will be available on the Company’s website on Monday, August
11, 2025 (see details below).
CEO Commentary
Chief Executive Officer David Delaney commented, “we are please d to report another highly successful quarter in which the Compa ny
maintained its exceptional safety performance and posted higher production volumes at both Conda and Arraias compared to the sa me
period last year. We completed our annual planned turnaround at Conda on time and on budget and the plant was back to running at full
capacity as we exited the quarter. At Arra ias, the granulation circuit was successfully restarted and the Company delivered the initial
volumes of its new granulated fertilizer product, SuperForte Gran to the local market.
Operating margins declined year-over-year for Q2, with higher revenues offset by higher input costs at Conda, particularly for sulfur and
sulfuric acid. While reference phosphate prices increased signifi cantly during the second quarter, due to the nature of the Com pany’s
monoammonium phosphate (“MAP”) offtake contract, the full benefit of the increased prices will not be realized until the second half of
the year.
The infrastructure build-out of our Husky 1 / North Dry Ridge (“H1/NDR”) mines in Idaho is progressing as planned with first ore shipments
to the Conda plant scheduled for later this year. Moreover, the Board of Directors recently approved a capital project to construct a new
processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2O5 production
capacity at the plant.
Phosphate prices increased steadily during second quarter and the positive supply and dem and fundamentals suggest fertilizer pr ices
are likely to remain at elevated levels, leaving us well positioned for the second half of the year.”
Q2 2025 Financial Highlights
For Q2 2025, the Company’s financial highlights were as follows:
Revenues of $126.8 million in Q2 2025 compared to $105.1 million in Q2 2024;
Adjusted EBITDA 1 of $31.8 million in Q2 2025 compared to $32.8 million in Q2 2024;
Net income of $24.8 million in Q2 2025 compared to $16.2 million in Q2 2024;
Basic earnings of C$0.18/share in Q2 202 5 compared to C$0.12/share in Q2 2024; and
Free cash flow 1 of $10.8 million in Q2 2024 compared to $42.5 million in Q2 2024.
The marginal decrease in the Company’s Q2 2025 adjusted EBITDA compared to the corresponding period in the prior year was due to
higher sulfur and sulfuric acid costs at Conda and share-based based payment expense, partially offset by higher revenues.
The increase in the Company’s Q2 2025 net income compared to Q2 2024 was primarily due to fair v alue gain on investments, lower
finance expenses, and lower income tax expense.
The Company’s total capex1 spend in Q2 2025 was $28.8 million compared to $30.2 million in Q2 2024 with the decrease primarily due
to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) at Conda and sulfuric
acid plant turnaround in 2024 at Arraias, partially offset by an increase in growth capex1.
1 Adjusted EBITDA, free cash flow, total capex, and growth capex are each a non-IFRS financial m easure. For additional informati on on non-IFRS and
other financial measures, see “Non-IFRS financial measures” below. International Financial Reporting Standards (“IFRS”).
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H1 2025 Financial Highlights
For H1 2025, the Company’s financial highlights were as follows:
Revenues of $262.5 million in H1 2025 compared to $233.1 million in H1 2024;
Adjusted EBITDA of $71.1 million in H1 2 025 compared to $76.0 million in H1 2024;
Net income of $60.7 million in H1 2025 compared to $39.9 million in H1 2024;
Basic earnings of C$0.44/share in H1 2025 compared to C$0.28/share in H1 2024; and
Free cash flow of $42.1 million in H1 2025 compared to $60.2 million in H1 2024.
The decrease in the Company’s H1 2025 adjusted EBITDA compared to H1 2024 was primarily due to higher sulfur and sulfuric acid
costs at Conda, which were partially offset by higher revenues.
The increase in the Company’s H1 2025 net income compared to H1 2024 was primarily due to the gain on the sale of the Araxá project,
fair value gain on investment, and lower finance expenses, which were partially offset by withholding tax expenses related to the sale of
the Araxá project.
The Company’s total capex spend in H1 2025 was $38.7 million compared to $36.6 million in H1 2024 with the increase primarily due to
development activities at Conda (H1/NDR and magnesium oxide reduct ion initiatives), and activities related to the Fertilizer Re start
Program at Arraias (the “Fertilizer Restart Program”).
As of June 30, 2025, the Company’s financial highlights were as follows:
Trailing 12 months Adjusted EBITDA 2 of $154.6 million;
Net debt 2 of $(2.5) million; and
Net leverage ratio 2 of (0.0)x.
FY 2025 Market and Financial Outlook
Market Outlook
Phosphate fertilizer prices increased signif icantly in Q2 2025 from the previous quar ter due to lower than expected diammonium
phosphate (“DAP”) and MAP exports from China and continued high demand in key import markets, including India, Brazil and Ethiopia.
In the US, the implementation of tariffs caused a slowdown in imports, resulting in higher US phosphate prices. Due to the nature of the
Company’s MAP offtake agreement, the full benefit of the higher pricing will be reflected in the second half of 2025.
Global grain and oilseed pricing remains soft, despite a very low stocks-to-u se ratio outside of China. Low grain prices are ch allenging
phosphate affordability globally, as overall affordability is now the weakest since the 2008 financial crash, though the phosphate market
is supply limited and remains constructive. In ventories of grains and oilseeds outside of China are expected to decrease throug h the
current crop year, resulting in a stock-to-u se ratio that is projected to be comparab le to those levels experienced during the food crises
in 2007 and 2008. Despite those factors, cr op prices have been limited in appreciation due to the large planted corn acreage in the US
and uncertainty around tariffs and international demand for US grain.
The Company expects phosphate pricing to remain strong through the second half of 2025, supported by the following factors:
sustained global fertilizer demand, mainly from government -backed purchasing programs, and low global inventory levels;
ongoing export restrictions from China; and
limited imports into the US due to evolving tariff policies.
2 Trailing 12 months Adjusted EBITDA, net debt, and net leverage ra tio are each a non-IFRS financia l measure. For additional inf ormation on non-IFRS
and other financial measures, see “Non-IFRS financial measures” below.
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Financial Outlook
The Company maintained its guidance for 2025 as follows:
(in millions of US Dollars Projected
except as otherwise noted) FY 2025
Sales Volumes (thousands of tonnes P2O5)3 340-360
Corporate selling, general and administrative expenses4 $17-20
Maintenance capex4 $13-23
Growth capex4 $63-83
Environmental and asset retirement obligations payments $5-7
Q2 and H1 2025 Market Highlights
MAP New Orleans (“NOLA”) prices averaged $690/st in Q2 2025 compared to $558/st in Q2 2024, up 24% year-over-year, and averaged
$643/st in H1 2025 compared to $591/st in H1 2024, up 9% year-over-year.
Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:
weaker than expected Ch inese exports of MAP;
continued strong global demand, particula rly from Africa, India and Brazil; and
uncertainty surrounding US trade policy.
June 30, 2025, Highlights
As of June 30, 2025, the Company had trailing 12 months Adjusted EBITDA of $154.6 million compared to $159.5 million as of December
31, 2024 with the decrease primarily due to the same factors that resulted in lower Adjusted EBITDA during Q2 2025 as compared to Q2
2024 described above.
As of June 30, 2025, the Company had net debt of $(2.5) million compared to $26.8 million as of December 31, 2024, with the reduction
primarily due to higher cash and cash equivalents and lower debt. The Company’s net debt as of June 30, 2025 was comprised of $98.1
million in cash and $95.6 million in debt (gross of deferred financing costs). As of June 30, 2025 and the end of 2024, the Company’s net
leverage ratio was (0.0)x and 0.2x, respectively.
As of June 30, 2025, the Company had liquidity 4 of $178.1 million comprised of $98.1 million in cash and $80.0 million in undrawn
borrowing capacity under its $80.0 million asset-based revolving credit facility (“ABL Facility”).
Operations Highlights and Mine Development
Environmental, Health, and Safety (“EHS”)
For Q2 2025, the Company sustained EHS performance, includin g no reportable environmental releases and two recordable
incidents, which resulted in a consolidated total recordable incident frequency rate (“TRIFR”) of 0.47.
For H1 2025, the Company sustained EHS performance, includ ing no reportable environmental releases and two recordable
incidents, which resulted in a consolidated TRIFR of 0.47.
Conda
In Q2 2025, Conda
Produced 79,606 tonnes P 2O5 compared to 69,532 tonnes P2O5 in Q2 2024 with the increase due to a planned short turnaround
in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days);
Generated revenues of $116.6 million co mpared to $101.8 million in Q2 2024 with the increase primarily due to higher SPA
realized prices resulting from improved market dynamics and higher sales volumes; and
Generated Adjusted EBITDA of $32.9 million compared to $37.2 million in Q2 2024 with the decrease pr imarily due to lower
cash margin per tonne P2O5 driven by higher cash costs due to sulfur market dynamics.
3Sales volumes reflect quantity in P2O5 of Conda sales projections.
4Corporate selling, general and administrative expenses, maintenance capex, growth capex and liquidity are each a non-IFRS financial measure. For
additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below.
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In H1 2025, Conda:
Produced 170,806 tonnes P 2O5 compared to 159,778 tonnes P2O5 in H1 2024 with the increase primarily due to a planned short
turnaround in 2025 (10 days) compared to a planned large sc ope turnaround in 2024 (25 days) and a shift from MAP to SPA
production, resulting in higher P2O5 production from similar throughput;
Generated revenues of $244.9 million compared to $224.7 m illion in H1 2024 primarily due to higher SPA realized prices
resulting from improved market dynamics and higher sales volumes; and
Generated Adjusted EBITDA of $73.8 million compared to $83.8 million in H1 20 24 with the decrease primarily due to lower
cash margin per tonne P2O5 driven by higher cash costs due to sulfur market dynamics.
MgO Reduction Project
In June 2025, the Company received authorizat ion from the Board of Directors to proc eed with a capital project to construct a n ew
processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2O5 production
capacity at the plant (the “MgO Reduction Project”).
Exploration and Appraisal Program at Conda
As capital work at H1/NDR continues with first ore shipments expected in 2H 2025, the Company is focused on identifying and pursuing
opportunities to add additional resources and reserves to the pr oject to extend mine life beyond the current NI 43-101 - Standa rds of
Disclosures for Mineral Projects (“NI 43-101”) estimate of mid-20 37. To pursue this objective, the Company has commenced a mult i-
year, multi-lease exploration program, resource evaluation an d permitting program at Conda with an expected annual cost of
approximately $6-8 million.
The in-fill drilling program is focused on further delineating upside potential of the Husky 1 Lease through a targeted reserve delineation
appraisal that will reduce drill spacing to 250ft on center versus current spacing at 500ft.
Construction of the main access road on the previously unexplored Dry Ridge Lease started in Q3 and is ahead of schedule, allowing for
initial resource delineation drilling on the Dry Ridge Lease to begin in mid Q3 2025. The initial drill program will consist of drilling on
2,400ft centers to gain crucial geologic and metallurgical informa tion that will be used to generate initial resource models th at will drive
future mine planning resource estimation and permitting studies.
Core drilling and geologic modeling of the Husky 3 and Husky 4 Leases is ahead of schedule with the Bureau of Land Management and
US Forest Service issuing Approval of the Exploration Plan of Operations and Environmental Assessment in late July, paving the way for
exploration core drilling to begin in September, ahead of the previously proposed plan. This initial drilling will identify the site geology and
characterize the resource for future mine development along the current mine trend.
In addition to these activities, preliminary work has commenced on environmental baseline resource studies that will be required for future
National Environmental Policy Act permitting and regulatory approvals. These geographically near-field opportunities have the p otential
to extend mine life beyond the current NI 43 -101 estimate of mid-2037 in an efficient manner with the objective of utilizing th e current
infrastructure being built out at H1/NDR.
Arraias
In Q2 2025, Arraias:
Produced 36,349 tonnes of sulfuric acid compared to 16,652 to nnes in Q2 2024 with the increase due to higher customer
demand and acid consumption with the start of Partially Acidulated Phosphat e Rock (“PAPR”) and Granulated Partially
Acidulated Phosphate Rock (“G-PAPR”) production. In addition, production volumes were lower in Q2 2024 due to planned 45-
day sulfuric acid plant turnaround;
Produced 10,194 tonnes P 2O5, compared to 3,794 tonnes P 2O5 in Q2 2024, with the increase due to ramp up of Direct
Application Phosphate Rock (“DAPR”) and PAPR production and the restart of the granulation plant to produce the granulated
product G-PAPR, as part of the Fertilizer Restart Program; and
Generated Adjusted EBITDA of $3.4 million compared to a loss of $(0.5) million in Q2 2024 with the increase primarily due to
sulfuric acid gross margin improvement dr iven by higher sales prices and higher production volume. In addition, Adjusted
EBITDA increased due to higher dry products sales during Q2 2025.
In H1 2025, Arraias:
Produced 74,050 tonnes of sulfuric acid compared to 49,868 tonnes in H1 2024 driv en by higher customer demand and avid
consumption with the start of PAPR and G-PAPR production;
Produced 10,727 tonnes P 2O5 of DAPR and PAPR compared to 3,794 tonnes P 2O5 in H1 2024, with the increase due to the
ramp up of DAPR and PAPR production and the restart of the granulation plant to produce the granulated product G-PAPR, as
part of the Fertilizer Restart Program; and
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Generated Adjusted EBITDA of $5. 4 million compared to a loss of $(0.1) million in H1 2024 with the increase primarily due to
sulfuric acid gross margin improvement dr iven by higher sales prices and higher production volume. In addition, Adjusted
EBITDA increased due to higher dry products sales in 2025.
Q2 2025 Financial Results and Business Update Webcast
An on-demand recorded webcast of management commentary that revi ews the Q2 2025 financial results, provides an update on the
business and addresses analysts’ and investors’ recent frequently asked questions will be available on Monday, August 11, 2025 at 4:30
p.m. ET. The webcast will be available on the Pres entations & Events page of the Company’s website
www.itafos.com/investors/presentations-fact-sheets/ and will be available for 90 days.
About Itafos
The Company 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 MAP, MAP with micronutri ents (“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 phosph ate 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; and
Santana – a vertically integrated hi gh-grade phosphate mine and fertilizer plant project located in Pará, Brazil
The Company is a Delaware corporation headquartered in Houston, Texas. The Company’s shares trade on the TSX-V under the ticker
“IFOS”. The Company’s shares also trade in the US on the OTCQX® Best Market (“OTCQX”) under the ticker symbol “ITFS”. The
Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is an affiliate of global private investment firm Ca stlelake,
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 constitutes forward-looking information, including statements with respect to: import
and export tariffs; the Company’s planned operations, strategies and projects, including the MgO Reduction Project; the timing for the
commencement of operations and first ore at H1/NDR; the expected resource life of H1/NDR; exploration activities to extend mine life;
and economic and market trends with respect to the global agriculture and phosphate fertilizer markets. All information other than
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 estimates
and/or assumptions in respect of the Company’s financial and business outlook are 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.
The forward-looking information contained in this news releas e is based on the opinions, assumptions and estimates of managemen t,
some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions,
assumptions and estimates are inherently subject to a variety of risks and uncertainties and other 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 expect ed permitting will not be met; changes to mine development and comple tion;
foreign operations risks; changes to regulat ion; environmental risks; the impact of w eather and climate change; risks related t o asset
retirement obligations, general economic changes, including infl ation and foreign exchange rates; the actions of the Company’s
competitors and counterparties; financing, liq uidity, credit and capital risks; the loss of key personnel; impairment risks; cy bersecurity
risks; risks relating to transportation and infrastructure; chang es to equipment and suppliers; concentration risks, adverse li tigation;
changes to permitting and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the
potential for malicious acts; market and sto ck price volatility; changes to technology, innovation or artificial intelligence; changes to tax
laws; the risk of operating in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related
to reputational damage, 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 the 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 info rmation, there may be other fa ctors that cause actions, events or results not to be as
anticipated, estimated or intended. Additi onal risks and uncertainties affecting the forw ard-looking information contained in t his news
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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, includ ing statements regarding expected Adjusted EB ITDA, net income, basic earnings per shar e,
corporate selling, general and adm inistrative expenses, 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 pa ragraph. The Company has included the FOFI
to provide an outlook of managem ent’s expectations regarding anticipated activities and results, and such information may not b e
appropriate for other purposes. The Company and management belie ve that the FOFI has been pr epared 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 an d the
Company undertakes no obligation to publicly update or revise any financial outlook information except as required by applicabl e
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.
Contacts:
For Investor Relations:
Matthew O’Neill
Executive Vice President & Chief Financial Officer
713-242-8446
For Media:
Alliance Advisors IR
Fatema Bhabrawala
Director, Media Relations
647-620-5002
Scientific and Technical Information
The scientific and technical information contained in this news release related to Mineral Resources for Conda has been reviewe d 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 informat ion
contained in this news release related to Mineral Reserves for Conda has been reviewed and approved by Terry Kremmel, Professional
Engineer (P.E.) licensed by the States of Mi ssouri and North Carolina. Mr. Kremmel is a full-time 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 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 measures that management consid ers 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 included or excluded from t he most directly comparable 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 the 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.
Total cash capex Total capex less accrued capex Additions to property, plant and
equipment and mineral properties
The Company uses total cash
capex in the calculation of cash
growth capex (non-IFRS
measure)
Cash
maintenance
capex
Maintenance capex less accrued
maintenance capex
Additions to property, plant and
equipment and mineral properties
The Company uses cash
maintenance capex in the
calculation of cash growth capex
(non-IFRS measure)
Cash growth
capex
Growth capex less accrued growth
capex
Additions to property, plant and
equipment and mineral properties
The Company uses cash
growth capex in the
calculation of free cash flow
(non-IFRS measure).
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
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Non-IFRS
measure
Definition Most directly comparable IFRS
measure
Why the Company uses the
measure
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
payments expense.
Selling, general and administrative
expenses
The Company uses corporate
selling, general and
administrative expenses to
assess corporate performance.