Itafos Reports Continued Excellent Operational Results FOR Q1 2026
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TSX-V: IFOS, OTCQX: ITFS
News Release
ITAFOS REPORTS CONTINUED EXCELLENT OPERATIONAL RESULTS FOR Q1 2026
HOUSTON, TX – April 29, 2026 – Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company” or “Itafos”) today reported its Q1 2026
financial results and provided a corporate update. The Company’s financial statements and management ’s discussion and analysis for
the three months ended March 31, 2026 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 Q1 2026 financial results and an update on the business will be available on the Company’s website on
Monday, May 4, 2026 (see details below).
CEO Commentary
Chief Executive Officer David Delaney commented, “we are pleased to report continued excellent op erating results for the Compan y.
Conda achieved its highest quarterly monoammonium phosphate (“M AP”) production volumes since the Company’s acquisition of the
facility in 2018 and Arraias continues to execute on its operating plan.
Total revenues for the quarter were $142.2 m illion, an increase of 5% compared to the same period last year, driven by higher p roduct
prices. Significantly higher input costs (primarily sulfur and s ulfuric acid) resulted in higher variable costs, resulting in l ower adjusted
EBITDA margins and adjusted EBITDA versus Q1 2025.
The ongoing conflict in Iran has created significant volatility in the markets for our end products as well as our raw material inputs. While
the conflict has reduced availability of key inputs for phosphate production globally, domestically in the US raw materials remain available
for the Company to run at its US industry leading operating rates. Although key inputs remain available domestically, the confl ict has
significantly increased the price of raw ma terials both globally and domestically. In an effort to mitigate these increases the Company is
actively identifying opportunities to reduce costs.
Since the beginning of the conflict, fertilizer product prices have increased globally due to reduced global supply and the impact of higher
raw material costs. This pattern is cons istent in the domestic market where phosphate prices have increased, however they remai n
significantly below global benchmarks. Furthermore, due to the pric ing mechanism of our long-term MAP offtake contract (three-m onth
historical average prices), the full benefit of higher product prices were not fully reflected in our Q1 sales revenues. We therefore expect
our revenues to increase on a per unit basis in the coming quarter.
In relation to our capital projects, Itafos continues to execut e on our magnesium oxide reduction project at Conda and continue our
progress to produce Single Superphosphate (“SSP”) at Arraias. Over the coming quarters, we also expect to continue with our appraisal
drilling program at Conda to further delineate future resources available for future mine development at Conda.
Despite the near-term market headwinds, we continue to believe the fundamental supply and dema nd fundamentals of the phosphate
market are compelling and the Company is well positioned to create long-term value for its shareholders.”
Q1 2026 Financial Highlights
For Q1 2026, the Company’s financial highlights were as follows:
Revenues of $142.2 million in Q1 2026 compared to $135.7 million in Q1 2025;
Adjusted EBITDA 1 of $18.4 million in Q1 2026 compared to $39.3 million in Q1 2025;
Net income of $1.7 million in Q1 2026 compared to $35.9 million in Q1 2025;
Basic earnings 1 of C$0.01/share in Q1 2026 compared to C$0.27/share in Q1 2025; and
Free cash flow 1 of $(16.7) million in Q1 2026 compared to $31.3 million in Q1 2025.
The decrease in the Company’s Q1 2026 adjusted EBITDA compared to Q1 2025 was primarily due to high er sulfur and sulfuric acid
costs.
The decrease in the Company’s Q1 2026 net income compared to Q1 2025 was primarily due to the gain on the sale of the Araxá project
recorded in Q1 2025 and higher sulfur and sulfuric acid costs incurred during Q1 2026.
1 Adjusted EBITDA, basic earnings (C$/share), and free cash flow are each a non-IFRS financial measure. For additional information on non-IFRS and
other financial measures, see “Non-IFRS financial measures” below. International Financial Reporting Standards (“IFRS”).
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The Company’s total capex 2 spend in Q1 2026 was $12.6 million compared to $9.9 million in Q1 2025 with the increase due to
development activities at Conda related prim arily to the magnesium oxide reduction initia tives, which were partially offset by prior year
Husky 1 / North Dry Ridge (“H1/NDR”) activities that are now comp lete, and Arraias related primarily to the pre-stripping activ ities at
Domingos mine pit, which were partially offset by activities related to the Fertilizer Restart Program in Q1 2025.
As of March 31, 2026, the Company’s financial highlights were as follows:
Trailing 12 months Adjusted EBITDA 2 of $137.8 million;
Net debt 2 of $39.0 million; and
Net leverage ratio 2 of 0.3x.
Q1 2026 Market and Financial Outlook
Market Outlook
In late February 2026, US and Israeli forces attacked Iran, which responded with counter strikes in the region and by closing the Strait of
Hormuz to vessel traffic. The resulting su pply chain interruptions resulted in rapid increases in commodity prices, including p hosphate
fertilizer and raw materials used to manufactu re phosphate fertilizer products such as sulfur, sulfuric acid and ammonia. MAP p rices in
the US have increased to levels near the highs of last summer but are generally below current prices in most other countries.
Higher raw material prices, mainly stemming from the conflict in Iran, have negatively impacted phosphate producer operating margins.
Global and domestic sulfur prices increased to near $1,000 per tonne in late April 2026, and the ratio of sulfur price to phosphate fertilizer
price has risen to all-time high levels. The increase in sulfur prices has resulted in marginal phosphate production being take n offline in
China, Brazil, Jordan, South Africa, India and Russia.
Beyond the raw material price challenges that have reduced n ear-term phosphate fertilizer suppli es globally, OCP S.A. (“OCP”)
announced that it will pull forward maintenance activities at it s production facilities during Q2 2026, potentially reducing th e company’s
production by 30%. Industry reports indicate that Saudi Arabi an phosphate production rates may have fallen to approximately 70% of
capacity and that additional declines could ma terialize in the coming months given the supply chain constraints imposed by the closure
of the Strait of Hormuz.
Multiple attacks on phosphate production facilities by Ukraine have reduced Russia’s ability to produce phosphate. China has announced
that it will restrict phosphate fertilizer exports through August and the latest analyst expectations are that the country could export as little
as 1 million tonnes of DAP and MAP in 2026, down from about 5.4 million tonnes in 2025.
A ceasefire was announced between US and Iran forces in early April 2026, with a provision that the Strait of Hormuz would re-open for
typical seaborne trade. However, the Strait has remained closed, and it remains uncertain whether or when trade routes and schedules
will return to normal. Damage to industrial, energy, and transportation infrastructure in the region is likely to lengthen the amount of time
required for foreign trade to revert to levels seen before the start of the conflict.
Overall, indications are that supply chains will be disrupted, global supplies of fertilizers and associated raw material inputs will be limited,
and commodity prices will be elevated in 2026 and potentially beyond.
Looking ahead, the Company anticipates an improvement in phosphate prices through H1 2026 due to:
supply chain and production issues related to the hostilities in Iran and other parts of the Middle East;
ongoing export restrictions from China;
seasonal increases in US demand moving into the spring planting season; and
limited incremental MAP and DAP supply from the US and other global suppliers, including the potential for decreased production
globally as producer margins are compressed and key raw materials may not be available.
2 Trailing 12 months Adjusted EBITDA, net debt, net leverage rati o, corporate selling, general and administrative expenses, tota l capex, maintenance
capex, and growth capex are each a non-IFRS fi nancial measure. For additional informat ion on non-IFRS and other financial measu res, see “Non-IFRS
financial measures” below.
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Financial Outlook
The Company’s guidance for 2026 as follows (as announced in the Company news release dated February 11, 2026):
(in millions of US Dollars Projected
except as otherwise noted) FY 2026
Sales Volumes (thousands of tonnes P2O5) 3 335-355
Corporate selling, general and administrative expenses2 $16-20
Maintenance capex2 $23-33
Growth capex2 $63-83
Environmental and asset retirement obligations payments $25-30
Q1 2026 Market Highlights
MAP New Orleans (“NOLA”) prices averaged $664/st in Q1 2026 compared to $596/st in Q1 2025, up 11% year-over-year.
Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:
Strong US import demand following the lifting of the reciprocal tariffs on phosphate fertilizers in November 2025;
lower than expected Chinese exports of DAP, MAP and NPK fert ilizers due to expanded government-induced export restrictions;
continued strong global demand, particularl y from Africa, India and Brazil, partially offset by decreased US retail demand due to
the relative price of fertilizer inputs costs versus crop prices; and
global supply chain disruptions for fertilizers and associat ed raw materials resulting from the conflict in Iran.
March 31, 2026, Highlights
As of March 31, 2026, the Company had trailing 12 months Adjusted EBITDA 4 of $137.8 million which decreased compared to $158.7
million as of December 31, 2025 mainly due to lower Adjusted EBITDA4 in Q1 2026 as a result of higher sulfur and sulfuric acid costs.
As of March 31, 2026, the Company had net debt4 of $39.0 million compared to $19.5 million as of December 31, 2025, with the increase
primarily due to lower cash and cash equivalents, partially offset by lower debt. The Company’s net debt 4 as of March 31, 2026 was
comprised of $48.2 million in cash and $87.3 million in debt (gro ss of deferred financing costs). As of March 31, 2026, and the end of
2025, the Company’s net leverage ratio4 was 0.3x and 0.1x, respectively, with the increase due to higher net debt4 and lower trailing 12
months Adjusted EBITDA4.
As of March 31, 2026, the Company had liquidity 4 of $128.2 million comprised of $48.2 m illion 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 Q1 2026, the Company sustained EHS performance, includin g no reportable environmental releases and one recordable
incident, which resulted in a consolidated TRIFR of 0.62.
Conda
In Q1 2026, Conda:
Produced 87,576 tonnes P 2O5 compared to 91,200 tonnes P 2O5 in Q1 2025 with the decrease primarily due to a shift in
production mix to MAP from superphosphoric acid (“SPA”);
Generated revenues of $130.4 million co mpared to $128.3 million in Q1 2025 with the increase primarily due to higher realized
prices for MAP and SPA products, partially offset by the impact of sales volumes mix; and
Generated Adjusted EBITDA 4 of $22.1 million compared to $40.9 million in Q1 2025 with the decrease primarily due to lower
cash margins per tonne P2O54 and lower tonnes P2O5 sold.
3 Sales volumes reflect quantity in P2O5 of Conda sales projections.
4 Trailing 12 months Adjusted EBITDA, net debt, net leverage ratio, liquidity, Adjusted EBITDA and cash margin per tonne P2O5 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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Mine Life Extension
For the three months ended March 31, 2026, the Company advanced activities related to the extension of Conda’s mine life as follows:
successfully loaded initial trains at t he H1/NDR tipple, ensuring ore continuity to the plant for the 2026 shipping season; and
advanced construction activities and engineering on new proce ssing facility designed to lower the magnesium content of the
ore from the H1/NDR mines to maintain P2O5 production capacity at the plant (the “MgO Reduction Project”).
Exploration and Appraisal Program at Conda
As H1/NDR mining activities continue, the Company is focused on identifying and pursuing opportunities to add resources and reserves
to Conda to extend mine life beyond the curr ent Conda Technical Report estimate of mid- 2037. To pursue this objective, the Comp any
has commenced a multi-year, multi-lease expl oration, resource evaluation and permitting program at Conda with an expected annua l
cost of approximately $6 million to $8 million.
Activities in Q1 2026 primarily focused on preparation for the heavy drilling season in Q2 and Q3 2026, which will include in-fill drilling to
further define reserves at Husky 1, init ial resource delineation drilling on the Dry Ridge lease to generate initial resource m odels, and
core drilling of the Husky 3 and Husky 4 leases to identify site geology and characterize the resource. Geologic evaluation and permitting
activities also advanced during the quarter.
Arraias
In Q1 2026, Arraias:
Produced 35,669 tonnes of excess sulfuric acid compared to 37,290 tonnes in Q1 2025 with the decrease due to cost control
initiatives to optimize sulfur consumption;
Produced 360 tonnes P 2O5 compared to 533 tonnes P2O5 in Q1 2025, with the decrease due to a planned suspension of partially
acidulated phosphate rock (“PAPR”) production in Q1 2026, partially offset by higher direct application phosphate rock (“DAPR”)
production; and
Generated Adjusted EBITDA 5 of $1.4 million compared to $2.0 million in Q1 20 25 with the decrease due to lower sulfuric acid
gross margin primarily driven by higher sulfur cost, partially offset by increased sales price.
Fertilizer Restart Program
For the three months ended March 31, 2026, the Company advanced ac tivities related to the Fertilizer Restart Program at Arraias as
follows:
on January 27, 2026, the Company announced the results of the updated preliminary econom ic assessment for Arraias,
reflecting the positive outcomes of the Fert ilizer Restart Program initiated in 2020. The completion of this work supported the
decision to proceed with the resumption of the wet beneficiation process at Arraia s, supporting the plann ed restart of SSP
production in 2027; and
during Q1 2026, the Company advanced pre- stripping activities at the Domingos pi t in preparation for the 2026 production
season.
Q1 2026 Financial Results and Business Update Webcast
An on-demand recorded webcast of management commentary that revi ews the Q1 2026 financial results, provides an update on the
business and addresses analysts’ and investors’ recent frequently asked questions will be available on Monday, May 4, 2026 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.
5 Adjusted EBITDA is 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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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 production capacity as follows:
– approximately 550kt per year of MAP, MAP with micronutrients (“MAP+”), superphosphoric acid (“SPA”), and merchant
grade phosphoric acid (“MGA”); and
– approximately 27kt per year of hydrofluorosilicic acid (“HFSA”);
Arraias – a vertically integrated phosph ate fertilizer business located in Tocantins, Brazil with the following production
targets (following the proposed restart of the beneficiation circuit):
– approximately 275kt per year of SSP, PAPR and DAPR;
– approximately 170kt per year of SSP, 60kt per year of PAPR and 45kt per year of DAPR;
– approximately 40kt per year of excess sulfuric acid (220kt 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 wit h operations in the United St ates, Brazil and Guinea-Bissau. 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 CLF, which is an affiliate of global private investment firm 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 constitutes forward-looking information, including statements with respect t o: import
and export tariffs; the costs and availability of raw materials to produce fertilizer products; the impact of hostilities in the Middle East; and
the Company’s expectations around such hostilities and other geopolitical developments and the impact of such developments on global
supply chains and commodity prices; the impact of the Company’s long-term MAP offtake contract; the Company’s planned operations,
strategies and projects, including the planned drilling programs at Conda, the Mg O Reduction Project; the restarting SSP produc tion
including the beneficiation plant at Arraias, the affordability of the Company’s products for its end users, the operations and performance
of H1/NDR; the expected resource life of H1/NDR; exploration activities and environmental baseline resource studies to extend mine life;
and economic and market trends with respect to the global agricul ture and phosphate fertilizer mark ets. 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 futu re include, but are not limited to, statements regarding estimate s and/or
assumptions in respect of the Company’s financial and business ou tlook 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 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 and raw material 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 climate change; risks
related to asset retirement obligations, general economic chan ges, including inflation and foreign exchange rates; the actions of the
Company’s competitors and counterparties; fi nancing, 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-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 technology, innovation or artificial intelligence; changes
to tax laws; the risk of operating in foreign jurisdictions; t he 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 ca utioned that the foregoing li st 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
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.
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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 (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.
The scientific and technical information contained in this news release related to Arraias has been reviewed and verified by Je nnifer
Simper, P.Geo., WSP Canada Inc., Geology and Mineral Resources, Terry L. Kremmel, P.E., WSP USA Inc. Mining Methods and
Economic Analysis and Rainer Stephenson, P.E., Millcreek Engineering, Mineral Processing and Metallurgical Testing, each a Qualified
Person as defined in NI 43-101 and independe nt of the Company. The Arraias technical report, prepared in accordance with NI 43- 101
and supporting the PEA, is entitled, “NI 43-101 Technical Report Preliminary Economic Assessment Arraias Phosphate Operations,
Tocantins, Brazil”, with an effe ctive date of January 30, 2026 (the “Arraias Technical Report”) and is available under the Comp any’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
Basic earnings
(C$/share)
Basic earnings per share denominated
in US dollars ($/share) divided by the
average exchange rate C$/$ during the
period.
Basic earnings ($/share) The Company considers that
basic earnings (C$/share) is a
useful indicator to investors given
that the Company’s shares
primarily trade in C$
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 A dditions 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.
Cash margin Revenues less cash costs Gross margin
The Company uses cash margin
in the calculation of cash margin
per tonne P 2O5 (non-IFRS
measure).
Cash margin per
tonne P2O5
Revenues per tonne P 2O5 less cash
costs per tonne P2O5 Gross margin
Cash margin per tonne P 2O5 is a
valuable indicator of the
Company’s ability to generate
margin on sales across its
various phosphate and specialty
fertilizer products normalized on
a per tonne P2O5 basis.
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.