Itafos Reports Outstanding Q3 2025 Performance and Mechanical Completion of the H1/NDR MINE
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TSX-V: IFOS, OTCQX: ITFS
News Release
ITAFOS REPORTS OUTSTANDING Q3 2025 PERFORMANCE AND MECHANICAL COMPLETION OF THE H1/NDR MINE
HOUSTON, TX – November 5, 2025 – Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company”) today reported its Q3 2025 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, 2025 ar e 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 Q3 2025 financial results and an update on the business will be available on the Company’s website on
Monday, November 10, 2025 (see details below).
CEO Commentary
Chief Executive Officer, David Delaney commented, “we are pleased to report another highly successful quarter in which the Comp any
maintained its exceptional operational and safety performance. We were able to take advantage of a fundamentally strong phospha te
market by sustaining industry-leading producti on rates at Conda and sales volume growth through the introduct ion of new dry fer tilizer
products at Arraias.
Adjusted EBITDA1 increased by over $17 million compared to the prior quarter and by almost $11 million on a year-over-year basis
despite continued elevated raw material costs. Total adjusted EBITDA of nearly $49 million was the highest level since the fourth quarter
of 2022.
We have finished mining at Rasmussen Valley and have begun the re clamation process at the site. The Husky 1 / North Dry Ridge
(“H1/NDR”) infrastructure build-out is mechanically complete and stockpiles from the new mines should allow the Conda plant to continue
to produce at current operating rates. Our resource delineation drilling program has commenced with further activities planned for 2026
and beyond to define the resources at our current leases and leverage our existing inf rastructure with the ultimate goal to ext end our
mine life well beyond the current 2037 plan.
In October, we successfully monetized the equity interest in St George Mining Limited (“St George”) that was received as consideration
for the sale of our Araxá Project. The sale of shares and the exercise of options generated gross proceeds of $21.8 million before taxes,
fees and associated expenses. In addition, St. George elected to pay the final two instalments ahead of schedule and we have received
the final US$11 million (less withholding tax payable) due under the sale agreement of the Araxa Project. Following these transactions,
we are pleased to announce our Board of Directors has approved a CAD$0.17 per share special dividend payable on December 11,
2025 with a record date of November 17, 2025. This will bring total distributions associated with the Araxá sale to CAD$0.22 per share.
Although phosphate prices have moderated o ff recent highs driven by farmer affordabi lity concerns, tight supply / demand dynami cs
remain. Looking forward, we believe the Company is well positioned to benefit from a fundamentally tight international phosphate market
subject to normal seasonal price resets.”
Q3 2025 Financial Highlights
For Q3 2025, the Company’s financial highlights were as follows:
Revenues of $152.8 million in Q3 2025 compared to $120.0 million in Q3 2024;
Adjusted EBITDA 1 of $48.9 million in Q3 2025 compared to $38.0 million in Q3 2024;
Net income of $36.2 million in Q3 2025 compared to $18.3 million in Q3 2024;
Basic earnings 1 of C$0.26/share in Q3 2025 compared to C$0.13/share in Q3 2024; and
Free cash flow 1 of $(4.8) million in Q3 2024 compared to $(22.4) million in Q3 2024.
The increase in the Company’s Q3 2025 adjusted EBITDA compared to the corresponding period in the prior year was due to higher
revenues, which were partially offset by higher input sulfur and sulfuric acid costs at Conda.
The increase in the Company’s Q3 2025 net income compared to Q3 2024 was primarily due to higher gross margin and fair value gain
on investments, which were partially offset by higher finance expenses and higher income tax expense.
1 Adjusted EBITDA, basic earnings, and free cash flow are each a no n-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 capex2 spend in Q3 2025 was $21.6 million compared to $21.1 million in Q3 2024, which remained relatively
consistent year-over-year.
9M 2025 Financial Highlights
For 9M 2025, the Company’s financial highlights were as follows:
Revenues of $415.4 million in 9M 2025 com pared to $353.1 million in 9M 2024;
Adjusted EBITDA of $120.0 million in 9M 2025 compared to $114.0 million in 9M 2024;
Net income of $96.9 million in 9M 2025 compared to $58.2 million in 9M 2024;
Basic earnings of C$0.70/share in 9M 2025 compared to C$0.41/share in 9M 2024; and
Free cash flow of $37.3 million in 9M 2025 compared to $37.8 million in 9M 2024.
The increase in the Company’s 9M 2025 adju sted EBITDA compared to 9M 2024 was primar ily due to higher revenues, which were
partially offset by higher sulfur and sulfuric acid costs at Conda.
The increase in the Company’s 9M 2025 net income compared to 9M 2024 was primarily due to higher gross margin, 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 9M 2025 was $60.3 million compared to $57.7 million in 9M 2024 with the increase primarily due to
development activities at Conda (H1/NDR and magnesium oxide reduction initiatives), and activities related to the fertilizer restart program
at Arraias (the “Fertilizer Restart Program”).
As of September 30, 2025, the Company’s financial highlights were as follows:
Trailing 12 months Adjusted EBITDA 2 of $165.5 million;
Net debt 2 of $6.1 million; and
Net leverage ratio 2 of 0.0x.
Recent Developments
Equity interest in St George
On October 16, 2025, the Company announced that it partially monetized its ownership interest in St George that it acquired as
consideration for the sale of its Ar axá Project, announced in February 2025. Between October 13 and 14, 2025, the Company
sold 277,893,103 SGQ Shares.
On October 16, 2025, the Company issued an exercise notice to exercise the 86,111,025 options at AUD$0.04 per share.
Between October 21 and 22, 2025, the Company sold the remaining 86,111,025 SGQ Shares.
The total net proceeds received from t he sale of 364,004,128 SGQ Shares was $21.8 m illion, net of the exer cise price of the
options.
Sale of the Araxá Project
On November 5, 2025, St George made paym ent of the deferred cash c onsideration totaling $11 million (less withholding tax payab le)
due to the Company under the second and third instalments of the Sale Agreement relating to the acquisition by St George of the 100%
interest in the Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil (the “Araxá Project”). As a result of the payment, the Araxa
Project sale transaction has been completed.
Special Dividend
The Board of Directors has approved a CAD$0.17 per share special dividend payable on December 11, 2025 to shareholders of recor d
as of the close of business on November 17, 2025.
Registered shareholders who are Canadian residents as reflected in the Company’s shareholder register will receive their divide nd in
Canadian dollars. Registered shareholders who are resident outside of Canada as reflect ed in the Company’s shareholder register ,
including the United States (“U .S.”), will receive their dividend in U.S. dollars , based on the spot price exchange rate calcul ated on
December 11, 2025. Intermediaries who are CDS participants may elect to have the dividend paid in U.S. dollars. Shareholders who hold
their shares through a broker or intermediary should contact their broker or intermediary directly for further details.
Dividend payments to shareholders will generally be subject to Internal Revenue Service withholding tax unless reduced through the
completion of tax election forms and/or in accordance with the pr ovisions of an applicable tax tr eaty. Both U.S. and non-U.S. r esident
registered shareholders should complete the appropriate tax forms and submit them to Itafos’ transfer agent, TSX Trust Company, to be
2 Total capex, trailing 12 months Adjusted EBITDA, net debt, and net leverage ratio 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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entitled to a reduced withholding tax rate. Shareholders who hold their shares through a broker or intermediary should contact their broker
or intermediary directly for further details.
FY 2025 Market and Financial Outlook
Market Outlook
Phosphate fertilizer prices were elevated in Q3 2025 compared to the previous quarter, driven by continued constraints on diammonium
phosphate (“DAP”) and monoammonium phosphate (“MAP”) exports from China and ongoing uncertainty surrounding US trade policy,
which has limited phosphate imports. While pr ices have moderated off the Q3 highs, pric es today remain above the historical fiv e-year
average price.
Despite strong global demand, low grain and oilseed prices continue to weigh on phosphate affordability. DAP and MAP prices relative
to crop values are near 20-year lows in terms of US farmer purchasing power. With a large US corn crop currently being harvested and
China continuing to source soybeans from competing suppliers, US affordability challenges are expected to persist in the near term.
However, with constrained domestic supply and steady global consumption, phosphate prices are expect ed to remain supported at
historically elevated levels in the short run.
Looking ahead, the Company anticipates a modest softening in phosphate prices through Q4 2025 due to:
Continued weak US farmer affordability offset by a typical winter price reset to stimulate retail demand ahead of the 2026 planting
season;
ongoing export restrictions from China;
lower US MAP production; and
ongoing uncertainty surrounding US phosphate import tariffs.
Financial Outlook
The Company revised its guidance for 2025 as follows:
(in millions of US Dollars Projected
except as otherwise noted) FY 2025
Sales Volumes (thousands of tonnes P2O5)3 345-355
Corporate selling, general and administrative expenses4 $15-17
Maintenance capex4 $16-20
Growth capex4 $60-70
Environmental and asset retirement obligations payments $6-8
Q3 and 9M 2025 Market Highlights
MAP New Orleans (“NOLA”) prices averaged $779/st in Q3 2025 compared to $636/st in Q3 2024, up 22% year-over-year, and averaged
$688/st in 9M 2025 compared to $606/st in 9M 2024, up 14% year-over-year.
Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:
lower than expected Chinese exports of MAP;
continued strong global demand, particula rly from Africa, India and Brazil; and
uncertainty surrounding US trade policy and imposition of tariffs on imported products.
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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September 30, 2025, Highlights
As of September 30, 2025, the Company had trailing 12 months Adjusted EBI TDA of $165.5 million compared to $159.5 million as of
December 31, 2024 with the increas e primarily due to the same factors that resu lted in higher Adjusted EBITDA during Q3 2025 as
compared to Q3 2024 described above.
As of September 30, 2025, the Company had net debt of $6.1 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 balances. The Company’s net debt as of September 30, 2025
was comprised of $86.7 million in cash and $92.8 million in debt (gross of deferred financing costs). As of September 30, 2025 and the
end of 2024, the Company’s net leverage ratio was 0.0x and 0.2x, respectively.
As of September 30, 2025, the Company had liquidity4 of $166.7 million comprised of $86.7 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 Q3 2025, the Company sustained EHS performance, includin g no reportable environmental releases and three recordable
incidents, which resulted in a consolidated total recordable incident frequency rate (“TRIFR”) of 0.54.
For 9M 2025, the Company sustained EHS performance, includin g no reportable environmental releases and five recordable
incidents, which resulted in a consolidated TRIFR of 0.54.
Conda
In Q3 2025, Conda
Produced 91,219 tonnes P 2O5 compared to 92,311 tonnes P 2O5 in Q3 2024, which remained relatively consistent year-over-
year with higher MAP volumes offset by lower SPA volumes;
Generated revenues of $134.0 million co mpared to $110.7 million in Q3 2024 with the increase primarily due to higher realized
prices for MAP and SPA products resulting from strong phosphate market dynamics; and
Generated Adjusted EBITDA of $46.3 million compared to $37.7 million in Q3 202 4 with the increase primarily due to higher
realized prices from market strength outpacing higher sulfur and sulfuric acid costs.
In 9M 2025, Conda:
Produced 262,025 tonnes P 2O5 compared to 252,090 tonnes P2O5 in 9M 2024 with the increase primarily due to a planned short
turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) and higher P2O5 production from
higher throughput from strong plant performance;
Generated revenues of $379.0 million comp ared to $335.4 million in 9M 2024 with the increase primarily due to higher realized
prices for MAP and SPA products resulting from strong phosphate market dynamics; and
Generated Adjusted EBITDA of $120. 1 million compared to $121.4 million in 9M 2024 with the increase primarily due to higher
realized prices from market strength outpacing higher sulfur and sulfuric acid costs.
Completion of Mining at Rasmussen Valley
The Company completed mining at the Rasmussen Valley mine in Q3 2025 after approximately seven years in operation, with reclamation
activities expected to commence in Q4 2025. Expected reclamation costs for the Rasmussen Valley mine are expected to be in the range
of $80 to $100 million with the majority of the spend to occur over the next 48 months.
Mine Life Extension
For the three and nine months ended September 30, 2025, the Company advanced activities related to the extension of Conda’s mine
life through the development of H1/NDR as follows:
advanced H1/NDR capital activities including construction of rail loading facilities and mine development; and
in June 2025, the Company received author ization from the Board of Directors to proceed with 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 P2O5
production capacity at the plant (the “MgO Reduction Project”).
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Exploration and Appraisal Program at Conda
As capital work at H1/NDR continues with first ore shipments expected in Q4 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.
Initial resource delineation drilling on the Dry Ridge Lease commenced in Q3 2025, with the initial program consisting of drilling on 2,400ft
centers to gain crucial geologic and metallurgical information that will be used to generate init ial resource models that 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 as exploration core drilling commenced in
September 2025. This initial drilling will id entify 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 approval s. 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 Q3 2025, Arraias:
Produced 26,164 tonnes of excess sulfuric acid compared to 28,483 tonnes in Q3 2024 with the decreased due to due to higher
acid consumption with the start of Partially Acidulated Phosphate Rock (“PAPR”) and Granulated Partially Acidulated Phosphate
Rock (“G-PAPR”) production;
Produced 29,564 tonnes P 2O5, compared to 12,719 tonnes P 2O5 in Q3 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 G-PAPR, as
part of the Fertilizer Restart Program; and
Generated Adjusted EBITDA of $7. 0 million compared to $3.7 million in Q3 2024 with the increase primarily due to sulfuric acid
gross margin improvement driven by higher sales prices. In addition, the increase reflects higher sales of fertilizer products sales
during Q3 2025, particularly due to the contribution from G-PAPR.
In 9M 2025, Arraias:
Produced 92,812 tonnes of excess sulfuric acid compared to 78, 011 tonnes in 9M 2024 driven by higher customer demand;
Produced 40,291 tonnes P 2O5 of DAPR and PAPR compared to 16,513 tonnes P 2O5 in 9M 2024, with the increase driven by
higher demand for fertilizer products in line with seasonal market trends. In addition, significant sales of DAPR and PAPR, along
with the start of G-PAPR sales, have supported this growth; and
Generated Adjusted EBITDA of $12.5 million compared to $3.5 million in 9M 2024 with the increase primarily due to a
combination of higher sulfuric acid gross margin driven by hig her sales prices and higher volume coupled with higher fertilizer
products sales in 2025, driven by significant higher sales volumes including the addition of the new product G-PAPR.
Q3 2025 Financial Results and Business Update Webcast
An on-demand recorded webcast of management commentary that revi ews the Q3 2025 financial results, provides an update on the
business and addresses analysts’ and investors’ recent frequently asked questions will be available on Monday, November 10, 202 5 at
4:30 p.m. ET. The webcast will be available on the Pr esentations & Events page of the Company’s website
www.itafos.com/investors/presentations-fact-sheets/ and will be available for 90 days.
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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 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 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 to: the sale
of the Araxá Project; the special divide nd; Company guidance; import and export tari ffs; 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 informa tion of historical fact is forward-looking information. Sta tements 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 esti mates and/or assumptions in respect of the Company’s financial and business outloo k are
forward-looking information. The use of any of the words “int end”, “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
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
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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
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