Itafos Reports Q2 2023 Results
TSX-V: IFOS
News Release
ITAFOS REPORTS Q2 2023 RESULTS
HOUSTON, TX – August 9, 2023 – Itafos Inc. (TSX-V: IFOS) (the “Company”) repo rted today its Q2 2023 financial and operational
highlights. The Company’s financial statements and management’s discussion and analysis for the three and six months ended June 30,
2023 are available under the Company’s profile at www.sedarplus.com and on the Company’s website at www.itafos.com. All figures are
in thousands of US Dollars except as otherwise noted.
CEO Commentary
“We are pleased to report solid financial results and continuat ion of our strong safety and operational performance in Q2 2023. For 1H
2023 we reported revenues of $235.7 million and adjusted EBITDA of $82.6 million.
The Record of Decision issued on April 24th and subsequent Notice to Proceed on May 8th for the Husky 1/North Dry Ridge mine project
represent a significant milestone for Itafos. The approvals provide the pa th for the Company to ach ieve our strategic goal of e xtending
Conda’s mine life. The permit allows us to work to continue to serve the North American fertilizer market through 2037 with pot ential to
further extend the resource life through leases and third-party arrangements.
The Company has lowered its full year EBITD A guidance, due to the sharp decline in comm odity prices in Q2. The impact of this p rice
decline will also be seen in the Company’s Q3 performance due to th e pricing formula of our MAP sales contract. Following the s harp
decline in Q2, commodity prices have partially rebounded in ear ly Q3, driven by demand improvement and tighter US supply
fundamentals.”
Finally, the process to explore and evaluate various strategic alternatives to enhance value for all Itafos Shareholders announced by our
Board in Q1 2023 is on-going. At the same time, we remained fo cused on running the Company to support our customers, maintaining
our safety performance, and delivering on our operational and financial results” said G. David Delaney, CEO of Itafos.
Q2 2023 Key Highlights
revenues of $116.1 million
Adjusted EBITDA of $39.7 million 1
net income of $20.4 million
basic earnings of C$0.14/share
free cash flow of $44.1 million 1
H1 2023 Key Highlights
revenues of $235.7 million
Adjusted EBITDA of $82.6 million
net income of $48.6 million
basic earnings of C$0.35/share
free cash flow of $63.9 million
June 30, 2023 Key Highlights
trailing 12 months Adjusted EBITDA of $183.4 million 1
net debt of $38.0 million 1
net leverage ratio of 0.2x 1
1 Adjusted EBITDA, trailing 12 months Adjusted EBITDA, maintenanc e capex, growth capex, net debt, net leverage ratio and free cas h 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”).
Lowered FY 2023 Guidance
Adjusted EBITDA guidance of $115-135 million
net income guidance of $45-60 million
basic earnings guidance of C$0.31-0.41/share
maintenance capex guidance of $15-25 million 1
growth capex guidance of $35-45 million 1
free cash flow guidance of $65-85 million
Q2 and H1 2023 Market Highlights
Diammonium phosphate ("DAP") New Orleans ("NOLA") prices avera ged $527/st in Q2 2023 compared to $860/st in Q2 2022, down
39% year-over-year, and averaged $571/st in H1 2023 compared to $82 7/st in H1 2022, down 31% ye ar-over-year. Specific factors
driving the year-over-year decline in DAP NOLA were as follows:
weakened demand in response to historically high 2022 phosphate prices;
the softening of global Ammonia and Sulphur prices;
the softening of historically high crop prices; and
increased phosphate exports out of Russia and China.
Q2 2023 Financial Highlights
For Q2 2023, the Company’s financial highlights were as follows:
revenues of $116.1 million in Q2 2023 compared to $155.0 million in Q2 2022;
Adjusted EBITDA of $39.7 million in Q2 2023 compared to $63.6 million in Q2 2022;
net income of $20.4 million in Q2 2023 compared to $44.3 million in Q2 2022;
basic earnings of C$0.14/share in Q2 20 23 compared to C$0.30/share in Q2 2022; and
free cash flow of $44.1 million in Q2 2023 compared to $41.3 million in Q2 2022.
The decrease in the Company’s Q2 2023 financial performance compar ed to Q2 2022 was primarily due to lower realized prices as a
result of softer global market conditions partially offset by lower input costs.
The Company’s total capex2 spend in Q2 2023 was $18.1 million compared to $16.0 mi llion in Q2 2022 with the increase primarily due
to the the development actvities at H1/NDR upon receipt of ROD in Q2 2023.
H1 2023 Financial Highlights
For H1 2023, the Company’s financial highlights were as follows:
revenues of $235.7 million in H1 2023 compared to $304.9 million in H1 2022;
Adjusted EBITDA of $82.6 million in H1 2023 compared to $124.0 million in H1 2022;
net income of $48.6 million in H1 2023 compared to $77.3 million in H1 2022;
basic earnings of C$0.35/share in H1 2023 compared to C$0.52/share in H1 2022; and
free cash flow of $63.9 million in H1 2023 compared to $95.7 million in H1 2022.
The decrease in the Company’s H1 2023 financial performance comp ared to H1 2022 was primarily due to lower sales volumes and
lower realized prices, partially offset by lower input costs.
The Company’s total capex2 spend in H1 2023 was $20.9 million compared to $21.3 million in H1 2022 with the decrease primarily due
to the capital additions expended in the prior year relating to the HFSA build out at Conda during Q1 2022 and the Arraias sulf uric acid
restart.
2Total capex is a non-IFRS financial measur e. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”
below.
June 30, 2023 Highlights
As at June 30, 2023, the Compan y had trailing 12 months Adjusted EBITDA of $183. 4 million compared to $224.8 million at the end of
2022 with the decrease primarily due to the same factors that resulted in lower revenues, which were partially offset by lower input costs
at Conda.
At June 30, 2023, the Company had net debt of $38.0 million compared to $88.3 million at the end of 2022, with the reduction due to the
repayment of principal debt outstanding from free cash flows generated and higher cash and cash equivalents. The Company’s net debt
as at June 30, 2023 was comprised of $68.6 million in cash and $106.6 million in debt (gross of deferred financing costs). As at June 30,
2023 and the end of 2022, the Company’s net leverage ratio were 0.2x and 0.4x.
As at June 30, 2023, t he Company had liquidity 3 of $101.7 million comprised of $68.6 million in cash and $33.0 million in ABL Facility
undrawn borrowing capacity.
Q2 2023 Operational Highlights
Environmental ,Health, and Safety ("EHS")
Sustained EHS performance, including no re portable environmental releases and two recordable incidents, which resulted in a
consolidated total recordable incident frequency rate ("TRIFR") of 0.35.
Conda
Produced 83,190 tonnes P 2O5 at Conda in Q2 2023 compared to 80,297 tonnes P 2O5 in Q2 2022 with the increase primarily
due to higher throughput resulting from operational efficiencies and reduced downtime;
Generated revenues of $112.9 million at Conda in Q2 2023 co mpared to $148.9 million in Q2 2022 primarily due to lower realized
prices;
Generated Adjusted EBITDA at Co nda of $44.6 million in Q2 2023 compared to $ 66.7 million in Q2 2022 primarily due to the
same factors that resulted in lower revenues, which were partially offset by lower input costs;
On April 24, 2023, the Company announced the Record of De cision ("ROD") for Husky 1/North Dry Ridge ("H1/NDR") mine
development project. The H1/NDR project comp rises primarily of civil activities and infrastructure development. Mineral
resources from H1/NDR are expected from 20264 onward, providing an uninterrupted supply as Rasmussen Valley Mine reaches
the end of its useful life; and
On May 8, 2023, the Company received the Notice of Proc eed ("NTP") for H1/NDR mine development project. Upon receipt of
the NTP, the Company has begun capital activities associated with the mine development project.
Q2 2023 Other Highlights
Produced 8,523 tonnes of sulfuric acid at Arraias in Q2 2023 compared to 20,549 tonnes in Q2 2022 with the decrease due to
sulfuric acid plant shutdown for required maintenance and turnaround in June 2023;
Generated Adjusted EBITDA at Arraias of $0.8 million loss in Q2 2023 compar ed to $0.4 million gain in Q2 2022 with the
decrease primarily due to lower realized sulfur ic acid prices, which were partially offs et by higher sales volumes, lower cost of
goods sold and lower selling, general and administrative expenses;
On June 28, 2023, the Company filed the National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-
101”) technical report for the Farim Phosphate Project; and
The Special Committee of the Board of Directo rs continues to evaluate strategic alternatives that may be available to company
in an effort to enhance shareholder value.
3 Liquidity is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”
below.
H1 2023 Operational Highlights
Environmental, Health, and Safety ("EHS")
Sustained EHS excellence, including no reportable environmental releases and two recordable incidents, which resulted in a
consolidated total recordable incident frequency rate ("TRIFR") of 0.35.
Conda
Produced 165,336 tonnes P 2O5 at Conda in Q2 2023 compared to 169,393 tonnes P 2O5 in Q2 2022 with the decrease slightly
due to extreme winter weather conditions and unplanned downtime in Q1 2023, mostly offset by stronger throughput in Q2 2023;
Generated revenues of $228.9 million at Conda in Q2 2023 com pared to $296.5 million in Q2 2022 primarily due to lower sales
volumes and lower realized prices;
Generated Adjusted EBITDA at Co nda of $92.0 million in Q2 2023 compared to $131.1 million in Q2 2022 primarily due to the
same factors that resulted in lower revenues, which were partially offset by lower input costs;
On April 24, 2023, the Company announc ed the ROD for H1/NDR mine development project. The H1/NDR project comprises
primarily of civil activities and infrastructure devel opment. Mineral resources from H1/NDR are expected from 2026 4 onward,
providing an uninterrupted supply as Rasmussen Valley Mine reaches the end of its useful life; and
On May 8, 2023, the Company received t he NTP for H1/NDR mine development project. Upon receipt of the NTP, the Company
has begun capital activities associated with the mine development project.
H1 2023 Other Highlights
Produced 29,137 tonnes of sulfuric acid at Arraias in H1 2023 compared to 30,200 tonnes in H1 2022 with the Sulfuric acid
production consistent year-over-year; Increased sales volumes due to full half year sales in H1 2023 compared to a partial half
year in H1 2022 (the sulfuric acid plant was restarted in February 2022);
Generated Adjusted EBITDA at Arraias of $0 .6 million loss in H1 2023 compared to $0.3 million loss in H1 2022 with the decrease
primarily due to lower realized sulfuric acid prices, which were partially offset by higher sales volumes and lower selling, general
and administrative expenses; and
On June 28, 2023, the Company filed the NI 43-101 te chnical report for the Farim Phosphate Project; and
The Special Committee of the Board of Directo rs continues to evaluate strategic alternatives that may be available to company
in an effort to enhance shareholder value.
Market Outlook
2023 prices have moderated off the historically high 2022 prices and weaker global demand drove a significant reduction in Q2 2 023
prices. Due to the nature of our MAP sales contract, with sale s price determined by a three-mont h lagging average, the impact o f this
decrease, coupled with a lower SPA reset pricing, will impact the Company's performance in Q3 2023. The Company expects relativ ely
stable global agriculture and phosphate fertilizer fundamentals moving forward but has seen demand and pricing improve in early Q3
2023 driven by tighter US supply fundamentals. Accordingly, th e Company expects some volatility in pricing in the short term wi th
consistent volume fundamentals in the phosphate fertilizer markets and expects stabilization in pricing long term.
Specific factors the Company expects to support strength in the global phosphate fertilizer markets through 2023 are as follows:
no significant phosphate supply capacity additions;
excellent farmer affordability due to sustained high crop prices
improved phosphate application following lower demand associated with historically high pricing; and
ongoing phosphate export restrictions from China compared to recent norms.
The Company expects the sulfur an d sulfuric acid markets to remain under pressure globally through 2023 due to increased refine ry
activity and softer demand from phosphate producers and metals consumers.
4Timeline for H1/NDR based on management esti mates and subject to certain assumpti ons, including successful permitting and devel opment activities.
The H1/NDR mine life extension is based on a Preliminary Econom ic Assessment (“2019 PEA”) included in the Conda Technical Repor t (as defined
below). The 2019 PEA on the H1 and NDR properties is preliminary in nature and includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty
that the 2019 PEA will be realized. Readers are referred to t he Conda Technical Report for the applicable qualifications and as sumptions in connection
with its 2019 PEA.
Financial Outlook
The Company lowered its guidance for 2023 as follows:
(in millions of US Dollars Projected
except as otherwise noted) FY 2023
Adjusted EBITDA $ 115‐135
Net income 45‐60
Basic earnings (C$/share) 0.31‐0.41
Maintenance capex 15‐25
Growth capex 35‐45
Free cash flow 65‐85
Business Outlook
The Company continues to focus on the following key objectives to drive long-term value and shareholder returns:
improving financial and operational performance;
deleveraging the balance sheet;
executing on the requisite infrastr ucture and civil works required for the mine development for H1/NDR; and
conducting the strategic review process (including evaluating potential strategic alternatives for the company as outlined in the
news release dated March 13, 2023).
About Itafos
The Company is a phosphate and specialty fertilizer company. The Company’s businesses and projects are as follows:
Conda – a vertically integrated phosphate fertilizer business loca ted in Idaho, US with production capacity as follows:
- approximately 550kt per year of monoammonium phosphate (“M AP”), MAP with micronutrients (“MAP+”), superphosphoric
acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”); and
- approximately 27kt per year of hy drofluorosilicic acid (“HFSA”);
Arraias – a vertically integrated phosphate fertilizer business lo cated in Tocantins, Brazil with production capacity as follows:
- approximately 500kt per year of single superphosph ate (“SSP”) and SSP with micronutrients (“SSP+”); and
- 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;
Santana – a vertically integrated high- grade phosphate mine and fertilizer plant project located in Pará, Brazil; and
Araxá – a vertically integrated rare earth elements and niobium mine and extraction plant project located in Minas Gerais, Brazil.
In addition to the businesses and projects described above, the Co mpany also owns Mantaro (Junin, Peru), which is a phosphate m ine
project that is in process of being wound down.
The Company is a Delaware corporation that is headquartered in Houston, TX. The Company’s shares trade on the TSX Venture
Exchange (“TSX-V”) under the ticker symbol “IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is
an affiliate of Castlelake, L.P., a global private investment firm.
For more information, or to join the Comp any’s mailing list to receive notification of future news releases, please visit the C ompany’s
website at www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitutes forward-looking information, including statements with respect to: the timing
for commencement of operations at H1 / N DR; the expected resource life of H1 / ND R; the sources of f unding to be used for the
development of H1 / NDR; economic and market trends with respect to the global agriculture and p hosphate fertilizer markets. Al l
information other than information of histor ical fact is forward-looking information . Statements that address activities, event s 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 release is based on the opinions, assumptions and estimates of management set
out herein, which management believes are reasonable as at t he date the statements are made. Those opinions, assumptions and
estimates are inherently subject to a variety of risks and uncert ainties and other known and unknow n factors that could cause a ctual
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 mine ral
reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; fo reign
operations risks; changes to regulation; environmental risks; t he impact of adverse weather and climate change; general economi c
changes, including inflation and foreign exchange rates; the actions of the Company’s competitors and counterparties; financing, liquidity,
credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation and infrastructure;
changes to equipment and suppliers; adverse litigation; changes to permitting and licensing; loss of land title and access rights; changes
to insurance and uninsured risks; the potential for malicious acts; market volatility; changes to technology; changes to tax la ws; the risk
of operating in foreign jurisdictions; and the risks posed by a controlling shareholder and other conflicts of interest. 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 forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated,
estimated or intended. Additional risks and uncertainties affecting the forward-looki ng information contained in this news rele ase are
described in greater detail in the Company’s current Annual Information Form and current Management’s Discussion and Analysis
available under the Company’s profile on SEDAR+ at www.sedarplus.com 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, includi ng statements regarding expected adjusted EBITD A, net income, basic earnings per shar e,
maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and qualifications
as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management’s expectations regarding
anticipated activities and results, and such information may no t be appropriate for other purposes. The Company and management
believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgements;
however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook
information speaks only as of the date on which it is made and th e Company undertakes no obligation to publicly update or revis e any
financial outlook information except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-
V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information, please contact:
Matthew O’Neill
Itafos Investor Relations
713-242-8446
Scientific and Technical Information
The scientific and technical information contained in this news release related to Mineral Resources for Conda and Farim has be en
reviewed and approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and
Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and
technical information contained in this news release related to Mineral Reserves for Conda and Farim has been reviewed and approved
by Edward Minnes, Professional Engineer (P.E.) licensed by the State of Missouri. Mr. Minnes is a part-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
on Itafos Conda and Paris Hills Mineral Projects, Idaho, USA,” with an effective date of July 1, 2019 (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.com
Non-IFRS Financial Measures
This press release contains both IFRS and certain non-IFRS m easures that management consi ders to evaluate the Company’s
operational and financial performance. Non-IFRS measures are a numerical measure of a company’s performance, that either include or
exclude amounts that are not normally includ ed or excluded from the most directly co mparable IFRS measures. Management believes
that the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others. In evaluating non-IFRS
measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under
IFRS and that the methodology applied by t he Company in calculating such non-IFRS measures may differ among companies and
analysts. Non-IFRS measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared
in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to the most directly comparable IFRS measures are
included below.
DEFINITIONS
The Company defines its non-IFRS measures as follows:
Non-IFRS
measure
Definition Most directly comparable IFRS
measure
Why the Company uses the
measure
EBITDA Earnings before interest, taxes,
depreciation, depletion and
amortization
Net income (loss) and operating income
(loss)
EBITDA is a valuable indicator of
the Company’s ability to generate
operating income
Adjusted EBITDA EBITDA adjusted for non-cash,
extraordinary, non-recurring and other
items unrelated to the Company’s core
operating activities
Net income (loss) and operating income
(loss)
Adjusted EBITDA is a valuable
indicator of the Company’s ability
to generate operating income
from its core operating activities
normalized to remove the impact
of non-cash, extraordinary and
non-recurring items. The
Company provides guidance on
Adjusted EBITDA as useful
supplemental information to
investors, analysts, lenders, and
others
Trailing 12
months Adjusted
EBITDA
Adjusted EBITDA for the current and
preceding three quarters
Net income (loss) and operating income
(loss) for the current and preceding three
quarters
The Company uses the trailing 12
months Adjusted EBITDA in the
calculation of the net leverage
ratio (non-IFRS measure)
Total capex Additions to property, plant, and
equipment and mineral properties
adjusted for additions to asset
retirement obligations, additions to
right-of-use assets and capitalized
interest
Additions to property, plant and
equipment and mineral properties
The Company uses total capex in
the calculation of total cash capex
(non-IFRS measure)
Maintenance
capex
Portion of total capex relating to the
maintenance of ongoing operations
Additions to property, plant and
equipment and mineral properties
Maintenance capex is a valuable
indicator of the Company’s
required capital expenditures to
sustain operations at existing
levels
Growth capex Portion of total capex relating to the
development of growth opportunities
Additions to property, plant and
equipment and mineral properties
Growth capex is a valuable
indicator of the Company’s capital
expenditures related to growth
opportunities.
Net debt Debt less cash and cash equivalents
plus deferred financing costs (does not
consider lease liabilities)
Current debt, long-term debt and cash
and cash equivalents
Net debt Debt less cash and
cash equivalents plus deferred
financing costs (does not
consider lease liabilities) Current
debt, long-term debt and cash
and cash equivalents Net
debt is a valuable indicator of the
Company’s net debt position as it
removes the impact of deferring
financing costs.
Net leverage ratio Net debt divided by trailing 12 months
Adjusted EBITDA
Current debt, long-term debt and cash
and cash equivalents; net income (loss)
and operating income (loss) for the
current and preceding three quarters
The Company’s net leverage ratio
is a valuable indicator of its ability
to service its debt from its core
operating activities.
Liquidity Cash and cash equivalents plus
undrawn committed borrowing
capacity
Cash and cash equivalents Liquidity is a valuable indicator of
the Company’s liquidity
Free cash flow Cash flows from operating activities,
which excludes payment of interest
expense, plus cash flows from
investing activities less cash growth
capex
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.
EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA
For the three months ended June 30, 2023 and 2022
For the three months ended June 30, 2023, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 27,198 $ (924) $ 87 $ (5,931) $ 20,430
Finance (income) expense, net 1,578 (135) (5) 3,510 4,948
Current and deferred income tax expense
(recovery) 8,600 — — (2,272) 6,328
Depreciation and depletion 7,198 732 2 48 7,980
EBITDA $ 44,574 $ (327) $ 84 $ (4,645) $ 39,686
Unrealized foreign exchange (gain) loss — (432) (342) 454 (320 )
Share-based payment recovery — — — (98) (98 )
Transaction costs — — — 453 453
Other (income) expense, net (7) (43) 6 — (44 )
Adjusted EBITDA $ 44,567 $ (802) $ (252) $ (3,836) $ 39,677
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 37,357 $ (1,534) $ (254) $ (4,239) $ 31,330
Depreciation and depletion 7,198 732 2 48 7,980
Realized foreign exchange gain 12 — — — 12
Share-based payment recovery — — — (98) (98 )
Transaction costs — — — 453 453
Adjusted EBITDA $ 44,567 $ (802) $ (252) $ (3,836) $ 39,677
For the three months ended June 30, 2022, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 47,487 $ (960) $ 80 $ (2,326) $ 44,281
Finance (income) expense, net 1,228 (183) 4 6,609 7,658
Current and deferred income tax expense
(recovery) 11,371 — — (7,310) 4,061
Depreciation and depletion 7,939 545 3 48 8,535
EBITDA $ 68,025 $ (598) $ 87 $ (2,979) 64,535
Unrealized foreign exchange (gain) loss — 1,062 (311) 101 852
Share-based payment recovery — — — (1,204) (1,204 )
Transaction costs — — 35 — 35
Gain on settlement (1,352) — — — (1,352 )
Non-recurring compensation expenses — — — 229 229
Other (income) expense, net 43 (59) (32) 544 496
Adjusted EBITDA $ 66,716 $ 405 $ (221) $ (3,309) $ 63,591
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 60,164 $ (140) $ (259) $ (2,362) $ 57,403
Depreciation and depletion 7,939 545 3 48 8,535
Realized foreign exchange gain (35) — — (20) (55 )
Share-based payment recovery — — — (1,204) (1,204 )
Transaction costs — — 35 — 35
Gain on settlement (1,352) — — — (1,352 )
Non-recurring compensation expenses — — — 229 229
Adjusted EBITDA $ 66,716 $ 405 $ (221) $ (3,309) $ 63,591