Itafos Reports Strong Operational and Financial Q2 2024 Results
TSX-V: IFOS
News Release
ITAFOS REPORTS STRONG OPERATIONAL AND FINANCIAL Q2 2024 RESULTS
HOUSTON, TX – August 7, 2024 – Itafos Inc. (TSX-V: IFOS) (the “Company”) today reported its Q2 2024 financial results and provided
a corporate update. The Company’s financial statements and management’s discussion and analysis for the three and six months ended
June 30, 2024, are available under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.itafos.com. All
figures are in thousands of US Dollars except as otherwise noted.
CEO Commentary
“We are extremely pleased to report on the significant progress we have made on the execution of our strategic priorities in Q2, 2024.
On the back of positive market fundamentals, the Company continues to report strong operational and financial performance,” said David
Delaney. “Execution of the H1/NDR project continues, on time and on budget, as we derisk the project for first ore in H1 2025. We are
also pleased to announce the sale of our Araxa project which will unlock value associated with our overseas asset portfolio. As we
progress through 2024, the Board and Management will continue to focus on creating shareholder value.”
Q2 2024 Financial Highlights
For Q2 2024, the Company’s financial highlights were as follows:
Revenues of $105.1 million in Q2 2024 compared to $116.1 million in Q2 2023;
Adjusted EBITDA 1 of $32.8 million in Q2 2024 compared to $39.7 million in Q2 2023;
Net income of $16.2 million in Q2 2024 compared to $20.4 million in Q2 2023;
Basic earnings of C$0.12/share in Q2 2024 compared to C$0.14/share in Q2 2023; and
Free cash flow 1 of $42.5 million in Q2 2024 compared to $39.0 million in Q2 2023.
The decrease in the Company’s Q2 2024 financial performance compared to the corresponding period in the prior year was primarily due
to lower sales volumes driven by lower production at Conda due to the completion of the large scope turnaround in 2024, which was
partially offset by slightly higher realized prices.
The Company’s total capex 1 spend in Q2 2024 was $30.2 million compared to $18.1 million in Q2 2023 with the increase primarily due
to development activities at H1/NDR and large scope turnaround at Conda, as well as the sulfuric acid plant turnaround at Arraias.
H1 2024 Financial Highlights
For H1 2024, the Company’s financial highlights were as follows:
Revenues of $233.1 million in H1 2024 compared to $235.7 million in H1 2023;
Adjusted EBITDA of $76.0 million in H1 2024 compared to $82.6 million in H1 2023;
Net income of $39.9 million in H1 2024 compared to $48.6 million in H1 2023;
Basic earnings of C$0.28/share in H1 2024 compared to C$0.35/share in H1 2023; and
Free cash flow of $60.2 million in H1 2024 compared to $57.9 million in H1 2023.
The decrease in the Company’s H1 2024 financial performance compared to H1 2023 was primarily due to lower realized prices at Conda,
which were partially offset by higher sales volumes at Conda and higher sulfuric acid sales at Arraias.
The Company’s total capex spend in H1 2024 was $36.6 million compared to $20.9 million in H1 2023 with the increase primarily due to
development activities at H1/NDR and large scope turnaround at Conda, as well as the sulfuric acid plant turnaround at Arraias.
As of June 30, 2024, the Company’s financial highlights were as follows:
Trailing 12 months Adjusted EBITDA 1 of $125.1 million;
Net debt 1 of $8.5 million; and
Net leverage ratio 1 of 0.1x.
1 Adjusted EBITDA, trailing 12 months Adjusted EBITDA, total capex, net debt, net leverage ratio 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”).
Recent Developments
Sale of the Araxá Project
On August 5, 2024, the Company announced that it entered into an agreement to sell its 100% interest in its Araxá project
to a wholly-owned subsidiary of St George Mining Limited (“St George”) (ASX: SGQ). The sale is structured as a cash and
equity transaction. The total purchase price is cash of USD$21,000,000 and securities of St George (the “Transaction”). As
a result of the Transaction, St George will indirectly acquire all of the outstanding securities of Itafos Araxá Mineracao E
Fertilizantes S.A.
FY 2024 Market and Financial Outlook
Market Outlook
Prices in Q2 2024 were lower than Q1 2024 prices because of the conclusion of the spring season and a market expectation of a
significant summer price reset. Market prices at the end Q2 2024 and now into Q3 2024 however, rebounded significantly. The summer
price reset was lower than expected due to low summer monoammonium phosphate (“MAP”) stocks and no major adjustments in the
North American MAP supply situation. Moving forward, the Company expects minor increases in MAP pricing going into the fall season
due to low on-site inventory and a productive fall application season.
Specific factors the Company expects to support pricing in the global phosphate fertilizer markets through the end of 2024 are as follows:
Low inventory levels in the North American market and continued strength in global demand;
Ongoing export restrictions from China; and
No significant adjustments in global trade flows, particularly to the North American market.
Financial Outlook
The Company maintained its guidance for 2024 as follows:
(in millions of US Dollars Projected
except as otherwise noted) FY 2024
Sales Volumes (thousands of tonnes P2O5)2 320-340
Corporate selling, general and administrative expenses3 $17-20
Maintenance capex3 $25-35
Growth capex3 $35-46
Q2 and H1 2024 Market Highlights
MAP New Orleans (“NOLA”) prices averaged $558/st in Q2 2024 compared to $511/st in Q2 2023, up 9% year-over-year, and averaged
$591/st in H1 2024 compared to $543/st in H1 2023, up 9% year-over-year.
Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:
The tightening of MAP supply into the North American market;
A minor increase in on farm MAP application in the spring of 2024; and
Continuing ongoing export restrictions from China.
June 30, 2024, Highlights
As at June 30, 2024, the Company had trailing 12 months Adjusted EBITDA of $125.1 million compared to $131.8 million at the end of
2023 with the decrease primarily due to the same factors that resulted in lower Adjusted EBITDA.
As at June 30, 2024, the Company had net debt of $8.5 million compared to $61.3 million at the end of 2023, with the reduction primarily
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, 2024, was comprised of $59.1 million in cash and $66.1 million in debt (gross of deferred financing costs). As at
June 30, 2024, and the end of 2023, the Company’s net leverage ratio was 0.1x.
As at June 30, 2024, the Company had liquidity 4 of $100.5 million comprised of $59.1 million in cash and $41.4 million in undrawn
borrowing capacity under its $80 million asset-based revolving credit facility (“ABL Facility”).
2 Sales volumes reflect quantity in P2O5 of Conda sales projections.
3 Corporate selling, general and administrative expenses, maintenance capex, and growth capex are each non-IFRS financial measures. For additional
information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below.
4 Liquidity is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”
below.
Operations Highlights and Mine Development
Environmental, Health, and Safety (“EHS”)
For Q2 2024, strong EHS performance, including no reportable environmental releases and three recordable incidents, which
resulted in a consolidated total recordable incident frequency rate (“TRIFR”) of 0.92.
For H1 2024, strong EHS performance, including no reportable environmental releases and six recordable incidents, which
resulted in a consolidated TRIFR of 0.92.
Conda
In Idaho, the Company continues to build out infrastructure and work towards realizing the H1/NDR project and extending the mine life of
Conda to 2037, an estimate confirmed by the updated NI 43-101 Technical Report we received in April of this year. H1/NDR remains on
schedule and on budget to deliver first ore from H1/NDR in the second half of 2025.
In Q2 2024, Conda:
Produced 69,532 tonnes P 2O5 compared to 83,190 tonnes P 2O5 in Q2 2023 with the decrease primarily due to completion of
large scope turnaround in 2024;
Generated revenues of $101.8 million compared to $112.9 million in Q2 2023 with the decrease primarily due to lower sales
volumes, partially offset by higher realized prices; and
Generated Adjusted EBITDA of $37.2 million compared to $44.6 million in Q2 2023 with the decrease primarily due to lower
sales volumes from large scope turnaround and higher input costs, which were partially offset by higher realized prices.
In H1 2024, Conda:
Produced 159,778 tonnes P 2O5 compared to 165,336 tonnes P2O5 in H1 2023 with the decrease primarily due to completion of
large scope turnaround in 2024;
Generated revenues of $224.7 million compared to $228.9 million in H1 2023 with the decrease primarily due to lower realized
selling prices; and
Generated Adjusted EBITDA of $83.8 million compared to $92.0 million in H1 2023 with the decrease primarily due to the same
factors that resulted in lower revenues.
Arraias
In Q2 2024, Arraias:
Produced 16,652 tonnes of sulfuric acid compared to 8,523 tonnes in Q2 2023, with the increase primarily due to higher customer
demand in Q2 2024;
Produced 3,794 tonnes P 2O5 of Direct Application Phosphate Rock (“DAPR”) compared to 0 tonnes P 2O5 in Q2 2023, with the
increase due to the full quarter of DAPR production and sales per Fertilizer Restart Program; and
Generated Adjusted EBITDA of $0.5 million loss compared to $0.8 million loss in Q2 2023 with the improvement primarily due
to sulfuric acid gross margin improvement driven by lower production cost and higher production volume.
In H1 2024, Arraias:
Produced 49,868 tonnes of sulfuric acid compared to 29,137 tonnes in H1 2023 with the increase due to higher customer
demand;
Produced 3,794 tonnes P 2O5 of DAPR compared to 0 tonnes P 2O5 in H1 2023, with the increase due to the full half year of
DAPR production and sales per Fertilizer Restart Program; and
Generated Adjusted EBITDA of $0.1 million loss compared to $0.6 million loss in H1 2023 with the improvement due to sulfuric
acid gross margin improvement driven by lower production cost and higher production volume.
About Itafos
Itafos is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:
Conda – a vertically integrated phosphate fertilizer business located in Idaho, US, with the following production capacity:
- approximately 550kt per year of MAP, MAP with micronutrients (“MAP+”), superphosphoric acid (“SPA”), merchant grade
phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”)
- approximately 27kt per year of hydrofluorosilicic acid (“HFSA”)
Arraias – a vertically integrated phosphate fertilizer business located in Tocantins, Brazil, with the following production capacity:
- approximately 500kt per year of single superphosphate (“SSP”) and SSP with micronutrients (“SSP+”)
- 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
Araxá – a vertically integrated rare earth elements and niobium mine and extraction plant project located in Minas Gerais, Brazil
Itafos is a Delaware corporation headquartered in Houston, Texas, with shares trading on the TSX Venture Exchange under the ticker
“IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”), 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
Company’s planned operations and strategies; the timing for the commencement of operations, infrastructure and civil works at H1 / NDR;
the expected resource life of H1 / NDR; and economic and market trends with respect to the global agriculture and phosphate fertilizer
markets. All information other than information of historical fact is forward-looking information. Statements that address activities, events
or developments that the Company believes, expects or anticipates will or may occur in the future include, but are not limited to,
statements regarding estimates and/or assumptions in respect of the Company’s financial and business outlook are forward-looking
information. The use of any of the words “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”,
“would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-looking information.
The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management 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 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 changes, including inflation and foreign exchange rates; the actions of the Company’s competitors and
counterparties; financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating
to transportation and infrastructure; changes to equipment and suppliers; concentration risks, adverse litigation; changes to permitting
and licensing; geo-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; 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 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-looking information contained in this 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-looking statements if circumstances or management’s estimates, assumptions or opinions
should change, except as required by applicable securities law. The forward-looking information included in this news release is expressly
qualified by this cautionary statement and is made as of the date of this news release.
This news release contains future-oriented financial information and financial outlook information (together, “FOFI”) about the Company’s
prospective results of operations, including statements regarding expected Adjusted EBITDA, net income, basic earnings per share,
maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and qualifications
as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management’s expectations regarding
anticipated activities and results, and such information may not be appropriate for other purposes. The Company and management
believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgements;
however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook
information speaks only as of the date on which it is made and the Company undertakes no obligation to publicly update or revise any
financial outlook information except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-
V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information, please contact:
Matthew O’Neill
Executive Vice President & Chief Financial Officer
713-242-8446
For Media and Investor Relations:
irlabs
Alyssa Barry
Principal and Co-Founder
1-833-947-5227
Scientific and Technical Information
The scientific and technical information contained in this news release related to Mineral Resources for Conda and Farim has been
reviewed and approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and
Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and
technical information contained in this news release related to Mineral Reserves for Conda and Farim has been reviewed and approved
by Terry Kremmel, Professional Engineer (P.E.) licensed by the States of Missouri and North Carolina. Mr. Kremmel is a full-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.
Non-IFRS Financial Measures
This press release contains both IFRS and certain non-IFRS measures that management considers 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 the 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.
DEFINITIONS
The Company defines its non-IFRS measures as follows:
Non-IFRS
measure
Definition Most directly comparable IFRS
measure
Why the Company uses the
measure
EBITDA Earnings before interest, taxes,
depreciation, depletion and
amortization
Net income (loss) and operating income
(loss)
EBITDA is a valuable indicator of
the Company’s ability to generate
operating income
Adjusted EBITDA EBITDA adjusted for non-cash,
extraordinary, non-recurring and other
items unrelated to the Company’s core
operating activities
Net income (loss) and operating income
(loss)
Adjusted EBITDA is a valuable
indicator of the Company’s ability
to generate operating income
from its core operating activities
normalized to remove the impact
of non-cash, extraordinary and
non-recurring items. The
Company provides guidance on
Adjusted EBITDA as useful
supplemental information to
investors, analysts, lenders, and
others
Trailing 12
months Adjusted
EBITDA
Adjusted EBITDA for the current and
preceding three quarters
Net income (loss) and operating income
(loss) for the current and preceding three
quarters
The Company uses the trailing 12
months Adjusted EBITDA in the
calculation of the net leverage
ratio (non-IFRS measure)
Total capex Additions to property, plant, and
equipment and mineral properties
adjusted for additions to asset
retirement obligations, additions to
right-of-use assets and capitalized
interest
Additions to property, plant and
equipment and mineral properties
The Company uses total capex in
the calculation of total cash capex
(non-IFRS measure)
Maintenance
capex
Portion of total capex relating to the
maintenance of ongoing operations
Additions to property, plant and
equipment and mineral properties
Maintenance capex is a valuable
indicator of the Company’s
required capital expenditures to
sustain operations at existing
levels
Growth capex Portion of total capex relating to the
development of growth opportunities
Additions to property, plant and
equipment and mineral properties
Growth capex is a valuable
indicator of the Company’s capital
expenditures related to growth
opportunities.
Net debt Debt less cash and cash equivalents
plus deferred financing costs (does not
consider lease liabilities)
Current debt, long-term debt and cash
and cash equivalents
Net debt is a valuable indicator of
the Company’s net debt position
as it removes the impact of
deferring financing costs.
Net leverage ratio Net debt divided by trailing 12 months
Adjusted EBITDA
Current debt, long-term debt and cash
and cash equivalents; net income (loss)
and operating income (loss) for the
current and preceding three quarters
The Company’s net leverage ratio
is a valuable indicator of its ability
to service its debt from its core
operating activities.
Liquidity Cash and cash equivalents plus
undrawn committed borrowing
capacity
Cash and cash equivalents Liquidity is a valuable indicator of
the Company’s liquidity
Free cash flow Cash flows from operating activities,
which excludes payment of interest
expense, plus cash flows from
investing activities
Cash flows from operating activities and
cash flows from investing activities
Free cash flow is a valuable
indicator of the Company’s ability
to generate cash flows from
operations after giving effect to
required capital expenditures to
sustain operations at existing
levels. Free cash flow is a
valuable indicator of the
Company’s cash flow available
for debt service or to fund growth
opportunities. The Company
provides guidance on free cash
flow as useful supplemental
information to investors, analysts,
lenders, and others.
Corporate selling,
general and
administrative
expenses
Corporate selling, general and
administrative less share-based
payment expense.
Selling, general and administrative
expenses
The Company uses corporate
selling, general and
administrative expenses to
assess corporate performance.
EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA
For the three months ended June 30, 2024 and 2023
For the three months ended June 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 22,471 $ (1,768) $ (35) $ (4,462) $ 16,206
Finance (income) expense, net 954 (206) — 2,435 3,183
Current and deferred income tax expense
(recovery) 7,286 — — (2,062) 5,224
Depreciation and depletion 5,835 494 5 83 6,417
EBITDA $ 36,546 $ (1,480) $ (30) $ (4,006) $ 31,030
Unrealized foreign exchange (gain) loss — 1,039 (253) — 786
Share-based payment expense — — — 435 435
Transaction costs — — — — —
Other (income) expense, net 653 (57) 3 (40) 559
Adjusted EBITDA $ 37,199 $ (498) $ (280) $ (3,611) $ 32,810
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 31,372 $ (992) $ (285) $ (4,120) $ 25,975
Depreciation and depletion 5,835 494 5 83 6,417
Realized foreign exchange gain (8) — — (9) (17)
Share-based payment expense — — — 435 435
Impairments — — — — —
Transaction costs — — — — —
Adjusted EBITDA $ 37,199 $ (498) $ (280) $ (3,611) $ 32,810
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 expense — — — (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 expense — — — (98) (98)
Transaction costs — — — 453 453
Adjusted EBITDA $ 44,567 $ (802) $ (252) $ (3,836) $ 39,677
For the six months ended June 30, 2024 and 2023
For the six months ended June 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 51,983 $ (1,491) $ (228) $ (10,341) $ 39,923
Finance (income) expense, net 2,387 (458) 1 4,822 6,752
Current and deferred income tax expense
(recovery) 13,770 — — (4,392) 9,378
Depreciation and depletion 14,761 1,195 10 168 16,134
EBITDA $ 82,901 $ (754) $ (217) $ (9,743) $ 72,187
Unrealized foreign exchange (gain) loss — 1,650 (320) — 1,330
Share-based payment expense — — — 857 857
Transaction costs — — — 227 227
Non-recurring compensation expenses — — — 1,560 1,560
Other (income) expense, net 864 (1,012) 4 (40) (184)
Adjusted EBITDA $ 83,765 $ (116) $ (533) $ (7,139) $ 75,977
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 69,009 $ (1,311) $ (543) $ (9,942) $ 57,213
Depreciation and depletion 14,761 1,195 10 168 16,134
Realized foreign exchange loss (5) — — (9) (14)
Share-based payment expense — — — 857 857
Transaction costs — — — 227 227
Non-recurring compensation expenses — — — 1,560 1,560
Adjusted EBITDA $ 83,765 $ (116) $ (533) $ (7,139) $ 75,977
For the six 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) $ 55,183 $ (1,172) $ 157 $ (5,531) $ 48,637
Finance (income) expense, net 3,280 (271) 79 7,346 10,434
Current and deferred income tax expense
(recovery) 17,016 — — (14,870) 2,146
Depreciation and depletion 16,582 1,413 5 95 18,095
EBITDA $ 92,061 $ (30) $ 241 $ (12,960) 79,312
Unrealized foreign exchange (gain) loss — (508) (743) 942 (309)
Share-based payment expense — — — 2,602 2,602
Transaction costs — — — 1,164 1,164
Other income (24) (75) (32) — (131)
Adjusted EBITDA $ 92,037 $ (613) $ (534) $ (8,252) $ 82,638
(unaudited in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 75,445 $ (2,026) $ (539) $ (12,114) $ 60,766
Depreciation and depletion 16,582 1,413 5 95 18,095
Realized foreign exchange gain 10 — — 1 11
Share-based payment expense — — — 2,602 2,602
Transaction costs — — — 1,164 1,164
Adjusted EBITDA $ 92,037 $ (613) $ (534) $ (8,252) $ 82,638
As at June 30, 2024 and December 31, 2023
As at June 30, 2024, and December 31, 2023 the Company had trailing 12 months Adjusted EBITDA as follows:
(unaudited in thousands of US Dollars)
June 30,
2024
December 31,
2023
For the three months ended June 30, 2024 $ 32,810 $ —
For the three months ended March 31, 2024 43,167 —
For the three months ended December 31, 2023 29,509 29,509
For the three months ended September 30, 2023 19,655 19,655
For the three months ended June 30, 2023 — 39,677
For the three months ended March 31, 2023 — 42,961
Trailing 12 months Adjusted EBITDA $ 125,141 $ 131,802