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Itafos Reports Q3 2020 Financial Results and Operational Highlights


Itafos Reports Q3 20

iCrowdNewswire   Nov 13, 2020  3:06 PM ET

Itafos reported its Q3 2020 financial results and operational highlights. The Company’s financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2020 are available under the Company’s profile at www.sedar.com and on the Company’s website at www.itafos.com. All dollar values are in thousands of US Dollars except as otherwise noted.

“Q3 2020 was dominated by a significant disruption in sulfuric acid supply at Conda from our primary supplier. Our team did an outstanding job to mitigate the impact by procuring additional sulfuric acid volumes from other third party suppliers and opportunistically conducting certain maintenance activities during times of lower throughput. These efforts, in addition to the continued advancement of our cost savings initiatives and an improving outlook on phosphate fertilizer prices have allowed us to increase the lower end of our 2020 guidance for adjusted EBITDA by $5 million,” said Dr. Mhamed Ibnabdeljalil, CEO of Itafos.

Overall Highlights

For the three months ended September 30, 2020, the Company’s financial highlights were as follows:

For the three months ended September 30, 2020, the Company’s business highlights were as follows:

For the three months ended September 30, 2020, the Company’s other highlights were as follows:

Subsequent Events

Subsequent to September 30, 2020, the Company received a request from the third party provider of surety bonds that guarantee Conda’s obligations under its existing operating and environmental permits to post collateral to cover 20% of the bonded exposure in the form of letter of credit, cash and/or indemnity. As at September 30, 2020, the bonded exposure was $39,757. The Company is currently working with the third party provider and its stakeholders to implement the requested collateral.

Financial Highlights

For the three months ended September 30, 2020 and 2019, the Company’s financial highlights were as follows:

(unaudited in thousands of US Dollars For the three months ended
September 30,
  For the nine months ended
September 30,
 
except for per share amounts) 2020   2019   2020   2019  
Revenues $ 47,638   $ 81,749   $ 185,110   $ 257,999  
Gross margin   (1,701 )   (6,416 )   (14,434 )   (13,528 )
Adjusted EBITDA   (292 )   (95 )   10,244     (295 )
Net loss   (13,788 )   (20,778 )   (52,891 )   (55,706 )
                         
Maintenance capex $ 2,719   $ 2,109   $ 6,220   $ 19,156  
Growth capex   2,158     9,327     5,027     15,507  
Total Capex $ 4,877   $ 11,436   $ 11,247   $ 34,663  
                         
Basic loss per share $ (0.07 ) $ (0.15 ) $ (0.29 ) $ (0.40 )
Fully diluted loss per share $ (0.07 ) $ (0.15 ) $ (0.29 ) $ (0.40 )

 

For the three months ended September 30, 2020 and 2019, the Company’s financial highlights were explained as follows:

As at September 30, 2020 and December 31, 2019, the Company’s financial highlights were as follows:

unaudited in thousands of US Dollars) September 30,
2020
  December 31,
2019
 
Total assets $ 454,135   $ 510,764  
Total liabilities   362,297     368,505  
Net debt   228,936     187,319  
Adjusted net debt   163,159     136,900  
Total equity   91,838     142,259  

 

As at September 30, 2020 and December 31, 2019, the Company’s financial highlights were explained as follows:

Conda Highlights

COVID-19 Risk Mitigation Measures

The Company is closely monitoring potential risks to Conda’s employees, contractors and operations as a result of the COVID-19 pandemic. Conda has been deemed an essential business as part of the fertilizer and agriculture sector and therefore has not been forced to shut down operations on account of the COVID-19 pandemic. The Company is not currently projecting any material impact on Conda’s operations as a result of the COVID-19 pandemic.

In response to the COVID-19 pandemic, the Company has implemented and continued risk mitigation measures at Conda to address potential impacts to its employees, contractors and operations as follows:

As at September 30, 2020, there have been a number of confirmed cases of COVID-19 amongst employees and contractors at Conda. Following such confirmed cases, Conda implemented stringent quarantine and sanitation efforts to isolate such incidents and prevent further spread.

EHS Highlights

For the nine months ended September 30, 2020, Conda continued its strong track record of environmental, health, and safety excellence with no environmental releases and two recordable injuries.

Plant Turnaround

On July 10, 2020, the Company announced its decision to conduct a reduced scope plant turnaround at Conda during July 2020 as part of its risk mitigation measures during the COVID-19 pandemic. On August 20, 2020, the Company announced that Conda completed the reduced scope plant turnaround with no environmental releases or recordable injuries.

Sulfuric Acid Disruption

On August 20, 2020, the Company announced that Conda had been experiencing a significant disruption in sulfuric acid supply from Rio Tinto’s Kennecott mine. Conda fulfills approximately 40% of its sulfuric acid requirements from volumes produced internally and approximately 60% from a combination of volumes received from Rio Tinto’s Kennecott mine under a long-term supply agreement and volumes procured from other third party suppliers. On August 18, 2020, Rio Tinto announced that its Kennecott mine in Utah had experienced delays to the restart of the smelter. According to Rio Tinto’s announcement, such delays to the restart of the smelter were due to unexpected issues that appeared following planned maintenance. Rio Tinto further announced that they were working closely with their customers to limit any disruptions and expected to have the smelter fully operational in two months. The Company has been taking measures to mitigate potential adverse effects of the disruption in sulfuric acid supply to Conda from Rio Tinto’s Kennecott mine, including procuring additional sulfuric acid volumes from other third party suppliers and opportunistically conducting certain maintenance activities during times of lower throughput.

For further information, please contact:

Itafos Investor Relations
investor@itafos.com
www.itafos.com



Contact Information:

Itafos Investor Relations
investor@itafos.com
www.itafos.com








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