HOUSTON, Nov. 05, 2025 (GLOBE NEWSWIRE) -- 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 are available under the Company's profile at www.sedarplus.ca and on the Company's website at www.itafos.com. All figures are in thousands of US Dollars except as otherwise noted. A recorded webcast of management's commentary reviewing the 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 Company maintained its exceptional operational and safety performance. We were able to take advantage of a fundamentally strong phosphate market by sustaining industry-leading production rates at Conda and sales volume growth through the introduction of new dry fertilizer products at Arraias.
Adjusted EBITDA(1) 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 reclamation 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 infrastructure with the ultimate goal to extend 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 off recent highs driven by farmer affordability concerns, tight supply / demand dynamics 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 EBITDA1 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 earnings1 of C$0.26/share in Q3 2025 compared to C$0.13/share in Q3
2024; and
-- Free cash flow1 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.
The Company's total capex(2) 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 compared 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 adjusted EBITDA compared to 9M 2024 was primarily 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 EBITDA2 of $165.5 million; -- Net debt2 of $6.1 million; and -- Net leverage ratio2 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 Araxá 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 the sale of 364,004,128 SGQ Shares
was $21.8 million, net of the exercise price of the options.
Sale of the Araxá Project
On November 5, 2025, St George made payment of the deferred cash consideration totaling $11 million (less withholding tax payable) 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 record 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 dividend in Canadian dollars. Registered shareholders who are resident outside of Canada as reflected 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 calculated 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 provisions of an applicable tax treaty. Both U.S. and non-U.S. resident registered shareholders should complete the appropriate tax forms and submit them to Itafos' transfer agent, TSX Trust Company, to be 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 prices have moderated off the Q3 highs, prices today remain above the historical five-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 expected 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 P(2) O(5) )(3) 345-355 Corporate selling, general and administrative expenses(4) $15-17 Maintenance capex(4) $16-20 Growth capex(4) $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, particularly from Africa, India and
Brazil; and
-- uncertainty surrounding US trade policy and imposition of tariffs on
imported products.
September 30, 2025, Highlights
As of September 30, 2025, the Company had trailing 12 months Adjusted EBITDA of $165.5 million compared to $159.5 million as of December 31, 2024 with the increase primarily due to the same factors that resulted 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 liquidity(4) 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, including 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, including 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 P2O5 compared to 92,311 tonnes P2O5 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 compared 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 2024 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 P2O5 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 compared 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 authorization 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").
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 project to extend mine life beyond the current NI 43-101 - Standards of Disclosures for Mineral Projects ("NI 43-101") estimate of mid-2037. To pursue this objective, the Company has commenced a multi-year, multi-lease exploration program, resource evaluation and 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 initial 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 identify 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 approvals. These geographically near field opportunities have the potential to extend mine life beyond the current NI 43-101 estimate of mid-2037 in an efficient manner with the objective of utilizing the 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 P2O5, compared to 12,719 tonnes P2O5 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 P2O5 of DAPR and PAPR compared to 16,513 tonnes
P2O5 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 higher 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 reviews 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, 2025 at 4:30 p.m. ET. The webcast will be available on the Presentations & Events page of the Company's website www.itafos.com/investors/presentations-fact-sheets/ and will be available for 90 days.
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 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; and
-- Santana -- a vertically integrated high-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$(R)$ 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 dividend; Company guidance; import and export tariffs; 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 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, 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 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, corporate selling, general and administrative 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 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.
Contacts:
For Investor Relations:
Matthew O'Neill
Executive Vice President & Chief Financial Officer
investor@itafos.com
713-242-8446
For Media:
Alliance Advisors IR
Fatema Bhabrawala
Director, Media Relations
fbhabrawala@allianceadvisors.com
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 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 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 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 Definition Most directly Why the Company
measure comparable uses the measure
IFRS measure
----------------- --------------------- ----------------- ----------------------
EBITDA Earnings before Net income EBITDA is a
interest, taxes, (loss) and valuable indicator
depreciation, operating of the Company's
depletion and income (loss) ability to generate
amortization operating income
Adjusted EBITDA adjusted Net income Adjusted EBITDA is
EBITDA for non-cash, (loss) and a valuable
extraordinary, operating indicator of the
non-recurring and income (loss) Company's ability
other items to generate
unrelated to the operating income
Company's core from its core
operating operating
activities 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 Basic earnings per Basic earnings The Company
(C$/share) share denominated ($/share) considers that
in US dollars basic earnings
($/share) divided (C$/share) is a
by the average useful indicator to
exchange rate C$/$ investors given
during the that the Company's
period. shares primarily
trade in C$
Trailing 12 Adjusted EBITDA Net income The Company uses
months for the current (loss) and the trailing 12
Adjusted and preceding operating months Adjusted
EBITDA three quarters income (loss) EBITDA in the
for the calculation of the
current and net leverage ratio
preceding (non-IFRS measure)
three
quarters
Total capex Additions to Additions to The Company uses
property, plant, property, total capex in the
and equipment and plant and calculation of
mineral properties equipment and total cash capex
adjusted for mineral (non-IFRS measure)
additions to asset properties
retirement
obligations,
additions to
right-of-use
assets and
capitalized
interest
Maintenance Portion of total Additions to Maintenance capex
capex capex relating to property, is a valuable
the maintenance of plant and indicator of the
ongoing equipment and Company's required
operations mineral capital
properties expenditures to
sustain operations
at existing levels
Growth capex Portion of total Additions to Growth capex is a
capex relating to property, valuable indicator
the development of plant and of the Company's
growth equipment and capital
opportunities mineral expenditures
properties related to growth
opportunities.
Total cash Total capex less Additions to The Company uses
capex accrued capex property, total cash capex in
plant and the calculation of
equipment and cash growth capex
mineral (non-IFRS measure)
properties
Cash Maintenance capex Additions to The Company uses
maintenance less accrued property, cash maintenance
capex maintenance capex plant and capex in the
equipment and calculation of cash
mineral growth capex
properties (non-IFRS measure)
Cash growth Growth capex less Additions to The Company uses
capex accrued growth property, cash growth capex
capex plant and in the calculation
equipment and of free cash flow
mineral (non-IFRS
properties measure).
Net debt Debt less cash and Current debt, Net debt is a
cash equivalents long-term debt valuable indicator
plus deferred and cash and of the Company's
financing costs cash net debt position
(does not consider equivalents as it removes the
lease impact of deferring
liabilities) financing costs.
Net leverage Net debt divided Current debt, The Company's net
ratio by trailing 12 long-term debt leverage ratio is a
months Adjusted and cash and valuable indicator
EBITDA cash of its ability to
equivalents; service its debt
net income from its core
(loss) and operating
operating activities.
income (loss)
for the
current and
preceding
three
quarters
Liquidity Cash and cash Cash and cash Liquidity is a
equivalents plus equivalents valuable indicator
undrawn committed of the Company's
borrowing liquidity
capacity
Free cash flow Cash flows from Cash flows Free cash flow is a
operating from operating valuable indicator
activities, which activities and of the Company's
excludes payment cash flows ability to generate
of interest from investing cash flows from
expense, plus cash activities operations after
flows from giving effect to
investing required capital
activities 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 Corporate selling, Selling, The Company uses
selling, general and general and corporate selling,
general and administrative administrative general and
administrative less share-based expenses administrative
expenses payments expense. expenses to assess
corporate
performance.
EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA
For the three months ended September 30, 2025 and 2024
For the three months ended September 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- ------- --------- ------------- ----------- --------
Net income
(loss) $23,863 $ 5,798 $ (362) $ 6,919 $ 36,218
Finance
(income)
expense, net 1,196 (153) -- 642 1,685
Current and
deferred
income tax
expense 7,755 -- -- 1,198 8,953
Depreciation
and
depletion 13,230 859 -- 78 14,167
------ ----- --------- ------- -------
EBITDA $46,044 $ 6,504 $ (362) $ 8,837 $ 61,023
Unrealized
foreign
exchange
loss -- 70 54 -- 124
Share-based
payment
expense -- -- -- 658 658
Transaction
costs -- -- -- 26 26
Other (income)
expense, net 251 474 -- (13,660) (12,935)
------ ----- --------- ------- -------
Adjusted
EBITDA $46,295 $ 7,048 $ (308) $ (4,139) $ 48,896
-------------- ------ ----- --------- ------- -------
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- ------- --------- ------------- ----------- -------
Operating
income
(loss) $33,067 $ 6,189 $ (308) $ (4,883) $34,065
Depreciation
and
depletion 13,230 859 -- 78 14,167
Realized
foreign
exchange
gain (2) -- -- (18) (20)
Share-based
payment
expense -- -- -- 658 658
Transaction
costs -- -- -- 26 26
-------------- ------ ----- --------- ------- ------
Adjusted
EBITDA $46,295 $ 7,048 $ (308) $ (4,139) $48,896
-------------- ------ ----- --------- ------- ------
For the three months ended September 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- ------- --------- ------------- ----------- -------
Net income
(loss) $17,928 $ 3,271 $ (11) $ (2,902) $18,286
Finance
(income)
expense, net 1,083 (139) 1 395 1,340
Current and
deferred
income tax
expense
(recovery) 8,573 -- -- (2,175) 6,398
Depreciation
and
depletion 9,658 458 3 82 10,201
------ ----- --------- ------- ------
EBITDA $37,242 $ 3,590 $ (7) $ (4,600) 36,225
Unrealized
foreign
exchange
loss -- 54 60 -- 114
Share-based
payment
expense -- -- -- 734 734
Transaction
costs -- -- -- 481 481
Other expense 439 16 2 -- 457
------ ----- --------- ------- ------
Adjusted
EBITDA $37,681 $ 3,660 $ 55 $ (3,385) $38,011
-------------- ------ ----- --------- ------- ------
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- ------- --------- ------------- ----------- -------
Operating
income
(loss) $28,021 $ 3,202 $ 52 $ (4,681) $26,594
Depreciation
and
depletion 9,658 458 3 82 10,201
Realized
foreign
exchange
gain 2 -- -- (1) 1
Share-based
payment
expense -- -- -- 734 734
Transaction
costs -- -- -- 481 481
------ ----- --------- ------- ------
Adjusted
EBITDA $37,681 $ 3,660 $ 55 $ (3,385) $38,011
-------------- ------ ----- --------- ------- ------
For the nine months ended September 30, 2025 and 2024
For the nine months ended September 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- -------- ------- ----------- ----------- --------
Net income
(loss) $ 67,279 $10,278 $ (1,224) $ 20,575 $ 96,908
Finance
(income)
expense, net 3,666 (458) -- 3,142 6,350
Current and
deferred
income tax
expense 19,771 -- -- 3,151 22,922
Depreciation
and
depletion 28,604 2,152 -- 232 30,988
------- ------ ---------- ------- -------
EBITDA $119,320 $11,972 $ (1,224) $ 27,100 $157,168
Unrealized
foreign
exchange
(gain) loss -- (188) 318 -- 130
Share-based
payment
expense -- -- -- 4,535 4,535
Transaction
costs -- -- -- 130 130
Other (income)
expense, net 762 686 -- (43,409) (41,961)
------- ------ ---------- ------- -------
Adjusted
EBITDA $120,082 $12,470 $ (906) $ (11,644) $120,002
-------------- ------- ------ ---------- ------- -------
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- -------- ------- ------------- ----------- --------
Operating
income
(loss) $ 91,484 $10,318 $ (906) $ (16,239) $ 84,657
Depreciation
and
depletion 28,604 2,152 -- 232 30,988
Realized
foreign
exchange
loss (6) -- -- (302) (308)
Share-based
payment
expense -- -- -- 4,535 4,535
Transaction
costs -- -- -- 130 130
------- ------ --------- ------- -------
Adjusted
EBITDA $120,082 $12,470 $ (906) $ (11,644) $120,002
-------------- ------- ------ --------- ------- -------
For the nine months ended September 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- -------- --------- ------------- ----------- --------
Net income
(loss) $ 69,911 $ 1,780 $ (239) $ (13,243) $ 58,209
Finance
(income)
expense, net 3,470 (597) 2 5,217 8,092
Current and
deferred
income tax
expense
(recovery) 22,343 -- -- (6,567) 15,776
Depreciation
and
depletion 24,419 1,653 13 250 26,335
------- ----- --------- ------- -------
EBITDA $120,143 $ 2,836 $ (224) $ (14,343) 108,412
Unrealized
foreign
exchange
(gain) loss -- 1,704 (260) -- 1,444
Share-based
payment
expense -- -- -- 1,591 1,591
Transaction
costs -- -- -- 708 708
Non-recurring
compensation
expenses -- -- -- 1,560 1,560
Other (income)
expense, net 1,303 (996) 6 (40) 273
------- ----- --------- ------- -------
Adjusted
EBITDA $121,446 $ 3,544 $ (478) $ (10,524) $113,988
-------------- ------- ----- --------- ------- -------
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- -------- --------- ------------- ----------- --------
Operating
income
(loss) $ 97,030 $ 1,891 $ (491) $ (14,623) $ 83,807
Depreciation
and
depletion 24,419 1,653 13 250 26,335
Realized
foreign
exchange
gain (3) -- -- (10) (13)
Share-based
payment
expense -- -- -- 1,591 1,591
Transaction
costs -- -- -- 708 708
Non-recurring
compensation
expenses -- -- -- 1,560 1,560
------- ----- --------- ------- -------
Adjusted
EBITDA $121,446 $ 3,544 $ (478) $ (10,524) $113,988
-------------- ------- ----- --------- ------- -------
As of September 30, 2025 and December 31, 2024
As of September 30, 2025, and December 31, 2024 the Company had trailing 12 months Adjusted EBITDA(5) as follows:
September 30, December 31,
(unaudited in thousands of US Dollars) 2025 2024
--------------------------------------- --------------- --------------
For the three months ended September
30, 2025 $ 48,896 $ --
For the three months ended June 30,
2025 31,827 --
For the three months ended March 31,
2025 39,279 --
For the three months ended December 31,
2024 45,473 45,473
For the three months ended September
30, 2024 -- 38,011
For the three months ended June 30,
2024 -- 32,810
For the three months ended March 31,
2024 -- 43,167
----------- ----------
Trailing 12 months Adjusted EBITDA $ 165,475 $ 159,461
--------------------------------------- ----------- ----------
BASIC EARNINGS (C$/SHARE)
For the three and nine months ended September 30, 2025 and 2024, the Company had basic earnings (C$/share) as follows:
(unaudited in For the three For the nine months thousands of months ended ended September US Dollars September 30, 30, except as otherwise noted) 2025 2024 2025 2024 -------------- ------- ---------- ------- ---------- Basic earnings ($/share) $ 0.19 $ 0.10 $ 0.50 $ 0.30 Basic earnings (C$/share) $ 0.26 $ 0.13 $ 0.70 $ 0.41 Average exchange rate (C$/$) 1.3773 1.3641 1.3988 1.3604 -------------- ------ --------- ------ ---------
TOTAL CAPEX
For the three months ended September 30, 2025 and 2024
For the three months ended September 30, 2025, the Company had capex by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- ------- --------- ------------- ----------- -------
Additions to
property,
plant and
equipment $24,002 $ 712 $ 28 $ 17 $24,759
Additions to
mineral
properties (1,346) 943 67 -- (336)
Additions to
property,
plant and
equipment
related asset
retirement
obligations (533) (128) -- -- (661)
Additions to
right-of-use
assets -- (109) -- -- (109)
Capitalized
interest in
property,
plant, and
equipment and
mineral
properties (2,066) -- -- -- (2,066)
------ ----- --------- ------- ------
Total capex $20,057 $ 1,418 $ 95 $ 17 $21,587
------ ----- --------- ------- ------
Accrued capex 3,800 -- -- -- 3,800
------ ----- --------- ------- ------
Total cash
capex $23,857 $ 1,418 $ 95 $ 17 $25,387
-------------- ------ ----- --------- ------- ------
Maintenance
capex $ 2,002 $ 106 $ -- $ 17 $ 2,125
Accrued
maintenance
capex 467 -- -- -- 467
------ ----- --------- ------- ------
Cash
maintenance
capex $ 2,469 $ 106 $ -- $ 17 $ 2,592
-------------- ------ ----- --------- ------- ------
Growth capex $18,055 $ 1,312 $ 95 $ -- $19,462
Accrued growth
capex 3,333 -- -- -- 3,333
------ ----- --------- ------- ------
Cash growth
capex $21,388 $ 1,312 $ 95 $ -- $22,795
-------------- ------ ----- --------- ------- ------
For the three months ended September 30, 2024, the Company had capex by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- ------- --------- ------------- ----------- -------
Additions to
property,
plant and
equipment $11,633 $ 710 $ -- $ 5 $12,348
Additions to
mineral
properties 18,738 -- 108 -- 18,846
Additions to
property,
plant and
equipment
related asset
retirement
obligations (7,261) (120) -- -- (7,381)
Additions to
right-of-use
assets -- (5) -- -- (5)
Capitalized
interest in
property,
plant, and
equipment and
mineral
properties (2,714) -- -- -- (2,714)
------ ----- --------- ------- ------
Total capex $20,396 $ 585 $ 108 $ 5 $21,094
------ ----- --------- ------- ------
Accrued capex 8,152 -- -- -- 8,152
------ ----- --------- ------- ------
Total cash
capex $28,548 $ 585 $ 108 $ 5 $29,246
-------------- ------ ----- --------- ------- ------
Maintenance
capex $ 2,250 $ 324 $ -- $ 5 $ 2,579
Accrued
maintenance
capex 9,623 -- -- -- 9,623
------ ----- --------- ------- ------
Cash
maintenance
capex $11,873 $ 324 $ -- $ 5 $12,202
-------------- ------ ----- --------- ------- ------
Growth capex $18,146 $ 261 $ 108 $ -- $18,515
Accrued growth
capex (1,471) -- -- -- (1,471)
------ ----- --------- ------- ------
Cash growth
capex $16,675 $ 261 $ 108 $ -- $17,044
-------------- ------ ----- --------- ------- ------
For the nine months ended September 30, 2025 and 2024
For the nine months ended September 30, 2025, the Company had capex by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- -------- --------- ------------- ----------- --------
Additions to
property,
plant and
equipment $ 64,685 $ 6,116 $ 49 $ 17 $ 70,867
Additions to
mineral
properties 7,151 1,168 481 -- 8,800
Additions to
asset
retirement
obligations (1,541) (760) -- -- (2,301)
Additions to
right-of-use
assets (11,710) (420) (15) -- (12,145)
Capitalized
interest in
property,
plant, and
equipment and
mineral
properties (4,905) -- -- -- (4,905)
------- ----- --------- ------- -------
Total capex $ 53,680 $ 6,104 $ 515 $ 17 $ 60,316
------- ----- --------- ------- -------
Accrued capex (2,112) -- -- -- (2,112)
------- ----- --------- ------- -------
Total cash
capex $ 51,568 $ 6,104 $ 515 $ 17 $ 58,204
------- ----- --------- ------- -------
Maintenance
capex $ 14,326 $ 217 $ -- $ 17 $ 14,560
Accrued
maintenance
capex (108) -- -- -- (108)
------- ----- --------- ------- -------
Cash
maintenance
capex $ 14,218 $ 217 $ -- $ 17 $ 14,452
------- ----- --------- ------- -------
Growth capex $ 39,354 $ 5,887 $ 515 $ -- $ 45,756
Accrued growth
capex (2,004) -- -- -- (2,004)
------- ----- --------- ------- -------
Cash growth
capex $ 37,350 $ 5,887 $ 515 $ -- $ 43,752
-------------- ------- ----- --------- ------- -------
For the nine months ended September 30, 2024, the Company had capex by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- ------- --------- ------------- ----------- -------
Additions to
property,
plant and
equipment $32,475 $ 3,725 $ (2) $ 8 $36,206
Additions to
mineral
properties 29,585 -- 495 -- 30,080
Additions to
asset
retirement
obligations (6,171) 646 -- -- (5,525)
Additions to
right-of-use
assets -- (346) 2 -- (344)
Capitalized
interest in
property,
plant, and
equipment and
mineral
properties (2,714) -- -- -- (2,714)
------ ----- --------- ------- ------
Total capex $53,175 $ 4,025 $ 495 $ 8 $57,703
------ ----- --------- ------- ------
Accrued capex (4,911) -- -- -- (4,911)
------ ----- --------- ------- ------
Total cash
capex $48,264 $ 4,025 $ 495 $ 8 $52,792
------ ----- --------- ------- ------
Maintenance
capex $22,966 $ 2,697 $ -- $ 8 $25,671
Accrued
maintenance
capex (23) -- -- -- (23)
------ ----- --------- ------- ------
Cash
maintenance
capex $22,943 $ 2,697 $ -- $ 8 $25,648
------ ----- --------- ------- ------
Growth capex $30,209 $ 1,328 $ 495 $ -- $32,032
Accrued growth
capex (4,888) -- -- -- (4,888)
------ ----- --------- ------- ------
Cash growth
capex $25,321 $ 1,328 $ 495 $ -- $27,144
-------------- ------ ----- --------- ------- ------
NET DEBT AND NET LEVERAGE RATIO
As of September 30, 2025, and December 31, 2024 the Company had net debt and net leverage ratio as follows:
(unaudited in thousands of US Dollars September 30, December 31,
except as otherwise noted) 2025 2024
------------------------------------- --------------- --------------
Current debt $ 11,048 $ 11,163
Long-term debt 79,715 86,804
Cash and cash equivalents (86,681) (74,372)
Deferred financing costs related to
the Credit Facilities 1,997 3,207
----------- ----------
Net debt $ 6,079 $ 26,802
----------- ----------
Trailing 12 months Adjusted EBITDA $ 165,475 $ 159,461
----------- ----------
Net leverage ratio 0.0x 0.2x
------------------------------------- --------------- --------------
LIQUIDITY
As of September 30, 2025, and December 31, 2024 the Company had liquidity as follows:
September 30, December 31,
(unaudited in thousands of US Dollars) 2025 2024
--------------------------------------- --------------- --------------
Cash and cash equivalents $ 86,681 $ 74,372
ABL Facility undrawn borrowing capacity 80,000 80,000
----------- ----------
Liquidity $ 166,681 $ 154,372
--------------------------------------- ----------- ----------
FREE CASH FLOW
For the three and nine months ended September 30, 2025 and 2024, the Company had free cash flow as follows:
For the three months For the nine months
ended September 30, ended September 30,
(unaudited in
thousands of
US Dollars) 2025 2024 2025 2024
Cash flows
from
operating
activities $ 19,753 $ 6,342 $ 85,884 $ 88,853
Cash flows
used by
investing
activities (24,572) (28,771) (48,595) (51,099)
Free cash flow $ (4,819) $ (22,429) $ 37,289 $ 37,754
------- --------- ------- ---------
CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
For the three and nine months ended September 30, 2025 and 2024, the Company had corporate selling, general and administrative expenses as follows:
For the three
months ended For the nine months
September 30, ended September 30,
(unaudited in
thousands of US
Dollars) 2025 2024 2025 2024
--------------- ------ ---------- ------- ----------
Selling,
general and
administrative
expenses $4,883 $ 4,681 $16,239 $ 14,623
Share-based
payments
expense (658) (734) (4,535) (1,591)
----- --------- ------ ---------
Corporate
selling,
general and
administrative
expenses $4,225 $ 3,947 $11,704 $ 13,032
--------------- ----- --------- ------ ---------
________________________________
(1) Adjusted EBITDA, basic earnings, 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").
(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.
(3) Sales volumes reflect quantity in P(2) O(5) of Conda sales projections.
(4) Corporate 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.
(5) Please refer to the press releases issued by the Company relating to the filings for the June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024 periods for the quantitative reconciliation.
(END) Dow Jones Newswires
November 05, 2025 18:46 ET (23:46 GMT)
