Intrepid Potash Inc. reported its results for the 3Q16 and first nine months of 2016.
Third quarter results
- Net loss of US$18.2 million, or US$0.24 per diluted share, compared with net loss of US$8.1 million in the 3Q15.
- Potash pricing drives potash sales revenue decline of 16% to US$35.4 million in the third quarter of 2016 compared with the third quarter of 2015, partially offset by volume increase of 34%.
- Trio® sales revenue declines 29% to US$8.3 million in the third quarter of 2016 driven by 28% decline in average net realised sales prices per ton.
- Adjusted net loss1 of US$17.5 million, or US$0.23 per diluted share, compared with adjusted net loss of US$4.0 million, or US$0.06 per diluted share, in the third quarter of 2015.
- Net loss of US$50.1 million, or US$0.66 per diluted share. Potash sales revenue declined to US$128.2 million from US$189.8 million in the first nine months of 2015 on 10% increase in sales volume.
- Trio® sales revenue declined to US$40.5 million on sales volume of 108 000 t.
- Adjusted net loss of US$47.4 million, or US$0.63 per diluted share.
- Cash, cash equivalents, and investments as of 30 September 2016, of US$27.9 million prior to US$16.2 million payment to noteholders on 3 October 2016.
- On 31 October 2016, Intrepid announced the completion of its debt negotiations, resulting in amendments to the Company's senior notes as well as a new revolving credit facility, which provides up to US$35 million in borrowing capacity, subject to a borrowing base limitation.
"The transition of our business model to a lower-cost solar potash and specialty Trio® producer accelerated this quarter with the idling of West in early July and the completion of commissioning at East," commented Bob Jornayvaz, Intrepid's Executive Chairman, President and CEO. "During the third quarter, we reached our goal of achieving an annualised Trio® production run rate of double our 2015 production. We continue to focus on expanding our global presence for Trio®, which we believe is a compelling product for chloride-sensitive crops. We are starting to see a more supportive selling environment for potash as pricing has firmed. Moving into 2017, we anticipate seeing some benefit to our potash gross margin as our lower-cost solar facility production becomes a greater proportion of our potash sales."
Jornayvaz continued: "The recent completion of our debt negotiations provides a much anticipated positive catalyst for our business and our various stakeholders. My sincere thanks to our noteholders, Bank of Montreal, their advisors and the Intrepid team for their hard work during these last several months towards driving this to a successful conclusion."
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