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Intrepid Potash releases 1Q20 results

Published by
World Fertilizer,


Intrepid Potash has reported its results for 1Q20.

Highlights

  • Cash flow from operations of US$14.8 million.
  • Net loss of US$7.4 million, or US$0.06 per share, driven by a one-time litigation settlement with Mosaic.
  • Adjusted net loss of US$2 million, or US$0.02 per share.
  • Adjusted EBITDA of US$8.8 million.
  • Highly restricted sale of 320 acres of Intrepid South fee land for US$4.8 million, resulting in a US$4.7 million gain.

"We have taken significant steps to assist our employees and communities as we work through the impacts of the Covid-19 pandemic." said Bob Jornayvaz, Intrepid's Executive Chairman, President, and CEO. "For our communities, we donated our stockpile of personal protective gear to the local hospital in Moab, Utah and continue our outreach and support of the hospitals and clinics near all our operating sites. As an essential business that supports agriculture, animal feed, and the oil and gas industry, we take our responsibilities seriously. We took decisive steps to safeguard our employees, contractors, and visitors early in March and our facilities continue to operate at normal rates. We established work at home policies for support staff while taking the necessary precautions at our mine sites, including staggered schedules, additional cleaning protocols, visitor limitations, and social distancing whenever possible. We also acknowledge the considerable mental, physical and financial stress caused by the pandemic, and we have provided our employees with resources to support their wellbeing. I'm continually impressed by the strength and resilience of our employees, their families, and the communities where we live and work. It will remain our top priority to support all these groups as we work through these challenging times together."

Jornayvaz continued: "Good weather across our key regions resulted in robust potash and Trio® sales volumes and we saw strong demand in higher-priced international Trio® markets and from our water customers during the quarter. This led to better than expected cash from operations during the quarter as we continue to adjust to the uncertainties of the Covid-19 pandemic. In response to the Covid-19 pandemic we reduced our 2020 capital investment guidance to US$15-US$20 million to conserve cash and we continue to focus on cost reductions across the organisation. While we operate in one of the best oil and gas basins in the United States, recent decreases in the price and demand for oil have created uncertainty in operator's completion schedules and we expect reduced demand for water for the remainder of the year. Despite the downturn in demand, we executed on our strategy to monetise the South ranch in multiple ways through a heavily restricted sale of fee land. In the sale, we retained all water rights, surface access, and limited the use of caliche on the property to prevent sales to third parties. We are working on several other projects with operators in the area as we look to maximise the value of this unique asset. Looking ahead, we expect our diversified revenue streams will help us manage through this ever-changing time and we remain confident in the long-term potential of our company."

Read the article online at: https://www.worldfertilizer.com/potash/08052020/intrepid-potash-releases-1q20-results/

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