Itafos Continues Momentum, Reporting Robust Q3 2024 Outcomes

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HOUSTON, Nov. 06, 2024 (GLOBE NEWSWIRE) — Itafos Inc. (TSX-V: IFOS) (“Itafos” or the “Firm”) immediately reported its Q3 2024 monetary outcomes and supplied a company replace. The Firm’s monetary statements and administration’s dialogue and evaluation for the three and 9 months ended September 30, 2024, can be found underneath the Firm’s profile at www.sedarplus.ca and on the Firm’s web site at www.itafos.com. All figures are in 1000’s of US {Dollars} besides as in any other case famous.

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CEO Commentary

“We’re happy to report Itafos has continued its momentum of excellent operational and monetary efficiency into Q3 2024. This quarter, we delivered Adjusted EBITDA of $38 million, up 93% on the corresponding interval final yr. We additionally proceed to make vital progress on our strategic priorities with the H1/NDR mission remaining on schedule for continuation of ore deliveries at our Conda facility in 2025,” mentioned David Delaney, Chief Govt Officer of Itafos. “In the course of the quarter, we additionally introduced the profitable refinancing of our credit score services, offering extra liquidity and monetary flexibility to the Firm. Lastly, we have been additionally happy to announce that we entered into an settlement to promote our Araxá mission, which is able to unlock worth related to our abroad asset portfolio. The anticipated closing of the sale has been moved again to Q1 2025 because the purchaser works to fulfill the circumstances required for completion of the transaction.”

Q3 2024 Monetary Highlights

For Q3 2024, the Firm’s monetary highlights have been as follows:

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• Revenues of $120.0 million in Q3 2024 in comparison with $110.8 million in Q3 2023;
• Adjusted EBITDA¹ of $38.0 million in Q3 2024 in comparison with $19.7 million in Q3 2023;
• Internet revenue of $18.3 million in Q3 2024 in comparison with $3.1 million in Q3 2023;
• Fundamental earnings of C$0.13/share in Q3 2024 in comparison with C$0.02/share in Q3 2023; and
• Free money stream¹ of $(22.4) million in Q3 2024 in comparison with $(21.2) million in Q3 2023.

The development within the Firm’s Q3 2024 monetary efficiency in comparison with the corresponding interval within the prior yr was primarily as a result of larger realized costs at Conda and better sulfuric acid and dry product gross sales at Arraias, which have been partially offset by decrease gross sales volumes at Conda which have been impacted by the deliberate massive scope turnaround in June 2024.

The Firm’s complete capex¹ spend in Q3 2024 was $21.1 million in comparison with $16.3 million in Q3 2023, with the rise primarily as a result of improvement actions at Husky 1 / North Dry Ridge (“H1/NDR”).

On September 6, 2024, the Firm refinanced its current $85 million time period mortgage (with $35.4 million excellent) and $35 million letter of credit score facility (the “Present Time period Mortgage Settlement”) with a brand new $100 million dedication and $30 million letter of credit score facility, whereas additionally extending the maturity dates underneath its Present Time period Mortgage Settlement and revolving asset-based credit score facility (“Amended ABL Facility”).

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9M 2024 Monetary Highlights

For 9M 2024, the Firm’s monetary highlights have been as follows:

• Revenues of $353.1 million in 9M 2024 in comparison with $346.5 million in 9M 2023;
• Adjusted EBITDA of $114.0 million in 9M 2024 in comparison with $102.3 million in 9M 2023;
• Internet revenue of $58.2 million in 9M 2024 in comparison with $51.7 million in 9M 2023;
• Fundamental earnings of C$0.41/share in 9M 2024 in comparison with C$0.37/share in 9M 2023; and
• Free money stream of $37.8 million in 9M 2024 in comparison with $36.7 million in 9M 2023.

The development within the Firm’s 9M 2024 monetary efficiency in comparison with 9M 2023 was primarily as a result of larger realized costs at Conda and better sulfuric acid and dry product gross sales at Arraias, which have been partially offset by decrease gross sales volumes at Conda that are a results of the deliberate massive scope turnaround upkeep in Q2 2024.

The Firm’s complete capex spend in 9M 2024 was $57.7 million in comparison with $37.2 million in 9M 2023, with the rise primarily as a result of improvement actions at H1/NDR and the deliberate massive scope turnaround upkeep at Conda, in addition to the deliberate sulfuric acid plant turnaround upkeep at Arraias.

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As of September 30, 2024, the Firm’s monetary highlights have been as follows:

• Trailing 12 months Adjusted EBITDA² of $143.5 million;
• Internet debt² of $39.1 million; and
• Internet leverage ratio² of 0.3x.

Current Developments

Sale of the Araxá Challenge

• On August 5, 2024, the Firm entered into an settlement to promote its 100% curiosity within the Araxá mission to a wholly-owned subsidiary of St George Mining Restricted (“St George”) (ASX: SGQ) in trade for a money cost of $21 million and securities of St George (the “Transaction”). Upon the closing of the Transaction, St George will not directly purchase the entire excellent securities of Itafos Araxá Mineração e Fertilizantes S.A (“Itafos Araxá”). The Firm and St George are within the technique of negotiating sure amendments to the sale settlement for the sale of Itafos Araxá to permit St George extra time to fulfill the circumstances required for completion of the Transaction. Whereas the important thing phrases of the sale settlement, together with the acquisition worth, are anticipated to stay unchanged, the amendments to the sale settlement will end in a delay in closing the Transaction. The Transaction is now anticipated to shut in Q1 2025.

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FY 2024 Market and Monetary Outlook

Market Outlook

Phosphate pricing elevated in Q3 2024 following a rebound from late spring and early summer season reset pricing in Q2 2024. All through the autumn utility season, costs have largely remained resilient as a result of an absence of stock available in the market, good fall and winter on-farm demand, and provide disruptions as a result of hurricanes within the Southeast US. Transferring ahead, the Firm expects comparatively flat pricing via This autumn 2024 and into Q1 2025 as demand ought to stay sturdy and inventories low.

Particular elements the Firm expects to assist pricing within the international phosphate fertilizer markets via the tip of 2024 are as follows:

• Low stock ranges within the North American market and continued energy in international demand;
• Ongoing export restrictions from China; and
• No vital changes in international commerce flows, significantly to the North American market.

Monetary Outlook

The Firm revised its steering for 2024 as follows:

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Q3 and 9M 2024 Market Highlights

MAP New Orleans (“NOLA”) costs averaged $636/st in Q3 2024 in comparison with $589/st in Q3 2023, up 8% year-over-year, and averaged $606/st in 9M 2024 in comparison with $560/st in 9M 2023, up 8% year-over-year.

Particular elements driving the year-over-year improve in MAP NOLA costs have been as follows:

• The tightening of MAP provide into the North American market and elevated international demand;
• Very low stock all through provide chain within the North American market; and
• Persevering with export restrictions from China.

September 30, 2024, Highlights

As at September 30, 2024, the Firm had trailing 12 months Adjusted EBITDA of $143.5 million in comparison with $131.8 million on the finish of 2023, with the rise primarily as a result of identical elements that resulted in larger Adjusted EBITDA.

As at September 30, 2024, the Firm had internet debt of $39.1 million in comparison with $61.3 million on the finish of 2023, with the discount primarily as a result of larger money and money equivalents, which was partially offset by larger debt as a result of refinancing in Q3 2024. The Firm’s internet debt as at September 30, 2024, was comprised of $65.3 million in money and $104.4 million in debt (gross of deferred financing prices). As at September 30, 2024, and December 31, 2023, the Firm’s internet leverage ratio was 0.3x and 0.5x, respectively.

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As at September 30, 2024, the Firm had liquidity⁴ of $145.3 million comprised of $65.3 million in money and $80 million in undrawn borrowing capability underneath its Amended ABL Facility in comparison with 40 million on the finish of the corresponding interval within the prior yr.

Operations Highlights and Mine Growth

Environmental, Well being, and Security (“EHS”)

• For Q3 2024, sustained EHS efficiency, together with no reportable environmental releases and two recordable incidents, which resulted in a consolidated complete recordable incident frequency price (“TRIFR”) of 0.89.
• For 9M 2024, sustained EHS efficiency, together with no reportable environmental releases and eight recordable incidents, which resulted in a consolidated TRIFR of 0.89.

Conda

In Idaho, the Firm continues to construct out infrastructure and work in the direction of realizing the H1/NDR mission and increasing the mine lifetime of Conda to 2037, an estimate confirmed by the up to date NI 43-101 Technical Report the Firm acquired in April of this yr. H1/NDR stays on schedule, on funds and the Firm continues to count on to ship first ore from H1/NDR within the second half of 2025.

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In Q3 2024, Conda:

• Produced 92,311 tonnes P₂O₅ in comparison with 87,976 tonnes P₂O₅ in Q3 2023, with the rise primarily as a result of larger recoveries and diminished downtime after the profitable deliberate massive scope plant turnaround upkeep, which drove larger throughput;
• Generated revenues of $110.7 million in comparison with $106.8 million in Q3 2023, with the rise primarily as a result of larger realized costs ensuing from improved market dynamics, which have been partially offset by decrease gross sales volumes; and
• Generated Adjusted EBITDA of $37.7 million in comparison with $23.7 million in Q3 2023, with the rise primarily as a result of larger realized costs and decrease money prices.

In 9M 2024, Conda:

• Produced 252,090 tonnes P₂O₅ in comparison with 253,311 tonnes P₂O₅ in 9M 2023;
• Generated revenues of $335.4 million in comparison with $335.7 million in 9M 2023; and
• Generated Adjusted EBITDA of $121.4 million in comparison with $115.8 million in 9M 2023 with the rise primarily as a result of larger realized costs and decrease money prices, which have been partially offset by decrease gross sales volumes as a result of deliberate massive scope turnaround upkeep.

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Arraias

In Q3 2024, Arraias:

• Produced 37,650 tonnes of sulfuric acid in comparison with 25,851 tonnes in Q3 2023, with the rise primarily as a result of larger buyer demand in Q3 2024 and acid consumption with the beginning of Partially Acidulated Phosphate Rock (“PAPR”) manufacturing;
• Produced 12,719 tonnes P₂O₅ of Direct Utility Phosphate Rock (“DAPR”) and PAPR in comparison with 4,553 tonnes P₂O₅ of DAPR in Q3 2023, with the rise as a result of full quarter of DAPR and PAPR manufacturing and gross sales per Fertilizer Restart Program; and
• Generated Adjusted EBITDA of $3.7 million in comparison with $0.1 million loss in Q3 2023, with the advance primarily as a result of sulfuric acid gross margin will increase pushed by decrease manufacturing value, larger costs, larger manufacturing quantity, and the beginning of PAPR gross sales throughout Q3 2024.

In 9M 2024, Arraias:

• Produced 87,518 tonnes of sulfuric acid in comparison with 54,988 tonnes in 9M 2023, with the rise as a result of larger buyer demand and acid consumption with the beginning of PAPR manufacturing;
• Produced 16,513 tonnes P₂O₅ of DAPR and PAPR in comparison with 4,553 tonnes P₂O₅ of DAPR in 9M 2023, with the rise as a result of full half yr of DAPR and PAPR manufacturing and gross sales per Fertilizer Restart Program; and
• Generated Adjusted EBITDA of $3.5 million in comparison with $0.7 million loss in 9M 2023, with the advance as a result of sulfuric acid gross margin will increase pushed by decrease manufacturing value, larger manufacturing quantity, and the beginning of PAPR gross sales throughout Q3 2024.

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About Itafos

Itafos is a phosphate and specialty fertilizer firm with companies and initiatives spanning three continents:

• Conda – a vertically built-in phosphate fertilizer enterprise positioned in Idaho, US, with the next manufacturing capability:
  • roughly 550kt per yr of monoammonium phosphate (“MAP”), MAP with micronutrients (“MAP+”), superphosphoric acid (“SPA”), service provider grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”)
  • roughly 27kt per yr of hydrofluorosilicic acid (“HFSA”)
• Arraias – a vertically built-in phosphate fertilizer enterprise positioned in Tocantins, Brazil, with the next manufacturing capability:
  • roughly 500kt per yr of single superphosphate (“SSP”) and SSP with micronutrients (“SSP+”)
  • roughly 40kt per yr of extra sulfuric acid (220kt per yr gross sulfuric acid manufacturing capability)
• Farim – a high-grade phosphate mine mission positioned in Farim, Guinea-Bissau
• Santana – a vertically built-in high-grade phosphate mine and fertilizer plant mission positioned in Pará, Brazil
• Araxá – a vertically built-in uncommon earth components and niobium mine and extraction plant mission positioned in Minas Gerais, Brazil, which the Firm has entered into an settlement to promote to a wholly-owned subsidiary of St George Mining Restricted.

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Itafos is a Delaware company headquartered in Houston, Texas, with shares buying and selling on the TSX Enterprise Trade underneath the ticker “IFOS”. The Firm’s principal shareholder is CL Fertilizers Holding LLC (“CLF”), an affiliate of worldwide personal funding agency Castlelake, L.P.

For extra data, or to hitch the Firm’s mailing checklist, please go to www.itafos.com.

Ahead-Wanting Data

Sure data contained on this information launch constitutes forward-looking data, together with statements with respect to: the Firm’s 2024 monetary steering; the sale of Araxá, together with the timing for completion; the Firm’s deliberate operations and methods; the timing for the infrastructure works at H1/NDR and first ore deliveries from H1/NDR; the anticipated useful resource lifetime of H1/NDR; and financial and market developments with respect to the worldwide agriculture and phosphate fertilizer markets. All data apart from data of historic truth is forward-looking data. Statements that handle actions, occasions or developments that the Firm believes, expects or anticipates will or could happen sooner or later embrace, however aren’t restricted to, statements relating to estimates and/or assumptions in respect of the Firm’s monetary and enterprise outlook are forward-looking data. The usage of any of the phrases “intend”, “anticipate”, “plan”, “proceed”, “estimate”, “count on”, “could”, “will”, “mission”, “ought to”, “would”, “consider”, “predict” and “potential” and comparable expressions are supposed to establish forward-looking data.

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The forward-looking data contained on this information launch relies on the opinions, assumptions and estimates of administration, which administration believes are cheap as on the date the statements are made. These opinions, assumptions and estimates are inherently topic to quite a lot of dangers and uncertainties and different recognized and unknown elements that might trigger precise occasions or outcomes to vary materially from these projected within the forward-looking data. These embrace the Firm’s expectations and assumptions with respect to the next: commodity costs; working outcomes; security dangers; adjustments to the Firm’s mineral reserves and sources; threat that timing of anticipated allowing is not going to be met; adjustments to mine improvement and completion; overseas operations dangers; adjustments to regulation; environmental dangers; the impression of climate and local weather change; dangers associated to asset retirement obligations, basic financial adjustments, together with inflation and overseas trade charges; the actions of the Firm’s opponents and counterparties; financing, liquidity, credit score and capital dangers; the lack of key personnel; impairment dangers; cybersecurity dangers; dangers referring to transportation and infrastructure; adjustments to gear and suppliers; focus dangers, hostile litigation; adjustments to allowing and licensing; geo-political dangers; lack of land title and entry rights; adjustments to insurance coverage and uninsured dangers; the potential for malicious acts; market and inventory worth volatility; adjustments to expertise, innovation or synthetic intelligence; adjustments to tax legal guidelines; the danger of working in overseas jurisdictions; the dangers posed by a controlling shareholder and different conflicts of curiosity; dangers associated to reputational harm, the danger related to epidemics, pandemics and public well being; the dangers related to environmental justice; and any dangers associated to inner controls over monetary reporting dangers. Readers are cautioned that the foregoing checklist of dangers, uncertainties and assumptions isn’t exhaustive.

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Though the Firm has tried to establish essential elements that might trigger precise actions, occasions or outcomes to vary materially from these described within the forward-looking data, there could also be different elements that trigger actions, occasions or outcomes to not be as anticipated, estimated or supposed. Further dangers and uncertainties affecting the forward-looking data contained on this information launch are described in larger element within the Firm’s Annual Data Kind and present Administration’s Dialogue and Evaluation out there underneath the Firm’s profile on SEDAR+ at www.sedarplus.ca and on the Firm’s web site at www.itafos.com. There could be no assurance that forward-looking data will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such data. The reader is cautioned to not place undue reliance on forward-looking data. The Firm undertakes no obligation to replace forward-looking statements if circumstances or administration’s estimates, assumptions or opinions ought to change, besides as required by relevant securities regulation. The forward-looking data included on this information launch is expressly certified by this cautionary assertion and is made as of the date of this information launch.

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This information launch comprises future-oriented monetary data and monetary outlook data (collectively, “FOFI”) in regards to the Firm’s potential outcomes of operations, together with statements relating to anticipated Adjusted EBITDA, internet revenue, fundamental earnings per share, upkeep capex, development capex and free money stream. FOFI is topic to the identical assumptions, threat elements, limitations and {qualifications} as set forth within the above paragraph. The Firm has included the FOFI to offer an outlook of administration’s expectations relating to anticipated actions and outcomes, and such data will not be acceptable for different functions. The Firm and administration consider that the FOFI has been ready on an inexpensive foundation, reflecting administration’s cheap estimates and judgements; nonetheless, precise outcomes of operations and the ensuing monetary outcomes could differ from the quantities set forth herein. Any monetary outlook data speaks solely as of the date on which it’s made and the Firm undertakes no obligation to publicly replace or revise any monetary outlook data besides as required by relevant securities legal guidelines.

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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 additional data, please contact:

Matthew O’Neill
Govt Vice President & Chief Monetary Officer
investor@itafos.com
713-242-8446

For Media and Investor Relations:

irlabs
Alyssa Barry
Principal and Co-Founder
alyssa@irlabs.ca
1-833-947-5227

Scientific and Technical Data

The scientific and technical data contained on this information launch associated to Mineral Sources for Conda and Farim has been reviewed and accredited by Jerry DeWolfe, Skilled Geologist (P.Geo.) with the Affiliation of Skilled Engineers and Geoscientists of Alberta. Mr. DeWolfe is a full-time worker of WSP Canada Inc. and is unbiased of the Firm. The scientific and technical data contained on this information launch associated to Mineral Reserves for Conda and Farim has been reviewed and accredited by Terry Kremmel, Skilled Engineer (P.E.) licensed by the States of Missouri and North Carolina. Mr. Kremmel is a full-time worker of WSP USA, Inc. and is unbiased of the Firm. The Firm’s newest technical report in respect of Conda is entitled, “NI 43-101 Technical Report Itafos Conda Challenge, Idaho, USA,” with an efficient date of July 1, 2023 (the “Conda Technical Report”) and is out there underneath the Firm’s web site at www.itafos.com and underneath the Firm’s profile on SEDAR+ at www.sedarplus.ca.

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Non-IFRS Monetary Measures

This press launch comprises each IFRS and sure non-IFRS measures that administration considers to guage the Firm’s operational and monetary efficiency. Non-IFRS measures are a numerical measure of an organization’s efficiency, that both embrace or exclude quantities that aren’t usually included or excluded from probably the most instantly comparable IFRS measures. Administration believes that the non-IFRS measures present helpful supplemental data to buyers, analysts, lenders and others. In evaluating non-IFRS measures, buyers, analysts, lenders and others ought to think about that non-IFRS measures would not have any standardized which means underneath IFRS and that the methodology utilized by the Firm in calculating such non-IFRS measures could differ amongst corporations and analysts. Non-IFRS measures shouldn’t be thought-about as an alternative to, nor superior to, measures of economic efficiency ready in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to probably the most instantly comparable IFRS measures are included under.

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DEFINITIONS

The Firm defines its non-IFRS measures as follows:

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EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA

For the three months ended September 30, 2024 and 2023

For the three months ended September 30, 2024, the Firm had EBITDA and Adjusted EBITDA by phase as follows:

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For the three months ended September 30, 2023, the Firm had EBITDA and Adjusted EBITDA by phase as follows:

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For the 9 months ended September 30, 2024 and 2023

For the 9 months ended September 30, 2024, the Firm had EBITDA and Adjusted EBITDA by phase as follows:

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For the 9 months ended September 30, 2023, the Firm had EBITDA and Adjusted EBITDA by phase as follows:

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As at September 30, 2024, and December 31, 2023

As at September 30, 2024, and December 31, 2023, the Firm had trailing 12 months Adjusted EBITDA as follows:

TOTAL CAPEX

For the three months ended September 30, 2024 and 2023

For the three months ended September 30, 2024, the Firm had capex by phase as follows:

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For the three months ended September 30, 2023, the Firm had capex by phase as follows:

For the 9 months ended September 30, 2024 and 2023

For the 9 months ended September 30, 2024, the Firm had capex by phase as follows:

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For the 9 months ended September 30, 2023, the Firm had capex by phase as follows:

NET DEBT AND NET LEVERAGE RATIO

As at September 30, 2024, and December 31, 2023, the Firm had internet debt and internet leverage ratio as follows:

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LIQUIDITY

As at September 30, 2024, and December 31, 2023, the Firm had liquidity as follows:

FREE CASH FLOW

For the three and 9 months ended September 30, 2024 and 2023, the Firm had free money stream as follows:

CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

For the three and 9 months ended September 30, 2024 and 2023, the Firm had company promoting, basic and administrative bills as follows:

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^{¹ Adjusted EBITDA, free money stream, and complete capex are every a non-Worldwide Monetary Reporting Requirements (“IFRS”) monetary measure. The Firm experiences non-IFRS monetary measures to handle and consider its enterprise. See “Non-IFRS Monetary Measures” part under for extra data on non-IFRS measures and a reconciliation to probably the most comparable IFRS monetary measures.
² Trailing 12 months Adjusted EBITDA, internet debt, internet leverage ratio, complete capex; company promoting, basic and administrative bills; upkeep capex, and development capex are every a non-IFRS monetary measure. See “Non-IFRS Monetary Measures” part under for extra data on non-IFRS measures and a reconciliation to probably the most comparable IFRS monetary measures.
³ Gross sales volumes mirror amount in P2O5 of Conda gross sales projections.
⁴ Liquidity is a non-IFRS monetary measure. See “Non-IFRS Monetary Measures” part under for extra data on non-IFRS measures and a reconciliation to probably the most comparable IFRS monetary measures.}

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