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Mar 31, 2024
Intrepid Potash Q1 2024 Earnings Report
Intrepid Potash reported a net loss due to lower pricing for key products, despite increased Trio sales volumes and a solid first quarter performance.
Key Takeaways
Intrepid Potash reported a decrease in sales and a net loss for Q1 2024 compared to the previous year. While Trio sales volumes increased, lower pricing for key products drove down profitability. The company is focused on increasing potash production in the second half of the year to improve unit economics.
Total sales decreased by 9% to $79.3 million compared to Q1 2023.
Net loss was $3.1 million (or $0.24 per diluted share), compared to net income of $4.5 million in Q1 2023.
Adjusted EBITDA decreased to $7.7 million from $16.4 million in the same period last year.
Trio sales volumes increased by 40% while potash sales volumes decreased by 17%.
Intrepid Potash
Intrepid Potash
Intrepid Potash Revenue by Segment
Revenue by Segment
Potash Revenue
CapyFin.comTrio Revenue
CapyFin.comOilfield Solutions Revenue
CapyFin.com Forward Guidance
Intrepid expects potash production to increase in the second half of 2024. The company anticipates a decrease in cash production costs at the East mine and is reviewing deal structures for its sand and lithium projects.
Positive Outlook
- Potash production is expected to increase in the second half of 2024.
- Cash production costs at the East mine are expected to decrease by approximately $8 million to $10 million, or 12% to 15%, when compared to the prior year.
- The company is reviewing deal structures with potential partners to develop the sand resource.
- Construction of PP7 is nearing completion and the pond has started to receive brine.
- Replacement Extraction Well ("IP30B") project remains on schedule to be complete in the second quarter of 2024.
Challenges Ahead
- Reduced potash production during the 2023-2024 production year has constrained sales volumes and negatively impacted unit economics.
- The company incurred a gross deficit of $1.1 million in the Trio segment due to the decrease in average net realized sales price per ton.
- The completion of Eddy Shaft Brine Extraction Project in October 2023, has extracted approximately 205 million gallons of brine, which corresponds to approximately 75 thousand potash product tons.
- HB Injection Pipeline Project Phase Two commissioning is expected in the third quarter of 2024.
- Company is still in the process of reviewing deal structures with potential partners for Lithium Project.
Revenue & Expenses
Visualization of income flow from segment revenue to net income