Intrepid Is the Only U.S. Potash Producer
Having reliable, secure supplies of natural resources is critical for the
United States, and we are proud to be the only domestic producer of muriate of
potash (“potash” or “potassium chloride”). In 2023, we
supplied approximately 2.6% of the U.S.’s total potassium consumption.
Moreover, the proximity of our mines to our customers provides us with
transportation and logistics advantages, which allows us to obtain a higher
average net realized sales price per ton compared to our peers.
Delivering on Key Strategic Priority: Increasing Our Potash Production
Over the past two years, our key strategic priority has been to revitalize our
potash assets to reverse the declining production trend. This involved
numerous projects at our HB, Moab, and Wendover facilities, with the key goals
being twofold: first, help maximize our brine availability; and second,
increase our residence time to develop higher-grade brine. Successfully
accomplishing both goals leads to higher potash production, which drives
top-line growth through increased sales volumes, but more importantly, also
leads to a significant improvement in our unit economics.
Improving Our Unit Economics & We Have Other Opportunities for
Growth
In the second and third quarters of 2024, we delivered higher potash
production compared to the same prior year periods, with further production
increases expected in the coming years. Our unit economics showed meaningful
improvements in the third quarter of 2024, with more to come at higher
production levels. Intrepid remains focused on strong operational execution
and cost discipline, while our byproduct business lines and lithium project at
Wendover provide opportunities for growth.
Strong Balance Sheet & Liquidity Position
Intrepid has no long-term debt and solid liquidity with an untapped $150
million credit facility that matures in August 2027. This positioning offers
protection during downcycles, while allowing Intrepid to take full advantage
of upcycles. A debt-free balance sheet also creates capital optionality, with
the excess cash being available for growth projects or capital return to
shareholders.
Long-Life Reserves & Resources Lowers Terminal Value Risk
Our potash reserves and resources have substantial years of reserve life and
resource life. Reserve life is based on the current mine plan and is estimated
at 25 years for all our potash facilities, while the resource life at our
potash facilities ranges from 33 years to over 100 years. In addition to our
reserves, we have water rights and access to additional mineralized areas of
potash for potential future exploitation. (Please note this data is as of the
2023 Form 10-K.)
Our Fertilizer Products Are Vital for Food Production
Potash and Trio® (which is potassium, magnesium, and sulfate in
a single particle) are essential fertilizers for plant growth, with potash
also being used in various other applications. Farmers in the U.S. and around
the world rely on these fertilizers to improve the quality and yield of their
crops. Historically, global potash demand has seen a CAGR of roughly 2%,
closely tracking population growth.
Commitment to Safety & Sustainability Underpins Our Operations
Intrepid’s potash production comes from solar solution mines. Solar
solution mining is a relatively safe and environmentally friendly production
method. Unlike conventional underground potash mining – which can
require a significant amount of energy produced from hydrocarbons to mine the
potash ore and recover the potash – Intrepid’s potash is produced
from solar energy as the brine evaporates from surface ponds, with most of the
water we use also being returned to the atmosphere.