Itafos Inc V.IFOS

Alternate Symbol(s): MBCF

Chemicals Basic Materials

Itafos Inc. is a phosphate and specialty fertilizer company. Its businesses and projects include Conda, Arraias, Farim, Santana and Araxa. Conda is a vertically integrated phosphate fertilizer business located in Idaho, United States with a production capacity of over 550 Kiloton (kt) per year of mono ammonium phosphate (MAP), merchant grade phosphoric acid (MGA) and ammonium polyphosphate (APP), and approximately 27kt per year of hydrofluorosilicic acid (HFSA). Arraias is a vertically integrated phosphate fertilizer business located in Tocantins, Brazil with a production capacity of approximately 500kt per year of single superphosphate (SSP) and SSP with micronutrients (SSP+). Farim is a phosphate mine project located in Farim, Guinea-Bissau. Santana is a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil. Araxa is a vertically integrated rare earth element and niobium mine and extraction plant project located in Minas Gerais, Brazil.

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Itafos Inc > Record of decision approving the Husky 1 North Dry Ridge

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Comment by MineralRunner1on Apr 23, 2023 6:40pm

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Post# 35409655

RE:Record of decision approving the Husky 1 North Dry Ridge

Well done Itafos!. This was expected - a mining friendly jurisdiction, the formation of a strategic review committee well in advance, optimistic recent press releases, the hiring of a new CFO with M&A expertise, a new board member from CL Ferilizers, a killer new presentation (great job Itafos), and a massive overhaul of banking facilities.

Now the Strategic Review becomes very interesting. I'd be quite happy with the go it alone approach and a TSX listing, somehow, I don't think CL would be in the medium term. Sell or JV the best valued asset, the JV pays for construction/startup depending on the asset. Any premium is used to pay down the remaining debt and then allocate a % percentage of FCF to shareholder dividends for like 15+++ years at Conda (new leases are available as well as third party supply beyond).

I understand that Morocco controls 70 percent of the world.s phosphate, an essential and finite resourse to feed people (plus the trend to LFP batteries requiring highly concentrated phoshphate rock and high purity phosphoric acid). Farim I believe sits in the same geological sedimentary deposit. Santana is one of the richest phosphate undeveloped deposits Brazil. My bet is that because they can, Morocco can essentially control the rock price and they will. I think they are doing that now (last price i saw was $345/tonne of highly concentrated phosphate). And there are import controls in place in the US for Morocco and Russia. Nutrien's phophate mine in Florida has only a limited life left and Florida for Mosaic is prone to extreme events, remember last year? And then there is China.

I note that high volumes were traded on Friday and I think before the official press release from the authorities was released. Hmmmm....somebody knew something big time. Legal??? There were 2 cross trades within Raymond James of 0.5 million each. Outside of that, trading was quite normal.

Here's the press release link from the authorities:

https://www.blm.gov/press-release/federal-agencies-approve-eastern-idaho-phosphate-mine-plan

Also from CEO.CA: