Itafos reports strong Q4 and 2024 financial results

Itafos Inc. has announced its financial results for the fourth quarter and full year of 2024. The company’s production levels were strong, with notable improvements at its facilities in Conda and Arraias. Overall, Itafos reported revenues of $491.2 million and an adjusted EBITDA of $159.5 million for 2024, representing increases of 6% and 21%, respectively, compared to the previous year. CEO David Delaney highlighted that production at Conda surpassed 2023 levels, despite facing a planned maintenance period. At Arraias, the production of sulfuric acid saw a significant rise of 26.6%. The company's commitment to safety was evident, achieving a total recordable injury frequency rate of 0.89 for the year. Looking ahead, Itafos expects to begin ore shipments from its mine life extension project in H1/North Dry Ridge (H1/NDR) by the second half of 2025. The company is also exploring additional phosphate resources in southeast Idaho to enhance its operations. The board of directors has approved a special dividend of CAD$0.05 per share, which will be paid to shareholders on April 25, 2025. This decision follows the sale of the Araxa project and reflects the company’s positive cash flow and reduced debt levels. In the fourth quarter of 2024, Itafos spent $13.5 million on capital expenditures, down from $21.2 million in Q4 2023. For the entire year, total capital expenditures increased to $71.2 million, driven by development activities and maintenance turnarounds. Despite seasonal price decreases for phosphate, the company noted a stable global market overall. Moving forward, Itafos anticipates flat phosphate pricing through 2025, with potential for price increases due to improved crop fundamentals and reduced grain inventories. As of the end of 2024, Itafos had a net debt of $26.8 million and substantial liquidity, which puts the company in a strong position to continue its operations and development plans.