HOUSTON, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the "Company") today announces its preliminary, unaudited Q4 2025 operational highlights and guidance for 2026.
CEO Commentary
"2025 marked another exceptional year for Itafos. Operating in a safe manner is our first priority, and I am proud to report that the Company had no reportable environmental releases and a Total Recordable Incident Frequency Rate ("TRIFR") of 0.56, down from 0.86 in 2024", said David Delaney, Chief Executive Officer of the Company.
"At Conda, we maintained our US industry-leading operating rates, increasing production on a P(2) O(5) basis compared to 2024 and setting a new full-year plant production record under Itafos ownership. We finished mining at our Rasmussen Valley mine and achieved mechanical completion of the infrastructure at Husky 1 / North Dry Ridge ("H1/NDR"), delivering first ore from the new mine to the plant resulting in a seamless transition from our Rasmussen Valley Mine to H1/NDR."
"At Arraias, we generated record levels of adjusted EBITDA(1) , increasing production of sulfuric acid by 11% and dry fertilizers by 170% on a P(2) O(5) basis compared to 2024. We successfully restarted the granulation plant at the facility and produced a new granulated version of our SuperForte Duo product, which accounted for nearly $8 million in incremental sales during the year."
"We completed the sale of our Araxá Project and successfully monetized the equity interest received as partial consideration for the sale, generating nearly $43 million in pre-tax proceeds over the course of the year. As a result, we were able to return CAD$0.22 per share to our shareholders via two special dividends."
"As we look forward to 2026 and beyond, we are excited about new opportunities for our company and believe the industry is well positioned to benefit from a strong fundamental backdrop. At Conda, we have begun work on the magnesium reduction project that will allow us to maintain production rates at the plant as we consume the ore from the new mines. We will also continue our delineation drilling program with the goal of defining additional resources to extend our mine life well beyond the current 2037 plan."
"We recently announced the completion of the Updated Preliminary Economic Assessment ("PEA") of the Arraias Phosphate Project. The corresponding technical report, filed on February 9, 2026, defines high-grade phosphate rock layers at the mine that support plans for upgrades to the beneficiation circuit at the plant, enabling us to produce SSP for sale to local markets. The PEA estimates sufficient resources to establish a 14-year life-of-mine plan, with SSP production and sales planned to begin in 2027 following the planned refurbishment of the beneficiation circuit starting in 2H 2026 with restart of this circuit in 1H 2027."(2)
"Additionally, we are also reviewing alternative development options for our Farim Project in Guinea Bissau. This includes a strategic drilling program (scheduled to commence in 1H 2026) and associated engineering for a phased development project. The objective of the program is to identify if the project can be started in a phased manner lowering the initial capex before the commencement of production."
Preliminary Unaudited Operational Highlights
Conda
For the three months and years ended December 31, 2025 and 2024, Conda had preliminary operational highlights as follows:
For the three
months ended For the year ended
December 31, December 31,
(Unaudited) 2025 2024 2025 2024
-------------- ------- --------- -------- ---------
Production
volumes
(tonnes P(2)
O(5) ) 90,815 97,307 352,841 349,396
MAP sales
volumes
(tonnes) 92,404 99,845 385,964 371,412
MAP revenues
(in thousands
of US
Dollars) $78,270 $ 71,942 $294,991 $ 258,640
MAP realized
price
($/tonne)(1) $ 847 $ 721 $ 764 $ 696
--------------- ------ -------- ------- --------
In Q4 2025, Conda:
-- Produced 90,815 tonnes P2O5 compared to 97,307 tonnes P2O5 in Q4 2024
driven by unplanned downtime in Q4 2025;
-- Monoammonium phosphate ("MAP") realized price3 averaged $847/t in Q4 2025
compared to $721/t in Q4 2024, up 18% year-over-year basis, driven by
higher contract reference prices.
In FY 2025, Conda:
-- Produced 352,841 tonnes P2O5 compared to 349,396 tonnes P2O5 in FY 2024
driven by higher MAP and superphosphoric acid ("SPA") sales volumes
offset by the discontinuation of ammonium polyphosphate ("APP") and lower
MAP with micronutrients ("MAP+") volumes;
-- MAP realized price averaged $764/t in 2025 compared to $696/t in 2024, an
increase of 10% year-over-year basis, driven by higher contract reference
prices.
Arraias
For the three months and years ended December 31, 2025 and 2024 Arraias had preliminary production volumes as follows:
For the three
months ended For the year ended
December 31, December 31,
(Unaudited) 2025 2024 2025 2024
------------- ------- -------- ------- --------
Excess sulfuric
acid (tonnes) 31,900 34,774 124,712 112,785
Production
volumes
(tonnes P(2)
O(5) ) 8,628 1,635 48,919 18,147
--------------- ------ -------- ------- --------
In Q4 2025, Arraias:
-- Produced 31,900 tonnes of excess sulfuric acid compared to 34,774 tonnes
of excess sulfuric acid in Q4 2024 driven by higher acid consumption from
fertilizer production and lower customer demand
-- Produced 8,628 tonnes P2O5 of Direct Application Phosphate Rock ("DAPR"),
Partially Acidulated Phosphate Rock ("PAPR"), and Granulated Partially
Acidulated Phosphate Rock ("G-PAPR) compared to 1,635 tonnes P2O5 in Q4
2024, an increase of over 428% driven by the ramp up of DAPR and PAPR
production and the restart of the granulation plant to produce G-PAPR
following the fertilizer restart program.
In FY 2025, Arraias:
-- Produced 124,712 tonnes of excess sulfuric acid compared to 112,785
tonnes of excess sulfuric acid in FY 2024 driven by higher production
with no plant turnaround downtime and higher customer demand;
-- Produced 48,919 tonnes P2O5 of DAPR, PAPR, and G-PAPR compared to 18,147
tonnes P2O5 in FY 2024, an increase of over 170%, benefitting from
full-year production of DAPR, PAPR and the introduction of G-PAPR during
the year.
All operational and financial information included in this press release is preliminary and is inherently uncertain due to a number of factors, and remains subject to review by the Company's management, audit committee and board of directors and the completion of regular financial closing and review procedures and audit procedures for Q4 FY2025 and fiscal 2025. The preliminary unaudited figures disclosed herein should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles. Additional adjustments to the preliminary unaudited figures presented above may be identified, and final results for the relevant fiscal periods may differ materially from these preliminary unaudited figures and will not be finalized until after the Company completes its normal year-end accounting procedures, including execution of internal controls over financial reporting. These preliminary unaudited figures are intended to provide information about management's current expectations regarding certain aspects of the Company's financial performance. Reliance on the information presented herein may not be appropriate for other purposes.
FY 2026 Market and Financial Outlook
Market Outlook
Phosphate fertilizer prices declined in Q4 2025 compared to the previous quarter, primarily driven by the lifting of reciprocal tariffs on phosphate fertilizers by the US government in November 2025. Diammonium phosphate ("DAP") and MAP prices were also pressured by farmer affordability concerns, as fertilizer prices remained relatively high compared to crop prices during the quarter. While prices have moderated off the Q3 2025 highs, current levels remain near the historical five-year average price.
Relatively low grain and oilseed prices continue to impact phosphate affordability and demand. Although affordability has improved with the recent pullback in fertilizer prices, DAP and MAP prices relative to crop values remain above historical averages. To help offset margin pressure on farmers from lower commodity prices, the US government has already announced a $12 billion federal farm subsidy program. This program, and any further farm assistance programs in 2026, are expected to support US phosphate demand.
Through the first quarter of 2026, MAP prices have improved from the recent lows as China has announced a suspension through August 2026 on all exported phosphate fertilizer products, expanding beyond MAP and DAP. In addition, US production remains constrained and global demand is expected to remain relatively strong.
Margin suppression continues to be one of the most vocal topics amongst phosphate producers. Global and domestic sulfur prices have loitered around $500 per tonne in most major indexes, with the ratio of sulfur price to phosphate fertilizer price at all-time high levels. The increase in sulfur prices has resulted in some phosphate production being taken offline, particularly in Brazil and China.
Looking ahead, the Company anticipates a modest improvement in phosphate prices through Q1 2026 due to:
-- ongoing export restrictions from China;
-- seasonal increases in US demand moving into the spring planting season;
and
-- limited incremental MAP and DAP supply from the US and other global
suppliers.
Financial Outlook
The Company's guidance for 2026 is as follows:(4) (5)
(Unaudited in millions of US Dollars Projected Unaudited except as otherwise noted) FY 2026 FY 2025 --------------------------------------- --------- --------- Sales Volumes (thousands of tonnes P(2) O(5) )(4) 335-355 349 Corporate selling, general and administrative expenses(5) $16-20 $16 Maintenance capex(5) $23-33 $16 Growth capex(5) $63-83 $64 Environmental and asset retirement obligations payments $25-30 $6 ------------------------------------------ --------- ---------
About Itafos
Itafos is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:
-- Conda -- a vertically integrated phosphate fertilizer business located in
Idaho, US, with the following production capacity:
-- approximately 550kt per year of MAP, MAP+, SPA, merchant grade
phosphoric acid ("MGA") and APP
-- approximately 27kt per year of hydrofluorosilicic acid ("HFSA")
-- Arraias -- a vertically integrated phosphate fertilizer business located
in Tocantins, Brazil, with the following production targets (following
the proposed restart of the beneficiation circuit:
-- approximately 275kt per year of single superphosphate ("SSP"),
PAPR and DAPR
-- approximately 170kt per year of SSP, 60kt per year of PAPR
and 45kt per year of DAPR
-- approximately 40kt per year of excess sulfuric acid (220kt per
year gross sulfuric acid production capacity)
-- Farim -- a high-grade phosphate mine project located in Farim,
Guinea-Bissau; and
-- Santana -- a vertically integrated high-grade phosphate mine and
fertilizer plant project located in Pará, Brazil
The Company is a Delaware corporation headquartered in Houston, Texas, with shares trading on the TSX Venture Exchange under the ticker "IFOS". The Company's shares also trade in the US on the OTCQX$(R)$ Best Market ("OTCQX") under the ticker symbol "ITFS". The Company's principal shareholder is CL Fertilizers Holding LLC ("CLF"), an affiliate of global private investment firm Castlelake, L.P.
For more information, or to join the Company's mailing list, please visit www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitutes forward-looking information, including statements with respect to: Company guidance; the Company's planned operations, strategies and projects, including the magnesium reduction project; the planned restart of the beneficiation circuit; H1/NDR; exploration activities including the delineation drilling program to extend mine life; the Farim Project; the Company's 2026 guidance; and economic and market trends with respect to the global agriculture and phosphate fertilizer markets. All information other than information of historical fact is forward-looking information. Statements that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future include, but are not limited to, statements regarding estimates and/or assumptions in respect of the Company's financial and business outlook are forward-looking information. The use of any of the words "intend", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "would", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking information.
The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management set out herein, which management believes are reasonable as at the date the statements are made. Those opinions, assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company's expectations and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company's mineral reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; foreign operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks related to asset retirement obligations, general economic changes, including inflation and foreign exchange rates; the actions of the Company's competitors and counterparties; financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation and infrastructure; changes to equipment and suppliers; concentration risks, adverse litigation; changes to permitting and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious acts; market and stock price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage, the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is not exhaustive.
Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Additional risks and uncertainties affecting the forward-looking information contained in this news release are described in greater detail in the Company's Annual Information Form and current Management's Discussion and Analysis available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.itafos.com. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable securities law. The forward-looking information included in this news release is expressly qualified by this cautionary statement and is made as of the date of this news release.
This news release contains future-oriented financial information and financial outlook information (together, "FOFI") about the Company's prospective results of operations. FOFI is subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management's expectations regarding anticipated activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's reasonable estimates and judgements; however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook information speaks only as of the date on which it is made and the Company undertakes no obligation to publicly update or revise any financial outlook information except as required by applicable securities laws.
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.
Contacts:
For Investor Relations:
Matthew O'Neill
Executive Vice President & Chief Financial Officer
investor@itafos.com
713-242-8446
For Media:
Alliance Advisors IR
Fatema Bhabrawala
Director, Media Relations
fbhabrawala@allianceadvisors.com
647-620-5002
Scientific and Technical Information
The scientific and technical information contained in this news release has been reviewed and verified by Jennifer Simper, P.Geo., WSP Canada Inc., Geology and Mineral Resources, Terry L. Kremmel, P.E., WSP USA Inc. Mining Methods and Economic Analysis and Rainer Stephenson, P.E., Millcreek Engineering, Mineral Processing and Metallurgical Testing, each a Qualified Person as defined in NI 43-101 and independent of the Company. The Arraias technical report, prepared in accordance with NI 43-101 and supporting the PEA, is entitled, "NI 43-101 Technical Report Preliminary Economic Assessment Arraias Phosphate Operations, Tocantins, Brazil", with an effective date of January 30, 2026 and is available under the Company's website at www.itafos.com and under the Company's profile on SEDAR+ at www.sedarplus.ca.
Non-IFRS Financial Measures
This press release contains both IFRS and certain non-IFRS measures that management considers to evaluate the Company's operational and financial performance. Non-IFRS measures are a numerical measure of a company's performance, that either include or exclude amounts that are not normally included or excluded from the most directly comparable IFRS measures. Management believes that the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others. In evaluating non-IFRS measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under IFRS and that the methodology applied by the Company in calculating such non-IFRS measures may differ among companies and analysts. Non-IFRS measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to the most directly comparable IFRS measures are included below. These can also be found in the Company's Management's Discussion & Analysis for the three and nine months ended September 30, 2025 and 2024 under Section 8 -- Non-IFRS Measures which is available on SEDAR+ at www.sedarplus.ca.
DEFINITIONS
The Company defines its non-IFRS measures as follows:
Non-IFRS Definition Most directly Why the Company
measure comparable IFRS uses the measure
measure
Adjusted EBITDA EBITDA adjusted Net income Adjusted EBITDA is
for non-cash, (loss) and a valuable
extraordinary, operating indicator of the
non-recurring income (loss) Company's ability
and other items to generate
unrelated to operating income
the Company's from its core
core operating operating
activities activities
normalized to
remove the impact
of non-cash,
extraordinary and
non-recurring
items. The Company
provides guidance
on Adjusted EBITDA
as useful
supplemental
information to
investors,
analysts, lenders,
and others
Total capex Additions to Additions to The Company uses
property, property, plant total capex in the
plant, and and equipment calculation of
equipment and and mineral total cash capex
mineral properties (non-IFRS measure)
properties
adjusted for
additions to
asset
retirement
obligations,
additions to
right-of-use
assets and
capitalized
interest
Maintenance Portion of Additions to Maintenance capex
capex total capex property, plant is a valuable
relating to the and equipment indicator of the
maintenance of and mineral Company's required
ongoing properties capital
operations expenditures to
sustain operations
at existing levels
Growth capex Portion of Additions to Growth capex is a
total capex property, plant valuable indicator
relating to the and equipment of the Company's
development of and mineral capital
growth properties expenditures
opportunities related to growth
opportunities.
Total cash Total capex Additions to The Company uses
capex less accrued property, plant total cash capex in
capex and equipment the calculation of
and mineral cash growth capex
properties (non-IFRS measure)
Cash Maintenance Additions to The Company uses
maintenance capex less property, plant cash maintenance
capex accrued and equipment capex in the
maintenance and mineral calculation of cash
capex properties growth capex
(non-IFRS measure)
Cash growth Growth capex Additions to The Company uses
capex less accrued property, plant cash growth capex
growth capex and equipment in the calculation
and mineral of free cash flow
properties (non-IFRS
measure).
Realized price Revenues Revenues The Company uses
divided by realized price to
sales volumes assess operational
performance
Corporate Corporate Selling, The Company uses
selling, selling, general and corporate selling,
general and general and administrative general and
administrative administrative expenses administrative
expenses less expenses to assess
share-based corporate
payment performance
expense.
----------------- ----------------- ----------------- ---------------------
EXPECTED RECONCILIATION OF TOTAL CAPEX
For the year ended December 31, 2025, the Company had expected capex by segment as follows:
(unaudited in Development
thousands of and
US Dollars) Conda Arraias exploration Corporate Total
-------------- -------- --------- ------------- ----------- --------
Additions to
property,
plant and
equipment $ 73,777 $ 7,054 $ 62 $ 17 $ 80,910
Additions to
mineral
properties 31,592 1,168 723 -- 33,483
Additions to
asset
retirement
obligations (9,131) (605) -- -- (9,736)
Additions to
right-of-use
assets (17,244) (471) (15) -- (17,730)
Capitalized
interest in
property,
plant, and
equipment and
mineral
properties (7,042) -- -- -- (7,042)
------- ----- --------- ------- -------
Total capex(6) $ 71,952 $ 7,146 $ 770 $ 17 $ 79,885
------- ----- --------- ------- -------
Accrued capex (1,755) -- -- -- (1,755)
------- ----- --------- ------- -------
Total cash
capex(6) $ 70,197 $ 7,146 $ 770 $ 17 $ 78,130
------- ----- --------- ------- -------
Maintenance
capex $ 15,851 $ 323 $ -- $ 17 $ 16,243
Accrued
maintenance
capex (127) -- -- -- (127)
------- ----- --------- ------- -------
Cash
maintenance
capex(6) $ 15,724 $ 323 $ -- $ 17 $ 16,116
------- ----- --------- ------- -------
Growth capex $ 56,101 $ 6,823 $ 770 $ -- $ 63,642
Accrued growth
capex (1,628) -- -- -- (1,628)
------- ----- --------- ------- -------
Cash growth
capex(6) $ 54,473 $ 6,823 $ 770 $ -- $ 62,014
--------------- ------- ----- --------- ------- -------
EXPECTED RECONCILIATION OF CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
For the three months and years ended December 31, 2025 and 2024, the Company had expected corporate selling, general and administrative expenses as follows:
For the three
months ended For the year ended
December 31, December 31,
(unaudited in
thousands of US
Dollars) 2025 2024 2025 2024
--------------- ------- --------- ------- ---------
Selling, general
and
administrative
expenses $ 6,321 $ 4,623 $22,560 $ 19,246
Share-based
payments
expense (1,554) (640) (6,089) (2,231)
------ -------- ------ --------
Corporate
selling,
general and
administrative
expenses $ 4,767 $ 3,983 $16,471 $ 17,015
---------------- ------ -------- ------ --------
(1) Adjusted EBITDA and MAP realized price are each a non-IFRS financial measure. For additional information on non-IFRS measures, see "Non-IFRS Financial Measures" below.
(2) The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.
(3) This is a non-IFRS measure. For additional information, see "Non-IFRS Financial Measures" below.
(4) Sales volumes reflect quantity in P(2) O(5) of Conda sales projections.
(5) Corporate selling, general and administrative expenses, maintenance capex, and growth capex are each a non-IFRS financial measure. For additional information on non-IFRS measures, see "Non-IFRS Financial Measures" below.
(6) Total capex, total cash capex, cash maintenance capex and cash growth capex are each a non-IFRS financial measure. For additional information on non-IFRS measures, see "Non-IFRS Financial Measures" above.
(END) Dow Jones Newswires
February 11, 2026 18:20 ET (23:20 GMT)