☒ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
or | |||||
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 26-1501877 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
1001 17th Street, Suite 1050 | |||||
Denver, | |||||
Colorado | 80202 | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, par value $0.001 per share | IPI | New York Stock Exchange |
Large accelerated filer | ¨ | Accelerated filer | x | Non-accelerated filer | ¨ | ||||||||||||||||||
Smaller reporting company | ¨ | Emerging growth company | ¨ |
Page | ||||||||
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Potash | 48 | % | 47 | % | 47 | % | ||||||||||||||
Trio® | 34 | % | 33 | % | 29 | % | ||||||||||||||
Water | 8 | % | 10 | % | 12 | % | ||||||||||||||
Salt | 4 | % | 4 | % | 6 | % | ||||||||||||||
Magnesium Chloride | 3 | % | 2 | % | 2 | % | ||||||||||||||
Brines | 1 | % | 1 | % | 1 | % | ||||||||||||||
Other | 2 | % | 3 | % | 3 | % | ||||||||||||||
Total | 100 | % | 100 | % | 100 | % |
Location | Number of Employees | Average Tenure (in years) | ||||||
Denver | 39 | 6 | ||||||
Moab | 61 | 12 | ||||||
New Mexico | 284 | 10 | ||||||
Wendover | 56 | 16 |
Name | Age | Position | ||||||||||||
Robert P. Jornayvaz III | 63 | Executive Chairman of the Board and Chief Executive Officer | ||||||||||||
E. Brian Stone | 59 | President and Chief Operational Officer | ||||||||||||
Robert E. Baldridge | 60 | Senior Vice President - New Mexico | ||||||||||||
Matthew D. Preston | 37 | Chief Financial Officer | ||||||||||||
Kyle R. Smith | 48 | Vice President, General Counsel and Secretary | ||||||||||||
IPNM—Summary of Potash Mineral Reserves effective December 31, 2021 Based on 325 $/product ton mine site | ||||||||||||||||||||||||||||||||
In-Place KCl (Mt) | In Situ Grade1 (%K2O) | Product (Mt) | Brine Cutoff Grade2 (%K2O) | Processing Recovery (%) | ||||||||||||||||||||||||||||
Proven Mineral Reserves | 5.5 | 22.7 | 4.1 | 1.5 | 85 | |||||||||||||||||||||||||||
Probable Mineral Reserves | 0.3 | 20.8 | 0.2 | 1.5 | 85 | |||||||||||||||||||||||||||
Total Mineral Reserves4 | 5.8 | 22.6 | 4.3 | |||||||||||||||||||||||||||||
IPNM—Summary of Langbeinite Mineral Reserves effective December 31, 2021 Based on 340 $/product ton mine site | ||||||||||||||||||||||||||||||||
ROM Ore (Mt) | In Situ Grade3 (Diluted) (%K2O) | Product (Mt) | Cutoff Grade (ft%K2O) | Processing Recovery (%) | ||||||||||||||||||||||||||||
Proven Mineral Reserves | 18.1 | 8.5 | 4.9 | 43 | 68 | |||||||||||||||||||||||||||
Probable Mineral Reserves | 4.2 | 9.1 | 1.2 | 43 | 68 | |||||||||||||||||||||||||||
Total Mineral Reserves5 | 22.3 | 8.6 | 6.1 | |||||||||||||||||||||||||||||
1 In situ grade is the amount of K2O in the contact area of the caverns. | ||||||||||||||||||||||||||||||||
2 Brine cutoff grade is the amount of K2O in the extracted brine necessary to cover the costs of production. | ||||||||||||||||||||||||||||||||
3 In situ grade (diluted) is the amount of K2O in the ore body with consideration for dilution occurring during mining. | ||||||||||||||||||||||||||||||||
4 Mineral Reserves are reported based on a flood elevation mining plan, dissolution factor of 96%, areal recovery of 100%, geologic factor of 94.2%, plant recovery of 85%, product purity of 95%, and cavern losses of 2%. | ||||||||||||||||||||||||||||||||
5 Mineral Reserves are reported based on a detailed conventional mine plan, random impurities of 10%, plant recovery of 68%, and product purity of 94.4%. | ||||||||||||||||||||||||||||||||
Mineral Reserves were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | ||||||||||||||||||||||||||||||||
Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis. | ||||||||||||||||||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet, ROM = Run-of-Mine |
Moab—Summary of Mineral Resources in Millions of Tons of Sylvinite in Place effective December 31, 2021 Based on 406 $/product ton mine site | ||||||||||||||||||||||||||||||||
Resources | ||||||||||||||||||||||||||||||||
Sylvinite1 (Mt) | Grade (%K2O) | Contained K2O (Mt) | Cutoff 2 | Processing Recovery (%) | ||||||||||||||||||||||||||||
Measured mineral resources | 106 | 27 | 28 | Minimum of 3-ft and 18.95%K2O | 83 | |||||||||||||||||||||||||||
Indicated mineral resources | 190 | 25 | 47 | Minimum of 3-ft and 18.95%K2O | 83 | |||||||||||||||||||||||||||
Measured + Indicated mineral resources | 296 | 25 | 75 | |||||||||||||||||||||||||||||
Inferred mineral resources | 38 | 23 | 9 | Minimum of 3-ft and 18.95%K2O | 83 | |||||||||||||||||||||||||||
1 Sylvinite is a mixed evaporite containing NaCl and KCl. | ||||||||||||||||||||||||||||||||
2 Solution mining resource cutoff for flooded old workings is the mining extents boundary. | ||||||||||||||||||||||||||||||||
Mineral Resources were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | ||||||||||||||||||||||||||||||||
Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis. | ||||||||||||||||||||||||||||||||
Mineral Resources are reported using Inverse Distance Squared estimation methods. | ||||||||||||||||||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
Wendover—Summary of Potash Mineral Reserves effective December 31, 2021 Based on 325 $/product ton mine site | ||||||||||||||||||||||||||||||||
Sylvinite Brine 1 (Mt) | In Situ Grade 2 (%K2O) | Product (Mt) | Cutoff (%K2O) | Processing Recovery (%) | ||||||||||||||||||||||||||||
Proven Mineral Reserves | ||||||||||||||||||||||||||||||||
Probable Mineral Reserves | 88.5 | 0.5 | 1.8 | 0.3 | 85 | |||||||||||||||||||||||||||
Total Mineral Reserves | 88.5 | 0.5 | 1.8 | 0.3 | ||||||||||||||||||||||||||||
1 Sylvinite brine is NaCl and KCl in solution at average concentrations by weight. | ||||||||||||||||||||||||||||||||
2 Solution mining reserve cutoff is the grade at which production covers operating costs. | ||||||||||||||||||||||||||||||||
Mineral Reserves were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | ||||||||||||||||||||||||||||||||
Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis. | ||||||||||||||||||||||||||||||||
Mineral Reserves are reported based on an overall recovery factor of 60% and a product purity of 95%. | ||||||||||||||||||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
(tons in thousands) | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ore Production | Mill Feed Grade1 | Finished Product | Ore Production | Mill Feed Grade1 | Finished Product | Ore Production | Mill Feed Grade1 | Finished Product | ||||||||||||||||||||||||||||||||||||||||||||||||
Potash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HB | 746 | 13.6% | 117 | 724 | 15.2% | 145 | 734 | 16.9% | 158 | |||||||||||||||||||||||||||||||||||||||||||||||
Moab | 648 | 15.0% | 118 | 536 | 15.3% | 104 | 509 | 15.6% | 94 | |||||||||||||||||||||||||||||||||||||||||||||||
Wendover | 338 | 13.3% | 52 | 352 | 15.3% | 59 | 409 | 15.1% | 75 | |||||||||||||||||||||||||||||||||||||||||||||||
1,732 | 287 | 1,612 | 308 | 1,652 | 327 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Langbeinite | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
East 2 | 1,057 | 8.6% | 228 | 913 | 8.9% | 213 | 944 | 9.1% | 228 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Primary Products | 515 | 521 | 555 |
IPI | Peer Group | S&P 500 | Dow Jones U.S. Basic Materials | ||||||||||||||||||||
December 31, 2016 | $ | 100.00 | $ | 100.00 | $ | 100.00 | $ | 100.00 | |||||||||||||||
December 31, 2017 | $ | 228.85 | $ | 113.32 | $ | 121.83 | $ | 125.09 | |||||||||||||||
December 31, 2018 | $ | 125.00 | $ | 105.15 | $ | 116.49 | $ | 104.86 | |||||||||||||||
December 31, 2019 | $ | 130.29 | $ | 104.12 | $ | 153.17 | $ | 125.58 | |||||||||||||||
December 31, 2020 | $ | 116.11 | $ | 113.39 | $ | 181.35 | $ | 148.59 | |||||||||||||||
December 31, 2021 | $ | 205.43 | $ | 180.24 | $ | 233.41 | $ | 189.87 |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | (a) Total Number of Shares Purchased1 | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plan or Programs | ||||||||||||||||||||||
October 1, 2021, through October 31, 2021 | — | $— | – | N/A | ||||||||||||||||||||||
November 1, 2021, through November 30, 2021 | — | — | – | N/A | ||||||||||||||||||||||
December 1, 2021, through December 31, 2021 | 10,083 | 40.66 | – | N/A | ||||||||||||||||||||||
Total | 10,083 | $40.66 | — | N/A |
(in thousands) | Year Ended December 31, | |||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Sales1 | $ | 270,332 | $ | 196,954 | $ | 220,075 | ||||||||||||||
Cost of Goods Sold | $ | 161,421 | $ | 135,843 | $ | 126,110 | ||||||||||||||
Gross Margin | $ | 55,764 | $ | 10,530 | $ | 43,478 | ||||||||||||||
Income (Loss) Before Income Taxes | 40,965 | (27,149) | 13,684 | |||||||||||||||||
Income Tax Benefit (Expense) | 208,869 | (5) | (53) | |||||||||||||||||
Net Income (Loss) | $ | 249,834 | $ | (27,154) | $ | 13,631 | ||||||||||||||
Average Net Realized Sales Price per Ton2 | ||||||||||||||||||||
Potash | $ | 353 | $ | 250 | $ | 284 | ||||||||||||||
Trio® | $ | 295 | $ | 195 | $ | 195 |
Year Ended December 31, | ||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | |||||||||||||||||
Sales1 | $ | 151,751 | $ | 108,060 | $ | 124,648 | ||||||||||||||
Less: Freight costs | 17,483 | 17,026 | 18,715 | |||||||||||||||||
Warehousing and handling costs | 5,169 | 4,857 | 4,745 | |||||||||||||||||
Cost of goods sold | 87,281 | 73,496 | 73,401 | |||||||||||||||||
Lower of cost or NRV inventory adjustments | — | 1,130 | — | |||||||||||||||||
Costs associated with abnormal production and other | 5,973 | — | — | |||||||||||||||||
Gross Margin | $ | 35,845 | $ | 11,551 | $ | 27,787 | ||||||||||||||
Depreciation, Depletion, and Amortization Incurred2 | $ | 26,828 | $ | 26,536 | $ | 25,796 | ||||||||||||||
Potash Sales Volumes (tons in thousands) | 331 | 317 | 319 | |||||||||||||||||
Potash Production Volumes (tons in thousands) | 287 | 308 | 328 | |||||||||||||||||
Average Potash Net Realized Sales Price per Ton3 | $ | 353 | $ | 250 | $ | 284 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Agricultural | 78 | % | 79 | % | 74 | % | ||||||||||||||
Industrial | 6 | % | 3 | % | 12 | % | ||||||||||||||
Feed | 16 | % | 18 | % | 14 | % |
Year Ended December 31, | ||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | |||||||||||||||||
Sales1 | $ | 96,058 | $ | 70,287 | $ | 69,551 | ||||||||||||||
Less: Freight costs | 20,656 | 20,431 | 20,514 | |||||||||||||||||
Warehousing and handling costs | 4,113 | 4,574 | 3,876 | |||||||||||||||||
Cost of goods sold | 54,847 | 50,902 | 42,251 | |||||||||||||||||
Lower of cost or NRV inventory adjustments | — | 2,885 | 1,810 | |||||||||||||||||
Gross Margin (Deficit) | $ | 16,442 | $ | (8,505) | $ | 1,100 | ||||||||||||||
Depreciation, Depletion, and Amortization incurred2 | $ | 5,477 | $ | 6,068 | $ | 6,163 | ||||||||||||||
Sales Volumes (tons in thousands) | 239 | 230 | 225 | |||||||||||||||||
Production Volumes (tons in thousands) | 228 | 213 | 228 | |||||||||||||||||
Average Net Realized Sales Price per Ton3 | $ | 295 | $ | 195 | $ | 195 |
United States | Export | |||||||||||||
For the year ended December 31, 2021 | 92 | % | 8 | % | ||||||||||
For the year ended December 31, 2020 | 85 | % | 15 | % | ||||||||||
For the year ended December 31, 2019 | 74 | % | 26 | % |
Year Ended December 31, | ||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2019 | |||||||||||||||||
Sales | $ | 22,770 | $ | 18,929 | $ | 27,894 | ||||||||||||||
Less: Cost of goods sold | 19,293 | 11,445 | 12,367 | |||||||||||||||||
Gross Margin | $ | 3,477 | $ | 7,484 | $ | 14,591 | ||||||||||||||
Depreciation, Depletion, and Amortization incurred | $ | 2,996 | $ | 2,663 | $ | 1,566 |
Year ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows provided by operating activities | $ | 79,067 | $ | 31,145 | $ | 49,381 | ||||||||||||||
Cash flows used in investing activities | $ | (14,823) | $ | (15,157) | $ | (80,641) | ||||||||||||||
Cash flows (used in) provided by financing activities | $ | (47,282) | $ | (17,043) | $ | 18,795 |
Potash Segment | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Total Segment Sales | $ | 151,751 | $ | 108,060 | $ | 124,648 | ||||||||||||||
Less: Segment byproduct sales | 21,291 | 15,560 | 21,245 | |||||||||||||||||
Potash freight costs | 13,639 | 13,270 | 12,936 | |||||||||||||||||
Subtotal | $ | 116,821 | $ | 79,230 | $ | 90,467 | ||||||||||||||
Divided by: | ||||||||||||||||||||
Potash tons sold (in thousands) | 331 | 317 | 319 | |||||||||||||||||
Average net realized sales price per ton | $ | 353 | $ | 250 | $ | 284 |
Trio® Segment | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Total Segment Sales | $ | 96,058 | $ | 70,287 | $ | 69,551 | ||||||||||||||
Less: Segment byproduct sales | 4,933 | 4,943 | 5,252 | |||||||||||||||||
Trio® freight costs | 20,656 | 20,416 | 20,514 | |||||||||||||||||
Subtotal | $ | 70,469 | $ | 44,928 | $ | 43,785 | ||||||||||||||
Divided by: | ||||||||||||||||||||
Trio® Tons sold (in thousands) | 239 | 230 | 225 | |||||||||||||||||
Average net realized sales price per ton | $ | 295 | $ | 195 | $ | 195 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 36,452 | $ | 19,515 | ||||||||||
Accounts receivable: | ||||||||||||||
Trade, net | 35,409 | 22,516 | ||||||||||||
Other receivables, net | 989 | 1,856 | ||||||||||||
Inventory, net | 78,856 | 88,673 | ||||||||||||
Other current assets | 5,144 | 3,228 | ||||||||||||
Total current assets | 156,850 | 135,788 | ||||||||||||
Property, plant, equipment, and mineral properties, net | 341,117 | 355,497 | ||||||||||||
Water rights | 19,184 | 19,184 | ||||||||||||
Long-term parts inventory, net | 29,251 | 28,900 | ||||||||||||
Other assets, net | 11,418 | 10,819 | ||||||||||||
Non-current deferred tax asset, net | 209,075 | — | ||||||||||||
Total Assets | $ | 766,895 | $ | 550,188 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Accounts payable | $ | 9,068 | $ | 7,278 | ||||||||||
Income taxes payable | 41 | — | ||||||||||||
Accrued liabilities | 22,938 | 12,701 | ||||||||||||
Accrued employee compensation and benefits | 6,805 | 4,422 | ||||||||||||
Other current liabilities | 34,571 | 32,816 | ||||||||||||
Current portion of long-term debt | — | 10,000 | ||||||||||||
Total current liabilities | 73,423 | 67,217 | ||||||||||||
Advances on credit facility | — | 29,817 | ||||||||||||
Long-term debt, net | — | 14,926 | ||||||||||||
Asset retirement obligation | 27,024 | 23,872 | ||||||||||||
Operating lease liabilities | 1,879 | 2,136 | ||||||||||||
Other non-current liabilities | 1,166 | 961 | ||||||||||||
Total Liabilities | 103,492 | 138,929 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Common stock, $0.001 par value; 40,000,000 shares authorized: | ||||||||||||||
and 13,149,315 and 13,049,820 shares outstanding | ||||||||||||||
at December 31, 2021, and 2020, respectively | 13 | 13 | ||||||||||||
Additional paid-in capital | 659,147 | 656,837 | ||||||||||||
Retained earnings (Accumulated deficit) | 4,243 | (245,591) | ||||||||||||
Total Stockholders' Equity | 663,403 | 411,259 | ||||||||||||
Total Liabilities and Stockholders' Equity | $ | 766,895 | $ | 550,188 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Sales | $ | 270,332 | $ | 196,954 | $ | 220,075 | ||||||||||||||
Less: | ||||||||||||||||||||
Freight costs | 37,892 | 37,135 | 40,056 | |||||||||||||||||
Warehousing and handling costs | 9,282 | 9,431 | 8,621 | |||||||||||||||||
Cost of goods sold | 161,421 | 135,843 | 126,110 | |||||||||||||||||
Lower of cost or net realizable value inventory adjustments | — | 4,015 | 1,810 | |||||||||||||||||
Costs associated with abnormal production | 5,973 | — | — | |||||||||||||||||
Gross Margin | 55,764 | 10,530 | 43,478 | |||||||||||||||||
Selling and administrative | 23,998 | 25,476 | 23,556 | |||||||||||||||||
Accretion of asset retirement obligation | 1,858 | 1,738 | 1,793 | |||||||||||||||||
Litigation settlement | — | 10,075 | — | |||||||||||||||||
(Gain) loss on sale of assets | (2,542) | (4,250) | 345 | |||||||||||||||||
Other operating expense | 178 | 735 | 1,424 | |||||||||||||||||
Operating Income (Loss) | 32,272 | (23,244) | 16,360 | |||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||
Interest expense, net | (1,468) | (4,289) | (3,031) | |||||||||||||||||
Other income | 48 | 384 | 355 | |||||||||||||||||
Gain on extinguishment of debt | 10,113 | — | — | |||||||||||||||||
Income (Loss) Before Income Taxes | 40,965 | (27,149) | 13,684 | |||||||||||||||||
Income Tax Benefit (Expense) | 208,869 | (5) | (53) | |||||||||||||||||
Net Income (Loss) | $ | 249,834 | $ | (27,154) | $ | 13,631 | ||||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||
Basic | 13,098,871 | 12,993,225 | 12,904,916 | |||||||||||||||||
Diluted | 13,391,362 | 12,993,225 | 13,105,089 | |||||||||||||||||
Income (Loss) Per Share: | ||||||||||||||||||||
Basic | $ | 19.07 | $ | (2.09) | $ | 1.06 | ||||||||||||||
Diluted | $ | 18.66 | $ | (2.09) | $ | 1.04 |
Common Stock | Additional Paid-in Capital(1) | Retained Earnings (Accumulated) Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||
Shares | Amount(1) | |||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 12,871,659 | $ | 13 | $ | 649,318 | $ | (232,068) | $ | 417,263 | |||||||||||||||||||||||
Net income | — | — | — | 13,631 | 13,631 | |||||||||||||||||||||||||||
Stock-based compensation | — | — | 4,281 | — | 4,281 | |||||||||||||||||||||||||||
Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting | 81,617 | — | (521) | — | (521) | |||||||||||||||||||||||||||
Exercise of stock options | 2,075 | — | 2 | — | 2 | |||||||||||||||||||||||||||
Balance, December 31, 2019 | 12,955,351 | 13 | 653,080 | (218,437) | 434,656 | |||||||||||||||||||||||||||
Net loss | — | — | — | (27,154) | (27,154) | |||||||||||||||||||||||||||
Stock-based compensation | — | — | 3,821 | — | 3,821 | |||||||||||||||||||||||||||
Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting | 83,969 | — | (172) | — | (172) | |||||||||||||||||||||||||||
Exercise of stock options | 10,500 | — | 108 | — | 108 | |||||||||||||||||||||||||||
Balance, December 31, 2020 | 13,049,820 | 13 | 656,837 | (245,591) | 411,259 | |||||||||||||||||||||||||||
Net income | — | — | — | 249,834 | 249,834 | |||||||||||||||||||||||||||
Stock-based compensation | — | — | 3,012 | — | 3,012 | |||||||||||||||||||||||||||
Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting | 90,844 | — | (791) | — | (791) | |||||||||||||||||||||||||||
Exercise of stock options | 8,651 | — | 89 | — | 89 | |||||||||||||||||||||||||||
Balance, December 31, 2021 | 13,149,315 | $ | 13 | $ | 659,147 | $ | 4,243 | $ | 663,403 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||
Net income (loss) | $ | 249,834 | $ | (27,154) | $ | 13,631 | ||||||||||||||
Depreciation, depletion, and amortization | 35,635 | 35,788 | 34,121 | |||||||||||||||||
Amortization of intangible assets | 322 | 322 | 214 | |||||||||||||||||
Accretion of asset retirement obligation | 1,858 | 1,738 | 1,793 | |||||||||||||||||
Amortization of deferred financing costs | 314 | 425 | 303 | |||||||||||||||||
Stock-based compensation | 3,012 | 3,821 | 4,281 | |||||||||||||||||
Reserve for obsolescence | 2,108 | 492 | — | |||||||||||||||||
Allowance for doubtful accounts | — | 75 | 75 | |||||||||||||||||
(Gain) Loss on disposal of assets | (2,542) | (4,250) | 345 | |||||||||||||||||
Gain on extinguishment of debt | (10,113) | — | — | |||||||||||||||||
Lower of cost or net realizable value inventory adjustments | — | 4,015 | 1,810 | |||||||||||||||||
Other | — | (116) | (34) | |||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Trade accounts receivable, net | (12,615) | 1,158 | 1,337 | |||||||||||||||||
Other receivables, net | 589 | (609) | (650) | |||||||||||||||||
Inventory, net | 7,358 | (291) | (11,525) | |||||||||||||||||
Other current assets | (1,974) | 2,305 | (1,019) | |||||||||||||||||
Deferred tax assets, net | (209,075) | — | — | |||||||||||||||||
Accounts payable, accrued liabilities, and accrued employee compensation and benefits | 13,456 | 2,331 | 2,280 | |||||||||||||||||
Income tax payable | 42 | (50) | (865) | |||||||||||||||||
Operating lease liabilities | (2,508) | (2,234) | (2,090) | |||||||||||||||||
Other liabilities | 3,366 | 13,379 | 5,374 | |||||||||||||||||
Net cash provided by operating activities | 79,067 | 31,145 | 49,381 | |||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to property, plant, equipment, mineral properties and other assets | (19,789) | (16,443) | (63,836) | |||||||||||||||||
Additions to intangible assets | — | — | (16,873) | |||||||||||||||||
Proceeds from sale of property, plant, equipment, and mineral properties | 6,042 | 4,786 | 68 | |||||||||||||||||
Long-term investment | (1,076) | (3,500) | — | |||||||||||||||||
Net cash used in investing activities | (14,823) | (15,157) | (80,641) | |||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Repayment of long-term debt | (15,000) | (35,000) | — | |||||||||||||||||
Debt prepayment costs | (505) | (1,869) | — | |||||||||||||||||
Proceeds from loan under CARES Act | — | 10,000 | — | |||||||||||||||||
Proceeds from borrowings on credit facility | — | 10,000 | 30,317 | |||||||||||||||||
Repayments of borrowings on credit facility | (29,817) | — | (10,500) | |||||||||||||||||
Payments of financing lease | (1,258) | (74) | — | |||||||||||||||||
Capitalized debt costs | — | (36) | (503) | |||||||||||||||||
Employee tax withholding paid for restricted shares upon vesting | (791) | (172) | (540) | |||||||||||||||||
Proceeds from exercise of stock options | 89 | 108 | 21 | |||||||||||||||||
Net cash (used in) provided by financing activities | (47,282) | (17,043) | 18,795 | |||||||||||||||||
Net Change in Cash, Cash Equivalents, and Restricted Cash | 16,962 | (1,055) | (12,465) | |||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash, beginning of period | 20,184 | 21,239 | 33,704 | |||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash, end of period | $ | 37,146 | $ | 20,184 | $ | 21,239 | ||||||||||||||
Supplemental disclosure of cash flow information | ||||||||||||||||||||
Net cash paid (received) during the period for: | ||||||||||||||||||||
Interest, net of $0.1 million of capitalized interest in 2021, $0.1 million in 2020, and $0.2 million in 2019 | $ | 875 | $ | 2,467 | $ | 2,733 | ||||||||||||||
Income taxes | $ | 193 | $ | 97 | $ | 942 | ||||||||||||||
Accrued purchases for property, plant, equipment, and mineral properties | $ | 2,192 | $ | 344 | $ | 5,021 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Net income (loss) | $ | 249,834 | $ | (27,154) | $ | 13,631 | ||||||||||||||
Basic weighted average common shares outstanding | 13,099 | 12,993 | 12,905 | |||||||||||||||||
Add: Dilutive effect restricted common stock | 221 | — | 121 | |||||||||||||||||
Add: Dilutive effect of stock options outstanding | 71 | — | 79 | |||||||||||||||||
Diluted weighted average common shares outstanding | 13,391 | 12,993 | 13,105 | |||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||
Basic | $ | 19.07 | $ | (2.09) | $ | 1.06 | ||||||||||||||
Diluted | $ | 18.66 | $ | (2.09) | $ | 1.04 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Anti-dilutive effect of restricted shares | 57 | 246 | 50 | |||||||||||||||||
Anti-dilutive effect of stock options outstanding | 156 | 309 | 165 | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash and cash equivalents | $ | 36,452 | $ | 19,515 | $ | 20,603 | |||||||||||
Restricted cash included in "Other current assets" | 175 | 150 | 150 | ||||||||||||||
Restricted cash included in "Other assets, net" | 519 | 519 | 486 | ||||||||||||||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ | 37,146 | $ | 20,184 | $ | 21,239 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Finished goods product inventory | $ | 42,492 | $ | 48,961 | ||||||||||
In-process inventory | 27,211 | 28,833 | ||||||||||||
Total product inventory | 69,703 | 77,794 | ||||||||||||
Current parts inventory, net | 9,153 | 10,879 | ||||||||||||
Total current inventory, net | 78,856 | 88,673 | ||||||||||||
Long-term parts inventory, net | 29,251 | 28,900 | ||||||||||||
Total inventory, net | $ | 108,107 | $ | 117,573 |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Land | $ | 24,136 | $ | 27,263 | ||||||||||
Ponds and land improvements | 69,261 | 67,843 | ||||||||||||
Mineral properties and development costs | 144,255 | 143,955 | ||||||||||||
Buildings and plant | 84,268 | 81,692 | ||||||||||||
Machinery and equipment | 272,323 | 265,121 | ||||||||||||
Vehicles | 6,855 | 5,919 | ||||||||||||
Office equipment and leasehold improvements | 8,956 | 9,083 | ||||||||||||
Operating lease ROU assets | 7,763 | 9,622 | ||||||||||||
Breeding stock | 308 | 260 | ||||||||||||
Construction in progress | 11,469 | 1,710 | ||||||||||||
Total property, plant, equipment, and mineral properties, gross | $ | 629,594 | $ | 612,468 | ||||||||||
Less: accumulated depreciation, depletion, and amortization | (288,477) | (256,971) | ||||||||||||
Total property, plant, equipment, and mineral properties, net | $ | 341,117 | $ | 355,497 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Depreciation | $ | 29,447 | $ | 29,697 | $ | 27,889 | ||||||||||||||
Depletion | 3,979 | 3,952 | 4,173 | |||||||||||||||||
Amortization of ROU assets | 2,209 | 2,139 | 2,059 | |||||||||||||||||
Total incurred | $ | 35,635 | $ | 35,788 | $ | 34,121 |
Leases | Classification on the Balance Sheet | Balance, December 31, 2021 | Balance, December 31, 2020 | |||||||||||||||||
Assets | ||||||||||||||||||||
Operating lease ROU assets, net | Property, plant, equipment, and mineral properties, net | $ | 3,398 | $ | 4,091 | |||||||||||||||
Finance lease ROU assets, net | Property, plant, equipment, and mineral properties, net | $ | — | $ | 1,301 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Current operating lease liabilities | $ | 1,655 | $ | 2,057 | ||||||||||||||||
Current finance lease liability | $ | — | 1,258 | |||||||||||||||||
Non-current operating lease liabilities | Operating lease liabilities | $ | 1,879 | $ | 2,136 |
December 31, 2021 | December 31, 2020 | |||||||||||||
Weighted average remaining lease term - operating leases | 2.5 years | 2.4 years | ||||||||||||
Weighted average remaining lease term - finance leases | 0.00 years | 0.30 years | ||||||||||||
Weighted average discount rate - operating leases | 4.59 | % | 5.49 | % | ||||||||||
Weighted average discount rate - finance leases | — | % | 1.75 | % |
For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | ||||||||||||||||||
Operating lease expense | $ | 2,370 | $ | 2,434 | $ | 2,410 | ||||||||||||||
Short-term lease expense | 122 | 117 | 107 | |||||||||||||||||
Total lease expense | $ | 2,492 | $ | 2,551 | $ | 2,517 |
For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||
Operating cash flows from operating leases | $ | 2,336 | $ | 2,480 | ||||||||||
Finance cash flows from finance leases | 1,258 | 74 | ||||||||||||
Right-of-Use Assets exchanged for new operating lease liabilities | 1,849 | 216 | ||||||||||||
Right-of-Use Assets exchanged for new finance lease liabilities | — | 1,332 |
Years Ending December 31, | Operating Leases | |||||||
2022 | $ | 1,781 | ||||||
2023 | 1,010 | |||||||
2024 | 658 | |||||||
2025 | 145 | |||||||
2026 | 7 | |||||||
Thereafter | — | |||||||
Total future minimum lease payments | $ | 3,601 | ||||||
Less - amount representing interest | 67 | |||||||
Present value of future minimum lease payments | $ | 3,534 | ||||||
Less - current lease obligations | 1,655 | |||||||
Long-term lease obligations | $ | 1,879 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Finite-lived intangible assets: | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||
Produced water disposal royalty agreements | $ | 2,694 | $ | (360) | $ | 2,694 | $ | (225) | ||||||||||||||||||
Surface damage and easement agreements | 3,723 | (498) | 3,723 | (311) | ||||||||||||||||||||||
Total | $ | 6,417 | $ | (858) | $ | 6,417 | $ | (536) | ||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Water rights | $ | 19,184 | $ | 19,184 |
December 31, 2020 | |||||
Notes and Payroll Protection Loan | $ | 25,000 | |||
Less current portion of long-term debt | (10,000) | ||||
Less deferred financing costs | (74) | ||||
Long-term portion of Notes, net | $ | 14,926 |
Year ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Interest expense on borrowings | $ | 724 | $ | 2,107 | $ | 2,908 | |||||||||||
Make-whole payments | 505 | 1,868 | — | ||||||||||||||
Amortization of deferred financing costs | 314 | 425 | 303 | ||||||||||||||
Gross interest expense | 1,543 | 4,400 | 3,211 | ||||||||||||||
Less capitalized interest | 75 | 111 | 180 | ||||||||||||||
Interest expense, net | $ | 1,468 | $ | 4,289 | $ | 3,031 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Asset retirement obligation, at beginning of period | $ | 23,872 | $ | 22,250 | $ | 23,125 | ||||||||||||||
Liabilities settled | — | (116) | (38) | |||||||||||||||||
Liabilities incurred | — | — | 60 | |||||||||||||||||
Changes in estimated obligations | 1,294 | — | (2,690) | |||||||||||||||||
Accretion of discount | 1,858 | 1,738 | 1,793 | |||||||||||||||||
Total asset retirement obligation, at end of period | $ | 27,024 | $ | 23,872 | $ | 22,250 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Beginning balance | $ | 30,419 | $ | 16,612 | $ | 11,678 | ||||||||||||||
Additions | 4,310 | 17,657 | 11,058 | |||||||||||||||||
Recognized as revenue during period from the beginning balance | (941) | (3,850) | (6,124) | |||||||||||||||||
Ending balance | $ | 33,788 | $ | 30,419 | $ | 16,612 |
Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||
Product | Potash Segment | Trio® Segment | Oilfield Solutions Segment | Intersegment Eliminations | Total | |||||||||||||||||||||||||||
Potash | $ | 130,460 | $ | — | $ | — | $ | (247) | $ | 130,213 | ||||||||||||||||||||||
Trio® | — | 91,125 | — | — | 91,125 | |||||||||||||||||||||||||||
Water | 2,050 | 4,355 | 15,594 | — | 21,999 | |||||||||||||||||||||||||||
Salt | 9,592 | 578 | — | — | 10,170 | |||||||||||||||||||||||||||
Magnesium Chloride | 7,847 | — | — | — | 7,847 | |||||||||||||||||||||||||||
Brines | 1,802 | — | 1,129 | — | 2,931 | |||||||||||||||||||||||||||
Other | — | — | 6,047 | — | 6,047 | |||||||||||||||||||||||||||
Total Revenue | $ | 151,751 | $ | 96,058 | $ | 22,770 | $ | (247) | $ | 270,332 |
Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||
Product | Potash Segment | Trio® Segment | Oilfield Solutions Segment | Intersegment Eliminations | Total | |||||||||||||||||||||||||||
Potash | $ | 92,500 | $ | — | $ | — | $ | (322) | $ | 92,178 | ||||||||||||||||||||||
Trio® | — | 65,344 | — | — | 65,344 | |||||||||||||||||||||||||||
Water | 1,253 | 4,444 | 14,701 | — | 20,398 | |||||||||||||||||||||||||||
Salt | 8,103 | 499 | — | — | 8,602 | |||||||||||||||||||||||||||
Magnesium Chloride | 4,855 | — | — | — | 4,855 | |||||||||||||||||||||||||||
Brines | 1,349 | — | 438 | — | 1,787 | |||||||||||||||||||||||||||
Other | — | — | 3,790 | — | 3,790 | |||||||||||||||||||||||||||
Total Revenue | $ | 108,060 | $ | 70,287 | $ | 18,929 | $ | (322) | $ | 196,954 |
Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Product | Potash Segment | Trio® Segment | Oilfield Solutions Segment | Intersegment Eliminations | Total | |||||||||||||||||||||||||||
Potash | $ | 103,403 | $ | — | $ | 2,973 | $ | (1,909) | $ | 104,467 | ||||||||||||||||||||||
Trio® | — | 64,299 | — | — | 64,299 | |||||||||||||||||||||||||||
Water | 1,823 | 4,495 | 19,339 | — | 25,657 | |||||||||||||||||||||||||||
Salt | 12,022 | 757 | — | — | 12,779 | |||||||||||||||||||||||||||
Magnesium Chloride | 4,907 | — | — | — | 4,907 | |||||||||||||||||||||||||||
Brines | 2,493 | — | — | — | 2,493 | |||||||||||||||||||||||||||
Other | — | — | 5,582 | (109) | 5,473 | |||||||||||||||||||||||||||
Total Revenue | $ | 124,648 | $ | 69,551 | $ | 27,894 | $ | (2,018) | $ | 220,075 |
Weighted Average Grant-Date Fair Value | ||||||||||||||
Shares | ||||||||||||||
Restricted shares of common stock, beginning of period | 362,399 | $ | 19.06 | |||||||||||
Granted with service only condition | 96,349 | $ | 37.49 | |||||||||||
Granted with service and market conditions | 89,226 | $ | 23.76 | |||||||||||
Vested, service only condition | (112,221) | $ | 16.63 | |||||||||||
Forfeited, service only condition | (24,287) | $ | 21.18 | |||||||||||
Forfeited, service and market conditions | (3,869) | $ | 23.38 | |||||||||||
Restricted shares of common stock, end of period | 407,597 | $ | 24.95 |
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value1 | Weighted Average Remaining Contractual Life | |||||||||||||||||||||||
Outstanding non-qualified stock options, beginning of period | 296,046 | $31.66 | ||||||||||||||||||||||||
Granted | — | $— | ||||||||||||||||||||||||
Exercised | (8,651) | $10.30 | ||||||||||||||||||||||||
Forfeited | — | $— | ||||||||||||||||||||||||
Expired | (3,471) | $356.90 | ||||||||||||||||||||||||
Outstanding non-qualified stock options, end of period | 283,924 | $28.33 | $4,088,429 | 5.6 | ||||||||||||||||||||||
Vested or expected to vest, end of period | 283,924 | $28.33 | $4,088,429 | 5.6 | ||||||||||||||||||||||
Exercisable non-qualified stock options, end of period | 190,433 | $23.09 | $3,739,708 | 5.4 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Current portion of income tax expense (benefit): | ||||||||||||||||||||
Federal | $ | — | $ | (42) | $ | — | ||||||||||||||
State | 206 | 47 | 53 | |||||||||||||||||
Deferred portion of income tax expense: | ||||||||||||||||||||
Federal | (157,348) | — | — | |||||||||||||||||
State | (51,727) | — | — | |||||||||||||||||
Total income tax (benefit) expense | $ | (208,869) | $ | 5 | $ | 53 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Federal taxes at statutory rate | $ | 8,603 | $ | (5,701) | $ | 2,874 | ||||||||||||||
Add: | ||||||||||||||||||||
State taxes, net of federal benefit | 1,278 | (1,316) | 1,245 | |||||||||||||||||
Change in valuation allowance | (215,910) | 6,320 | (6,754) | |||||||||||||||||
PPP loan forgiveness | (2,115) | — | — | |||||||||||||||||
Change in federal and state tax rates | 138 | 3 | 2,322 | |||||||||||||||||
Percentage depletion | (463) | — | (600) | |||||||||||||||||
Other | (400) | 699 | 966 | |||||||||||||||||
Net (benefit) expense as calculated | $ | (208,869) | $ | 5 | $ | 53 | ||||||||||||||
Effective tax rate | (509.9) | % | — | % | 0.4 | % |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Deferred tax assets (liabilities): | ||||||||||||||
Property, plant, equipment and mineral properties, net | $ | 131,496 | $ | 133,720 | ||||||||||
Federal and state net operating loss carryforwards | 59,331 | 66,316 | ||||||||||||
Asset retirement obligation | 6,900 | 6,070 | ||||||||||||
Deferred revenue | 8,628 | 7,651 | ||||||||||||
Other | 2,883 | 2,316 | ||||||||||||
Federal R&D credits | 1,870 | 1,870 | ||||||||||||
Total deferred tax assets | 211,108 | 217,943 | ||||||||||||
Valuation allowance | (2,033) | (217,943) | ||||||||||||
Deferred tax asset, net | $ | 209,075 | $ | — |
Contributions | ||||||||
Year Ended December 31, 2021 | $ | 1,633 | ||||||
Year Ended December 31, 2020 | $ | 1,569 | ||||||
Year Ended December 31, 2019 | $ | 1,522 |
Year Ended December 31, 2021 | Potash | Trio® | Oilfield Solutions | Other | Consolidated | |||||||||||||||||||||||||||
Sales1 | $ | 151,751 | $ | 96,058 | $ | 22,770 | $ | (247) | $ | 270,332 | ||||||||||||||||||||||
Less: Freight costs | 17,483 | 20,656 | — | (247) | 37,892 | |||||||||||||||||||||||||||
Warehousing and handling costs | 5,169 | 4,113 | — | — | 9,282 | |||||||||||||||||||||||||||
Cost of goods sold | 87,281 | 54,847 | 19,293 | — | 161,421 | |||||||||||||||||||||||||||
Costs associated with abnormal production | 5,973 | — | — | — | 5,973 | |||||||||||||||||||||||||||
Gross Margin | $ | 35,845 | $ | 16,442 | $ | 3,477 | $ | — | $ | 55,764 | ||||||||||||||||||||||
Depreciation, depletion, and amortization2 incurred | $ | 26,828 | $ | 5,477 | $ | 2,996 | $ | 656 | $ | 35,957 | ||||||||||||||||||||||
Year Ended December 31, 2020 | Potash | Trio® | Oilfield Solutions | Other | Consolidated | |||||||||||||||||||||||||||
Sales1 | $ | 108,060 | $ | 70,287 | $ | 18,929 | $ | (322) | $ | 196,954 | ||||||||||||||||||||||
Less: Freight costs | 17,026 | 20,431 | — | (322) | 37,135 | |||||||||||||||||||||||||||
Warehousing and handling costs | 4,857 | 4,574 | — | — | 9,431 | |||||||||||||||||||||||||||
Cost of goods sold | 73,496 | 50,902 | 11,445 | — | 135,843 | |||||||||||||||||||||||||||
Lower of cost or NRV inventory adjustments | 1,130 | 2,885 | — | — | 4,015 | |||||||||||||||||||||||||||
Gross Margin (Deficit) | $ | 11,551 | $ | (8,505) | $ | 7,484 | $ | — | $ | 10,530 | ||||||||||||||||||||||
Depreciation, depletion, and amortization incurred2 | $ | 26,536 | $ | 6,068 | $ | 2,663 | $ | 843 | $ | 36,110 | ||||||||||||||||||||||
Year Ended December 31, 2019 | Potash | Trio® | Oilfield Solutions | Other | Consolidated | |||||||||||||||||||||||||||
Sales1 | $ | 124,648 | $ | 69,551 | $ | 27,894 | $ | (2,018) | $ | 220,075 | ||||||||||||||||||||||
Less: Freight costs | 18,715 | 20,514 | 936 | (109) | 40,056 | |||||||||||||||||||||||||||
Warehousing and handling costs | 4,745 | 3,876 | — | — | 8,621 | |||||||||||||||||||||||||||
Cost of goods sold | 73,401 | 42,251 | 12,367 | (1,909) | 126,110 | |||||||||||||||||||||||||||
Lower of cost or NRV inventory adjustments | — | 1,810 | — | — | 1,810 | |||||||||||||||||||||||||||
Gross Margin | $ | 27,787 | $ | 1,100 | $ | 14,591 | $ | — | $ | 43,478 | ||||||||||||||||||||||
Depreciation, depletion, and amortization incurred2 | $ | 25,796 | $ | 6,163 | $ | 1,566 | $ | 810 | $ | 34,335 |
(In thousands) | ||||||||||||||||||||||||||
Description | Balance at Beginning of Year | Charged to Costs and Expenses | Deductions | Balance at End of Year | ||||||||||||||||||||||
For the Year Ended December 31, 2019 | ||||||||||||||||||||||||||
Allowances deducted from assets | ||||||||||||||||||||||||||
Deferred tax assets - valuation allowance | $ | 218,377 | $ | — | $ | (6,754) | $ | 211,623 | ||||||||||||||||||
Reserve for parts inventory obsolescence | 1,743 | — | (1,127) | 616 | ||||||||||||||||||||||
Allowance for doubtful accounts and other receivables | 465 | 75 | (60) | 480 | ||||||||||||||||||||||
Total allowances deducted from assets | $ | 220,585 | $ | 75 | $ | (7,941) | $ | 212,719 | ||||||||||||||||||
For the Year Ended December 31, 2020 | ||||||||||||||||||||||||||
Allowances deducted from assets | ||||||||||||||||||||||||||
Deferred tax assets - valuation allowance | 211,623 | 6,320 | — | 217,943 | ||||||||||||||||||||||
Reserve for parts inventory obsolescence | 616 | 492 | (58) | 1,050 | ||||||||||||||||||||||
Allowance for doubtful accounts and other receivables | 480 | 275 | (200) | 555 | ||||||||||||||||||||||
Total allowances deducted from assets | $ | 212,719 | $ | 7,087 | $ | (258) | $ | 219,548 | ||||||||||||||||||
For the Year Ended December 31, 2021 | ||||||||||||||||||||||||||
Allowances deducted from assets | ||||||||||||||||||||||||||
Deferred tax assets - valuation allowance | 217,943 | — | (215,910) | 2,033 | ||||||||||||||||||||||
Reserve for parts inventory obsolescence | 1,050 | 2,108 | — | 3,158 | ||||||||||||||||||||||
Allowance for doubtful accounts and other receivables | 555 | — | — | 555 | ||||||||||||||||||||||
Total allowances deducted from assets | $ | 219,548 | $ | 2,108 | $ | (215,910) | $ | 5,746 |
Schedule | Schedule Description | |||||||
Schedule II | Schedule of Valuation and Qualifying Accounts |
Incorporated by Reference from the Below-Listed Form (Each Filed under SEC File Number 001-34025) | |||||||||||||||||
Exhibit Number | Exhibit Description | Form | Filing Date | ||||||||||||||
Restated Certificate of Incorporation of Intrepid Potash, Inc. | 8-K | April 25, 2008 | |||||||||||||||
Certificate of Amendment to Restated Certificate of Incorporation of Intrepid Potash, Inc. | 8-K | May 26, 2016 | |||||||||||||||
Certificate of Amendment to Restated Certificate of Incorporation of Intrepid Potash, Inc. | 8-K | August 14, 2020 | |||||||||||||||
Amended and Restated Bylaws of Intrepid Potash, Inc. | 8-K | June 25, 2015 | |||||||||||||||
Description of Registrant's Securities | 10-K | March 3, 2020 | |||||||||||||||
Form of Indemnification Agreement with each director and officer | 8-K | April 25, 2008 | |||||||||||||||
Director Designation and Voting Agreement, dated as of April 25, 2008, by and among Intrepid Potash, Inc., Harvey Operating and Production Company, Intrepid Production Corporation, and Potash Acquisition, LLC | 8-K | May 1, 2008 | |||||||||||||||
Registration Rights Agreement, dated as of April 25, 2008, by and among Intrepid Potash, Inc., Harvey Operating & Production Company, Intrepid Production Corporation, and Potash Acquisition, LLC | 8-K | May 1, 2008 | |||||||||||||||
Acknowledgment and Relinquishment, dated as of December 19, 2011, by and among Intrepid Potash, Inc., Harvey Operating and Production Company, Intrepid Production Corporation, and Potash Acquisition, LLC | 10-K | February 16, 2012 |
Amended and Restated Credit Agreement, dated as of August 1, 2019, by and among Intrepid Potash, Inc., the subsidiaries party thereto, Bank of Montreal, as administrative agent, swing line lender, lead arranger, and book runner, and the lenders party thereto. | 8-K | August 1, 2019 | |||||||||||||||
First Amended and Restated Credit Agreement, dated as of April 17, 2020, by and among Intrepid Potash, Inc., the subsidiaries party thereto, Bank of Montreal, as administrative agent, swing line lender, lead arranger, and book runner, and the lenders party thereto. | 8-K | April 23, 2020 | |||||||||||||||
Amended and Restated Employment Agreement, dated as of May 19, 2010, by and between Intrepid Potash, Inc. and Robert P. Jornayvaz III+ | 8-K | May 19, 2010 | |||||||||||||||
Amendment to Employment Agreement, dated February 23, 2011, by and between Intrepid Potash, Inc. and Robert P. Jornayvaz III+ | 8-K | March 1, 2011 | |||||||||||||||
Second Amendment to Employment Agreement, dated as of February 14, 2013, by and between Intrepid Potash, Inc. and Robert P. Jornayvaz III+ | 8-K | February 19, 2013 | |||||||||||||||
Third Amendment to Employment Agreement, dated as of March 22, 2016, by and between Intrepid Potash, Inc. and Robert P. Jornayvaz III+ | 8-K | March 23, 2016 | |||||||||||||||
Fourth Amendment to Employment Agreement, dated as of March 12, 2019, by and between Intrepid Potash, Inc. and Robert P. Jornayvaz III+ | 8-K | March 15, 2019 | |||||||||||||||
Amended and Restated Employment Agreement, dated as of May 19, 2010, by and between Intrepid Potash, Inc. and Hugh E. Harvey, Jr.+ | 8-K | May 19, 2010 | |||||||||||||||
Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan+ | 8-K | May 24, 2019 | |||||||||||||||
Form of Restricted Stock Agreement under Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan+ | 10-K | March 2, 2021 | |||||||||||||||
Form of Stock Option Agreement under Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan+ | 10-K | March 2, 2021 | |||||||||||||||
Intrepid Potash, Inc. Amended and Restated Short-Term Incentive Plan+ | 8-K | May 26, 2016 | |||||||||||||||
Form of Change-of-Control Severance Agreement with Robert P. Jornayvaz III and Hugh E. Harvey, Jr.+ | 10-Q | November 3, 2011 | |||||||||||||||
Form of Change-in-Control Severance Agreement with Margaret E. McCandless and Mark A. McDonald+ | 10-K | March 12, 2019 | |||||||||||||||
Form of Noncompete Agreement with executives other than Robert P. Jornayvaz III+ | 10-K | February 28, 2017 | |||||||||||||||
Form of Retention Agreement+ | 10-K | March 12, 2019 | |||||||||||||||
Aircraft Dry Lease, dated as of January 9, 2009, by and between Intrepid Potash, Inc. and Intrepid Production Holdings LLC | 8-K | January 12, 2009 | |||||||||||||||
First Amendment to Aircraft Dry Lease, dated as of September 1, 2014, by and between Intrepid Potash, Inc. and Intrepid Production Holdings LLC | 8-K | August 18, 2014 | |||||||||||||||
Aircraft Dry Lease, dated as of September 1, 2014, by and between Intrepid Potash, Inc. and Odyssey Adventures, LLC | 8-K | August 18, 2014 | |||||||||||||||
List of Subsidiaries | * | ||||||||||||||||
Consent of KPMG LLP | * | ||||||||||||||||
Consent of Agapito Associates, Inc. | * | ||||||||||||||||
Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) | * | ||||||||||||||||
Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) | * | ||||||||||||||||
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ** | ||||||||||||||||
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ** | ||||||||||||||||
Mine Safety Disclosure Exhibit | * | ||||||||||||||||
Technical Report Summary for Intrepid Potash - New Mexico | |||||||||||||||||
Technical Report Summary for Intrepid Potash - Moab |
Technical Report Summary for Intrepid Potash - Wendover | |||||||||||||||||
Transition Services Agreement, dated as of April 25, 2008, by and between Intrepid Potash, Inc., Intrepid Oil & Gas, LLC, and Intrepid Potash-Moab, LLC | 8-K | May 1, 2008 | |||||||||||||||
Extension and Amendment to Transition Services Agreement dated July 14, 2009, to be effective as of April 25, 2009, between Intrepid Potash, Inc. and Intrepid Oil & Gas, LLC | 10-Q | August 7, 2009 | |||||||||||||||
Third Amendment to Transition Services Agreement dated March 26, 2010, between Intrepid Potash, Inc. and Intrepid Oil & Gas, LLC | 10-Q | May 5, 2010 | |||||||||||||||
Fourth Amendment to Transition Services Agreement dated March 25, 2011, between Intrepid Potash, Inc. and Intrepid Oil and Gas, LLC | 10-Q | May 5, 2011 | |||||||||||||||
Sixth Amendment to Transition Services Agreement dated April 3, 2013, between Intrepid Potash, Inc. and Intrepid Oil & Gas, LLC | 10-Q | May 2, 2013 | |||||||||||||||
Seventh Amendment to Transition Services Agreement dated March 24, 2015, between Intrepid Potash, Inc. and Intrepid Oil & Gas, LLC | 10-Q | April 28, 2015 | |||||||||||||||
Eighth Amendment to Transition Services Agreement dated March 22, 2017, between Intrepid Potash, Inc. and Intrepid Oil & Gas, LLC | 10-Q | May 2, 2017 | |||||||||||||||
Ninth Amendment to Transition Services Agreement dated February 20, 2019, between Intrepid Potash, Inc. and Intrepid Oil & Gas, LLC. | 10-K | March 12, 2019 | |||||||||||||||
101.INS | XBRL Instance Document | * | |||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema | * | |||||||||||||||
101.CAL | XBRL Extension Calculation Linkbase | * | |||||||||||||||
101.DEF | XBRL Extension Definition Linkbase | * | |||||||||||||||
101.LAB | XBRL Extension Label Linkbase | * | |||||||||||||||
101.PRE | XBRL Extension Presentation Linkbase | * | |||||||||||||||
104 | Cover Page Interactive Date File (formatted as inline XBRL with applicable taxonomy extension information contain in Exhibits 101. |
INTREPID POTASH, INC. (Registrant) | ||||||||
March 8, 2022 | /s/ Robert P. Jornayvaz III | |||||||
Robert P. Jornayvaz III - Executive Chairman of the Board and Chief Executive Officer (Principal Executive Officer and Duly Authorized Officer) |
Signature | Title | Date | ||||||||||||
/s/ Robert P. Jornayvaz III | Executive Chairman of the Board and Chief Executive Officer | March 8, 2022 | ||||||||||||
Robert P. Jornayvaz III | ||||||||||||||
/s/ Matthew D. Preston | Chief Financial Officer (Principal Financial Officer) | March 8, 2022 | ||||||||||||
Matthew D. Preston | ||||||||||||||
/s/ Chris A. Elliott | Director | March 8, 2022 | ||||||||||||
Chris A. Elliott | ||||||||||||||
/s/ Lori A. Lancaster | Director | March 8, 2022 | ||||||||||||
Lori A. Lancaster | ||||||||||||||
/s/ Mary E. McBride | Director | March 8, 2022 | ||||||||||||
Mary E. McBride | ||||||||||||||
/s/ Barth E. Whitham | Lead Director | March 8, 2022 | ||||||||||||
Barth E. Whitham |
Name | State of Organization | ||||
Intrepid Potash-Moab, LLC | Delaware | ||||
Intrepid Potash-New Mexico, LLC | New Mexico | ||||
Intrepid Potash-Wendover, LLC | Colorado | ||||
Moab Gas Pipeline, LLC | Colorado | ||||
Intrepid Aviation LLC | Colorado | ||||
203 E. Florence, LLC | Delaware | ||||
Intrepid Acquisition Sponsor, LLC | Delaware | ||||
Intrepid Acquisition Corporation I, LLC | Delaware | ||||
Dated: March 8, 2022 | /s/ Robert P. Jornayvaz III | |||||||
Robert P. Jornayvaz III Executive Chairman of the Board, and Chief Executive Officer |
Dated: March 8, 2022 | /s/ Matthew D. Preston | |||||||
Matthew D. Preston Chief Financial Officer |
Dated: March 8, 2022 | /s/ Robert P. Jornayvaz III | |||||||
Robert P. Jornayvaz III Executive Chairman of the Board, and Chief Executive Officer |
Dated: March 8, 2022 | /s/ Matthew D. Preston | |||||||
Matthew D. Preston Chief Financial Officer |
Mine Name and MSHA Identification Number | Section 104 S&S Citations | Section 104(b) Orders | Section 104(d) Citations and Orders | Section 110(b)(2) Violations | Section 107(a) Orders | Total Dollar Value of MSHA Assessments Proposed | Total Number of Mining-Related Fatalities | Received Notice of Pattern of Violations Under Section 104(e) | Received Notice of Potential to Have Pattern under Section 104(e) | Legal Actions Pending as of the End of the Period | Legal Actions Initiated During the Period | Legal Actions Resolved During the Period | ||||||||||||||||||||||||||
Intrepid Potash East (29-00170) | 1 | — | — | — | — | $2,275 | — | — | — | 6 | 15 | 13 | ||||||||||||||||||||||||||
Intrepid Potash West (29-00175) | 1 | — | — | — | — | $1,666 | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||
Intrepid Potash North (29-02028) | — | — | — | — | — | $— | — | — | — | 1 | 1 | — |
Mine Name and MSHA Identification Number | Contests of Citations and Orders | Contests of Proposed Penalties | Complaints for Compensation | Complaints of Discharge, Discrimination or Interference | Applications for Temporary Relief | Appeals of Judges’ Decisions or Orders | Total | ||||||||||||||||
Intrepid Potash East (29-00170) | 6 | — | — | — | — | — | 6 | ||||||||||||||||
Intrepid Potash West (29-00175) | — | — | — | — | — | — | — | ||||||||||||||||
Intrepid Potash North (29-02028) | 1 | — | — | — | — | — | 1 |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | i |
![]() | AGAPITO ASSOCIATES, INC. 715 Horizon Drive, Suite 340 Grand Junction, CO 81506 1536 Cole Blvd., Bldg. 4, Suite 320 Lakewood, CO 80401 |
![]() | ![]() | ||||
Agapito Associates, Inc. | CORPORATE SEAL |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | i |
Page | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | ii |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | iii |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | iv |
Page | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | v |
Page | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | vi |
° | degree | ||||
% | percent | ||||
Agapito | Agapito Associates, Inc. | ||||
AMAX | AMAX/Horizon Mine | ||||
APR | Annual Percentage Rate | ||||
BLM | United States Bureau of Land Management | ||||
BNSF | Burlington Northern Santa Fe | ||||
CFR | Code of Federal Regulations | ||||
CL | Competitive Lease | ||||
COGS | cost of goods sold | ||||
CPD | Carlsbad Potash District | ||||
DMS | dense media separation | ||||
DOI | United States Department of Interior | ||||
EA | Environmental Audit | ||||
EIS | Environmental Impact Statement | ||||
EOY | end of year | ||||
F | Fahrenheit | ||||
FR | Federal Register | ||||
ft | feet or foot | ||||
ft3 | cubic foot | ||||
ft% | feet-percent | ||||
g | grams | ||||
g/cm3 | grams per cubic centimeter | ||||
gpm | gallons per minute | ||||
GT | grade thickness | ||||
hp | horsepower | ||||
ID2 | inverse distance squared | ||||
Intrepid | Intrepid Potash, Inc. | ||||
IPNM | Intrepid Potash–New Mexico, LLC | ||||
K2O | potassium oxide | ||||
K2SO4 ·2MgSO4 | langbeinite | ||||
KCl | sylvite or potassium chloride | ||||
KPLA | Known Potash Leasing Area | ||||
LOM | Life-of-Mine | ||||
NMED | New Mexico Environmental Department | ||||
M | million | ||||
MOP | Muriate of Potash | ||||
MSHA | Mine Safety and Health Administration | ||||
msl | mean sea level | ||||
mm | millimeter | ||||
Mt | million tons | ||||
Mtpy | million tons per year |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | vii |
NaCl | halite | ||||
NCL | Non-Competitive Lease | ||||
NPV | Net Present Value | ||||
NAD | North American Datum | ||||
OSHA | Occupational Safety and Health Administration | ||||
PFD | process flow diagrams | ||||
PRL | Preference Rights Lease | ||||
QP | Qualified Person | ||||
RC | reflux classifier | ||||
REC | Recognized Environmental Concerns | ||||
SEC | United States Securities Exchange Commission | ||||
SME | Society for Mining, Metallurgy & Exploration | ||||
SOE | statement of earnings | ||||
SOP | standard operating procedure | ||||
t | ton | ||||
TOC | Total Organic Carbon | ||||
tph | tons per hour | ||||
tpy | tons per year | ||||
TSF | Tailings Storage Facility | ||||
US | United States | ||||
USGS | United States Geological Survey | ||||
WIPP | Waste Isolation Pilot Plant | ||||
XRD | X-ray Diffraction |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 1-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 1-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 1-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 2-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 2-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 2-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 3-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 3-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 3-3 |
Agapito Associates, Inc. |
Table 3-1. Property Lease Details | ||||||||||||||||||||||||||
Federal Land Lease Number | Lease Type | Mine | Date | Royalty Rate | Acres (BLM) | Readjustment Due | Amount Paid | Date Paid | ||||||||||||||||||
NMNM 029268401 | Potassium PRL | East | 1966 | 2,546 | 12/1/2026 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 012181001 | Potassium PRL | HB | 1964 | 5% Leased Deposits | 640 | 1/1/2025 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 005728701 | Potassium PRL | East | 1963 | 2,461 | 1/1/2024 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 002362301 | Potassium PRL | HB | 1961 | 5% Leased Deposits | 400 | 2/1/2022 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 001654001 | Potassium PRL | West | 1960 | 120 | 4/1/2050 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 001474201 | Potassium PRL | East | 1963 | 640 | 8/1/2023 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 000685901 | Potassium PRL | East | 1953 | 2,554 | 10/26/2033 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 000610101 | Potassium PRL | West | 1957 | 1,200 | 2/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0554864 | Potassium PRL | East | 1953 | 1,250 | 2/24/2033 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0554863 | Potassium PRL | East | 1953 | 200 | 2/24/2033 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0554862 | Pot Fringe Acre NCL | East | 1953 | 480 | 2/24/2033 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0220116 | Potassium CL | HB | 1961 | 5% Leased Deposits | 2,552 | 12/1/2021 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 0184150 | Potassium PRL | West | 1949 | 240 | 11/30/2029 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0184149 | Potassium PRL | West | 1954 | 80 | 1/1/2035 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0135065 | Pot Fringe Acre NCL | HB | 1961 | 5%+1cent mrt | 200 | 6/1/2021 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 131012 | Pot Fringe Acre NCL | East | 2016 | 1,320 | 3/1/2036 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 131011 | Pot Fringe Acre NCL | East | 2016 | 2,000 | 3/1/2036 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 131010 | Pot Fringe Acre NCL | East | 2016 | 1,280 | 3/1/2036 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 120103 | Pot Fringe Acre NCL | East | 2012 | 1,920 | 10/1/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 120102 | Pot Fringe Acre NCL | West | 2012 | 1,560 | 10/1/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 120101 | Pot Fringe Acre NCL | East | 2012 | 2,240 | 10/1/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 118970 | Potassium CL | East | 2006 | 320 | 1/1/2028 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 118969 | Potassium CL | East | 2006 | 320 | 1/1/2028 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 113457 | Pot Fringe Acre NCL | HB | 2012 | 5% Leased Deposits | 560 | 10/1/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 113456 | Pot Fringe Acre NCL | HB | 2012 | 5% Leased Deposits | 2,480 | 10/1/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 113455 | Pot Fringe Acre NCL | HB | 2012 | 5% Leased Deposits | 2,401 | 10/1/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 112199 | Pot Fringe Acre NCL | HB | 2007 | Sliding Scale (POT); 5% Lang | 434 | 2/1/2027 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 110949 | Pot Fringe Acre NCL | East | 2004 | 1,918 | 12/1/2024 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0088285 | Pot Fringe Acre NCL | HB | 1960 | 5%+1cent mrt | 120 | 8/1/2040 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 080707 | Pot Fringe Acre NCL | East | 1963 | 2,520 | 8/1/2023 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0070607 | Pot Fringe Acre NCL | West | 1960 | 552 | 2/1/2050 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0063880 | Pot Fringe Acre NCL | West | 1959 | 120 | 7/1/2039 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 054619 | Pot Fringe Acre NCL | East | 1983 | 2,092 | 3/1/2023 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0050249A | Potassium PRL | HB | 1963 | Sliding Scale (POT) | 920 | 9/1/2023 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 047021 | Pot Fringe Acre NCL | East | 1982 | 1,105 | 7/1/2022 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0045410 | Potassium PRL | East | 1958 | 2,438 | 6/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 041639 | Pot Fringe Acre NCL | East | 1981 | 120 | 7/1/2021 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 040362 | Pot Fringe Acre NCL | East | 1980 | 280 | 12/1/2040 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 040071 | Potassium CL | North | 1980 | 2,080 | 5/1/2020 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0036791 | Potassium CL | HB | 1957 | 5% Leased Deposits | 1,840 | 10/1/1037 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 0035383 | Potassium CL | East | 1957 | 2,400 | 1/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0033696A | Potassium PRL | East | 1957 | 1,241 | 3/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0033696 | Potassium PRL | West | 1957 | 960 | 3/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 028916 | Pot Fringe Acre NCL | West | 1963 | 880 | 8/1/2023 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 028915 | Potassium PRL | East | 1958 | 118 | 6/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 025234 | Potassium PRL | West | 1949 | 80 | 11/30/2029 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 025233 | Potassium PRL | West | 1951 | 1,600 | 1/2/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 025232 | Potassium PRL | West | 1951 | 1,600 | 7/6/2031 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 024522 | Pot Fringe Acre NCL | West | 1976 | 800 | 3/1/2022 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 018417 | Pot Fringe Acre NCL | East | 1952 | 160 | 1/9/2032 | $19,092.90 | 7/8/2019 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 3-5 |
Table 3-1. Property Lease Details (continued) | ||||||||||||||||||||||||||
Federal Land Lease Number | Lease Type | Mine | Date | Royalty Rate | Acres (BLM) | Readjustment Due | Amount Paid | Date Paid | ||||||||||||||||||
NMNM 0015064C | Potassium PRL | East | 1953 | 1,049 | 10/25/2033 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0015064B | Potassium PRL | East | 1953 | 1,280 | 10/26/2033 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0015064A | Potassium PRL | East | 1953 | 1,600 | 10/26/2033 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 013933 | Pot Fringe Acre NCL | HB | 1971 | 5% Leased Deposits | 80 | 10/1/2031 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 013932 | Pot Fringe Acre NCL | West | 1974 | 640 | 11/1/2034 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 012763 | Pot Fringe Acre NCL | HB | 1971 | 5% Leased Deposits | 160 | 6/1/2031 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 0011777 | Pot Fringe Acre NCL | North | 1952 | 1% ORRI | 1,118 | 1/9/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 0011776 | Pot Fringe Acre NCL | North | 1952 | 1% ORRI | 2,559 | 1/9/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMNM 0007005 | Potassium PRL | West | 1952 | 2,073 | 1/2/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMNM 0003468 | Pot Fringe Acre NCL | West | 1958 | 960 | 7/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 007186801 | Potassium PRL | East | 1955 | 1,938 | 9/1/2035 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 007014101 | Potassium PRL | HB | 1953 | 5%+1cent mrt | 439 | 1/1/2039 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 006839701 | Potassium PRL | North | 1948 | 1% ORRI | 1,920 | 1/9/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 006602601 | Potassium PRL | HB | 1951 | 5% + 1cent mrt | 200 | 9/1/2035 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 006569301 | Potassium PRL | West | 1956 | 560 | 2/1/2038 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 006556601 | Potassium PRL | HB | 1951 | 5% Leased Deposits; 1.0987% ORRI | 720 | 9/28/2031 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 006528601 | Potassium PRL | North | 1952 | 1% ORRI | 2,554 | 1/9/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 006527501 | Potassium PRL | North | 1952 | 1% ORRI | 2,551 | 1/9/2032 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 006508101 | Potassium PRL | HB | 1950 | Sliding Scale (POT); 1.0987% ORRI | 560 | 12/6/2030 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 006184701 | Potassium PRL | West | 1951 | 1.0987% ORRI | 1,275 | 7/6/2031 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 0050063F | Potassium PRL | HB | 1938 | 5% Leased Deposits; 1.0987% ORRI | 2,358 | 4/15/2039 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 0050063B | Potassium PRL | HB | 1934 | 5% Leased Deposits; 1.0987% ORRI | 2,560 | 4/15/2039 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 0046729D | Pot Fringe Acre NCL | HB | 1933 | 5% Leased Deposits; 1.0987% ORRI | 2,560 | 1/18/2033 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 0046729C | Pot Fringe Acre NCL | HB | 1933 | 5% Leased Deposits; 1.0987% ORRI | 2,280 | 1/18/2033 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 0046729A | Pot Fringe Acre NCL | HB | 1933 | 5% Leased Deposits; 1.0987% ORRI | 2,559 | 1/18/2033 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 0044752 | Pot Fringe Acre NCL | HB | 1956 | 5% Lang | 240 | 9/1/2036 | $19,092.90 | 7/8/2019 | ||||||||||||||||||
NMLC 0043636C | Pot Fringe Acre NCL | West | 1932 | 920 | 6/20/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 0043636B | Pot Fringe Acre NCL | West | 1931 | 2,312 | 6/20/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 0043636A | Pot Fringe Acre NCL | West | 1931 | 1,044 | 6/20/2032 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 0036092C | Pot Fringe Acre NCL | West | 1927 | 2,559 | 11/21/2029 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 0036092B | Pot Fringe Acre NCL | West | 1927 | 2,026 | 11/21/2029 | $19,092.90 | 7/8/2019 | |||||||||||||||||||
NMLC 0036092A | Pot Fringe Acre NCL | West | 1927 | 2,437 | 11/21/2029 | $19,092.90 | 7/8/2019 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 3-6 |
State of New Mexico Land Lease Number | Lease Type | Issue Date | Acres (State) | Amount Paid | Date Paid | ||||||||||||
HP00050001 | Potash | 2005 | 3,200 | $3,200 | 5/7/2020 | ||||||||||||
HP00250000 | Potash | 2012 | 640 | $640 | 9/3/2020 | ||||||||||||
HP00260000 | Potash | 2012 | 640 | $640 | 9/3/2020 | ||||||||||||
HP00270000 | Potash | 2012 | 1,680 | $1,680 | 9/3/2020 | ||||||||||||
HP00280000 | Potash | 2010 | 80 | $80 | 7/2/2020 | ||||||||||||
HP00290000 | Potash | 2009 | 640 | $640 | 11/19/2020 | ||||||||||||
HP00480000 | Potash | 2012 | 1,200 | $1,200 | 9/24/2020 | ||||||||||||
HP00490000 | Potash | 2012 | 1,450 | $1,450 | 9/3/2020 | ||||||||||||
HP00500000 | Potash | 2012 | 2,280 | $2,280 | 9/24/2020 | ||||||||||||
HP00510000 | Potash | 2012 | 960 | $961 | 9/3/2020 | ||||||||||||
HP00520000 | Potash | 2012 | 1,435 | $1,436 | 10/1/2020 | ||||||||||||
M006510011 | Potash | 1936 | 17,486 | $1,749 | 11/19/2020 | ||||||||||||
NOTE—Coordinate System: Shifted from North American Datum (NAD) 27 New Mexico State Plane North to Local Mine Grid PRL = Preference Rights Lease; CL = Competitive Lease; NCL = Non-Competitive Lease |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 4-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 4-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 5-1 |
Property | Owner | Date | ||||||
East Mine | Kerr-McGee Chemical Corporation | 1961–1985 | ||||||
New Mexico Potash Corporation (Trans Resources, Inc.) | 1985–1996 | |||||||
Mississippi Potash Inc. | 1996–2004 | |||||||
Intrepid Mining- NM, LLC | 2004–Present | |||||||
West Mine | U. S. Potash Company | 1929–1956 | ||||||
U.S. Borax and Chemical Corporation | 1956–1968 | |||||||
U.S. Potash and Chemical | 1968–1970 | |||||||
Continental American Royalty Corporation | 1970–1972 | |||||||
Teledyne | 1972–1974 | |||||||
Mississippi Chemical Company (MCC) | 1974–1996 | |||||||
Mississippi Potash, Inc. (MPI) (a subsidiary of MCC) | 1996–2004 | |||||||
Intrepid Mining - NM, LLC | 2004–Present | |||||||
North Mine | National Potash Company (Freeport Sulphur Company) | 1957–1982 | ||||||
New Mexico Potash Corporation (Trans Resources Inc.) | 1982 | |||||||
Mississippi Chemical Corporation | 1985–1988 | |||||||
Mississippi Chemical Corporation | 1992–1996 | |||||||
Mississippi Potash Inc. | 1996–2004 | |||||||
Intrepid Mining- NM, LLC | 2004–Present | |||||||
AMAX Mine | Southwest Potash Corporation | 1948 | ||||||
AMAX Potash | 1986–1992 | |||||||
Horizon Gold (Horizon Potash) | 1992–1995 | |||||||
Intrepid Mining - NM, LLC | 2012–Present | |||||||
HB Mine | Potash Corp of America | 1934–1967 | ||||||
Ideal Basic | 1967–1985 | |||||||
Lundberg Industries | 1985–1987 | |||||||
Trans-Resource (Eddy Potash) | 1987–1996 | |||||||
Mississippi Potash, Inc. | 1996–2004 | |||||||
Intrepid Mining NM, LLC | 2004–Present |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 6-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 6-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 6-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 6-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 6-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 6-6 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 6-7 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 7-1 |
Ore Zone | Oil/Gas Wells | Surface Core Holes | Underground Core Holes | Channel Samples | Shaft | Roof Bolt | Total Samples | ||||||||||||||||
Zone 2 | — | 2 | — | — | — | — | 2 | ||||||||||||||||
Zone 3 | 478 | 560 | 57 | 73 | 3 | — | 1,171 | ||||||||||||||||
Zone 3A | — | 1 | — | — | — | — | 1 | ||||||||||||||||
Zone 4 | 480 | 544 | 62 | 5 | 3 | — | 1,094 | ||||||||||||||||
Zone 4A | — | 2 | — | — | — | — | 2 | ||||||||||||||||
Zone 5 | 488 | 572 | 114 | 2,014 | 4 | 42 | 3,234 | ||||||||||||||||
Zone 7 | 484 | 611 | 89 | 805 | 4 | 7 | 2,000 | ||||||||||||||||
Zone 8 | 492 | 613 | 53 | — | 3 | — | 1,161 | ||||||||||||||||
Zone 9 | — | 1 | — | — | — | — | 1 | ||||||||||||||||
Zone 10C | 506 | 843 | 7 | 181 | 3 | — | 1,540 | ||||||||||||||||
Total | 2,928 | 3,749 | 382 | 3,078 | 20 | 49 | 10,206 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 7-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 7-3 |
Ore Zone | Oil/Gas Wells | Core Holes | Channel Samples | Total Samples | ||||||||||
Zone 3 | 463 | 542 | 73 | 1,078 | ||||||||||
Zone 4 | 469 | 619 | 12 | 1,100 | ||||||||||
Zone 5 | 482 | 651 | 1,979 | 3,112 | ||||||||||
Zone 7 | 480 | 609 | 831 | 1,920 | ||||||||||
Zone 8 | 476 | 576 | 2 | 1,054 | ||||||||||
Zone 10 | 486 | 729 | 183 | 1,398 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 8-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 9-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 10-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-1 |
Agapito Associates, Inc. |
Resources | ||||||||
Measured | Indicated | |||||||
Proximity to sample point | 1,320 ft (1/4 mile) | 3,960 ft (3/4 mile) | ||||||
GT for sylvinite mechanical mining | 40.0 ft% K2O | |||||||
GT for high-insoluble sylvinite mechanical mining* | 59.0 ft% K2O | |||||||
GT for langbeinite mechanical mining | 32.0 ft% K2O | |||||||
Flood elevation HB South | 2,525 ft | |||||||
Flood Elevation HB North | 2,325 ft | |||||||
Flood Elevation HB Eddy | 2,675 ft | |||||||
Flood Elevation HB AMAX | 2,500 ft | |||||||
Carnallite content mechanical mining | Less than 6% | |||||||
Mineability | Reasonably expected to be feasible to mine | |||||||
*High-insoluble sylvinite zones 8 and 10 |
Product | Sale Price | Freight | Net Sales Price | Cost of Goods Sold | ||||||||||
Langbeinite | $425 | $90 | $335 | $200/t | ||||||||||
Sylvite | $406 | $30 | $376 | $200/t |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-3 |
Ore Mineral | Pure Mineral (%) | Nominal Grade Cutoffs (% K2O) | Nominal Grade Cutoffs (% KCl or Lang) | Mill Recovery (%) | Grade- Thickness Cutoff1 (ft%) | Applicable Ore Zones | ||||||||||||||
Carlsbad East Mine | East–3, 4 and 5, West–4 | |||||||||||||||||||
Langbeinite2 | 22.70% | 6.4% | 28.2% | 68% | 32 | |||||||||||||||
Carlsbad West/North Mine | ||||||||||||||||||||
High-Insolubles Sylvite with CAPEX Burden | 63.18% | 13.2% | 20.9% | 75% | 59 | 8 and 10 | ||||||||||||||
Carlsbad West Mine | West–3, 4, 5, 7 North–3 and 4 | |||||||||||||||||||
Sylvinite with CAPEX Burden | 63.18% | 10.1% | 15.9% | 80% | 45 | |||||||||||||||
1Equivalent to 5.0-ft-thick ore at nominal grades in the East Mine and 4.5-ft-thick ore at nominal grades in the West and North Mines. | ||||||||||||||||||||
2All langbeinite is processed at the East Plant. | ||||||||||||||||||||
CAPEX = capital expenditure |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-6 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-7 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-8 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-9 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-10 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-11 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-12 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-13 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 11-14 |
IPNM—Summary of Mineral Resources in millions of tons of Sylvinite effective December 31, 2021 based on 406 $/product ton mine site | |||||||||||||||||
Resources | Mechanical Mining Cutoff2 (ft-%K2O) | Processing Recovery (%) | |||||||||||||||
Sylvinite1 (Mt) | Grade (%K2O) | Contained K2O (Mt) | |||||||||||||||
Measured Mineral Resources | 370 | 15 | 56 | 45–59 | 75–85 | ||||||||||||
Indicated Mineral Resources | 200 | 14 | 29 | 45–59 | 75–85 | ||||||||||||
Measured + Indicated Mineral Resources | 570 | 15 | 85 | ||||||||||||||
Inferred Mineral Resources | — | ||||||||||||||||
1Sylvinite is a mixed evaporite containing NaCl and KCl. | |||||||||||||||||
2Solution mining resource cutoff for flooded old workings is the mining extents boundary. | |||||||||||||||||
Mineral Resources were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | |||||||||||||||||
Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis. | |||||||||||||||||
Mineral Resources are reported using Inverse Distance Squared (ID2) estimation methods. | |||||||||||||||||
Mt = million tons, % = percentage, K2O = potassium oxide, ft = feet |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-1 |
Product | Sale Price | Freight | Net Sales Price | Cost of Goods Sold | ||||||||||
Langbeinite | $340 | $90 | $250 | $200/t | ||||||||||
Sylvite | $325 | $30 | $295 | $200/t |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-2 |
Cost | |||||
Total production costs ($) | $31,500,000 | ||||
Net revenue from salt ($) | $4,680,000 | ||||
Total Cost (less revenue from salt) | $26,820,000 | ||||
Potash | |||||
Tons sold | 180,000 | ||||
Net potash sales ($) | $44,100,000 | ||||
Cutoff Analysis | |||||
Net concentration of production brine (% KCl) | 5.6 | % | |||
Cutoff net concentration (% KCl) | 3.4 | % | |||
Cutoff net concentration (% K2O) | 2.2 | % |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-3 |
Reserves | |||||
Oil and gas mechanical mining offsets | 200–2,640 ft radius | ||||
Drill islands sterilization | 200 ft radius | ||||
GT for sylvinite mechanical mining | 57.0 ft% K2O | ||||
GT for high-insoluble sylvinite mechanical mining* | 75.0 ft% K2O | ||||
GT for langbeinite mechanical mining | 43.0 ft% K2O | ||||
Minimum mechanical mining height East Mine | 6.5 ft | ||||
Extraction factor | 0.84 | ||||
Random impurities factor | 0.9 | ||||
Flood elevation HB South | 2,525 ft | ||||
Flood elevation HB North | 2,325 ft | ||||
Flood Elevation HB Eddy | 2,675 ft | ||||
Flood Elevation HB AMAX | 2,500 ft | ||||
Solution mining dissolution | 0.96 | ||||
Solution mining areal recovery factor | 1 | ||||
Solution mining geologic factor | 0.93-0.99 | ||||
Solution mining cavern losses | 0.02 | ||||
Carnallite content mechanical mining | Less than 6% | ||||
Mineability | Defined in a detailed mine plan |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-6 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 12-7 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 13-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 13-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 14-1 |
Agapito Associates, Inc. |
Agapito Associates, Inc. |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 14-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 14-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 14-6 |
Agapito Associates, Inc. |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 14-8 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 14-9 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 15-1 |
Agapito Associates, Inc. |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 16-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 17-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 17-2 |
Common Name | Issuing Agency | Permit ID | Effective Date | Expiration Date | Bond Value | Note | ||||||||||||||
Air Permit | New Mexico Environment Department (NMED) Air Quality Bureau | New Source Review Permit 4332-M1R3 | 4-Apr-21 | None | None | |||||||||||||||
Air Permit | New Mexico Environment Department Air Quality Bureau | Title V Air Operating Permit P261-R1 | 6-Nov-19 | 1-Nov-24 | None | Title V operating permits have a 5 year permit term; renewal is required to be submitted 12 months prior to expiration. | ||||||||||||||
Groundwater Discharge Permit | New Mexico Environment Department Ground Water Bureau (Water Quality Control Commission Regulations) | Discharge Permit No.: DP-1681 | 10-Jul-15 | 10-Jul-20 | $ | 3,349,000 | Application for renewal submitted January 2020--still awaiting new permit. Existing permit remains in effect until agency issues the renewed permit. Current bond amount is shown. Intrepid provided an updated Mine Reclamation and Closure Plan and Closure Cost Estimate to NMED GWB in June 2021 for the amount of $4.475MM. Awaiting NMED acceptance before updating bond. | |||||||||||||
Liquid Waste Permit | NMED Health Bureau | West/HB Plant: 004446, 004447, 004448, 004449, 004450, 004451, 004452, 004453, and 008609 | 9-Jan-18 | None | None | |||||||||||||||
Liquid Waste Permit | NMED Health Bureau | HB Slurry Pit Septic 008609 | 25-Sep-18 | None | None | |||||||||||||||
Radioactive devices | NMED Radiation Control Bureau | None | 7-Oct-19 | 30-Nov-24 | None | |||||||||||||||
Waterfowl Hazing Plan and Reporting | Bureau of Land Management – Carlsbad Field Office | HB Project Solar Evaporation Ponds, Stepped Avian Monitoring and Mitigation Plan | 1-Jan-12 | None | None | |||||||||||||||
Storm Water Pollution Prevention Plan | N/A | |||||||||||||||||||
SPCC Plan | N/A |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 17-3 |
Good Housekeeping Practices Plan | NMED AQB | Good Housekeeping Practices Plan required by NSR Air Permit 4332- M1 | 11-Aug-17 | None | None | |||||||||||||||
CAM Plan | NMED AQB | Compliance Assurance Monitoring Plan required by Title V Air Operating Permit P261-R1 | Same as Title V permit | Same as Title V permit | None | |||||||||||||||
Federal Explosives License | Bureau of Alcohol Tobacco and Firearms | Permit # 5-NM-015-33-9J-00293 | None | License covers shell crackers for shotguns. Used to control or scare away waterfowl from the ponds at all sites. This license is for all of Intrepid NM, not just HB Solar. | ||||||||||||||||
Solid and Hazardous Waste Management Plan | Self written | [Not a permit, HB Solar is a Very Small Quantity Generator] | N/A | N/A | None | Updated plan internally January 2021 | ||||||||||||||
Mine Operations and Closure Plan | Bureau of Land Management – Carlsbad Field Office | HB Solar Mine Operations and Closure Plan | 1-Mar-12 | None | $415,000 | Intrepid provided an updated Mine Reclamation and Closure Plan and Closure Cost Estimate to NMED GWB and concurrently with BLM in June 2021 for the amount of $4.475MM. It is our understanding that NMED and BLM has a MOU that will allow Intrepid to have 1 bond jointly. Awaiting NMED and BLM acceptance before updating the bond. | ||||||||||||||
Well permits | NM Office of State Engineer | Injection, Extraction and Rustler Wells | 1-Mar-12 | None | Permit status is undetermined at this time. |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 17-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 18-1 |
Cost Category | Cost ($/product ton) | ||||
Labor | $91 | ||||
Maintenance Supplies | $25 | ||||
Operating Supplies Including Reagents | $20 | ||||
Natural Gas, Electricity and Fuel | $15 | ||||
Leases, Property Tax, Insurance, etc. | $25 | ||||
Subtotal | $176 | ||||
Warehouse | $11 | ||||
Royalties | $13 | ||||
Cost of Goods Sold | $200 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 19-1 |
Parameter | Assumption | ||||
Trio® Sale Price (mine site) | $340/t | ||||
Potash Sale Price (mine site) | $325/t | ||||
Shipping Trio® | $90/t | ||||
Shipping Potash | $30/t | ||||
Trio® Production Target | 250,000 tpy | ||||
Potash Production Target | 180,000 tpy | ||||
Interest Rate | 0–12% APR | ||||
Income Taxes (State and Federal) | 40% | ||||
Resource Tax | 1.25% |
Agapito Associates, Inc. |
2022– 2026 | 2027– 2031 | 2032– 2036 | 2037– 2041 | 2042– 2046 | ||||||||||||||||
Langbeinite | ||||||||||||||||||||
Ore Production (-million tons/year) | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 | |||||||||||||||
Ore Grade (%K2O/year) | 8.69 | 8.62 | 8.78 | 8.16 | 7.86 | |||||||||||||||
Tons of K2O (-000/year) | 57.94 | 57.54 | 58.56 | 54.36 | 52.42 | |||||||||||||||
Product (Langbeinite) (-000 tons/year) | 265.78 | 263.96 | 268.62 | 249.34 | 240.46 | |||||||||||||||
Handling Losses (-000 tons/year) | 10.62 | 10.58 | 10.76 | 9.96 | 9.62 | |||||||||||||||
Tons (Langbeinite) (-000 tons/year) | 255.16 | 253.38 | 257.86 | 239.38 | 230.84 | |||||||||||||||
Sale Price Langbeinite ($/product ton) | $340 | $340 | $340 | $340 | $340 | |||||||||||||||
Shipping ($/ton) | $90 | $90 | $90 | $90 | $90 | |||||||||||||||
Net Sale Price/year | $250 | $250 | $250 | $250 | $250 | |||||||||||||||
MOP | Production (MOP) (-000 tons/year) | 180.00 | 180.00 | 180.00 | 180.00 | 180.00 | ||||||||||||||
Sale Price MOP ($/product tons/year) | $325 | $325 | $325 | $325 | $325 | |||||||||||||||
Shipping ($/product tons/year) | $30 | $30 | $30 | $30 | $30 | |||||||||||||||
Net Sale Price | $295 | $295 | $295 | $295 | $295 | |||||||||||||||
Salt Sales ($-million/year) | $2.50 | $2.50 | $2.50 | $2.50 | $3.00 | |||||||||||||||
REVENUE ($-million/year) | $119.39 | $118.95 | $120.07 | $115.45 | $113.81 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Major Capital ($-million/year) | $5.20 | $1.00 | $0.00 | $3.00 | $0.00 | |||||||||||||||
Cost of Goods Sold | ||||||||||||||||||||
Expenses ($-million/year) | $84.83 | $84.83 | $84.80 | $84.77 | $79.38 | |||||||||||||||
Income before Taxes ($-million/year) | $34.56 | $34.11 | $35.26 | $30.67 | $34.43 | |||||||||||||||
Pre-tax Cash Flow ($-million/year) | $29.36 | $33.11 | $35.26 | $27.67 | $34.43 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 19-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 19-4 |
2022– 2026 | 2027– 2031 | 2032– 2036 | 2037– 2041 | 2042– 2046 | ||||||||||||||||
Langbeinite | ||||||||||||||||||||
Ore Production (-million tons/year) | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 | |||||||||||||||
Ore Grade (%K2O/year) | 8.69 | 8.62 | 8.78 | 8.16 | 7.86 | |||||||||||||||
Tons of K2O (-000/year) | 57.94 | 57.54 | 58.56 | 54.36 | 52.42 | |||||||||||||||
Product (Langbeinite) (-000 tons/year) | 265.78 | 263.96 | 268.62 | 249.34 | 240.46 | |||||||||||||||
Handling Losses (-000 tons/year) | 10.62 | 10.58 | 10.76 | 9.96 | 9.62 | |||||||||||||||
Tons (Langbeinite) (-000 tons/year) | 255.16 | 253.38 | 257.86 | 239.38 | 230.84 | |||||||||||||||
Sale Price Langbeinite ($/product ton) | $340 | $340 | $340 | $340 | $340 | |||||||||||||||
Shipping ($/ton) | $90 | $90 | $90 | $90 | $90 | |||||||||||||||
Net Sale Price/year | $250 | $250 | $250 | $250 | $250 | |||||||||||||||
MOP | Production (MOP) (-000 tons/year) | 180 | 180 | 180 | 180 | 156 | ||||||||||||||
Sale Price MOP ($/product tons/year) | $325 | $325 | $325 | $325 | $325 | |||||||||||||||
Shipping ($/product tons/year) | $30 | $30 | $30 | $30 | $30 | |||||||||||||||
Net Sale Price | $295 | $295 | $295 | $295 | $295 | |||||||||||||||
Salt Sales ($-million/year) | $2.50 | $2.50 | $2.50 | $2.50 | $3.00 | |||||||||||||||
REVENUE ($-million/year) | $119.39 | $118.95 | $120.07 | $115.45 | $106.73 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Major Capital ($-million/year) | $5.20 | $1.00 | $0.00 | $3.00 | $0.00 | |||||||||||||||
Cost of Goods Sold | ||||||||||||||||||||
Expenses | $84.83 | $84.83 | $84.80 | $84.77 | $81.18 | |||||||||||||||
Income before Taxes | $34.56 | $34.11 | $35.26 | $30.67 | $25.55 | |||||||||||||||
Depreciation | $1.21 | $1.87 | $2.07 | $1.15 | $1.20 | |||||||||||||||
Depletion | $16.04 | $16.56 | $16.81 | $14.98 | $12.77 | |||||||||||||||
Taxable Income | $17.30 | $15.69 | $16.39 | $14.54 | $11.57 | |||||||||||||||
Fed and State | $6.92 | $6.28 | $6.56 | $5.82 | $4.63 | |||||||||||||||
Resource Excise Tax | $0.15 | $0.15 | $0.15 | $0.14 | $0.13 | |||||||||||||||
Cash Flow (After-Tax) | $22.29 | $26.69 | $28.56 | $21.71 | $20.78 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 19-5 |
Interest Rate (% APR) | NPV ($M) | ||||
0 | $755 | ||||
5 | $456 | ||||
8 | $358 | ||||
10 | $311 | ||||
12 | $275 |
Interest Rate (% APR) | NPV ($M) | ||||
0 | $600 | ||||
5 | $361 | ||||
8 | $282 | ||||
10 | $244 | ||||
12 | $215 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 19-6 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 20-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 21-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 22-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 23-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 24-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 24-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 24-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 24-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-New Mexico Prepared for Intrepid Potash, Inc. February 18, 2022 | 25-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | i | ||||
![]() | AGAPITO ASSOCIATES, INC. 715 Horizon Drive, Suite 340 Grand Junction, CO 81506 1536 Cole Blvd., Bldg. 4, Suite 320 Lakewood, CO 80401 |
![]() | ![]() | ||||
Agapito Associates, Inc. | CORPORATE SEAL |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | i | ||||
Page | |||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | ii | ||||
11-1 | |||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | iii | ||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | iv | ||||
Page | |||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | v | ||||
Figure 19-3. Pre-Tax NPV Sensitivity to Price and Costs (APR 8%) | |||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | i | ||||
° | degree | ||||
Agapito | Agapito Associates, Inc. | ||||
APR | Annual Percentage Rate | ||||
BLM | United States Bureau of Land Management | ||||
CFR | Code of Federal Regulations | ||||
cfs | cubic feet per second | ||||
CMC | carboxy-methyl cellulose | ||||
DRGW | Denver and Rio Grande Western Railroad | ||||
DSM | Dutch State Mines | ||||
EOY | end of year | ||||
F | Fahrenheit | ||||
ft | feet or foot | ||||
gpm | gallons per minute | ||||
Intrepid | Intrepid Potash, Inc. | ||||
Intrepid-Moab | Intrepid Potash–Moab, LLC | ||||
IRR | Internal Rate of Return | ||||
K2O | potassium oxide | ||||
KCl | sylvite or potassium chloride | ||||
M | million | ||||
Ma | mega annum (one-million years) | ||||
mm | millimeter | ||||
MOP | Muriate of Potash | ||||
MSL | mean sea level | ||||
mm | millimeter | ||||
Mt | million tons | ||||
NaCl | sodium chloride | ||||
NPV | Net Present Value | ||||
NaCl | halite | ||||
% | percent | ||||
PFD | process flow diagrams | ||||
QP | Qualified Person | ||||
SEC | United States Securities Exchange Commission | ||||
SITLA | Utah School and Institutional Lands Administration | ||||
SME | Society for Mining, Metallurgy & Exploration | ||||
SOE | statement of earnings | ||||
t | ton | ||||
tpd | tons per day | ||||
tpy | tons per year | ||||
TRS | Technical Report Summary |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 1-1 | ||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 1-2 | ||||
Resources | Processing | ||||||||||||||||
Sylvinite1 | Grade | Contained K2O | Cutoff2 | Recovery | |||||||||||||
(Mt) | (%K2O) | (Mt) | (%) | ||||||||||||||
Measured Mineral Resources | 113 | 26 | 30 | Minimum of 3-ft and 18.95%K2O | 83 | ||||||||||||
Indicated Mineral Resources | 190 | 25 | 47 | Minimum of 3-ft and 18.95%K2O | 83 | ||||||||||||
Measured + Indicated Mineral Resources | 303 | 25 | 77 | ||||||||||||||
Inferred Mineral Resources | 38 | 23 | 9 | Minimum of 3-ft and 18.95%K2O | 83 | ||||||||||||
1Sylvinite is a mixed evaporite containing NaCl and KCl. | |||||||||||||||||
2Solution mining resource cutoff for flooded old workings is the mining extents boundary. | |||||||||||||||||
Mineral Resources were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | |||||||||||||||||
Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis. | |||||||||||||||||
Mineral Resources are reported using Inverse Distance Squared (ID2) estimation methods. | |||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
Beds 5 and 9 | In-Situ | Brine Cutoff Grade2 | Processing | ||||||||||||||
In-Place KCl | Grade1 | Product | Recovery | ||||||||||||||
(Mt) | (%K2O) | (Mt) | (%K2O) | (%) | |||||||||||||
Proven Mineral Reserve | 2.6 | 27.2 | 1.9 | 1.9 | 83 | ||||||||||||
Probable Mineral Reserve | 0.8 | 27.8 | 0.6 | 1.9 | 83 | ||||||||||||
Total Mineral Reserves | 3.4 | 27.5 | 2.5 | ||||||||||||||
1In-situ grade is the amount of K2O in the remaining pillars of the old works. | |||||||||||||||||
2Brine cutoff grade is the amount of K2O in the extracted brine necessary to cover the costs of production. | |||||||||||||||||
Mineral Reserves were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | |||||||||||||||||
Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis. | |||||||||||||||||
Mineral Reserves are reported based on a solution mine plan, dissolution factor of 89%, areal recovery of 94%, geologic factor 94%, plant recovery of 83%, product purity of 95%. | |||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 1-3 | ||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 2-1 | ||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 2-2 | ||||
Effective EOY | Title | Reference | ||||||
2007 | 2007 Resource and Reserve Estimate for Solution Mine at Cane Creek Mine | Agapito 2007a | ||||||
2007 | Determination of Estimated Proven and Probable Reserves at Intrepid Potash—Moab, LLC | Agapito 2007b | ||||||
2009 | Determination of Estimated Proven and Probable Potash Reserves at Intrepid Potash—Moab, LLC | Agapito 2010 | ||||||
2012 | Determination of Estimated Proven and Probable Potash Reserves at Intrepid Potash—Moab, LLC | Agapito 2013 | ||||||
2015 | Determination of Estimated Proven and Probable Potash Reserves at Intrepid Potash—Moab, LLC | Agapito 2016 | ||||||
2018 | 2018 Determination of Estimated Proven and Probable Reserves at Intrepid Potash—Moab, LLC | Agapito 2019 |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 3-1 | ||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 3-2 | ||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 3-3 | ||||
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 3-4 | ||||
Federal Land Lease Number | Lessee | Lease Type | Mine | Date | Royalty Rate | Readjustment Due | Acres (BLM) | Amount Paid | ||||||||||||||||||
UTU0143659 | Intrepid Potash-Moab, LLC | Pot Fringe Acre NC Lse | Moab | 1959 | Minimum royalty $3/acre | 8/1/2039 | 200 | |||||||||||||||||||
State of Utah Land Lease Number | ||||||||||||||||||||||||||
Lessee | Lease Type | Mine | Date | End Date | Rental Period | Acres (SITLA) | Rental Amount | |||||||||||||||||||
ML9638 | Intrepid Potash-Moab, LLC | Potash | Moab | 1955 | 12/31/2024 | 1/1/2021–12/31/2021 | 440 | $1,760 | ||||||||||||||||||
ML11800 | Intrepid Potash-Moab, LLC | Potash | Moab | 1956 | 12/31/2024 | 1/1/2021–12/31/2021 | 699 | $2,796 | ||||||||||||||||||
ML52611OBA | Intrepid Potash-Moab, LLC | Potash | Moab | 2013 | 9/30/2023 | 10/1/2021–9/30/2021 | 3,030 | $21,217 | ||||||||||||||||||
UO486ST | Intrepid Potash-Moab, LLC | Potash | Moab | 1959 | 12/31/2024 | 1/1/2021–12/31/2021 | 818 | $3,276 | ||||||||||||||||||
UO10797ST | Intrepid Potash-Moab, LLC | Potash | Moab | 1959 | 12/31/2024 | 1/1/2021–12/31/2021 | 2,040 | $8,160 | ||||||||||||||||||
UO13167ST | Intrepid Potash-Moab, LLC | Potash | Moab | 1960 | 12/31/2024 | 1/1/2021–12/31/2021 | 1,800 | $7,200 | ||||||||||||||||||
UO13223ST | Intrepid Potash-Moab, LLC | Potash | Moab | 1960 | 12/31/2024 | 1/1/2021–12/31/2021 | 238 | $956 | ||||||||||||||||||
UO16133ST | Intrepid Potash-Moab, LLC | Potash | Moab | 1960 | 12/31/2024 | 1/1/2021–12/31/2021 | 885 | $3,540 | ||||||||||||||||||
UO18249ST | Intrepid Potash-Moab, LLC | Potash | Moab | 1960 | 12/31/2024 | 1/1/2021–12/31/2021 | 180 | $724 | ||||||||||||||||||
SITLA = Utah School and Institutional Lands Trust Administration | ||||||||||||||||||||||||||
NOTE—Coordinate System: Utah South Zone State Plane, NAD83 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 4-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 4-2 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 4-3 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 5-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 5-2 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-2 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-3 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-4 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-5 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-6 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-7 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-8 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 6-9 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 7-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 7-2 | ||||
Operator | Well Name | Elevation (ft) | Total Depth (ft) | Collar Coordinates | Top (ft) | Base (ft) | Assay Thickness (ft) | K2O Grade (%) | Data Source* | |||||||||||||||||||||||
Easting (ft) | Northing (ft) | |||||||||||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 1 | 3,964 | 2,805 | 2,526,652 | 675,049 | 2,678.4 | 2,690.8 | 12.33 | 27.56 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 2 | 4,223 | 2,968 | 2,522,913 | 672,932 | 2,764.3 | 2,780.2 | 15.87 | 28.69 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 3 | 4,115 | 3,378 | 2,522,011 | 680,646 | 3,244.6 | 3,249.8 | 5.23 | 24.13 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 4 | 4,127 | 4,297 | 2,523,864 | 668,532 | 2,658.2 | 2,662.7 | 4.50 | 24.89 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 5 | 4,148 | 3,653 | 2,528,066 | 668,040 | 2,617.8 | 2,623.2 | 5.42 | 27.75 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 6 | 4,563 | 4,082 | 2,519,798 | 675,445 | 3,175.0 | 3,187.5 | 12.50 | 25.37 | 2, 3 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 6W | 4,564 | 4,014 | 2,519,798 | 675,445 | 3,207.6 | 3,216.8 | 8.73 | 29.56 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 7 | 4,215 | 3,553 | 2,532,098 | 671,106 | 2,715.5 | 2,728.1 | 12.60 | 8.41 | 3 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 8 | 4,049 | 4,080 | 2,525,307 | 678,492 | 3,140.7 | 3,147.7 | 7.02 | 27.45 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 9 | 4,275 | 3,851 | 2,524,410 | 676,115 | 3,044.8 | 3,061.9 | 17.10 | 26.3 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 10 | 4,239 | 3,719 | 2,525,456 | 672,215 | 2,881.8 | 2,899.0 | 17.23 | 28 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 11-A | 4,571 | 4,314 | 2,517,119 | 680,144 | 3,415.5 | 3,431.4 | 15.89 | 24.04 | 1, 3 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 12 | 4,412 | 3,996 | 2,516,867 | 677,146 | 3,192.0 | 3,202.0 | 10.00 | 28.76 | 1, 2 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 13 | 4,342 | 4,025 | 2,519,273 | 670,115 | 3,199.0 | 3,202.0 | 3.00 | 10.00 | 1 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 14 | 4,394 | 4,265 | 2,520,679 | 672,576 | 3,292.8 | 3,303.7 | 10.87 | 27.84 | 1, 3 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 15 | 4,168 | 3,220 | 2,526,092 | 669,419 | 2,977.5 | 2,987.3 | 9.83 | 27.88 | 1, 3 | ||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 17 | 4,101 | 3,928 | 2,532,165 | 672,825 | 3,052.8 | 3,060.4 | 7.60 | 19.77 | 1, 3 | ||||||||||||||||||||||
Texasgulf | Cane Creek 18 | 4,040 | 3,830 | 2,526,389 | 680,533 | 3,542.9 | 3,553.9 | 11.00 | 21.05 | 3 | ||||||||||||||||||||||
Texasgulf | Federal 1X | 4,196 | 8,005 | 2,528,063 | 671,389 | 2,449.3 | 2,461.3 | 12.00 | 29.22 | 1, 2 | ||||||||||||||||||||||
Texasgulf | Test Well 17 | 3,991 | 3,533 | 2,528,501 | 678,540 | 3,472.0 | 3,483.0 | 11.00 | 22.00 | 8 | ||||||||||||||||||||||
Texasgulf | Test Well 18 | 4,001 | 3,522 | 2,528,508 | 678,589 | 3,488.0 | 3,498.0 | 10.00 | 21.50 | 8 | ||||||||||||||||||||||
Texasgulf | Well 19 | 3,961 | 4,192 | 2,528,421 | 677,817 | 3,326.0 | 3,336.5 | 10.45 | 19.90 | 7 | ||||||||||||||||||||||
Texasgulf | Well 21 | 3,996 | 3,560 | 2,527,998 | 679,249 | 3,554.5 | 3,560.4 | 5.87 | 12.70 | 4 | ||||||||||||||||||||||
Texasgulf | Well 22 | 4,010 | 3,603 | 2,527,338 | 679,700 | 3,553.3 | 3,574.0 | 20.69 | 20.87 | 5 | ||||||||||||||||||||||
Texasgulf | Well 23 | 4,011 | 3,842 | 2,527,840 | 680,492 | 3,789.4 | 3,798.0 | 8.51 | 21.65 | 6 | ||||||||||||||||||||||
Intrepid Mining | 26-30 | 4,549 | 6,530 | 2,519,875 | 675,082 | 3,123.8 | 3,137.7 | 14.10 | 20.96 | 9 | ||||||||||||||||||||||
Intrepid Mining | IM-031 | 4,400 | 4,100 | 2,524,734 | 674,335 | 3,081.5 | 3,090.0 | 8.60 | 28.86 | 9 | ||||||||||||||||||||||
Intrepid Mining | IM-035 | 4,274 | 3,003 | 2,524,657 | 672,216 | 2,851.3 | 2,865.5 | 11.20 | 29.54 | 9 | ||||||||||||||||||||||
Intrepid Mining | IPI-037V | 4,133 | 4,145 | 2,523,134 | 678,195 | 3,045.8 | 3,055.7 | 9.9 | 22.45 | 9 | ||||||||||||||||||||||
Intrepid Mining | IPI-038C | 4,075 | 4,540 | 2,525,432 | 680,580 | 0.0 | 9 | |||||||||||||||||||||||||
Intrepid Mining | IPI-039H | 4,064 | 8,477 | 2,522,032 | 680,613 | 3,593.2 | 3,601.8 | 8.60 | 8.50 | 9 | ||||||||||||||||||||||
Intrepid Mining | IPI-041C | 4,159 | 3,695 | 2,523,054 | 668,790 | 2,765.4 | 2,772.5 | 7.00 | 22.00 | 9 | ||||||||||||||||||||||
Intrepid Mining | IPI-042H | 4,133 | 5,218 | 2,523,095 | 678,210 | 3,031.9 | 3,041.2 | 9.30 | 21.50 | 9 | ||||||||||||||||||||||
Intrepid Mining | IPI-043C | 4,240 | 3,951 | 2,522,192 | 673,170 | 2,835.8 | 2,847.1 | 11.40 | 20.00 | 9 | ||||||||||||||||||||||
Intrepid Mining | IPI-044C | 3,975 | 5,000 | 2,525,903 | 683,564 | 3,823.0 | 3,836.8 | 13.70 | 22.30 | 9 | ||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||||||||
NS = no survey data. | ||||||||||||||||||||||||||||||||
*Sources: | ||||||||||||||||||||||||||||||||
1. Behre Dolbear & Co. (1961). | ||||||||||||||||||||||||||||||||
2. Texasgulf Sulphur Company, Potash Occurrences in the Paradox Basin, K.J. Kutz, June 24, 1966. | ||||||||||||||||||||||||||||||||
3. Recapitulation sheets submitted to Hugh Harvey from Bob Hite, April 1, 1998. | ||||||||||||||||||||||||||||||||
4. Texasgulf Chemicals, Geology of Well 21, letter from D.A. Gahr to J.H. Huizingh, October 29, 1982. | ||||||||||||||||||||||||||||||||
5. Texasgulf Chemicals, Geology of Well 22, letter from D.A. Gahr to J.H. Huizingh, October 29, 1982. | ||||||||||||||||||||||||||||||||
6. Texasgulf Chemicals, Geology of Well 23, letter from D.A. Gahr to J.H. Huizingh, October 29, 1982. | ||||||||||||||||||||||||||||||||
7. Texasgulf Chemicals, Cane Creek Solution Mining Hole No. 19, memo from K.J. Kutz to K.O. Linn, September 10, 1979. | ||||||||||||||||||||||||||||||||
8. Texasgulf Chemicals, Geology of Wells 17 and 18, memo from E.L. Follis to C.H. Huff, August 18, 1976. | ||||||||||||||||||||||||||||||||
9. Drilled by Intrepid |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 7-3 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 7-4 | ||||
Operator | Well Name | Elevation (ft) | Total Depth (ft) | Collar Coordinates | Top (ft) | Base (ft) | Assay Thickness (ft) | K2O Grade (%) | |||||||||||||||||||||
Easting (ft) | Northing (ft) | ||||||||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 9 | 4,275 | 3,851 | 2,524,410 | 676,115 | 4,002.90 | 4,016.00 | 13.0 | 26.50 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 8 | 4,049 | 4,080 | 2,525,307 | 678,492 | 3,945.36 | 3,949.87 | 5.0 | 19.90 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 6 | 4,538 | 4,085 | 2,519,798 | 675,445 | 3,931.70 | 3,941.00 | 8.0 | 26.00 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 5 | 4,148 | 3,653 | 2,528,066 | 668,040 | 3,554.33 | 3,569.75 | 14.9 | 28.00 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 17 | 4,124 | 3,928 | 2,532,165 | 672,825 | 3,901.00 | 3,913.00 | 10.7 | 30.40 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 14 | 4,368 | 4,265 | 2,520,679 | 672,576 | 4,265.00 | 4,273.00 | 11.8 | 33.10 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 12 | 4,412 | 3,996 | 2,516,867 | 677,146 | 3,973.88 | 3,983.60 | 9.7 | 30.80 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 10 | 4,239 | 3,719 | 2,525,456 | 672,215 | 3,696.00 | 3,711.00 | 12.9 | 31.60 | ||||||||||||||||||||
Texasgulf | Well 19 | 3,961 | 4,192 | 2,528,421 | 677,817 | 4,132.44 | 4,138.50 | 6.0 | 31.60 | ||||||||||||||||||||
Texasgulf | Federal 1-X | 4,196 | 8,005 | 2,528,063 | 671,389 | 3,302.46 | 3,309.54 | 6.0 | 34.80 | ||||||||||||||||||||
Utah Southern Oil Company | Frank Shafer 1 | 3,954 | 5,000 | 2,527,349 | 676,033 | 3,763.00 | 3,772.50 | 8.9 | 30.00 | ||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 4 | 4,127 | 2,523,864 | 668,530 | 0.0 | ||||||||||||||||||||||||
Delhi-Taylor Oil Corp. | Cane Creek 7 | 4,215 | 2,532,099 | 671,107 | 0.0 | ||||||||||||||||||||||||
Moab Salt | Well 28 | 4,021 | 6,896 | 2,528,070 | 680,176 | 4,980.00 | 4,998.50 | 6.2 | 37.50 | ||||||||||||||||||||
Intrepid Mining | 26-30 | 4,549 | 6,530 | 2,519,875 | 675,082 | 3,958.00 | 3,969.84 | 11.8 | 24.40 | ||||||||||||||||||||
Intrepid Mining | IM-031 | 4,400 | 4,100 | 2,524,734 | 674,335 | 3,861.22 | 3,863.06 | 1.8 | 20.02 | ||||||||||||||||||||
Intrepid Mining | IPI-037V | 4,133 | 4,145 | 2,523,133.6 | 678,195 | 3,886.78 | 3,882.78 | 8.00 | 31.28 | ||||||||||||||||||||
Intrepid Mining | IPI-038C | 4,075 | 4,540 | 2,525,431.6 | 680,580 | 4,337.30 | 4,345.80 | 8.50 | 30.30 | ||||||||||||||||||||
Intrepid Mining | IPI-043C | 4,240 | 3,951 | 2,522,192 | 673,170 | 3,700.40 | 3,711.50 | 10.10 | 30.12 | ||||||||||||||||||||
Intrepid Mining | IPI-044C | 3,975 | 5,000 | 2,525,903 | 683,564 | 4,589.95 | 4,598.46 | 7.00 | 34.60 | ||||||||||||||||||||
Intrepid Mining | IPI-040H | 4,134 | 6,817 | 2,523,101 | 678,239 | 4,470.00 | 4,445.01 | 10.20 | 34.26 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 8-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 9-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 10-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-2 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-3 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-4 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-5 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-6 | ||||
Bed 5 | Resources | Cutoff2 | Processing Recovery (%) | ||||||||||||||
Sylvinite1 (Mt) | Grade (%K2O) | Contained K2O (Mt) | |||||||||||||||
Measured Mineral Resources | 70 | 25 | 18 | Flooded mine extent | 83 | ||||||||||||
Indicated Mineral Resources | 102 | 22 | 23 | Flooded mine extent | 83 | ||||||||||||
Measured + Indicated Mineral Resources | 172 | 23 | 41 | ||||||||||||||
Inferred Mineral Resources | 10 | 21 | 2 | Flooded mine extent | 83 | ||||||||||||
1Sylvinite is a mixed evaporite containing NaCl and KCl. | |||||||||||||||||
2Solution mining resource cutoff for flooded old workings is the mining extents boundary. | |||||||||||||||||
Mineral Resources were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | |||||||||||||||||
Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis. | |||||||||||||||||
Mineral Resources are reported using Inverse Distance Squared (ID2) estimation methods. | |||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-7 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-8 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-9 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 11-10 | ||||
Resources | Cutoff2 | Processing Recovery (%) | |||||||||||||||
Sylvinite1 (Mt) | Grade (%K2O) | Contained K2O (Mt) | |||||||||||||||
Measured Mineral Resources | 113 | 26 | 30 | Minimum of 3-ft and 18.95%K2O | 83 | ||||||||||||
Indicated Mineral Resources | 190 | 25 | 47 | Minimum of 3-ft and 18.95%K2O | 83 | ||||||||||||
Measured + Indicated Mineral Resources | 303 | 25 | 77 | ||||||||||||||
Inferred Mineral Resources | 38 | 23 | 9 | Minimum of 3-ft and 18.95%K2O | 83 | ||||||||||||
1Sylvinite is a mixed evaporite containing NaCl and KCl. | |||||||||||||||||
2Solution mining resource cutoff for flooded old workings is the mining extents boundary. | |||||||||||||||||
Mineral Resources were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | |||||||||||||||||
Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis. | |||||||||||||||||
Mineral Resources are reported using Inverse Distance Squared (ID2) estimation methods. | |||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 12-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 12-2 | ||||
Parameter | Assumption | ||||
Sylvite Product ($/product ton mine site) | 325 | ||||
Freight ($/product ton) | 50 | ||||
Cost of Goods Sold ($/product ton) | 130 | ||||
Density (pounds per cubic foot) | 130 | ||||
KCl to K20 Ratio | 1/1.583 | ||||
Dissolution Factor (%) | 0.89 | ||||
Areal Extraction (Bed 5) | 1.00 | ||||
Areal Extraction (Bed 9) | 0.98 | ||||
Geologic Factors (Salt Horse) | 0.94 | ||||
Process Recovery | 0.83 | ||||
Product Purity | 0.95 |
Year | Bed 5 (tons) | Bed 9 (tons) | Beds 5 and 9 (tons) | ||||||||
2022 | 25,480 | 70,000 | 95,480 | ||||||||
2023 | 24,461 | 75,000 | 99,461 | ||||||||
2024 | 23,483 | 80,000 | 103,483 | ||||||||
2025 | 22,543 | 85,000 | 107,543 | ||||||||
2026 | 21,642 | 85,000 | 106,642 | ||||||||
2027 | 21,642 | 85,000 | 106,642 | ||||||||
2028 | 20,783 | 85,000 | 105,783 | ||||||||
2029 | 19,963 | 85,000 | 104,963 | ||||||||
2030 | 19,183 | 85,000 | 104,183 | ||||||||
2031 | 18,443 | 85,000 | 103,443 | ||||||||
2032 | 17,743 | 85,000 | 102,743 | ||||||||
2033 | 17,083 | 80,000 | 97,083 | ||||||||
2034 | 16,463 | 80,000 | 96,463 | ||||||||
2035 | 15,883 | 85,000 | 100,883 | ||||||||
2036 | 15,343 | 90,000 | 105,343 | ||||||||
2037 | 14,843 | 90,000 | 104,843 | ||||||||
2038 | 14,383 | 90,000 | 104,383 | ||||||||
2039 | 13,963 | 90,000 | 103,963 | ||||||||
2040 | 13,583 | 90,000 | 103,583 | ||||||||
2041 | 13,243 | 90,000 | 103,243 | ||||||||
2042 | 12,942 | 90,000 | 102,942 | ||||||||
2043 | 12,682 | 90,000 | 102,682 | ||||||||
2044 | 12,462 | 90,000 | 102,462 | ||||||||
2045 | 12,282 | 90,000 | 102,282 | ||||||||
2046 | 12,142 | 90,000 | 102,142 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 12-3 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 12-4 | ||||
Bed 9 | In-Place KCl (Mt) | In-Situ Grade (%K2O) | Product (Mt) | Brine Cutoff Grade1 (%K2O) | Processing Recovery (%) | ||||||||||||
Proven Mineral Reserve | 1.8 | 28.7 | 1.3 | 1.9 | 83 | ||||||||||||
Probable Mineral Reserve | 0.8 | 28.8 | 0.6 | 1.9 | 83 | ||||||||||||
Total Mineral Reserves | 2.6 | 28.8 | 1.9 | ||||||||||||||
1Brine cutoff grade is the amount of K2O n the extracted brine necessary to cover the costs of production. | |||||||||||||||||
Mineral Reserves were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | |||||||||||||||||
Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis. | |||||||||||||||||
Mineral Reserves are reported based on a solution mine plan, dissolution factor of 89%, areal recovery of 94%, geologic factor 94%, plant recovery of 83%, product purity of 95%. | |||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 12-5 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 12-6 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 12-7 | ||||
Beds 5 and 9 | In-Place KCl (Mt) | In-Situ Grade1 (%K2O) | Product (Mt) | Brine Cutoff Grade2 (%K2O) | Processing Recovery (%) | ||||||||||||
Proven Mineral Reserve | 2.6 | 27.2 | 1.9 | 1.9 | 83 | ||||||||||||
Probable Mineral Reserve | 0.8 | 27.8 | 0.6 | 1.9 | 83 | ||||||||||||
Total Mineral Reserves | 3.4 | 27.5 | 2.5 | ||||||||||||||
1In-situ grade is the amount of K2O in the remaining pillars of the old works. | |||||||||||||||||
2Brine cutoff grade is the amount of K2O in the extracted brine necessary to cover the costs of production. | |||||||||||||||||
Mineral Reserves were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid Potash. | |||||||||||||||||
Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis. | |||||||||||||||||
Mineral Reserves are reported based on a solution mine plan, dissolution factor of 89%, areal recovery of 94%, geologic factor 94%, plant recovery of 83%, product purity of 95%. | |||||||||||||||||
Mt = million tons, % = percent, K2O = potassium oxide, ft = feet |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 13-1 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 13-2 | ||||
Year | Bed 5 (tons) | Bed 9 (tons) | Total Net of KCl (tons) | Production by Bed 5 (%) | Production by Bed 9 (%) | ||||||||||||
2001 | 137,486 | 0 | 137,486 | 100.0 | 0.0 | ||||||||||||
2002 | 139,855 | 0 | 139,855 | 100.0 | 0.0 | ||||||||||||
2003 | 92,739 | 14,822 | 107,561 | 86.2 | 13.8 | ||||||||||||
2004 | 101,873 | 20,061 | 121,934 | 83.5 | 16.5 | ||||||||||||
2005 | 69,318 | 19,440 | 88,758 | 78.1 | 21.9 | ||||||||||||
2006 | 57,723 | 29,758 | 87,481 | 66.0 | 34.0 | ||||||||||||
2007 | 64,590 | 30,259 | 94,849 | 68.1 | 31.9 | ||||||||||||
2008 | 63,816 | 28,044 | 91,860 | 69.5 | 30.5 | ||||||||||||
2009 | 93,467 | 26,283 | 119,750 | 78.1 | 21.9 | ||||||||||||
2010 | 82,125 | 31,139 | 113,264 | 72.5 | 27.5 | ||||||||||||
2011 | 77,789 | 29,952 | 107,741 | 72.2 | 27.8 | ||||||||||||
2012 | 84,671 | 34,664 | 119,335 | 71.0 | 29.0 | ||||||||||||
2013 | 71,255 | 44,802 | 116,057 | 61.4 | 38.6 | ||||||||||||
2014 | 43,238 | 70,463 | 113,701 | 38.0 | 62.0 | ||||||||||||
2015 | 8,518 | 109,798 | 118,317 | 7.2 | 92.8 | ||||||||||||
2016 | 28,488 | 68,883 | 97,371 | 29.3 | 70.7 | ||||||||||||
2017 | 68,153 | 79,131 | 147,285 | 46.3 | 53.7 | ||||||||||||
2018 | 20,178 | 93,843 | 114,020 | 17.7 | 82.3 | ||||||||||||
2019 | 1,866 | 72,884 | 74,750 | 2.5 | 97.5 | ||||||||||||
2020 | 56,033 | 84,098 | 140,131 | 40.0 | 60.0 | ||||||||||||
2021 | 41,674 | 59,036 | 100,710 | 41.4 | 58.6 | ||||||||||||
1,404,855 | 947,360 | 2,352,215 | |||||||||||||||
*Tonnages from Intrepid-Moab mass balance table. | |||||||||||||||||
Annual tons represent annual evaporation cycle (2021 = Sept. 2020 - Aug. 2021) |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 13-3 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 13-4 | ||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 14-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 14-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 14-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 15-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 15-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 16-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 17-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 17-2 |
Common Name | Issuing Agency | Permit ID | Effective Date | Expiration Date | Bond Value | Note | ||||||||||||||
Air Permit | Utah Division of Air Quality | Approval Order #: DAQE-AN102510004-13 | 1-Oct-13 | None | ||||||||||||||||
UIC Permit | Utah Division of Water Quality | Underground Injection Control Program Permit No.: UTU-19-AP-1C3C2E8 | 6-May-15 | Division to review after 5 years | $ | 1,709,898 | Application for renewal submitted July 6, 2020—still awaiting new permit. | |||||||||||||
Class IIIb Landfill Permit | Utah Division of Waste Management and Radiation Control | Waste Management and Radiation Control Board Permit# 0401R1 | 17-Feb-10 | 17-Feb-20 | $ | 190,540 | Application for renewal submitted February 13, 2020—still awaiting new permit | |||||||||||||
Radioactive devices | Utah Division of Waste Management and Radiation Control | Radioactive Material License No.: UT 1000019, Amendment #12 | 30-Jun-14 | 30-Sep-19 | Application for renewal submitted July 30, 2019—still awaiting new permit | |||||||||||||||
Storm Water Pollution Prevention Plan | Utah Division of Water Quality | General Permit No.: UTR000000 | Dec-12 | Dec-21 | Permit renews annually with payment of annual fee | |||||||||||||||
SPCC Plan | Self-issued | Spill Prevention, Control and Countermeasure Plan | 1-Jun-16 | Review by Jun 1, 2021 | 5-year review is underway | |||||||||||||||
Fugitive Dust Control Plan | Utah Division of Air Quality | Fugitive Dust Control Plan | Jan-14 | None | ||||||||||||||||
Solid and Hazardous Waste Management Plan | Self-issued | [Not a permit, IPM is a Very Small Quantity Generator] | 21-Jan-04 | None | ||||||||||||||||
Mine and Reclamation Plan | Utah Division of Oil Gas and Mining | Notice of Intentions to Revise Mining Operations, File No.: M/019/005 | 20-Jun-16 | 20-Jun-21 | $ | 6,304,000 | Applicaton for renewal submitted April 30, 2021—awaiting approval | |||||||||||||
Stockpile Dam | Utah Division of Water Rights | Emergency Action Plan for Dam ID# UT00438 | 13-Apr-15 | 16-Sep-25 | Revised September 16, 2020 | |||||||||||||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 17-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 18-1 |
Cost Category | $/Product Ton | Cost Distribution | ||||||
Labor including Benefits | $43 | 33 | % | |||||
Maintenance Supplies | $13 | 10 | % | |||||
Operating Supplies including Reagents | $13 | 10 | % | |||||
Natural Gas, Electricity, and Fuel | $24 | 18 | % | |||||
Leases, Property Tax, Insurance etc. | $19 | 14 | % | |||||
Subtotal | $112 | 86 | % | |||||
Warehouse | $11 | 8 | % | |||||
Royalties | $7 | 6 | % | |||||
Cost of Goods Sold | $130 | 100 | % | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 19-1 |
Parameter | Assumption | ||||
Potash Sale Price (mine site) | $325/t | ||||
Shipping Potash | $50/t | ||||
Potash Production Target | 100,000 tpy | ||||
Interest Rate | 0–12% APR | ||||
Income Taxes (State and Federal) | 40% | ||||
Severance Tax | 2.60% | ||||
APR = Annual Percentage Rate | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 19-2 |
2022– 2026 | 2027– 2031 | 2032– 2036 | 2037– 2041 | 2042– 2046 | ||||||||||||||||
MOP | Production (-000 tons MOP/year) | 102.5 | 104.2 | 99.9 | 103.6 | 102.3 | ||||||||||||||
Sale Price MOP ($/product ton/year) | $325 | $325 | $325 | $325 | $325 | |||||||||||||||
Shipping ($/product ton/year) | $50 | $50 | $50 | $50 | $50 | |||||||||||||||
Net Sale Price/year | $275 | $275 | $275 | $275 | $275 | |||||||||||||||
REVENUE | ($-million/year) | $28.19 | $28.66 | $27.48 | $28.50 | $28.14 | ||||||||||||||
EXPENSES | ||||||||||||||||||||
Major Capital ($-million/year) | $1.60 | $0.00 | $1.60 | $1.60 | $0.00 | |||||||||||||||
Cost of Goods Sold | ||||||||||||||||||||
Expenses ($-million/year) | $13.33 | $13.55 | $12.99 | $13.47 | $13.30 | |||||||||||||||
Income before Taxes ($-million/year) | $14.87 | $15.11 | $14.49 | $15.03 | $14.84 | |||||||||||||||
Pre-tax Cash Flow ($-million/year) | $13.27 | $15.11 | $12.89 | $13.43 | $14.84 | |||||||||||||||
2022– 2026 | 2027– 2031 | 2032– 2036 | 2037– 2041 | 2042– 2046 | ||||||||||||||||
MOP | Production (-000 tons MOP/year) | 102.5 | 104.2 | 99.9 | 103.6 | 102.3 | ||||||||||||||
Sale Price MOP ($/product ton/year) | $325 | $ | 325 | $ | 325 | $ | 325 | $ | 325 | |||||||||||
Shipping ($/product ton/year) | $50 | $50 | $50 | $50 | $50 | |||||||||||||||
Net Sale Price/year | $275 | $275 | $275 | $275 | $275 | |||||||||||||||
REVENUE | ($-million/year) | $28.19 | $28.66 | $27.48 | $28.50 | $28.14 | ||||||||||||||
EXPENSES | ||||||||||||||||||||
Major Capital ($-million/year) | $1.60 | $0.00 | $1.60 | $1.60 | $0.00 | |||||||||||||||
Cost of Goods Sold | ||||||||||||||||||||
Expenses ($-million/year) | $13.33 | $13.55 | $12.99 | $13.47 | $13.30 | |||||||||||||||
Income before Taxes ($-million/year) | $14.87 | $15.11 | $14.49 | $15.03 | $14.84 | |||||||||||||||
Depreciation ($-million/year) | $0.53 | $0.53 | $1.07 | $0.53 | $0.53 | |||||||||||||||
Depletion ($-million/year) | $3.95 | $4.01 | $3.85 | $3.99 | $3.94 | |||||||||||||||
Taxable Income ($-million/year) | $10.39 | $10.57 | $9.58 | $10.50 | $10.36 | |||||||||||||||
Fed and State ($-million/year) | $4.15 | $4.23 | $3.83 | $4.20 | $4.15 | |||||||||||||||
Severance Tax ($-million/year) | $0.73 | $0.75 | $0.71 | $0.74 | $0.73 | |||||||||||||||
After-tax Cash Flow ($-million/year) | $8.38 | $10.14 | $8.34 | $8.48 | $9.96 | |||||||||||||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 19-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 19-4 |
Interest Rate (% APR) | NPV ($M) | ||||
0 | $348 | ||||
5 | $204 | ||||
8 | $158 | ||||
10 | $136 | ||||
12 | $119 |
Interest Rate (% APR) | NPV ($M) | ||||
0 | $227 | ||||
5 | $132 | ||||
8 | $102 | ||||
10 | $87 | ||||
12 | $76 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 19-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 19-6 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 20-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 21-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 22-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 23-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 24-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 24-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Moab Prepared for Intrepid Potash, Inc. February 23, 2022 | 25-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | i |
![]() | AGAPITO ASSOCIATES, INC. 715 Horizon Drive, Suite 340 Grand Junction, CO 81506 1536 Cole Blvd., Bldg. 4, Suite 320 Lakewood, CO 80401 |
![]() | ![]() | ||||
Agapito Associates, Inc. | CORPORATE SEAL |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | ii |
Page | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | iii |
7.3 Characterization of Hydrology Data | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | iv |
18.1 Capital Cost Estimate | |||||
19.2 Economic Analysis | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | v |
Page | |||||
19-3 | |||||
Page | |||||
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | vi |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | vii |
Agapito | Agapito Associates, Inc. | ||||
APR | Annual Percentage Rate | ||||
BLM | United States Bureau of Land Management | ||||
BSF | Bonneville Salt Flats | ||||
CFR | Code of Federal Regulations | ||||
CMC | carboxy-methyl cellulose | ||||
EOY | end of year | ||||
ft | feet or foot | ||||
ft2 | square foot | ||||
gpd | gallons per day | ||||
I-80 | Interstate 80 | ||||
Intrepid | Intrepid Potash, Inc. | ||||
Intrepid-Wendover | Intrepid Potash–Wendover, LLC | ||||
IRR | Internal Rate of Return | ||||
K | potassium | ||||
KCl | sylvite or potassium chloride | ||||
lb/ft3 | pounds per cubic foot | ||||
M | million | ||||
Mg | magnesium | ||||
MgCl2 | magnesium chloride | ||||
MgCl2•KCl•6H2O | carnallite | ||||
MOP | Muriate of Potash | ||||
MSL | mean sea level | ||||
MRS | metal recovery salt | ||||
Mt | million tons | ||||
Na | sodium | ||||
NaCl | sodium chloride or halite | ||||
NPV | Net Present Value | ||||
NaCl | halite | ||||
% | percent | ||||
QP | Qualified Person | ||||
SEC | United States Securities Exchange Commission | ||||
SME | Society for Mining, Metallurgy & Exploration | ||||
SOE | Statement of Earnings | ||||
t | ton | ||||
tpd | tons per day | ||||
tpy | tons per year | ||||
UPRR | Union Pacific Railroad | ||||
YPB | years before present |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 1-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 1-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 1-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 2-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 2-2 |
Effective EOY | Title | Reference | ||||||
2007 | Potash Resource Estimation for Intrepid Potash–Wendover LLC | AAI 2007a | ||||||
2007 | Determination of Estimated Probable Reserves at Intrepid Potash–Wendover, LLC | AAI 2007b | ||||||
2009 | Determination of Estimated Probable Potash Reserves at Intrepid Potash–Wendover, LLC | AAI 2010 | ||||||
2012 | Determination of Estimated Probable Potash Reserves at Intrepid Potash–Wendover, LLC | AAI 2013 | ||||||
2015 | 2015 Determination of Estimated Probable Potash Reserves at Intrepid Potash–Wendover, LLC | AAI 2016 | ||||||
2018 | 2018 Determination of Estimated Probable Reserves at Intrepid Potash–Wendover, LLC | AAI 2019 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 3-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 3-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 3-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 3-4 |
Privately Owned Lands | Acres | |||||||||||||||||||||||||
Intrepid Lands | 57,534 | |||||||||||||||||||||||||
State of Utah Lease | Section | Description | Township | Range | Acres | Lease Date | Effective Date | Readjustment Date | ||||||||||||||||||
ML-18959 | 36 | W2 | 1N | 17W | 320 | 8/21/1961 | 1/1/2014 | 12/31/2023 | ||||||||||||||||||
ML-18960 | 2 | Lots 3, 4, S2NW4, SW4 | 1S | 17W | 318 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-18961 | 16 | All | 1S | 17W | 640 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-18962 | 32 | All | 1S | 17W | 640 | 1/14/2014 | 12/31/2023 | |||||||||||||||||||
ML-18963 | 16 | W2 | 2S | 17W | 320 | 1/14/2014 | 12/31/2023 | |||||||||||||||||||
ML-18964 | 36 | S2SE4, NE4SE4, E2NW4SE4,E2SE4NE4 | 1S | 18W | 160 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-18965 | 16 | S2 | 2S | 18W | 320 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-18966 | 32 | All | 2S | 18W | 640 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-18967 | 2 | Lots 1, 2, 3, 4, S2N2 | 3N | 19W | 320 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-19781 | 16 | All | 2S | 19W | 640 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-19782 | 32 | All | 2S | 19W | 640 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-19783 | 36 | All | 2S | 19W | 640 | 1/1/2014 | 12/31/2023 | |||||||||||||||||||
ML-52989 | 19,203,031 | All | 1S | 16W | 2,500 | 12/1/2014 | 12/31/2023 | |||||||||||||||||||
8,099 | ||||||||||||||||||||||||||
Royalty on all state leases is 4% of the gross value of leased substances, 1/1/2023-12/31/2023 - 4.5%, 1/1/2024 thru end of term - 5% |
Federal Lease | Section | Description | Township | Range | Acres | Effective Date | Readjustment Date | |||||||||||||||||||
UTU-087811 | 4 | Lots 2-4, SW4NE4, S2NW4, SW4, W2SE4 | 2S | 17W | 2,551 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
UTU-087813 | 20 | E2, SW4 | 1S | 17W | 2,560 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
UTU-087815 | 35 | S2 | 1N | 17W | 2,558 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
3 | Lots 1-3, S2NE4, SE4NW4, S2 | 1S | 17W | |||||||||||||||||||||||
8 | E2SE4 | 1S | 17W | |||||||||||||||||||||||
9 | S2 | 1S | 17W | |||||||||||||||||||||||
10 | All | 1S | 17W | |||||||||||||||||||||||
11, 15 | W2 | 1S | 17W | |||||||||||||||||||||||
UTU-087817 | 18 | Lots 3, 4, E2SW4 | 1N | 16W | 2,519 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
19 | Lots 1, 2, E2NW4 | 1N | 16W | |||||||||||||||||||||||
13 | S2 | 1N | 17W | |||||||||||||||||||||||
14 | SE4, E2SW4, SW4SW4 | 1N | 17W | |||||||||||||||||||||||
22 | E2 | 1N | 17W | |||||||||||||||||||||||
23,24 | All | 1N | 17W | |||||||||||||||||||||||
UTU-087810 | 7 | All | 2S | 17W | 2,527 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
8, 17 | W2 | 2S | 17W | |||||||||||||||||||||||
18 | All | 2S | 17W | |||||||||||||||||||||||
12,13 | E2 | 2S | 18W | |||||||||||||||||||||||
UTU-087812 | 7 | Lots 1, 2, E2NW4, E2SW4, E2NW4SW4 | 1S | 17W | 2,489 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
18 | E2E2NW4, E2 | 1S | 17W | |||||||||||||||||||||||
19 | E2, E2SE4NW4, E2NE4SW4, SE4SW4 | 1S | 17W | |||||||||||||||||||||||
30 | Lot 4, E2, E2W2, E2SW4NW4, E2NW4SW4 | 1S | 17W | |||||||||||||||||||||||
31 | All | 1S | 17W | |||||||||||||||||||||||
6 | Lots 1-5, SE4NW4, S2NE4 | 2S | 17W |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 3-5 |
Table 3-1. Property Lease Details, Intrepid-Wendover (continued) | ||||||||||||||||||||||||||
Federal Lease | Section | Description | Township | Range | Acres | Effective Date | Readjustment Date | |||||||||||||||||||
UTU-087814 | 34 | E2SE4 | 1N | 17W | 2,120 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
3 | Lot 4, SW4NW4 | 1S | 17W | |||||||||||||||||||||||
4 | SE4 | 1S | 17W | |||||||||||||||||||||||
7 | S2NE4, SE4 | 1S | 17W | |||||||||||||||||||||||
8 | E2NE4, SW4N4E, S2NW4, SW4, W2SE4 | 1S | 17W | |||||||||||||||||||||||
9 | N2 | 1S | 17W | |||||||||||||||||||||||
17 | All | 1S | 17W | |||||||||||||||||||||||
20 | NW4 | 1S | 17W | |||||||||||||||||||||||
UTU-087816 | 19 | Lots 3, 4, E2SW4 | 1N | 16W | 2,319 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
30 | Lots 1-4, E2W2 | 1N | 16W | |||||||||||||||||||||||
25 | All | 1N | 17W | |||||||||||||||||||||||
26 | All | 1N | 17W | |||||||||||||||||||||||
27 | E2E2 | 1N | 17W | |||||||||||||||||||||||
34 | E2NE4 | 1N | 17W | |||||||||||||||||||||||
35 | N2 | 1N | 17W | |||||||||||||||||||||||
UTU-087818 | 6 | Lots 5-7, SE4NW4, E2SW4 | 1N | 16W | 2,557 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
7 | Lots 1-4, E2W2 | 1N | 16W | |||||||||||||||||||||||
18 | Lots 1, 2, E2NW4 | 1N | 16W | |||||||||||||||||||||||
1 | SE4NE4, SE4 | 1N | 17W | |||||||||||||||||||||||
11 | SE | 1N | 17W | |||||||||||||||||||||||
12 | All | 1N | 17W | |||||||||||||||||||||||
13 | N2 | 1N | 17W | |||||||||||||||||||||||
14 | N2, NW4SW4 | 1N | 17W | |||||||||||||||||||||||
15 | SE4 | 1N | 17W | |||||||||||||||||||||||
UTU-087809 | 1 | Lots 1, 2, S2NE4, SE4NW4, E2NW4SW4, NE4SW4, S2SW4, SE4 | 2S | 18W | 2,500 | 1/1/2003 | 1/1/2023 | |||||||||||||||||||
11 | E2NE4NE4, E2SW4NE4, SE4NE4, E2NE4SW4, E2SW4SW4, SE4SW4, SE4 | 2S | 18W | |||||||||||||||||||||||
12, 13 | W2 | 2S | 18W | |||||||||||||||||||||||
14 | All | 2S | 18W | |||||||||||||||||||||||
15 | E2NE4NE4, E2SW4NE4, SE4NE4, S2 | 2S | 18W | |||||||||||||||||||||||
24,700 | ||||||||||||||||||||||||||
Royalty on all federal leases is 3% gross value at point of shipment |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 4-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 4-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 5-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 5-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 6-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 6-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 6-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 6-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 6-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 7-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 7-2 |
Well No. | Eastings | Northings | Date | Depth Interval (ft) | Sampling Method | Specific Gravity | KCl % | ||||||||||||||||
K1 | 962,676 | 7,442,619 | 7/30/1965 | 0–15.75 | P | 1.2140 | 1.41 | ||||||||||||||||
K2 | 963,693 | 7,445,090 | 7/30/1965 | 0–20.0 | BP | 1.2135 | 1.34 | ||||||||||||||||
K3 | 1,018,182 | 7,475,549 | 10/4/1965 | 0–24.4 | PT | 1.2015 | 1.15 | ||||||||||||||||
K4 | 1,016,238 | 7,475,425 | 9/28/1965 | 0–30.0 | PT | 1.2020 | 1.06 | ||||||||||||||||
K4A | 1,016,528 | 7,475,487 | 11/9/1965 | 0–23.0 | BP | 1.1950 | 1.07 | ||||||||||||||||
K5 | 1,014,232 | 7,475,384 | 10/10/1966 | 0–25.0 | P-10 | 1.2000 | 1.27 | ||||||||||||||||
K6 | 1,018,575 | 7,475,611 | 7/27/1965 | 0–23.0 | BP | 1.2040 | 1.04 | ||||||||||||||||
K7 | 1,020,772 | 7,475,591 | 6/18/1965 | 0–25.0 | PT | 1.2035 | 1.48 | ||||||||||||||||
K7A | 1,020,510 | 7,475,560 | 9/2/1965 | 0–25.0 | BP | 1.03 | |||||||||||||||||
K8B | 1,014,864 | 7,481,350 | 11/7/1965 | 0–23.0 | PT-120 | 1.2035 | 1.18 | ||||||||||||||||
K8C | 1,014,932 | 7,481,655 | 10/4/1965 | 0–23.0 | PT | 1.2040 | 1.18 | ||||||||||||||||
K9 | 1,014,631 | 7,461,172 | 8/23/1966 | 0–25.0 | P-10 | 1.2000 | 1.26 | ||||||||||||||||
K10 | 1,012,262 | 7,461,310 | 9/9/1967 | 0–25.0 | P-10 | 1.1975 | 1.32 | ||||||||||||||||
K10A | 1,012,578 | 7,461,290 | 11/9/1965 | 0–23.0 | B | 1.1990 | 1.03 | ||||||||||||||||
K11 | 1,009,097 | 7,458,833 | 10/19/1965 | 0–4.3 | BP | 1.2005 | 1.30 | ||||||||||||||||
K11A | 1,009,356 | 7,458,772 | 7/30/1965 | 0–25.0 | BP | 1.1990 | 1.17 | ||||||||||||||||
K12 | 1,014,947 | 7,461,132 | 11/15/1965 | 0–25.0 | PT | 1.10 | |||||||||||||||||
K13 | 1,016,921 | 7,461,172 | 6/9/1966 | – | 1.1920 | 1.18 | |||||||||||||||||
K14 | 1,018,551 | 7,460,504 | 6/9/1966 | – | BP | 1.1935 | 1.03 | ||||||||||||||||
K14A | 1,018,311 | 7,460,452 | 8/15/1966 | 0–23.0 | PT-120 | 1.1960 | 1.12 | ||||||||||||||||
K15 | 1,019,524 | 7,469,125 | 7/30/1965 | 0–25.0 | BP | 1.2055 | 1.10 | ||||||||||||||||
K16 | 1,010,705 | 7,453,473 | 9/30/1965 | 0–25.0 | PT | 1.2020 | 1.24 | ||||||||||||||||
K17 | 1,003,115 | 7,447,319 | 10/5/1965 | 0–22.0 | PT-50 | 1.1990 | 1.37 | ||||||||||||||||
K18 | 1,024,728 | 7,475,692 | 11/16/1965 | 0–23.0 | PT | 0.71 | |||||||||||||||||
K19 | 1,022,538 | 7,475,621 | 11/16/1965 | 0–23.0 | PT-60 | 0.64 | |||||||||||||||||
K20 | 1,025,326 | 7,475,621 | 11/16/1965 | 0–23.0 | PT | 0.69 | |||||||||||||||||
K21 | 1,027,262 | 7,475,634 | 9/2/1965 | 0–23.0 | B | 0.67 | |||||||||||||||||
K22 | 1,024,985 | 7,482,526 | 9/15/1967 | 0–25.0 | B | 1.1970 | 0.72 | ||||||||||||||||
K23 | 1,022,944 | 7,482,518 | 10/19/1965 | 0–3.6 | BP | 1.2020 | 1.21 | ||||||||||||||||
K24 | 1,020,889 | 7,482,429 | 7/26/1965 | 0–23.0 | BP | 1.1995 | 1.25 | ||||||||||||||||
K24A | 1,021,199 | 7,482,503 | 10/22/1965 | 0–4.8 | BP | 1.1970 | 1.26 | ||||||||||||||||
K25 | 1,027,139 | 7,482,509 | 8/14/1966 | 0–23.0 | PT-90 | 1.1940 | 0.74 | ||||||||||||||||
K26 | 995,027 | 7,455,969 | 8/6/1967 | 0–23.0 | P-10 | 1.2035 | 1.36 | ||||||||||||||||
K27 | 988,378 | 7,453,641 | 11/8/1965 | 0–23.0 | B | 1.2100 | 1.04 | ||||||||||||||||
K27A | 988,405 | 7,453,922 | 10/28/1965 | 5.5–9.7 | BP | 1.2005 | 1.43 | ||||||||||||||||
K28 | 979,130 | 7,454,831 | 9/30/1965 | 0–23.0 | PT-50 | 1.2005 | 1.07 | ||||||||||||||||
K29 | 978,860 | 7,455,100 | 7/26/1965 | 0–23.0 | BP | 1.2095 | 1.26 | ||||||||||||||||
K30 | 964,500 | 7,444,599 | 10/7/1966 | 0–22.0 | P-10 | 1.2060 | 1.36 | ||||||||||||||||
K31 | 962,939 | 7,445,353 | 6/30/1965 | 0–9.5 | BP | 1.2230 | 3.28 | ||||||||||||||||
K32 | 963,939 | 7,439,141 | 8/10/1965 | 0–23.0 | BP | 1.1855 | 0.95 | ||||||||||||||||
K33 | 965,742 | 7,438,629 | 6/15/1966 | 0–23.0 | BP | 1.2060 | 1.40 | ||||||||||||||||
K33A | 966,064 | 7,438,629 | 10/9/1965 | 15.0–19.4 | BP | 1.2045 | 1.23 | ||||||||||||||||
K34 | 963,621 | 7,423,385 | 9/11/1965 | 0–23.0 | PT-60 | 1.1990 | 0.93 | ||||||||||||||||
K34A | 963,601 | 7,423,162 | 10/19/1965 | 0–1.5 | BP | 1.2095 | 0.87 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 7-3 |
Table 7-1. Shallow-Brine Aquifer Sampling by Turk (1969) (continued) | |||||||||||||||||||||||
Well No. | Eastings | Northings | Date | Depth Interval (ft) | Sampling Method | Specific Gravity | KCl % | ||||||||||||||||
K35 | 963,695 | 7,421,346 | 7/27/1965 | 0–23.0 | BP | 1.2060 | 1.28 | ||||||||||||||||
K36 | 963,695 | 7,420,909 | 11/6/1965 | 0–23.0 | PT-60 | 1.2080 | 1.81 | ||||||||||||||||
K37 | 963,459 | 7,418,772 | 10/11/1966 | 0–23.0 | P-10 | 1.2095 | 1.90 | ||||||||||||||||
K38 | 974,143 | 7,426,651 | 10/11/1966 | 0–23.0 | P-10 | 1.2060 | 0.99 | ||||||||||||||||
K39 | 982,608 | 7,437,966 | 11/10/1965 | 0–23.0 | PT-120 | 1.2055 | 1.35 | ||||||||||||||||
K39A | 982,633 | 7,437,696 | 10/29/1965 | 0–23.0 | B | 1.2070 | 0.78 | ||||||||||||||||
K40 | 982,719 | 7,435,951 | 11/10/1965 | 0–23.0 | PT-60 | 1.2070 | 1.26 | ||||||||||||||||
K41 | 988,959 | 7,425,422 | 10/11/1966 | 0–23.0 | P-10 | 1.1980 | 2.14 | ||||||||||||||||
K42 | 991,700 | 7,426,716 | 9/3/1965 | 0–23.0 | BP | 1.2065 | 2.22 | ||||||||||||||||
K43 | 994,313 | 7,427,862 | 9/3/1965 | 0–23.0 | BP | 1.2055 | 2.02 | ||||||||||||||||
K43A | 994,083 | 7,427,734 | 9/3/1965 | 0–23.0 | BP | 1.2050 | 1.85 | ||||||||||||||||
K44 | 995,160 | 7,438,027 | 9/3/1965 | 0–23.0 | BP | 1.2060 | 2.02 | ||||||||||||||||
K45 | 997,308 | 7,437,814 | 10/11/1966 | 0–23.0 | P-10 | 1.2020 | 1.93 | ||||||||||||||||
K46 | 1,010,010 | 7,445,601 | 11/5/1965 | 0–23.0 | PT | 1.1845 | 0.77 | ||||||||||||||||
K47 | 999,172 | 7,429,709 | 11/2/1965 | 5.5–10.5 | BP | 1.2070 | 1.97 | ||||||||||||||||
K48 | 939,092 | 7,409,800 | 8/6/1967 | 0–23.0 | P-10 | 1.0990 | 0.67 | ||||||||||||||||
K49 | 940,671 | 7,411,111 | 6/1/1966 | 0–23.0 | BP | 1.1140 | 0.69 | ||||||||||||||||
K50 | 942,174 | 7,409,400 | 8/24/1966 | 0–23.0 | PT | 1.2045 | 1.64 | ||||||||||||||||
K51 | 943,715 | 7,410,883 | 6/15/1966 | 0–23.0 | BP | 1.1715 | 1.60 | ||||||||||||||||
K52 | 947,297 | 7,421,114 | 11/8/1965 | 0–23.0 | PT-60 | 1.2030 | 0.85 | ||||||||||||||||
K53 | 947,587 | 7,445,048 | 9/15/1967 | 0–23.0 | P-10 | 1.1360 | 0.73 | ||||||||||||||||
K54 | 945,787 | 7,445,723 | 11/6/1965 | 0–23.0 | PT-60 | 1.0785 | 0.64 | ||||||||||||||||
K55 | 965,272 | 7,444,266 | 7/28/1965 | 0–23.0 | BP | 1.2085 | 1.26 | ||||||||||||||||
K56 | 954,139 | 7,436,134 | 5/10/1966 | 0–23.0 | B | 1.2230 | 3.52 | ||||||||||||||||
K56B | 953,860 | 7,436,227 | 9/15/1965 | 0–23.0 | PT | 1.1935 | 1.76 | ||||||||||||||||
K57 | 972,539 | 7,408,947 | 10/23/1965 | 0–4.0 | BP | 1.2095 | 2.65 | ||||||||||||||||
K58 | 979,590 | 7,438,848 | 8/24/1966 | 0–23.0 | PT | 1.2010 | 1.46 | ||||||||||||||||
K59 | 954,000 | 7,417,382 | 8/16/1965 | 0–23.0 | BP | 1.2115 | 1.00 | ||||||||||||||||
K60 | 952,053 | 7,415,308 | 8/16/1965 | 0–23.0 | BP | 1.2095 | 0.71 | ||||||||||||||||
K61 | 948,662 | 7,434,882 | 8/24/1966 | 0–23.0 | PT | 1.2235 | 2.92 | ||||||||||||||||
K62 | 944,462 | 7,421,578 | 10/7/1965 | 10.0–15.0 | BP | 1.2060 | 1.17 | ||||||||||||||||
K62A | 944,133 | 7,421,447 | 10/7/1965 | 0–23.0 | PT | 1.2105 | 1.02 | ||||||||||||||||
K63 | 949,842 | 7,448,000 | 10/27/1965 | 5.5–10.5 | BP | 1.1105 | 0.69 | ||||||||||||||||
K63A | 950,056 | 7,447,821 | 11/22/1965 | 0–19.0 | PT | 1.1010 | 0.61 | ||||||||||||||||
K64 | 951,631 | 7,430,545 | 11/15/1965 | 0–19.0 | PT-60 | — | 1.43 | ||||||||||||||||
K65 | 1,009,347 | 7,429,688 | 8/8/1966 | 0–19.0 | PT-420 | 1.1355 | 0.31 | ||||||||||||||||
K65A | 1,009,080 | 7,429,673 | 6/24/1966 | 0–19.0 | B | 1.1350 | 0.30 | ||||||||||||||||
K66 | 1,007,859 | 7,416,856 | 8/10/1966 | 0–19.0 | PT-420 | 1.1870 | 0.75 | ||||||||||||||||
K66A | 1,007,538 | 7,416,760 | 6/28/1966 | 0–19.0 | BP | 1.1915 | 0.78 | ||||||||||||||||
K67 | 973,182 | 7,399,280 | 7/3/1966 | 0–19.0 | B | 1.1685 | 0.70 | ||||||||||||||||
K67A | 972,645 | 7,399,180 | 7/3/1966 | 0–19.0 | B | 1.1710 | 0.70 | ||||||||||||||||
K68 | 934,533 | 7,398,971 | 8/16/1966 | 0–19.0 | PT-360 | 1.1255 | 1.23 | ||||||||||||||||
K69 | 958,717 | 7,430,910 | 9/12/1967 | 0–21.0 | PT-240 | 1.1875 | 0.73 | ||||||||||||||||
K69A | 957,814 | 7,430,955 | 9/13/1967 | 0–10.2 | PT-80 | 1.1885 | 0.76 | ||||||||||||||||
K70 | 974,455 | 7,440,995 | 9/5/1967 | 0–21.0 | PT-420 | 1.1995 | 0.86 | ||||||||||||||||
BR1 | 1,011,668 | 7,474,495 | 7/21/1965 | 0–5.5 | P | 1.2035 | 1.42 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 7-4 |
Well Designation | Eastings | Northings | Elevation (top of casing, ft) | KCl % 2016 | KCl % 2017 | KCl % 2018 | KCl % 2019 | KCl % 2020 | ||||||||||||||||||
WP-01 | 1,003,634 | 7,419,012 | 4,225 | 0.56 | 0.14 | 0.14 | n/a | 0.14 | ||||||||||||||||||
WP-02 | 990,917 | 7,419,329 | 4,225 | 0.16 | 0.28 | 0.42 | n/a | 0.29 | ||||||||||||||||||
WP-03 | 1,003,107 | 7,424,842 | 4,224 | 0.57 | 0.60 | 0.75 | n/a | 0.74 | ||||||||||||||||||
WP-04 | 1,003,104 | 7,424,592 | 4,224 | 0.50 | 0.61 | 0.69 | n/a | 0.57 | ||||||||||||||||||
WP-05 | 1,003,104 | 7,424,344 | 4,224 | 0.72 | 0.61 | 0.59 | n/a | 0.65 | ||||||||||||||||||
WP-07 | 1,013,890 | 7,460,902 | 4,220 | 0.75 | n/a | n/a | n/a | n/a | ||||||||||||||||||
WP-08 | 1,016,618 | 7,461,428 | 4,220 | 1.00 | 0.90 | 0.94 | 0.99 | 1.09 | ||||||||||||||||||
WP-09 | 979,750 | 7,430,719 | 4,218 | 1.18 | 1.26 | 1.43 | 1.43 | 1.60 | ||||||||||||||||||
WP-10 | 979,747 | 7,430,466 | 4,219 | 0.99 | 0.11 | 1.03 | 1.03 | 1.15 | ||||||||||||||||||
WP-11 | 979,746 | 7,430,170 | 4,218 | 1.25 | 1.25 | 1.26 | 1.39 | 1.41 | ||||||||||||||||||
WP-12 | 979,744 | 7,429,917 | 4,218 | 1.36 | 1.39 | 1.41 | 1.39 | 1.51 | ||||||||||||||||||
WP-13 | 983,472 | 7,440,160 | 4,218 | 0.94 | 0.94 | 1.05 | 0.95 | 1.20 | ||||||||||||||||||
WP-14 | 966,171 | 7,447,321 | 4,218 | 1.05 | 0.98 | 0.96 | 0.88 | n/a | ||||||||||||||||||
WP-15 | 970,135 | 7,440,579 | 4,218 | 0.65 | 0.66 | 0.79 | 0.57 | 0.71 | ||||||||||||||||||
WP-16 | 970,084 | 7,440,336 | 4,217 | 0.58 | 0.60 | 0.67 | 0.58 | 0.67 | ||||||||||||||||||
WP-17 | 967,219 | 7,417,997 | 4,221 | 0.69 | 0.23 | 0.14 | 0.04 | 0.36 | ||||||||||||||||||
WP-18 | 967,269 | 7,418,241 | 4,220 | 0.78 | 0.27 | 0.14 | 0.10 | 0.56 | ||||||||||||||||||
WP-19 | 966,072 | 7,407,393 | 4,222 | 0.21 | 0.28 | 0.26 | n/a | 0.30 | ||||||||||||||||||
WP-20 | 947,890 | 7,429,196 | 4,220 | n/a | 0.88 | 0.83 | n/a | 0.97 | ||||||||||||||||||
WP-21 | 948,141 | 7,429,202 | 4,220 | n/a | 0.95 | 0.80 | 0.80 | 0.94 | ||||||||||||||||||
WP-22 | 952,839 | 7,426,086 | 4,221 | 0.54 | 0.61 | 0.68 | 0.73 | 1.08 | ||||||||||||||||||
WP-23 | 959,883 | 7,411,991 | 4,221 | 0.72 | 0.76 | 0.68 | 0.73 | 0.75 | ||||||||||||||||||
WP-24 | 959,883 | 7,411,991 | 4,221 | 0.24 | 0.10 | 0.10 | 0.16 | 0.14 | ||||||||||||||||||
WP-25 | 942,234 | 7,407,710 | 4,223 | 0.16 | 0.38 | 0.40 | n/a | 0.34 | ||||||||||||||||||
WP-26 | 948,418 | 7,402,492 | 4,222 | 0.17 | 0.50 | 0.40 | n/a | 0.36 | ||||||||||||||||||
WP-27 | 978,531 | 7,446,381 | 4,216 | 0.94 | 1.07 | 1.01 | 1.10 | 1.15 | ||||||||||||||||||
WP-28 | 997,008 | 7,444,633 | 4,225 | 0.83 | 0.87 | 0.00 | 0.67 | 0.92 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 7-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 8-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 9-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 10-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-2 |
Cost | |||||
Warehouse and handling costs ($) | 1,500,000 | ||||
Total production costs (excluding depreciation) ($) | 12,700,000 | ||||
Environmental remediation costs ($) | 37,000 | ||||
Cost of goods sold, non-inventory ($) | 2,030,000 | ||||
Byproducts | |||||
MgCl2, MRS, salt and miscellaneous ($) | (6,970,000) | ||||
Total Cost ($) | 9,297,000 | ||||
Potash | |||||
Price per ton less shipping ($) | 356 | ||||
Production (t) | 70,000 | ||||
Net potash sales ($) | 24,920,000 | ||||
Cutoff Analysis | |||||
Cost per ton ($) | 133 | ||||
Cutoff production (t) | 26,000 | ||||
Average grade pumped into primary pond (% KCl) based on data from 27 wells | 0.82 | ||||
Cutoff grade (% KCl) | 0.30 | ||||
Cutoff grade (% K2O) | 0.19 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-5 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-6 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-7 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-8 |
Parameters | Calculation | Results | ||||||
92 drillhole control indicated area (ft2) (A) | 2,152,518,168 | |||||||
92 drillhole control inferred area (ft2) (Q) | 2,915,597,689 | |||||||
Average thickness (ft) (B) | 18 | |||||||
Porosity (C) | 0.45 | |||||||
Average grade (1967) (% KCl) (D) | 1.26 | |||||||
Brine density (lb/ft3) (E) | 72.4 | |||||||
Cutoff grade (% KCl) (F) | 0.30 | |||||||
Recovery factor (G) | 60 | % | ||||||
Product purity (H) | 95 | % | ||||||
Plant efficiency | 85 | % | ||||||
Product per year (tpy) (I) | 70,000 | |||||||
Resource Calculation (in thousand tons) | ||||||||
In-place KCl in 1967 (J) | J=A*B*C*D/100*E/2000000 | 7,960 | ||||||
KCl depletion from 1967 to 2020 (K) | 1,981 | |||||||
KCl under cutoff grade (L) | L=(J-K)/D*F | 1,442 | ||||||
Remaining in-place KCl above cutoff grade (M) | M=J-K-L | 4,537 | ||||||
Recoverable KCl (N) | N=M*G | 2,722 | ||||||
25-year plan | 1,550 | |||||||
Indicated resource exclusive of reserve (O) | O=M-N | 1,815 | ||||||
Inferred resource (R) | R= Q*B*C*D/100*E/2000000 | 10,782 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-9 |
Full Calendar Year1 | Wendover KCl Production (kt) | Deep Aquifer KCl Production (kt) | Shallow Aquifer KCl Production (kt) | ||||||||
1968 | 50.0 | 25.5 | 24.5 | ||||||||
1969 | 45.0 | 32.3 | 12.7 | ||||||||
1970 | 102.0 | 31.5 | 70.6 | ||||||||
1971 | 88.0 | 15.3 | 72.7 | ||||||||
1972 | 117.0 | 18.7 | 98.3 | ||||||||
1973 | 88.0 | 14.5 | 73.6 | ||||||||
1974 | 72.0 | 15.3 | 56.7 | ||||||||
1975 | 60.0 | 18.7 | 41.3 | ||||||||
1976 | 50.0 | 19.6 | 30.5 | ||||||||
1977 | 65.0 | 18.7 | 46.3 | ||||||||
1978 | 93.0 | 0.0 | 93.0 | ||||||||
1979 | 42.0 | 0.0 | 42.0 | ||||||||
1980 | 50.0 | 0.0 | 50.0 | ||||||||
1981 | 60.0 | 0.0 | 60.0 | ||||||||
1982 | 90.0 | 0.0 | 90.0 | ||||||||
1983 | 10.0 | 0.0 | 10.0 | ||||||||
1984 | 39.0 | 0.0 | 39.0 | ||||||||
1985 | 82.0 | 0.0 | 82.0 | ||||||||
1986 | 65.0 | 0.0 | 65.0 | ||||||||
1987 | 70.0 | 0.0 | 70.0 | ||||||||
1988 | 45.0 | 0.0 | 45.0 | ||||||||
1989 | 40.0 | 0.0 | 40.0 | ||||||||
1990 | 90.0 | 0.0 | 90.0 | ||||||||
1991 | 45.0 | 0.0 | 45.0 | ||||||||
1992 | 110.0 | 78.2 | 31.8 | ||||||||
1993 | 91.0 | 45.1 | 46.0 | ||||||||
1994 | 101.0 | 15.3 | 85.7 | ||||||||
1995 | 65.0 | 6.8 | 58.2 | ||||||||
1996 | 104.0 | 7.7 | 96.4 | ||||||||
1997 | 66.0 | 6.8 | 59.2 | ||||||||
1998 | 50.0 | 0.0 | 50.0 | ||||||||
1999 | 90.0 | 0.0 | 90.0 | ||||||||
2000 | 40.0 | 0.0 | 40.0 | ||||||||
2001 | 35.0 | 0.0 | 35.0 | ||||||||
2002 | 28.0 | 0.0 | 28.0 | ||||||||
2003 | 46.0 | 0.0 | 46.0 | ||||||||
2004 | 50.0 | 2.0 | 48.0 | ||||||||
2005 | 57.4 | 2.6 | 54.8 | ||||||||
2006 | 54.4 | 3.6 | 50.8 | ||||||||
2007 | 98.5 | 4.1 | 94.4 | ||||||||
2008 | 101.9 | 7.2 | 94.7 | ||||||||
2009 | 60.7 | 11.2 | 49.5 | ||||||||
2010 | 64.1 | 6.5 | 57.6 | ||||||||
2011 | 84.4 | 9.7 | 74.6 | ||||||||
2012 | 87.6 | 14.1 | 73.5 | ||||||||
2013 | 93.5 | 14.1 | 79.3 | ||||||||
2014 | 97.0 | 16.9 | 80.1 | ||||||||
2015 | 73.7 | 16.1 | 57.5 | ||||||||
2016 | 49.5 | 7.0 | 42.5 | ||||||||
2017 | 78.4 | 14.7 | 63.7 | ||||||||
2018 | 85.5 | 19.2 | 66.2 | ||||||||
2019 | 75.4 | 7.9 | 67.6 | ||||||||
2020 | 59.1 | 14.1 | 45.0 | ||||||||
2021 | 52.0 | 21.0 | 31.0 | ||||||||
Total | 3,706.9 | 561.8 | 3,145.2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-10 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-11 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-12 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-13 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-14 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 11-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 12-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 12-2 |
Cost | |||||
Warehouse and handling costs ($) | 1,500,000 | ||||
Total Production Costs (excluding depreciation) ($) | 12,700,000 | ||||
Environmental remediation costs ($) | 37,000 | ||||
Cost of goods sold, non-inventory ($) | 2,030,000 | ||||
Byproducts | |||||
MgCl2, MRS, salt and miscellaneous ($) | (6,970,000) | ||||
Total Cost ($) | 9,297,000 | ||||
Potash | |||||
Price per ton less shipping ($) | 275 | ||||
Production (tons) | 70,000 | ||||
Net potash sales ($) | 19,250,000 | ||||
Cutoff Analysis | |||||
Cost per ton ($) | 133 | ||||
Cutoff production (t) | 34,000 | ||||
Average grade pumped into primary pond (% KCl) based on data from 27 wells | 0.82 | ||||
Cutoff grade (% KCl) | 0.40 | ||||
Cutoff grade (% K2O) | 0.25 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 12-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 12-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 13-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 13-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 13-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 13-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 14-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 14-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 14-3 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 15-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 15-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 16-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 17-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 17-2 |
Common Name | Issuer | Permit ID | Effective Date | Expiration Date | Bond Value | Note | ||||||||||||||
Air Permit | Utah Division of Air Quality | Approval Order #: DAQE-AN107420014-19 | 22-Jul-19 | None | ||||||||||||||||
Storm Water Pollution Prevention Plan | Utah Division of Water Quality | General Permit No.: UTR000000 | 1-Dec-12 | 31-Dec-17 | Permit renews annually with payment of annual fee | |||||||||||||||
Spill Response Plan | Self-Issued | Spill Response Plan | 23-Feb-10 | Next Review due March 2025 | ||||||||||||||||
Fugitive Dust Control Plan | Utah Division of Air Quality | Fugitive Dust Control Plan | 29-Jun-15 | None | ||||||||||||||||
Solid and Hazardous Waste Management Plan | Self-Issued | Dec-12 | None | [Not a permit, IPW is a Very Small Quantity Generator] | ||||||||||||||||
Mine and Reclamation Plan | Utah Division of Oil Gas and Mining | Notice of Intentions to Revise Mining Operations, File No.: M-0450002 | 11-Dec-14 | Next Review due in 2024 | $8,904,000 | |||||||||||||||
XRF license | Utah Division of Waste Management and Radiation Control | X-Ray Registration No. 3084 | 31-Dec-21 | Division to inspect every 5 years |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 18-1 |
Unit Cost per Ton | Percent of Total | |||||||
Labor with Benefits | $69 | 52.0 | % | |||||
Maintenance | $2 | 1.5 | % | |||||
Energy and Fuels | $22 | 16.5 | % | |||||
Operating Supplies | $27 | 20.0 | % | |||||
Other | $13 | 10.0 | % | |||||
Operating Cost | $133 | 100.0 | % |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 19-1 |
Parameter | Assumption | ||||
Potash Sale Price (mine site) | $325/t | ||||
Shipping Potash | 50/t | ||||
Potash Production Target | 70,000 tpy | ||||
Interest Rate | 0–12% APR | ||||
Income Taxes (State and Federal) | 40% | ||||
Severance Tax | 2.60% |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 19-2 |
2022– 2026 | 2027– 2031 | 2032– 2036 | 2037– 2041 | 2042– 2046 | ||||||||||||||||
MOP | Production (MOP -000 tons/year) | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | ||||||||||||||
Sale Price MOP ($/product ton/year) | $325 | $325 | $325 | $325 | $325 | |||||||||||||||
Shipping ($/product ton/year) | $50 | $50 | $50 | $50 | $50 | |||||||||||||||
Net Sale Price/year | $275 | $275 | $275 | $275 | $275 | |||||||||||||||
REVENUE ($-million/year) | $19.3 | $19.3 | $19.3 | $19.3 | $19.3 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Major Capital | ||||||||||||||||||||
Cost of Goods Sold | ||||||||||||||||||||
MOP cost per ton of product | $9.31 | $9.31 | $9.31 | $9.31 | $9.31 | |||||||||||||||
Income before Taxes | $9.94 | $9.94 | $9.94 | $9.94 | $9.94 | |||||||||||||||
Cash Flow (Pre-Tax) | $9.94 | $9.94 | $9.94 | $9.94 | $9.94 |
2022– 2026 | 2027– 2031 | 2032– 2036 | 2037– 2041 | 2042– 2046 | ||||||||||||||||
MOP | Production (MOP -000 Tons/year) | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 | ||||||||||||||
Sale Price MOP ($/product ton/year) | $325 | $325 | $325 | $325 | $325 | |||||||||||||||
Shipping ($/product ton/year) | $50 | $50 | $50 | $50 | $50 | |||||||||||||||
Net Sale Price/year | $275 | $275 | $275 | $275 | $275 | |||||||||||||||
REVENUE ($-million/year) | $ | 19.3 | $ | 19.3 | $ | 19.3 | $ | 19.3 | $ | 19.3 | ||||||||||
EXPENSES | ||||||||||||||||||||
Major Capital | ||||||||||||||||||||
Cost of Goods Sold | ||||||||||||||||||||
MOP cost per ton of product | $9.31 | $9.31 | $9.31 | $9.31 | $9.31 | |||||||||||||||
Income before Taxes | $9.94 | $9.94 | $9.94 | $9.94 | $9.94 | |||||||||||||||
Depletion | $2.70 | $2.70 | $2.70 | $2.70 | $2.70 | |||||||||||||||
Taxable Income | $7.25 | $7.25 | $7.25 | $7.25 | $7.25 | |||||||||||||||
Fed and State | $2.90 | $2.90 | $2.90 | $2.90 | $2.90 | |||||||||||||||
Severance Tax | $0.50 | $0.50 | $0.50 | $0.50 | $0.50 | |||||||||||||||
Cash Flow (After-Tax) | $6.54 | $6.54 | $6.54 | $6.54 | $6.54 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 19-3 |
Interest Rate (% APR) | NPV ($M) | ||||
0 | $249 | ||||
5 | $147 | ||||
8 | $115 | ||||
10 | $99 | ||||
12 | $87 |
Interest Rate (% APR) | NPV ($M) | ||||
0 | $164 | ||||
5 | $97 | ||||
8 | $75 | ||||
10 | $65 | ||||
12 | $57 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 19-4 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 20-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 21-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 22-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 23-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 24-1 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 24-2 |
Agapito Associates, Inc. |
2021 Estimated Resources and Reserves at Intrepid Potash-Wendover Prepared for Intrepid Potash, Inc. February 24, 2022 | 25-1 |
Agapito Associates, Inc. |