Earnings release
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1 TSX-V: IFOS, OTCQX: ITFS News Release ITAFOS REPORTS OUTSTANDING Q3 2025 PERFORMANCE AND MECHANICAL COMPLETION OF THE H1/NDR MINE HOUSTON, TX – November 5, 2025 – Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company”) today reported its Q3 2025 financial results and provided a corporate update. The Company’s financial statements and management’s discussion and analysis for the three and nine months ended September 30, 2025 ar e available under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.itafos.com. All figures are in thousands of US Dollars except as otherwise noted. A recorded webcast of management’s commentary reviewing the Q3 2025 financial results and an update on the business will be available on the Company’s website on Monday, November 10, 2025 (see details below). CEO Commentary Chief Executive Officer, David Delaney commented, “we are pleased to report another highly successful quarter in which the Comp any maintained its exceptional operational and safety performance. We were able to take advantage of a fundamentally strong phospha te market by sustaining industry-leading producti on rates at Conda and sales volume growth through the introduct ion of new dry fer tilizer products at Arraias. Adjusted EBITDA 1 increased by over $17 million compared to the prior quarter and by almost $11 million on a year-over-year basis despite continued elevated raw material costs. Total adjusted EBITDA of nearly $49 million was the highest level since the fourth quarter of 2022. We have finished mining at Rasmussen Valley and have begun the re clamation process at the site. The Husky 1 / North Dry Ridge (“H1/NDR”) infrastructure build-out is mechanically complete and stockpiles from the new mines should allow the Conda plant to continue to produce at current operating rates. Our resource delineation drilling program has commenced with further activities planned for 2026 and beyond to define the resources at our current leases and leverage our existing inf rastructure with the ultimate goal to ext end our mine life well beyond the current 2037 plan. In October, we successfully monetized the equity interest in St George Mining Limited (“St George”) that was received as consideration for the sale of our Araxá Project. The sale of shares and the exercise of options generated gross proceeds of $21.8 million before taxes, fees and associated expenses. In addition, St. George elected to pay the final two instalments ahead of schedule and we have received the final US$11 million (less withholding tax payable) due under the sale agreement of the Araxa Project. Following these transactions, we are pleased to announce our Board of Directors has approved a CAD$0.17 per share special dividend payable on December 11, 2025 with a record date of November 17, 2025. This will bring total distributions associated with the Araxá sale to CAD$0.22 per share. Although phosphate prices have moderated o ff recent highs driven by farmer affordabi lity concerns, tight supply / demand dynami cs remain. Looking forward, we believe the Company is well positioned to benefit from a fundamentally tight international phosphate market subject to normal seasonal price resets.” Q3 2025 Financial Highlights For Q3 2025, the Company’s financial highlights were as follows: Revenues of $152.8 million in Q3 2025 compared to $120.0 million in Q3 2024; Adjusted EBITDA 1 of $48.9 million in Q3 2025 compared to $38.0 million in Q3 2024; Net income of $36.2 million in Q3 2025 compared to $18.3 million in Q3 2024; Basic earnings 1 of C$0.26/share in Q3 2025 compared to C$0.13/share in Q3 2024; and Free cash flow 1 of $(4.8) million in Q3 2024 compared to $(22.4) million in Q3 2024. The increase in the Company’s Q3 2025 adjusted EBITDA compared to the corresponding period in the prior year was due to higher revenues, which were partially offset by higher input sulfur and sulfuric acid costs at Conda. The increase in the Company’s Q3 2025 net income compared to Q3 2024 was primarily due to higher gross margin and fair value gain on investments, which were partially offset by higher finance expenses and higher income tax expense. 1 Adjusted EBITDA, basic earnings, and free cash flow are each a no n-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below. International Financial Reporting Standards (“IFRS”).
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2 The Company’s total capex2 spend in Q3 2025 was $21.6 million compared to $21.1 million in Q3 2024, which remained relatively consistent year-over-year. 9M 2025 Financial Highlights For 9M 2025, the Company’s financial highlights were as follows: Revenues of $415.4 million in 9M 2025 com pared to $353.1 million in 9M 2024; Adjusted EBITDA of $120.0 million in 9M 2025 compared to $114.0 million in 9M 2024; Net income of $96.9 million in 9M 2025 compared to $58.2 million in 9M 2024; Basic earnings of C$0.70/share in 9M 2025 compared to C$0.41/share in 9M 2024; and Free cash flow of $37.3 million in 9M 2025 compared to $37.8 million in 9M 2024. The increase in the Company’s 9M 2025 adju sted EBITDA compared to 9M 2024 was primar ily due to higher revenues, which were partially offset by higher sulfur and sulfuric acid costs at Conda. The increase in the Company’s 9M 2025 net income compared to 9M 2024 was primarily due to higher gross margin, the gain on the sale of the Araxá Project, fair value gain on investment and lower finance expenses, which were partially offset by withholding tax expenses related to the sale of the Araxá Project. The Company’s total capex spend in 9M 2025 was $60.3 million compared to $57.7 million in 9M 2024 with the increase primarily due to development activities at Conda (H1/NDR and magnesium oxide reduction initiatives), and activities related to the fertilizer restart program at Arraias (the “Fertilizer Restart Program”). As of September 30, 2025, the Company’s financial highlights were as follows: Trailing 12 months Adjusted EBITDA 2 of $165.5 million; Net debt 2 of $6.1 million; and Net leverage ratio 2 of 0.0x. Recent Developments Equity interest in St George On October 16, 2025, the Company announced that it partially monetized its ownership interest in St George that it acquired as consideration for the sale of its Ar axá Project, announced in February 2025. Between October 13 and 14, 2025, the Company sold 277,893,103 SGQ Shares. On October 16, 2025, the Company issued an exercise notice to exercise the 86,111,025 options at AUD$0.04 per share. Between October 21 and 22, 2025, the Company sold the remaining 86,111,025 SGQ Shares. The total net proceeds received from t he sale of 364,004,128 SGQ Shares was $21.8 m illion, net of the exer cise price of the options. Sale of the Araxá Project On November 5, 2025, St George made paym ent of the deferred cash c onsideration totaling $11 million (less withholding tax payab le) due to the Company under the second and third instalments of the Sale Agreement relating to the acquisition by St George of the 100% interest in the Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil (the “Araxá Project”). As a result of the payment, the Araxa Project sale transaction has been completed. Special Dividend The Board of Directors has approved a CAD$0.17 per share special dividend payable on December 11, 2025 to shareholders of recor d as of the close of business on November 17, 2025. Registered shareholders who are Canadian residents as reflected in the Company’s shareholder register will receive their divide nd in Canadian dollars. Registered shareholders who are resident outside of Canada as reflect ed in the Company’s shareholder register , including the United States (“U .S.”), will receive their dividend in U.S. dollars , based on the spot price exchange rate calcul ated on December 11, 2025. Intermediaries who are CDS participants may elect to have the dividend paid in U.S. dollars. Shareholders who hold their shares through a broker or intermediary should contact their broker or intermediary directly for further details. Dividend payments to shareholders will generally be subject to Internal Revenue Service withholding tax unless reduced through the completion of tax election forms and/or in accordance with the pr ovisions of an applicable tax tr eaty. Both U.S. and non-U.S. r esident registered shareholders should complete the appropriate tax forms and submit them to Itafos’ transfer agent, TSX Trust Company, to be 2 Total capex, trailing 12 months Adjusted EBITDA, net debt, and net leverage ratio are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below.
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3 entitled to a reduced withholding tax rate. Shareholders who hold their shares through a broker or intermediary should contact their broker or intermediary directly for further details. FY 2025 Market and Financial Outlook Market Outlook Phosphate fertilizer prices were elevated in Q3 2025 compared to the previous quarter, driven by continued constraints on diammonium phosphate (“DAP”) and monoammonium phosphate (“MAP”) exports from China and ongoing uncertainty surrounding US trade policy, which has limited phosphate imports. While pr ices have moderated off the Q3 highs, pric es today remain above the historical fiv e-year average price. Despite strong global demand, low grain and oilseed prices continue to weigh on phosphate affordability. DAP and MAP prices relative to crop values are near 20-year lows in terms of US farmer purchasing power. With a large US corn crop currently being harvested and China continuing to source soybeans from competing suppliers, US affordability challenges are expected to persist in the near term. However, with constrained domestic supply and steady global consumption, phosphate prices are expect ed to remain supported at historically elevated levels in the short run. Looking ahead, the Company anticipates a modest softening in phosphate prices through Q4 2025 due to: Continued weak US farmer affordability offset by a typical winter price reset to stimulate retail demand ahead of the 2026 planting season; ongoing export restrictions from China; lower US MAP production; and ongoing uncertainty surrounding US phosphate import tariffs. Financial Outlook The Company revised its guidance for 2025 as follows: (in millions of US Dollars Projected except as otherwise noted) FY 2025 Sales Volumes (thousands of tonnes P2O5)3 345-355 Corporate selling, general and administrative expenses4 $15-17 Maintenance capex4 $16-20 Growth capex4 $60-70 Environmental and asset retirement obligations payments $6-8 Q3 and 9M 2025 Market Highlights MAP New Orleans (“NOLA”) prices averaged $779/st in Q3 2025 compared to $636/st in Q3 2024, up 22% year-over-year, and averaged $688/st in 9M 2025 compared to $606/st in 9M 2024, up 14% year-over-year. Specific factors driving the year-over-year increase in MAP NOLA prices were as follows: lower than expected Chinese exports of MAP; continued strong global demand, particula rly from Africa, India and Brazil; and uncertainty surrounding US trade policy and imposition of tariffs on imported products. 3Sales volumes reflect quantity in P2O5 of Conda sales projections. 4Corporate selling, general and administrative expenses, maintenance capex, growth capex and liquidity are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below.
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4 September 30, 2025, Highlights As of September 30, 2025, the Company had trailing 12 months Adjusted EBI TDA of $165.5 million compared to $159.5 million as of December 31, 2024 with the increas e primarily due to the same factors that resu lted in higher Adjusted EBITDA during Q3 2025 as compared to Q3 2024 described above. As of September 30, 2025, the Company had net debt of $6.1 million compared to $26.8 million as of December 31, 2024 , with the reduction primarily due to higher cash and cash equivalents and lower debt balances. The Company’s net debt as of September 30, 2025 was comprised of $86.7 million in cash and $92.8 million in debt (gross of deferred financing costs). As of September 30, 2025 and the end of 2024, the Company’s net leverage ratio was 0.0x and 0.2x, respectively. As of September 30, 2025, the Company had liquidity4 of $166.7 million comprised of $86.7 million in cash and $80.0 million in undrawn borrowing capacity under its $80.0 million asset-based revolving credit facility (“ABL Facility”). Operations Highlights and Mine Development Environmental, Health, and Safety (“EHS”) For Q3 2025, the Company sustained EHS performance, includin g no reportable environmental releases and three recordable incidents, which resulted in a consolidated total recordable incident frequency rate (“TRIFR”) of 0.54. For 9M 2025, the Company sustained EHS performance, includin g no reportable environmental releases and five recordable incidents, which resulted in a consolidated TRIFR of 0.54. Conda In Q3 2025, Conda Produced 91,219 tonnes P 2O5 compared to 92,311 tonnes P 2O5 in Q3 2024, which remained relatively consistent year-over- year with higher MAP volumes offset by lower SPA volumes; Generated revenues of $134.0 million co mpared to $110.7 million in Q3 2024 with the increase primarily due to higher realized prices for MAP and SPA products resulting from strong phosphate market dynamics; and Generated Adjusted EBITDA of $46.3 million compared to $37.7 million in Q3 202 4 with the increase primarily due to higher realized prices from market strength outpacing higher sulfur and sulfuric acid costs. In 9M 2025, Conda: Produced 262,025 tonnes P 2O5 compared to 252,090 tonnes P2O5 in 9M 2024 with the increase primarily due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) and higher P2O5 production from higher throughput from strong plant performance; Generated revenues of $379.0 million comp ared to $335.4 million in 9M 2024 with the increase primarily due to higher realized prices for MAP and SPA products resulting from strong phosphate market dynamics; and Generated Adjusted EBITDA of $120. 1 million compared to $121.4 million in 9M 2024 with the increase primarily due to higher realized prices from market strength outpacing higher sulfur and sulfuric acid costs. Completion of Mining at Rasmussen Valley The Company completed mining at the Rasmussen Valley mine in Q3 2025 after approximately seven years in operation, with reclamation activities expected to commence in Q4 2025. Expected reclamation costs for the Rasmussen Valley mine are expected to be in the range of $80 to $100 million with the majority of the spend to occur over the next 48 months. Mine Life Extension For the three and nine months ended September 30, 2025, the Company advanced activities related to the extension of Conda’s mine life through the development of H1/NDR as follows: advanced H1/NDR capital activities including construction of rail loading facilities and mine development; and in June 2025, the Company received author ization from the Board of Directors to proceed with a capital project to construct a new processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P2O5 production capacity at the plant (the “MgO Reduction Project”).
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5 Exploration and Appraisal Program at Conda As capital work at H1/NDR continues with first ore shipments expected in Q4 2025, the Company is focused on identifying and pursuing opportunities to add additional resources and reserves to the pr oject to extend mine life beyond the current NI 43-101 - Standa rds of Disclosures for Mineral Projects (“NI 43-101”) estimate of mid-20 37. To pursue this objective, the Company has commenced a mult i- year, multi-lease exploration program, resource evaluation an d permitting program at Conda with an expected annual cost of approximately $6-8 million. The in-fill drilling program is focused on further delineating upside potential of the Husky 1 Lease through a targeted reserve delineation appraisal that will reduce drill spacing to 250ft on center versus current spacing at 500ft. Initial resource delineation drilling on the Dry Ridge Lease commenced in Q3 2025, with the initial program consisting of drilling on 2,400ft centers to gain crucial geologic and metallurgical information that will be used to generate init ial resource models that will drive future mine planning resource estimation and permitting studies. Core drilling and geologic modeling of the Husky 3 and Husky 4 Leases is ahead of schedule as exploration core drilling commenced in September 2025. This initial drilling will id entify the site geology and characterize the resource for future mine development along the current mine trend. In addition to these activities, preliminary work has commenced on environmental baseline resource studies that will be required for future National Environmental Policy Act permitting and regulatory approval s. These geographically near field opportunities have the p otential to extend mine life beyond the current NI 43 -101 estimate of mid-2037 in an efficient manner with the objective of utilizing th e current infrastructure being built out at H1/NDR. Arraias In Q3 2025, Arraias: Produced 26,164 tonnes of excess sulfuric acid compared to 28,483 tonnes in Q3 2024 with the decreased due to due to higher acid consumption with the start of Partially Acidulated Phosphate Rock (“PAPR”) and Granulated Partially Acidulated Phosphate Rock (“G-PAPR”) production; Produced 29,564 tonnes P 2O5, compared to 12,719 tonnes P 2O5 in Q3 2024, with the increase due to ramp up of Direct Application Phosphate Rock (“DAPR”) and PAPR production and the restart of the granulation plant to produce G-PAPR, as part of the Fertilizer Restart Program; and Generated Adjusted EBITDA of $7. 0 million compared to $3.7 million in Q3 2024 with the increase primarily due to sulfuric acid gross margin improvement driven by higher sales prices. In addition, the increase reflects higher sales of fertilizer products sales during Q3 2025, particularly due to the contribution from G-PAPR. In 9M 2025, Arraias: Produced 92,812 tonnes of excess sulfuric acid compared to 78, 011 tonnes in 9M 2024 driven by higher customer demand; Produced 40,291 tonnes P 2O5 of DAPR and PAPR compared to 16,513 tonnes P 2O5 in 9M 2024, with the increase driven by higher demand for fertilizer products in line with seasonal market trends. In addition, significant sales of DAPR and PAPR, along with the start of G-PAPR sales, have supported this growth; and Generated Adjusted EBITDA of $12.5 million compared to $3.5 million in 9M 2024 with the increase primarily due to a combination of higher sulfuric acid gross margin driven by hig her sales prices and higher volume coupled with higher fertilizer products sales in 2025, driven by significant higher sales volumes including the addition of the new product G-PAPR. Q3 2025 Financial Results and Business Update Webcast An on-demand recorded webcast of management commentary that revi ews the Q3 2025 financial results, provides an update on the business and addresses analysts’ and investors’ recent frequently asked questions will be available on Monday, November 10, 202 5 at 4:30 p.m. ET. The webcast will be available on the Pr esentations & Events page of the Company’s website www.itafos.com/investors/presentations-fact-sheets/ and will be available for 90 days.
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6 About Itafos The Company is a phosphate and specialty fertilizer company with businesses and projects spanning three continents: Conda – a vertically integrated phosphate fertilizer business lo cated in Idaho, US, with the following production capacity: - approximately 550kt per year of MAP, MAP with micronutri ents (“MAP+”), superphosphoric acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”) - approximately 27kt per year of hydrofluorosilicic acid (“HFSA”) Arraias – a vertically integrated phosph ate fertilizer business located in Tocantins,Brazil, with the following production capacity: approximately 500kt per year of single super phosphate (“SSP”) and SSP with micronutrients (“SSP+”) - approximately 40kt per year of excess sulfuric acid (220 kt per year gross sulfuric acid production capacity) Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau; and Santana – a vertically integrated hi gh-grade phosphate mine and fertilizer plant project located in Pará, Brazil The Company is a Delaware corporation headquartered in Houston, Texas. The Company’s shares trade on the TSX-V under the ticker “IFOS”. The Company’s shares also trade in the US on the OTCQX® Best Market (“OTCQX”) under the ticker symbol “ITFS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is an affiliate of global private investment firm Castlelake, L.P. For more information, or to join the Company’s mailing list, please visit www.itafos.com. Forward-Looking Information Certain information contained in this news release constitutes forward-looking information, including statements with respect to: the sale of the Araxá Project; the special divide nd; Company guidance; import and export tari ffs; the Company’s planned operations, strategies and projects, including the MgO Reduction Project; the timing for the commencement of operations and first ore at H1/NDR; the expected resource life of H1/NDR; exploration activities to extend mine life; and economic and market trends with respect to the global agriculture and phosphate fertilizer markets. All information other than informa tion of historical fact is forward-looking information. Sta tements that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future include, but are not limited to, statements regarding esti mates and/or assumptions in respect of the Company’s financial and business outloo k are forward-looking information. The use of any of the words “int end”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-looking information. The forward-looking information contained in this news releas e is based on the opinions, assumptions and estimates of managemen t, some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions, assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company’s expectations and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company’s mineral reserves and resources; risk that timing of expect ed permitting will not be met; changes to mine development and comple tion; foreign operations risks; changes to regulat ion; environmental risks; the impact of w eather and climate change; risks related t o asset retirement obligations, general economic changes, including infl ation and foreign exchange rates; the actions of the Company’s competitors and counterparties; financing, liq uidity, credit and capital risks; the loss of key personnel; impairment risks; cy bersecurity risks; risks relating to transportation and infrastructure; chang es to equipment and suppliers; concentration risks, adverse li tigation; changes to permitting and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious acts; market and sto ck price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage, the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is not exhaustive. Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from those described in the forward-looking info rmation, there may be other fa ctors that cause actions, events or results not to be as anticipated, estimated or intended. Additi onal risks and uncertainties affecting the forw ard-looking information contained in t his news release are described in greater detail in the Company’s Annual Information Form and current Management’s Discussion and Analysis available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.itafos.com. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-l ooking statements if circumst ances or management’s estimates, assumptions or opinions should change, except as required by applicable securities law. The forward-looking information included in this news release is expressly qualified by this cautionary statement and is made as of the date of this news release. This news release contains future-oriented financial information and financial outlook information (together, “FOFI”) about the Company’s prospective results of operations, includ ing statements regarding expected Adjusted EB ITDA, net income, basic earnings per shar e, corporate selling, general and adm inistrative expenses, maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above pa ragraph. The Company has included the FOFI
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7 to provide an outlook of managem ent’s expectations regarding anticipated activities and results, and such information may not b e appropriate for other purposes. The Company and management belie ve that the FOFI has been pr epared on a reasonable basis, reflecting management’s reasonable estimates and judgements; however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook information speaks only as of the date on which it is made an d the Company undertakes no obligation to publicly update or revise any financial outlook information except as required by applicabl e securities laws. NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX- V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE. Contacts: For Investor Relations: Matthew O’Neill Executive Vice President & Chief Financial Officer investor@itafos.com 713-242-8446 For Media: Alliance Advisors IR Fatema Bhabrawala Director, Media Relations fbhabrawala@allianceadvisors.com 647-620-5002 Scientific and Technical Information The scientific and technical information contained in this news release related to Mineral Resources for Conda has been reviewe d and approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and technical informat ion contained in this news release related to Mineral Reserves for Conda has been reviewed and approved by Terry Kremmel, Professional Engineer (P.E.) licensed by the States of Mi ssouri and North Carolina. Mr. Kremmel is a full-time employee of WSP USA, Inc. and is independent of the Company. The Company’s latest technical report in respect of Conda is entitled, “NI 43-101 Technical Report Itafos Conda Project, Idaho, USA,” with an effective date of July 1, 2023 and is available under the Company’s website at www.itafos.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca. Non-IFRS Financial Measures This press release contains both IFRS and certain non-IFRS measures that management consid ers to evaluate the Company’s operational and financial performance. Non-IFRS measures are a numerical measure of a company’s performance, that either include or exclude amounts that are not normally included or excluded from t he most directly comparable IFRS measures. Management believes that the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others. In evaluating non-IFRS measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under IFRS and that the methodology applied by the Company in calculating such non-IFRS measures may differ among companies and analysts. Non-IFRS measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to the most directly comparable IFRS measures are included below.
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8 DEFINITIONS The Company defines its non-IFRS measures as follows: Non-IFRS measure Definition Most directly comparable IFRS measure Why the Company uses the measure EBITDA Earnings before interest, taxes, depreciation, depletion and amortization Net income (loss) and operating income (loss) EBITDA is a valuable indicator of the Company’s ability to generate operating income Adjusted EBITDA EBITDA adjusted for non-cash, extraordinary, non-recurring and other items unrelated to the Company’s core operating activities Net income (loss) and operating income (loss) Adjusted EBITDA is a valuable indicator of the Company’s ability to generate operating income from its core operating activities normalized to remove the impact of non-cash, extraordinary and non-recurring items. The Company provides guidance on Adjusted EBITDA as useful supplemental information to investors, analysts, lenders, and others Basic earnings (C$/share) Basic earnings per share denominated in US dollars ($/share) divided by the average exchange rate C$/$ during the period. Basic earnings ($/share) The Company considers that basic earnings (C$/share) is a useful indicator to investors given that the Company’s shares primarily trade in C$ Trailing 12 months Adjusted EBITDA Adjusted EBITDA for the current and preceding three quarters Net income (loss) and operating income (loss) for the current and preceding three quarters The Company uses the trailing 12 months Adjusted EBITDA in the calculation of the net leverage ratio (non-IFRS measure) Total capex Additions to property, plant, and equipment and mineral properties adjusted for additions to asset retirement obligations, additions to right-of-use assets and capitalized interest Additions to property, plant and equipment and mineral properties The Company uses total capex in the calculation of total cash capex (non-IFRS measure) Maintenance capex Portion of total capex relating to the maintenance of ongoing operations Additions to property, plant and equipment and mineral properties Maintenance capex is a valuable indicator of the Company’s required capital expenditures to sustain operations at existing levels Growth capex Portion of total capex relating to the development of growth opportunities Additions to property, plant and equipment and mineral properties Growth capex is a valuable indicator of the Company’s capital expenditures related to growth opportunities. Total cash capex Total capex less accrued capex A dditions to property, plant and equipment and mineral properties The Company uses total cash capex in the calculation of cash growth capex (non-IFRS measure) Cash maintenance capex Maintenance capex less accrued maintenance capex Additions to property, plant and equipment and mineral properties The Company uses cash maintenance capex in the calculation of cash growth capex (non-IFRS measure) Cash growth capex Growth capex less accrued growth capex Additions to property, plant and equipment and mineral properties The Company uses cash growth capex in the calculation of free cash flow (non-IFRS measure). Net debt Debt less cash and cash equivalents plus deferred financing costs (does not consider lease liabilities) Current debt, long-term debt and cash and cash equivalents Net debt is a valuable indicator of the Company’s net debt position as it removes the impact of deferring financing costs. Net leverage ratio Net debt divided by trailing 12 months Adjusted EBITDA Current debt, long-term debt and cash and cash equivalents; net income (loss) and operating income (loss) for the current and preceding three quarters The Company’s net leverage ratio is a valuable indicator of its ability to service its debt from its core operating activities. Liquidity Cash and cash equivalents plus undrawn committed borrowing capacity Cash and cash equivalents Liquidity is a valuable indicator of the Company’s liquidity
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9 Non-IFRS measure Definition Most directly comparable IFRS measure Why the Company uses the measure Free cash flow Cash flows from operating activities, which excludes payment of interest expense, plus cash flows from investing activities Cash flows from operating activities and cash flows from investing activities Free cash flow is a valuable indicator of the Company’s ability to generate cash flows from operations after giving effect to required capital expenditures to sustain operations at existing levels. Free cash flow is a valuable indicator of the Company’s cash flow available for debt service or to fund growth opportunities. The Company provides guidance on free cash flow as useful supplemental information to investors, analysts, lenders, and others. Corporate selling, general and administrative expenses Corporate selling, general and administrative less share-based payments expense. Selling, general and administrative expenses The Company uses corporate selling, general and administrative expenses to assess corporate performance.
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10 EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA For the three months ended September 30, 2025 and 2024 For the three months ended September 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 23,863 $ 5,798 $ (362) $ 6,919 $ 36,218 Finance (income) expense, net 1,196 (153) — 642 1,685 Current and deferred income tax expense 7,755 — — 1,198 8,953 Depreciation and depletion 13,230 859 — 78 14,167 EBITDA $ 46,044 $ 6,504 $ (362) $ 8,837 $ 61,023 Unrealized foreign exchange loss — 70 54 — 124 Share-based payment expense — — — 658 658 Transaction costs — — — 26 26 Other (income) expense, net 251 474 — (13,660) (12,935) Adjusted EBITDA $ 46,295 $ 7,048 $ (308) $ (4,139) $ 48,896 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 33,067 $ 6,189 $ (308 ) $ (4,883 ) $ 34,065 Depreciation and depletion 13,230 859 — 78 14,167 Realized foreign exchange gain (2 ) — — (18 ) (20 ) Share-based payment expense — — — 658 658 Transaction costs — — — 26 26 Adjusted EBITDA $ 46,295 $ 7,048 $ (308 ) $ (4,139 ) $ 48,896 For the three months ended September 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 17,928 $ 3,271 $ (11 ) $ (2,902 ) $ 18,286 Finance (income) expense, net 1,083 (139 ) 1 395 1,340 Current and deferred income tax expense (recovery) 8,573 — — (2,175 ) 6,398 Depreciation and depletion 9,658 458 3 82 10,201 EBITDA $ 37,242 $ 3,590 $ (7 ) $ (4,600 ) 36,225 Unrealized foreign exchange loss — 54 60 — 114 Share-based payment expense — — — 734 734 Transaction costs — — — 481 481 Other expense 439 16 2 — 457 Adjusted EBITDA $ 37,681 $ 3,660 $ 55 $ (3,385 ) $ 38,011 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 28,021 $ 3,202 $ 52 $ (4,681 ) $ 26,594 Depreciation and depletion 9,658 458 3 82 10,201 Realized foreign exchange gain 2 — — (1 ) 1 Share-based payment expense — — — 734 734 Transaction costs — — — 481 481 Adjusted EBITDA $ 37,681 $ 3,660 $ 55 $ (3,385 ) $ 38,011
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11 For the nine months ended September 30, 2025 and 2024 For the nine months ended September 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 67,279 $ 10,278 $ (1,224 ) $ 20,575 $ 96,908 Finance (income) expense, net 3,666 (458 ) — 3,142 6,350 Current and deferred income tax expense 19,771 — — 3,151 22,922 Depreciation and depletion 28,604 2,152 — 232 30,988 EBITDA $ 119,320 $ 11,972 $ (1,224 ) $ 27,100 $ 157,168 Unrealized foreign exchange (gain) loss — (188 ) 318 — 130 Share-based payment expense — — — 4,535 4,535 Transaction costs — — — 130 130 Other (income) expense, net 762 686 — (43,409 ) (41,961 ) Adjusted EBITDA $ 120,082 $ 12,470 $ (906 ) $ (11,644 ) $ 120,002 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 91,484 $ 10,318 $ (906 ) $ (16,239 ) $ 84,657 Depreciation and depletion 28,604 2,152 — 232 30,988 Realized foreign exchange loss (6 ) — — (302 ) (308 ) Share-based payment expense — — — 4,535 4,535 Transaction costs — — — 130 130 Adjusted EBITDA $ 120,082 $ 12,470 $ (906 ) $ (11,644 ) $ 120,002 For the nine months ended September 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Net income (loss) $ 69,911 $ 1,780 $ (239 ) $ (13,243 ) $ 58,209 Finance (income) expense, net 3,470 (597 ) 2 5,217 8,092 Current and deferred income tax expense (recovery) 22,343 — — (6,567 ) 15,776 Depreciation and depletion 24,419 1,653 13 250 26,335 EBITDA $ 120,143 $ 2,836 $ (224 ) $ (14,343 ) 108,412 Unrealized foreign exchange (gain) loss — 1,704 (260 ) — 1,444 Share-based payment expense — — — 1,591 1,591 Transaction costs — — — 708 708 Non-recurring compensation expenses — — — 1,560 1,560 Other (income) expense, net 1,303 (996 ) 6 (40 ) 273 Adjusted EBITDA $ 121,446 $ 3,544 $ (478 ) $ (10,524 ) $ 113,988 (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Operating income (loss) $ 97,030 $ 1,891 $ (491 ) $ (14,623 ) $ 83,807 Depreciation and depletion 24,419 1,653 13 250 26,335 Realized foreign exchange gain (3 ) — — (10 ) (13 ) Share-based payment expense — — — 1,591 1,591 Transaction costs — — — 708 708 Non-recurring compensation expenses — — — 1,560 1,560 Adjusted EBITDA $ 121,446 $ 3,544 $ (478 ) $ (10,524 ) $ 113,988
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12 As of September 30, 2025 and December 31, 2024 As of September 30, 2025, and December 31, 2024 the Company had trailing 12 months Adjusted EBITDA5 as follows: (unaudited in thousands of US Dollars) September 30, 2025 December 31, 2024 For the three months ended September 30, 2025 $ 48,896 $ — For the three months ended June 30, 2025 31,827 — For the three months ended March 31, 2025 39,279 — For the three months ended December 31, 2024 45,473 45,473 For the three months ended September 30, 2024 — 38,011 For the three months ended June 30, 2024 — 32,810 For the three months ended March 31, 2024 — 43,167 Trailing 12 months Adjusted EBITDA $ 165,475 $ 159,461 BASIC EARNINGS (C$/SHARE) For the three and nine months ended September 30, 2025 and 2024, the Company had basic earnings (C$/share) as follows: (unaudited in thousands of US Dollars For the three months ended September 30, For the nine months ended September 30, except as otherwise noted) 2025 2024 2025 2024 Basic earnings ($/share) $ 0.19 $ 0.10 $ 0.50 $ 0.30 Basic earnings (C$/share) $ 0.26 $ 0.13 $ 0.70 $ 0.41 Average exchange rate (C$/$) 1.3773 1.3641 1.3988 1.3604 5Please refer to the press releases issued by the Company relating to the filings for the June 30, 2025, March 31, 2025, Decembe r 31, 2024, and September 30, 2024 periods for the quantitative reconciliation.
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13 TOTAL CAPEX For the three months ended September 30, 2025 and 2024 For the three months ended September 30, 2025, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 24,002 $ 712 $ 28 $ 17 $ 24,759 Additions to mineral properties (1,346 ) 943 67 — (336 ) Additions to property, plant and equipment related asset retirement obligations (533 ) (128 ) — — (661 ) Additions to right-of-use assets — (109 ) — — (109 ) Capitalized interest in property, plant, and equipment and mineral properties (2,066 ) — — — (2,066 ) Total capex $ 20,057 $ 1,418 $ 95 $ 17 $ 21,587 Accrued capex 3,800 — — — 3,800 Total cash capex $ 23,857 $ 1,418 $ 95 $ 17 $ 25,387 Maintenance capex $ 2,002 $ 106 $ — $ 17 $ 2,125 Accrued maintenance capex 467 — — — 467 Cash maintenance capex $ 2,469 $ 106 $ — $ 17 $ 2,592 Growth capex $ 18,055 $ 1,312 $ 95 $ — $ 19,462 Accrued growth capex 3,333 — — — 3,333 Cash growth capex $ 21,388 $ 1,312 $ 95 $ — $ 22,795 For the three months ended September 30, 2024, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 11,633 $ 710 $ — $ 5 $ 12,348 Additions to mineral properties 18,738 — 108 — 18,846 Additions to property, plant and equipment related asset retirement obligations (7,261 ) (120 ) — — (7,381 ) Additions to right-of-use assets — (5 ) — — (5 ) Capitalized interest in property, plant, and equipment and mineral properties (2,714 ) — — — (2,714 ) Total capex $ 20,396 $ 585 $ 108 $ 5 $ 21,094 Accrued capex 8,152 — — — 8,152 Total cash capex $ 28,548 $ 585 $ 108 $ 5 $ 29,246 Maintenance capex $ 2,250 $ 324 $ — $ 5 $ 2,579 Accrued maintenance capex 9,623 — — — 9,623 Cash maintenance capex $ 11,873 $ 324 $ — $ 5 $ 12,202 Growth capex $ 18,146 $ 261 $ 108 $ — $ 18,515 Accrued growth capex (1,471 ) — — — (1,471 ) Cash growth capex $ 16,675 $ 261 $ 108 $ — $ 17,044
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14 For the nine months ended September 30, 2025 and 2024 For the nine months ended September 30, 2025, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 64,685 $ 6,116 $ 49 $ 17 $ 70,867 Additions to mineral properties 7,151 1,168 481 — 8,800 Additions to asset retirement obligations (1,541 ) (760 ) — — (2,301 ) Additions to right-of-use assets (11,710 ) (420 ) (15 ) — (12,145 ) Capitalized interest in property, plant, and equipment and mineral properties (4,905 ) — — — (4,905 ) Total capex $ 53,680 $ 6,104 $ 515 $ 17 $ 60,316 Accrued capex (2,112 ) — — — (2,112 ) Total cash capex $ 51,568 $ 6,104 $ 515 $ 17 $ 58,204 Maintenance capex $ 14,326 $ 217 $ — $ 17 $ 14,560 Accrued maintenance capex (108 ) — — — (108 ) Cash maintenance capex $ 14,218 $ 217 $ — $ 17 $ 14,452 Growth capex $ 39,354 $ 5,887 $ 515 $ — $ 45,756 Accrued growth capex (2,004 ) — — — (2,004 ) Cash growth capex $ 37,350 $ 5,887 $ 515 $ — $ 43,752 For the nine months ended September 30, 2024, the Company had capex by segment as follows: (unaudited in thousands of US Dollars) Conda Arraias Development and exploration Corporate Total Additions to property, plant and equipment $ 32,475 $ 3,725 $ (2 ) $ 8 $ 36,206 Additions to mineral properties 29,585 — 495 — 30,080 Additions to asset retirement obligations (6,171 ) 646 — — (5,525 ) Additions to right-of-use assets — (346 ) 2 — (344 ) Capitalized interest in property, plant, and equipment and mineral properties (2,714 ) — — — (2,714 ) Total capex $ 53,175 $ 4,025 $ 495 $ 8 $ 57,703 Accrued capex (4,911 ) — — — (4,911 ) Total cash capex $ 48,264 $ 4,025 $ 495 $ 8 $ 52,792 Maintenance capex $ 22,966 $ 2,697 $ — $ 8 $ 25,671 Accrued maintenance capex (23 ) — — — (23 ) Cash maintenance capex $ 22,943 $ 2,697 $ — $ 8 $ 25,648 Growth capex $ 30,209 $ 1,328 $ 495 $ — $ 32,032 Accrued growth capex (4,888 ) — — — (4,888 ) Cash growth capex $ 25,321 $ 1,328 $ 495 $ — $ 27,144
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15 NET DEBT AND NET LEVERAGE RATIO As of September 30, 2025, and December 31, 2024 the Company had net debt and net leverage ratio as follows: (unaudited in thousands of US Dollars September 30, December 31, except as otherwise noted) 2025 2024 Current debt $ 11,048 $ 11,163 Long-term debt 79,715 86,804 Cash and cash equivalents (86,681) (74,372) Deferred financing costs related to the Credit Facilities 1,997 3,207 Net debt $ 6,079 $ 26,802 Trailing 12 months Adjusted EBITDA $ 165,475 $ 159,461 Net leverage ratio 0.0x 0.2x LIQUIDITY As of September 30, 2025, and December 31, 2024 the Company had liquidity as follows: September 30, December 31, (unaudited in thousands of US Dollars) 2025 2024 Cash and cash equivalents $ 86,681 $ 74,372 ABL Facility undrawn borrowing capacity 80,000 80,000 Liquidity $ 166,681 $ 154,372 FREE CASH FLOW For the three and nine months ended September 30, 2025 and 2024, the Company had free cash flow as follows: For the three months ended September 30, For the nine months ended September 30, (unaudited in thousands of US Dollars) 2025 2024 2025 2024 Cash flows from operating activities $ 19,753 $ 6,342 $ 85,884 $ 88,853 Cash flows used by investing activities (24,572 ) (28,771 ) (48,595 ) (51,099 ) Free cash flow $ (4,819 ) $ (22,429 ) $ 37,289 $ 37,754 CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES For the three and nine months ended September 30, 2025 and 2024, the Company had corporate selli ng, general and administrative expenses as follows: For the three months ended September 30, For the nine months ended September 30, (unaudited in thousands of US Dollars) 2025 2024 2025 2024 Selling, general and administrative expenses $ 4,883 $ 4,681 $ 16,239 $ 14,623 Share-based payments expense (658 ) (734 ) (4,535 ) (1,591 ) Corporate selling, general and administrative expenses $ 4,225 $ 3,947 $ 11,704 $ 13,032