Compass Minerals Intl Inc · NYSE:CMP
Compass Minerals Intl — Compass Minerals — Investor Presentation (September 2021)
22 slides from Compass Minerals Intl's investor presentation, Sep 16, 2021
Slide 1: Lithium Resource Defined and Available
LITHIUM RESOURCE DEFINED AND AVAILABLE Updated Sept. 16, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the company’s strategic priorities, including its ability to build sustainable culture, abil
Slide 3: An Essential Minerals Company
AN ESSENTIAL MINERALS COMPANY1 Compass Minerals is a leading provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. 12 ~2,000 PACKAGING AND EMPLOYEES PRODUCTION Every day, Compass Minerals produces what’s
Slide 4: Core Strengths
CORE STRENGTHS ADVANTAGED ASSETS ATTRACTIVE MARKETS Goderich mine: world’s largest underground salt mine Leading supplier of salt products in North America and the U.K. Winsford mine: U.K.’s largest dedicated rock salt mine Protassium+® (SOP product) is market leader for Great Salt Lake solar evapor
Slide 5: Enterprise-Wide Strategic Priorities
ENTERPRISE-WIDE STRATEGIC PRIORITIES BUILD SUSTAINABLE DELIVER ON STRATEGIC CULTURE COMMITMENTS ASSESSMENT Drive Zero Harm Meet and then exceed Evaluation of core strengths and imperative for our people customer and shareholder opportunities to leverage and environment expectations advantaged assets
Slide 6: Focus on Sustainability and Safety
FOCUS ON SUSTAINABILITY AND SAFETY Compass Minerals works to continually earn our social license to operate. Management of ESG impacts and improvements occur through multiple, integrated approaches. Our Core Values, Corporate Sustainability Principles, and Code of Ethics and Business Conduct provide
Slide 7: Evolution of Ogden Facility
EVOLUTION OF OGDEN FACILITY 2021 – Lithium resource 1970 – First ton of SOP produced defined, comprised of IB and Great Salt Lake resources 1960s 1990s 2010s 1970s Present 1962 – Lithium Corporation of 1993 – Compass Minerals acquired Ogden facility Salt accumulations in some ponds range from Americ
Slide 8: Why Lithium and Why Now?
WHY LITHIUM AND WHY NOW? THE CASE FOR DEVELOPMENT OF THIS ESSENTIAL MINERAL
Slide 9: Global Lithium Production and Resources
GLOBAL LITHIUM PRODUCTION AND RESOURCES1 (in metric tons Li) 1 USGS 2021; third party reports When developed, our resource would materially support U.S. standing on a global scale 9
Slide 10: The Powerful Potential of Lithium
THE POWERFUL POTENTIAL OF LITHIUM CRITICAL MINERALS DEVELOPMENT END-USER DEMAND “Advanced, lithium-based batteries play an integral “Alliance for Automotive Innovation (AAI), a role in 21st-century technologies such as electric organization representing 99% of the cars and trucks vehicles, stationar
Slide 11: Lithium Market Fundamentals
LITHIUM MARKET FUNDAMENTALS 1200 Demand “Forecast lithium demand to triple by 2025 to Supply ~1mt (LCE); 27% CAGR from 2020-2025”1 900 kt LCE 600 300 0 2020 2021 2022 2023 2024 2025 “Having dropped sharply from the peak $ USD in 2018, lithium prices have stabilized during the pandemic and are up ~50
Slide 12: Lithium Company Valuations
LITHIUM COMPANY VALUATIONS RECENT PRICE PERFORMANCE1 2021 EV/EBITDA2 400 49.1 45.7 300 Junior Miners +318% Average = ~35x Percent Increase 200 Major Producers 25.2 +217% 20.3 100 10.5 S&P 500 +53% 0 Livent Ganfeng Albermarle SQM Compass Minerals 1 FactSet performance as of 6/12/21; Major Lithium Pro
Slide 13: Our Resource Asset Advantage and Opportunity
OUR RESOURCE ASSET ADVANTAGE AND OPPORTUNITY
Slide 14: Defined Lithium Resource
DEFINED LITHIUM RESOURCE ~2.4M (metric tons LCE) ~127K(metric tons LCE) ~20-25K (metric tons LCE) Total Lithium Resource1 Interstitial Brine Resource1 Annual Target Production ~55K (acres) ~160K (acres) Existing Evaporation Ponds Leases on Great Salt Lake Assessing development and product optionalit
Slide 15: Established Asset Position
ESTABLISHED ASSET POSITION Current CMP Property Dove Creek Current CMP Ponds 160,000 acres on the Great Salt Lake Current CMP Leases1 Current CMP Right of Way Union Pacific Railroad Compass Minerals (CMP) Strategic access to highly concentrated brine in North Arm North Arm East Ponds Great Salt Lake
Slide 16: Strategic Advantages
STRATEGIC ADVANTAGES CURRENT OPERATING FACILITY Based near Ogden, Utah on the Great Salt Lake Geography Utah ranked sixth-most attractive mineral extraction jurisdiction globally1 Infrastructure Significant rail and highway infrastructure Access to readily available power, natural gas and water OGDE
Slide 17: Enhanced Technology
ENHANCED TECHNOLOGY Direct Lithium Extraction (DLE) technology has the potential to unlock the latent value of lithium in our existing brines used for SOP and magnesium chloride production while maintaining our low environmental footprint Current Process Minimal impact expected to our current operat
Slide 18: Commercial Opportunities
COMMERCIAL OPPORTUNITIES Direct Lithium Extraction (DLE) technology has the potential to unlock the latent value of lithium in our existing brines used for SOP and Magnesium Chloride production while allowing us to maintain our already-low environmental footprint Completed two DLE pilot projects suc
Slide 19: Assessing Options to Maximize Resource Value
ASSESSING OPTIONS TO MAXIMIZE RESOURCE VALUE EXPECT TO OPTIMIZE POSITION AS A DOMESTIC AND SUSTAINABLE ASSET Project Development/Ownership Capital Requirements Compass Minerals Ownership Phased Production Third-Party Development Full-Scale Production Partnership Reassessment of Capital Allocation En
Slide 20: Appendix
APPENDIX
Slide 21: Reconciliation of Non-GAAP Information
RECONCILIATION RECONCILIATIONOF OFNON-GAAP NON-GAAPINFORMATION INFORMATION Note on Non-GAAP Financial Measures This document includes certain non-GAAP financial measures. These measures should be viewed in addition to, and not in lieu of, the company’s operating performance and financial measures as
Slide 22: Reconciliation of Non-GAAP Information
RECONCILIATION RECONCILIATIONOF OFNON-GAAP NON-GAAPINFORMATION INFORMATION1 Reconciliation for EBITDA and Adjusted EBITDA (unaudited) (in millions) Twelve months ended December 31, 2020 Net earnings $ 42.6 Interest expense 62.7 Income tax expense 1.9 Depreciation, depletion and amortization 117.8 EB
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