Intrepid Potash Inc. reported a first-quarter net loss of $3.1 million on sales of $79.3 million, down from the year-ago net income of $4.5 million and $86.9 million, respectively. Gross margin moved down to $6.4 million from $16.4 million, while adjusted EBITDA was $7.7 million, down from $16.4 million. 

Intrepid said the lower profitability was primarily driven by lower prices on key products. First-quarter net realized prices for potash and Trio® averaged $395/st and $300/st, respectively, which compared to the year-ago $485/st and $344/st, respectively.

“Intrepid started the year with a solid first quarter that was highlighted by robust demand and stable pricing in the potash market,” said Matt Preston, CFO and Acting Principal Executive Officer. “Our quarterly Trio^® sales volumes of 91,000 st exceeded expectations as consistent potash pricing and improving sulfate values drove strong in-season demand.”

Preston said improved mining rates due to two new continuous miners allowed Intrepid to adjust the production schedule at its East facility, while maintaining consistent production rates in the near-term as the company limits capital expenditures and mine development work.

“In potash, reduced production during the 2023-2024 production year has constrained our sales volumes and negatively impacted our unit economics, but we still expect our production to inflect higher starting in the second half of this year,” he said. “Getting our potash production back to the historical levels remains the number one focus for Intrepid and we look forward to seeing the improvement in our unit economics later this year.”

Intrepid said it is currently reviewing deal structures and potential partners for two new projects: lithium and sand. The company said the lithium already present in its byproduct magnesium brine is estimated to support approximately 2,000 st/y of lithium carbonate production assuming a commercially feasible extraction technology.

The company said it has the necessary permits for a 1 million st/y wet sand project, which has an estimated resource that could support decades of production.

Preston also noted Bob Jornayvaz, Intrepid’s Executive Chairman of the Board and CEO, who went on a temporary medical leave of absence, effective April 16, as he recovers from injuries sustained in a polo accident on April 6 in Florida (GM April 19, p. 26; April 12, p. 26). “We want to extend our heartfelt best wishes to Bob for a swift recovery, and we appreciate the support and understanding during this time,” Preston said.