Group 1 - Compass Minerals International, Inc. (CMP) has reached a significant support level and is considered a good investment pick from a technical perspective due to a "golden cross" formation [1] - A golden cross occurs when a stock's short-term moving average, such as the 50-day, crosses above its long-term moving average, like the 200-day, indicating a potential bullish breakout [1][2] - Over the past four weeks, CMP has gained 71.4%, and it currently holds a 2 (Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [3] Group 2 - The bullish outlook for CMP is reinforced by a positive earnings forecast, with no earnings estimates cut and one revision higher in the past 60 days, leading to an increase in the Zacks Consensus Estimate [3][4] - The combination of earnings estimate revisions and the technical breakout position makes CMP a stock to watch for potential gains in the near future [4]

Company Overview - Compass Minerals (CMP) currently holds a Momentum Style Score of B, indicating potential for strong performance based on recent price trends and earnings estimate revisions [3][12] - The company has a Zacks Rank of 2 (Buy), which is associated with a historical outperformance in the market [4][12] Price Performance - CMP shares have increased by 37.35% over the past week, while the Zacks Chemical - Diversified industry has seen a decline of 0.95% during the same period [6] - Over the last month, CMP's price change is 76.95%, significantly outperforming the industry's 7.72% [6] - In the last three months, CMP shares have risen by 65.94%, and over the past year, they have gained 57.46%, compared to the S&P 500's performance of -3.37% and 13.7%, respectively [7] Trading Volume - CMP's average 20-day trading volume is 877,616 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for CMP has been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from -$0.53 to -$0.38 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions, indicating positive sentiment around CMP's earnings potential [10]

Sales Performance - Total sales increased by 36%, or $130.6 million, driven by higher sales volumes in the Salt and Plant Nutrition segments [111]. - Salt sales increased by $122.3 million, or 39%, primarily due to higher sales volumes, which was partially offset by lower average sales prices [146]. - Plant Nutrition sales increased by $8.2 million, or 16.3%, from $50.1 million to $58.3 million [149]. - Salt sales volumes increased by 47% in total, or 1,639,000 tons, which increased sales by approximately $134.9 million [146]. - Plant Nutrition sales volumes rose by 26% year over year, contributing approximately $13.3 million to sales, as demand normalized after previous delays [153]. Financial Performance - Operating loss improved by $36.2 million to $3.1 million compared to the prior-year period, primarily due to reduced impairments in the Fortress business [111]. - Adjusted EBITDA decreased by 26%, or $41.7 million, reflecting lower impairment add-backs and a decrease in the gain on Fortress contingent consideration [117]. - Gross profit for the three months ended March 31, 2025, increased by 7%, or $5.0 million, while gross margin decreased by 4 percentage points to 16% [116]. - The diluted net loss per common share improved to $0.77, a $0.17 improvement from the prior-year period [117]. - The operating loss for Plant Nutrition decreased by $51.2 million to $1.8 million, primarily due to a prior period impairment [153]. - For the three months ended March 31, 2025, the net loss was $32.0 million, compared to a net loss of $38.9 million for the same period in 2024 [173]. - EBITDA for the three months ended March 31, 2025, was $22.3 million, while Adjusted EBITDA was $84.1 million, showing a significant improvement from the previous year's figures [173]. Impairments and Restructuring - The Fortress business recognized a full impairment loss of $53.0 million during the three and six months ended March 31, 2025 [99]. - The company recognized an impairment loss of $53.0 million related to the exit of the Fortress fire retardant business for the three months ended March 31, 2025 [128]. - The company incurred $4.0 million in restructuring charges for the three months ended March 31, 2025, related to workforce reductions and executive leadership changes [174]. Expenses and Costs - SG&A expenses decreased by $3.7 million, representing a 3.1 percentage point reduction as a percentage of sales from 9.1% to 6.0% [120]. - Interest expense increased by $0.7 million to $18.0 million due to higher interest rates and debt levels [123]. - Interest expense for the six months ended March 31, 2025, was $34.9 million, up from $33.2 million in the same period in 2024 [173]. - Other operating income decreased by $18.1 million from $20.8 million to $2.7 million, primarily due to changes in contingent consideration related to the Fortress acquisition [122]. Taxation - Income tax expense increased by $25.7 million from a benefit of $15.9 million to an expense of $9.8 million [126]. - Effective tax rate was (44%) for the three months ended March 31, 2025, primarily driven by the income mix by country [129]. Liquidity and Capital Expenditures - As of March 31, 2025, the company had liquidity of approximately $328.6 million, including $49.5 million in cash and $279.1 million available under its revolving credit facility [154]. - Outstanding indebtedness as of March 31, 2025, totaled $813.0 million, including $500.0 million under Senior Notes and $221.8 million under senior secured credit facilities [158]. - Capital expenditures for the six months ended March 31, 2025, were $35.8 million, down from $78.6 million in the same period of 2024 [166]. - The company expects fiscal year 2025 capital expenditures to be in the range of $75 million to $85 million [153]. Market and Operational Risks - Currency fluctuations and inflation may impact the company's financial condition, particularly due to operations in Canada and the U.K. [177][178]. - Climate change poses risks to product demand and operational costs, particularly for deicing and Plant Nutrition products [181]. - The company has implemented measures to mitigate market risks, including interest rate and foreign currency exchange rate risks, through derivative instruments [182]. - The company experiences seasonality in sales, with higher sales in the first and second fiscal quarters due to winter conditions affecting deicing product demand [179]. Other Notable Events - The company issued a recall for specific production lots of food-grade salt, which may impact future operations, but does not currently expect material adverse effects on results or cash flows [167][168]. - The company is exiting the Fortress fire retardant business, which has led to a significant reduction in operating losses associated with that segment [119].

Financial Data and Key Metrics Changes - Consolidated revenue for the second quarter was $495 million, up 36% year over year [15] - Operating loss improved to $3.1 million from $39.3 million in the prior year [15] - Consolidated net loss was $32 million compared to a net loss of $38.9 million in the previous period [15] - Adjusted EBITDA for the quarter was $84.1 million, down from $95.7 million a year ago [15][16] - Modified adjusted EBITDA was $76.2 million, compared to $71.9 million in the second quarter of 2024 [16] Business Line Data and Key Metrics Changes - In the Salt business, revenue increased to $433 million from $310 million a year ago [16] - Pricing in the Salt business decreased by 5% year over year to approximately $85 per ton, while volumes increased by 47% [17] - In the Plant Nutrition business, revenue rose to $58 million, up 16% year over year, with sales volumes up 26% [18] Market Data and Key Metrics Changes - North American highway deicing inventory values decreased by 47% year over year, with volumes down 59% [9][19] - The company experienced a significant working capital release of approximately $145 million from inventory [9] - Total net debt decreased by $171 million sequentially and $81 million year over year [19] Company Strategy and Development Direction - The company is focused on improving cash flow by optimizing business practices and reducing capital intensity [6] - A strategic pivot was made to rationalize North American highway deicing inventory levels to free up cash and reduce debt [6][9] - The company plans to ramp up production in response to favorable market conditions and is positioned well for the upcoming bid season [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter showed improvement due to better winter weather compared to the first quarter [5] - The company is optimistic about potential price increases and volume commitments in the upcoming bid season due to improved market conditions [27][30] - Management emphasized the importance of controlling costs and managing inventory to enhance free cash flow [19] Other Important Information - The company announced the elimination of over 10% of its corporate workforce to align its cost structure with current business needs [13] - The guidance for adjusted EBITDA for the year was increased to $188 million, reflecting improvements in both the Salt and corporate segments [19] Q&A Session Summary Question: Accounts receivable levels increased from December to March, what is the reason? - Management indicated that there are insurance settlement matters affecting accounts receivable, and balances are expected to decrease as inventory sells through [22][24] Question: What are the early indications for the upcoming bid season? - Management noted that the market is more constructive than in previous years, with early data showing increased volume commitments in some regions [27][30] Question: What are the plans for improving margins in the SOP business? - Management outlined a multi-year effort to improve production costs through better control of brine chemistries and capital projects [32][34]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 was $495 million, up 36% year over year [15] - Operating loss improved to $3.1 million from a loss of $39.3 million in the prior year [15] - Consolidated net loss was $32 million compared to a net loss of $38.9 million in the previous period [15] - Adjusted EBITDA for the quarter was $84.1 million, down from $95.7 million a year ago [15][16] - Modified adjusted EBITDA was $76.2 million, an increase from $71.9 million in Q2 2024 [16] - Total net debt decreased by $171 million during the quarter [18] Business Line Data and Key Metrics Changes - In the Salt business, revenue increased to $433 million from $310 million a year ago [16] - Pricing in the Salt business decreased by 5% year over year to approximately $85 per ton, while volumes increased by 47% [17] - In the Plant Nutrition business, revenue rose to $58 million, up 16% year over year, with sales volumes up 26% [17] Market Data and Key Metrics Changes - North American highway deicing inventory values declined by 47% year over year, with volumes down 59% [8][18] - The successful execution of inventory reduction plans resulted in a working capital release of approximately $145 million [8] Company Strategy and Development Direction - The company is focused on improving cash flow by optimizing business practices and reducing capital intensity [6] - A strategic pivot was made to rationalize North American highway deicing inventory levels to free up cash and reduce debt [6][9] - The company plans to ramp up production in response to favorable market conditions and is positioned well for the upcoming bid season [10][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter showed improvement due to better winter weather compared to the first quarter [5] - The company is optimistic about potential price increases and volume commitments in the upcoming bid season due to improved market conditions [26][29] - Management emphasized the importance of maintaining flexibility in operations and capital plans to respond to market conditions [12] Other Important Information - The company announced the elimination of over 10% of its corporate workforce to align costs with current business needs [13] - Plans to wind down the Fortress North American business were also mentioned, aimed at simplifying operations and generating additional cash flow [13] Q&A Session Summary Question: Accounts receivable levels increased from December to March, what is the reason? - Management indicated that there are insurance settlement matters affecting accounts receivable and that balances will continue to decrease as inventory sells through [21][23] Question: What are the early indications for the upcoming bid season? - Management noted that the market is more constructive than in previous years, with potential for price and volume increases based on inventory levels and winter conditions [26][29] Question: What is the outlook for improving margins in the SOP business? - Management highlighted ongoing efforts to control brine chemistries and restore evaporation ponds, which are expected to materially reduce production costs over time [31][33]

Financial Performance - Net total debt decreased by 10% year-over-year, reaching $758 million as of March 31, 2025 [9] - The company reported a net loss of $32 million for the second quarter of fiscal year 2025, compared to a net loss of $38.9 million in the second quarter of fiscal year 2024 [11] - Total company adjusted EBITDA for the second quarter of fiscal year 2025 was $84.1 million, a decrease from $95.7 million in the prior year [11] - Consolidated revenue increased by 36% year-over-year [20] - Consolidated adjusted EBITDA decreased by 12% year-over-year, with an adjusted EBITDA margin of 17% [20] Salt Segment - Salt revenue increased by 39% year-over-year, reaching $432.7 million [11, 24] - Salt adjusted EBITDA improved by 4% year-over-year, reaching $85.5 million [11, 24] - North American highway deicing inventory values decreased by 47% year-over-year [11, 35] - North American highway deicing inventory volumes decreased by 59% year-over-year [11, 34] Plant Nutrition Segment - Plant Nutrition revenue increased by 164% year-over-year, reaching $58.3 million [39] - Plant Nutrition adjusted EBITDA decreased to $5.6 million from $7.3 million year-over-year, a decrease of 233% [39, 45] - Plant Nutrition sales volumes improved by 26% year-over-year, reaching 93 thousand tons [45]

Core Insights - Compass Minerals reported a revenue of $494.6 million for the quarter ended March 2025, marking a 35.9% increase year-over-year and exceeding the Zacks Consensus Estimate of $413.88 million by 19.50% [1] - The company's EPS was $0.63, down from $1.49 in the same quarter last year, but it surpassed the consensus EPS estimate of $0.39 by 61.54% [1] Financial Performance Metrics - Average Sales Price per ton for Plant Nutrition was $626.02, exceeding the two-analyst average estimate of $608.85 [4] - Total Salt sales volumes reached 5,105 KTon, surpassing the estimated 4,150.78 KTon [4] - Average Sales Price per ton for Total Salt was $84.76, slightly below the estimated $87.42 [4] - Plant Nutrition sales volumes were 93 KTon, exceeding the average estimate of 76 KTon [4] - Sales to external customers for Salt were $432.70 million, up 39.4% year-over-year and above the estimated $362.42 million [4] - Sales to external customers for Plant Nutrition were $58.30 million, representing a 16.4% year-over-year increase and exceeding the estimate of $46.26 million [4] - Operating earnings for Plant Nutrition were -$1.80 million, better than the estimated -$3.66 million [4] - Operating earnings for Salt were $66.90 million, above the average estimate of $63.52 million [4] Stock Performance - Compass shares have returned +48.7% over the past month, significantly outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Compass Minerals reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, but down from $1.49 per share a year ago, representing an earnings surprise of 61.54% [1] - The company posted revenues of $494.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 19.50%, compared to year-ago revenues of $364 million [2] Group 2: Stock Performance and Outlook - Compass shares have increased by approximately 24.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $209.96 million, and -$0.53 on revenues of $1.16 billion for the current fiscal year [7] Group 3: Industry Context - The Zacks Industry Rank for Chemical - Diversified is currently in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Innospec, another company in the same industry, is expected to report quarterly earnings of $1.40 per share, reflecting a year-over-year decline of -20% [9]

[Fiscal 2025 Second-Quarter Results](index=1&type=section&id=Fiscal%202025%20Second-Quarter%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted progress on its 'back-to-basics' strategy, optimizing operations, significantly reducing salt inventory, cutting net debt by **18%**, and streamlining costs through workforce reduction and winding down Fortress North America - The company is executing a 'back-to-basics' strategy focused on optimization to become more efficient and profitable[2](index=2&type=chunk) - Successfully executed a plan to curtail salt production, resulting in a working capital release of nearly **$150 million** from inventory in Q2[2](index=2&type=chunk) - Reduced net total debt by approximately **$170 million**, or **18%**, during the second quarter[2](index=2&type=chunk) - Year-over-year, North American highway deicing inventory value and volumes decreased by **47%** and **59%**, respectively[2](index=2&type=chunk) - Actions to optimize the cost structure include eliminating over **10%** of the corporate workforce and winding down the Fortress North America fire retardant business[2](index=2&type=chunk) [Quarterly Financial Highlights](index=2&type=section&id=Quarterly%20Financial%20Highlights) Q2 FY2025 saw revenue increase to **$494.6 million** from **$364.0 million** year-over-year, with net loss improving to **$32.0 million**, though adjusted net earnings decreased to **$25.7 million** Q2 Fiscal 2025 Financial Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenue** | **$494.6** | **$364.0** | | Operating loss | $(3.1) | $(39.3) | | Net loss | $(32.0) | $(38.9) | | Net loss per diluted share | $(0.77) | $(0.94) | | **Adjusted EBITDA*** | **$84.1** | **$95.7** | | **Adjusted net earnings*** | **$25.7** | **$74.2** | | **Adjusted net earnings per diluted share*** | **$0.63** | **$1.78** | *Non-GAAP financial measure. - Reported results were significantly impacted by the performance and wind-down of the Fortress North America business, including non-cash impairments of **$53.0 million** in Q2 2025 and **$47.6 million** in Q2 2024[4](index=4&type=chunk) [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Performance) The Salt business experienced a **39% revenue increase** and **47% volume surge** due to stronger winter, while Plant Nutrition revenue grew **16%** on higher volumes despite declining adjusted EBITDA from lower prices and higher distribution costs [Salt Business](index=3&type=section&id=Salt%20Business) Q2 2025 Salt Segment Performance vs. Q2 2024 | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $432.7M | +39% | | Sales Volume | 5.1M tons | +47% | | Avg. Sales Price | $84.76/ton | -5% | | Adjusted EBITDA | $85.5M | +4% | | Adjusted EBITDA per ton | $16.75 | -30% | - The **30% decline** in Adjusted EBITDA per ton was a deliberate result of selling higher-cost inventory produced during a period of curtailed production, a strategy aimed at reducing overall inventory levels[7](index=7&type=chunk)[8](index=8&type=chunk) - Highway deicing sales volumes increased **51%** due to stronger winter weather conditions, while Consumer and Industrial (C&I) volumes grew **24%**[9](index=9&type=chunk) [Plant Nutrition Business](index=4&type=section&id=Plant%20Nutrition%20Business) Q2 2025 Plant Nutrition Segment Performance vs. Q2 2024 | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $58.3M | +16% | | Sales Volume | 93k tons | +26% | | Avg. Sales Price | $626/ton | -8% | | Adjusted EBITDA | $5.6M | -23% | - The operating loss improved to **$1.8 million** from **$53.0 million** in the prior-year quarter; however, the prior-year period included a significant non-cash goodwill impairment charge[12](index=12&type=chunk) - Per-unit distribution costs increased **13%** year-over-year due to an increase in sales to markets farther from the company's core California markets[11](index=11&type=chunk) [Cash Flow and Financial Position](index=4&type=section&id=Cash%20Flow%20and%20Financial%20Position) Operating cash flow significantly improved to **$182.8 million** for the first six months of FY2025, driven by salt inventory reduction, supporting **$109.8 million** in net debt payments and ending the quarter with **$328.6 million** liquidity Six Months Ended March 31, Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $182.8 | $33.9 | | Net cash used in investing activities | $(35.9) | $(79.7) | | Net cash used in financing activities | $(116.8) | $45.3 (provided) | - The significant improvement in operating cash flow was primarily driven by a large reduction in North American salt inventory levels[13](index=13&type=chunk) - The company ended the quarter with **$328.6 million** of liquidity, consisting of **$49.5 million** in cash and **$279.1 million** available under its revolving credit facility[15](index=15&type=chunk) [Updated Fiscal 2025 Outlook](index=5&type=section&id=Updated%20Fiscal%202025%20Outlook) Compass Minerals revised its FY2025 outlook, increasing the Salt segment forecast due to strong highway deicing sales, maintaining Plant Nutrition guidance, and projecting total adjusted EBITDA between **$173 million** and **$202 million** Fiscal 2025 Full-Year Guidance | Segment | Metric | 2025 Range | | :--- | :--- | :--- | | **Salt** | Revenue | $975M - $1,050M | | | Adj. EBITDA | $215M - $230M | | **Plant Nutrition** | Revenue | $180M - $200M | | | Adj. EBITDA | $17M - $24M | | **Total Company** | **Adj. EBITDA** | **$173M - $202M** | | | Capital Expenditures | $75M - $85M | - The Salt segment outlook was revised upward to reflect the completion of a strong North American highway deicing season, which boosted sales volume forecasts[18](index=18&type=chunk) - Guidance for the Plant Nutrition segment is unchanged from the outlook provided in February 2025[19](index=19&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents detailed consolidated financial statements, including Statements of Operations, Balance Sheets, and Cash Flows, alongside segment performance data and comprehensive reconciliations of GAAP to non-GAAP measures like Adjusted EBITDA and Adjusted Net Earnings [Consolidated Statements of Operations](index=16&type=section&id=Consolidated%20Statements%20of%20Operations) Three Months Ended March 31, (in millions) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Sales | $494.6 | $364.0 | | Gross Profit | $76.8 | $71.8 | | Operating Loss | $(3.1) | $(39.3) | | Net Loss | $(32.0) | $(38.9) | [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in millions) | Line Item | March 31, 2025 | Sept. 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $49.5 | $20.2 | | Inventories, net | $220.7 | $414.1 | | Total Assets | $1,531.9 | $1,640.1 | | Long-term debt, net | $797.6 | $910.0 | | Total stockholders' equity | $236.5 | $316.6 | [Condensed Consolidated Statements of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended March 31, (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $182.8 | $33.9 | | Net cash used in investing activities | $(35.9) | $(79.7) | | Net cash (used in) provided by financing activities | $(116.8) | $45.3 | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) - Adjustments from GAAP Net Loss to Adjusted EBITDA for Q2 2025 include adding back **$18.0 million** in interest expense, **$26.5 million** in D&A, **$53.0 million** in impairment losses, and **$4.0 million** in restructuring charges[45](index=45&type=chunk) - Major adjustments impacting comparability include impairments related to the exit of the Fortress business, restructuring and severance charges, and costs related to a food-grade salt product recall[34](index=34&type=chunk)[41](index=41&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $307 million, down 10% year over year [28] - Consolidated net loss was $24 million, with adjusted EBITDA approximately $32 million for the quarter [29] - Operating earnings per ton decreased 34% to $11.79, while adjusted EBITDA per ton decreased 17% to $19.17 [30][31] Business Line Data and Key Metrics Changes - Salt business revenue in Q1 was $242 million, down from $274 million a year ago, with volumes down 13% [29] - Plant nutrition business revenue increased by 24% year over year to $62 million, with sales volumes up 36% despite a 9% decrease in pricing [31] Market Data and Key Metrics Changes - North American Highway Deicing inventory volumes are targeted to decrease by approximately 10% year over year [12] - The winter weather in December and January was better than the previous year, impacting production plans positively [13][14] Company Strategy and Development Direction - The company is focused on a "back to basics" strategy emphasizing operational discipline and improvement [8][25] - Plans to refinance debt to better align with current strategy and improve cash flow generation [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the mild winter in October and November affected initial sales, but January's weather improved the outlook [36] - The potential impact of tariffs on Canadian imports is being monitored, with no immediate effect expected for the current deicing season [15][16][76] Other Important Information - The company is reducing capital expenditure guidance by approximately $45 million due to the lighter start in sales [22] - Liquidity at quarter end was $126 million, with a consolidated net leverage ratio of 5.9 times [33] Q&A Session Summary Question: Outlook for highway deicing volumes in Q2 and full year - Management indicated that January was strong, and February looks promising, but they remain cautious about projecting future volumes [36][50] Question: Clarification on Fortress's conditionally qualified status - Management explained the steps involved in the qualification process and the ongoing evaluations with the US Forest Service [40] Question: Accounts receivable and inventory targets - Management confirmed efforts to reduce inventories below historical norms and discussed the relationship between accounts receivable and inventory [58][61] Question: Capital expenditure adjustments - Management clarified that $25 million in lower-risk capital projects would be deferred, with plans to revisit them in future years [64] Question: SOP business improvements and capital projects - Management detailed ongoing efforts to restore SOP pond health and the expected benefits from operational improvements [82]