
Sales Performance - Potash average net realized sales price per ton decreased to $356 and $387 for the three and nine months ended September 30, 2024, respectively, compared to $433 and $474 for the same periods in 2023[79]. - Trio average net realized sales price per ton increased to $312 and decreased to $305 for the three and nine months ended September 30, 2024, respectively, compared to $298 and $329 for the same periods in 2023[79]. - Total sales for the three months ended September 30, 2024, increased by $3.1 million, or 6%, compared to the same period in 2023, driven by a $5.4 million increase in oilfield solutions segment sales[84]. - Total sales for the nine months ended September 30, 2024, decreased by $23.5 million, or 11%, primarily due to a $31.4 million decrease in potash segment sales[93]. - Total sales in the potash segment decreased by $31.4 million in the nine months ended September 30, 2024, with potash sales down by $31.9 million, or 29%[108]. - Total segment sales for potash for the nine months ended September 30, 2024, were $95.966 million, down from $127.363 million in the same period in 2023[143]. Financial Performance - Net loss for the three months ended September 30, 2024, was $(1,833) thousand, compared to $(7,196) thousand for the same period in 2023[83]. - Gross margin for the three months ended September 30, 2024, was $7,732 thousand, compared to $491 thousand for the same period in 2023[83]. - The company incurred a net loss of $5.8 million for the nine months ended September 30, 2024, compared to a net income of $1.6 million in the same period in 2023[103]. - Potash segment gross margin decreased by $17.8 million in the first nine months of 2024 compared to the same period in 2023[108]. - Gross margin for the Trio segment improved to $604, compared to a deficit of $4.29 million in the same period in 2023[111]. - Gross margin for the three months ended September 30, 2024, was $7.7 million, compared to $0.5 million in the same period in 2023, reflecting improved cost management[88]. Production and Operations - Sales volume of potash declined 14% in the nine months ended September 30, 2024, compared to the same period in 2023 due to decreased production and strong demand[79]. - Potash production volumes increased by 19% in the three months ended September 30, 2024, compared to the same period in 2023[106]. - The company expects brine injection rates to increase to between 2,000 - 2,500 gallons per minute, the highest rate in company history[81]. - The company completed the construction of a new primary pond in Wendover in June 2024, which is expected to improve production starting in the 2025-2026 production year[81]. - The company is in the process of permitting a sample well into the AMAX Cavern at HB to measure brine chemistry, with drilling expected to take place shortly after the permitting process is completed in early 2025[81]. Cost Management - Total cost of goods sold decreased by $1.7 million during the three months ended September 30, 2024, with Trio segment costs down by $5.5 million, a 31% decrease[86]. - Potash segment cost of goods sold decreased by $12.9 million, or 16%, due to selling 14% fewer tons in the nine months ended September 30, 2024[95]. - Trio cost of goods sold decreased 31% in Q3 2024, benefiting from reduced production costs and increased tons produced, which lowered per ton production costs[113]. - Trio segment freight costs increased 14% in the nine months ended September 30, 2024, as a result of selling 12% more tons[116]. - Potash segment freight expense decreased by 18% in the nine months ended September 30, 2024, due to selling 14% fewer tons of potash[108]. Tax and Cash Flow - The effective tax rate for the nine months ended September 30, 2024, was 15.8%, differing from the statutory rate primarily due to permanent differences in book and tax income[128]. - For the nine months ended September 30, 2024, the company incurred an income tax expense of $1.9 million, compared to $1.2 million of deferred income tax benefit and $0.1 million of current income tax expense for the same period in 2023[129]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $64.9 million, an increase of $26.3 million compared to $38.6 million for the same period in 2023[134]. - As of September 30, 2024, the company had cash and cash equivalents of $38.0 million, a significant increase from $4.1 million at December 31, 2023[132]. - The company has a $150 million revolving credit facility, with no borrowings outstanding as of September 30, 2024[136]. Shareholder Activities - The company did not repurchase any shares under its $35 million share repurchase program for the nine months ended September 30, 2024[136]. - The company expects to make capital investments of $37 million to $40 million in 2024, with approximately $20 million allocated for sustaining capital[131].