
Product and Sales Performance - Potash sales volume increased by 13% in the first nine months of 2021 compared to the prior year, with potash prices driving profitability, comprising 49% of total sales[98]. - The average net realized sales price per ton of potash rose to $381 in Q3 2021, a 60% increase from $238 in Q3 2020, while Trio's average net realized sales price per ton increased by 78%[99][111]. - Total sales for Q3 2021 reached $59.2 million, a 55% increase from $38.1 million in Q3 2020, driven by strong demand in agricultural markets[111]. - Trio sales increased by $8.1 million, or 70%, in Q3 2021, with a 15% increase in tons sold compared to Q3 2020[111]. - Total water sales in Q3 2021 were $6.0 million, up from $3.6 million in Q3 2020, reflecting increased oilfield activity[102][111]. - Byproduct sales for Q3 2021 were $6.4 million, compared to $5.1 million in Q3 2020, driven by an improving economy and increased magnesium chloride availability[104][112]. - Total sales for the nine months ended September 30, 2021, increased by $50.0 million or 34% compared to the same period in 2020[120]. - Potash sales increased by $27.3 million or 39% for the nine months ended September 30, 2021, with an average net realized sales price per ton rising by 27%[120]. - Trio sales rose by $16.9 million or 33% during the first nine months of 2021, with an average net realized sales price per ton increasing by 38%[121]. Financial Performance - Net income for Q3 2021 was $4.0 million, a turnaround from a net loss of $10.2 million in Q3 2020[119]. - Net income for the nine months ended September 30, 2021, was $26.0 million, compared to a net loss of $26.4 million for the same period in 2020[133]. - The company recognized a gain of $10.1 million related to the forgiveness of a $10 million PPP loan in June 2021[130]. - Gross margin for Q3 2021 was $10.6 million, a significant improvement from a negative gross margin of $0.3 million in Q3 2020[116]. - Selling and administrative expenses decreased by 13% in Q3 2021 compared to Q3 2020, primarily due to reduced legal expenses[117]. - The total cost of goods sold increased by 29% in Q3 2021 compared to Q3 2020, with potash costs rising by 23% despite a 6% decrease in tons sold[113]. - Cost of goods sold increased by $19.7 million or 19% during the first nine months of 2021, with potash costs rising by 23%[125]. Operational Developments - The company is the only U.S. producer of muriate of potash, with production from three solution mining facilities in New Mexico and Utah[80]. - The company has water rights in New Mexico, supporting mining operations and selling excess water primarily for oil and gas development in the Permian Basin[80]. - The company has actively developed water treatment and recycling operations in the Delaware Basin to reduce produced water usage in oil and gas operations[87]. - The company is diversifying its products and services, including negotiating water transfer agreements and expanding into oil and gas midstream activities[106][108]. - The company expects to produce approximately 70,000 tons of potash at its HB facility during the current harvest period, ending in mid-January 2022[101]. - The company plans to restart production in mid-March 2022 to meet historical demand during the spring season[101]. Market and Economic Conditions - Economic activity has improved in 2021, with most cities and states reducing restrictions compared to summer 2020, but future impacts of COVID-19 remain uncertain[95]. - The company’s operations have been impacted by the COVID-19 pandemic, particularly in the oilfield solutions segment, with a decrease in demand for oil[95]. - Total water sales increased by 42% in the second and third quarters of 2021 compared to the same periods in 2020, reflecting an economic rebound from the COVID-19 pandemic[158]. - The company expects continued improvement in oilfield solutions water sales during the fourth quarter of 2021[156]. Environmental and Safety Initiatives - The company is committed to environmental, social, and governance (ESG) initiatives, aiming to create long-term value for investors[82]. - The company has implemented safety audits across all locations to enhance operational safety and address potential hazards[89]. - The company has donated nearly 7 million tons of salt to the Bonneville Salt Flats since 2005 to help preserve the environment[87]. Liquidity and Capital Management - As of September 30, 2021, the company had cash on hand of $25.6 million, up from $19.5 million at December 31, 2020[170]. - The company anticipates sufficient liquidity to meet its obligations for the next twelve months, supported by cash on hand and expected cash generated from operations[172]. - The company expects to make capital investments in 2021 of $18 million to $23 million, with approximately $15 million allocated to sustaining capital projects[169]. - As of September 30, 2021, the company had no outstanding long-term debt, following the repayment of $15 million in Series B Senior Notes[181]. - Cash provided by operating activities was $59.4 million, an increase of $40.9 million compared to the same period in 2020 due to increased potash and Trio sales[174].