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®
Intrepid Potash New Capital Investments Support Future
Opportunities
Intrepid Potash New Capital Investments Support Future
Opportunities
MMSA – Colorado SectionSeptember 7, 2012
MMSA – Colorado SectionSeptember 7, 2012
®
Supplying a Growing America™
Presentation OverviewPresentation Overview
� Company Overview
� Capital Investment Overview
� Presentation of Select Capital Investment Projects
– HB Solar Solution Mine (Carlsbad)
– Langbeinite Recovery Improvement Project (Carlsbad)
– Compactor Upgrades
– Moab
– Wendover
– Carlsbad North Plant
2
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Supplying a Growing America™
Intrepid Potash, Inc. OverviewIntrepid Potash, Inc. Overview
3
� The largest U.S. producer of potash
– Only western world producer created and dedicated solely to potassium-related products
– Supplies ~1.5 percent of global demand and ~9.4 percent of U.S. demand
� One of only two global producers of sulfate of potash magnesia, marketed as Trio®
� Five active production facilities – growing to six with the construction of the HB Solar Solution mine
� Balance sheet strength provides ability to execute on robust capital investment program and disciplined business development activity
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Supplying a Growing America™
Intrepid PotashGeographically Advantaged, Potash-Only CompanyIntrepid PotashGeographically Advantaged, Potash-Only Company
� Highest margin North American potash producer
� Strategic marketing and production flexibility
� Capital investment is focused on production growth
through incremental low cost tons
4
Florida
New Mexico
Texas
Oklahoma
Kansas
Nebraska
SouthDakota
Montana
Wyoming
Colorado
Utah
Idaho
Arizona
Nevada
Washington
California
Oregon
Kentucky
Maine
New York
Pennsylvania
Michigan
Vermont
NewHampshire
Virginia
WestVirginia
OhioIndianaIllinois
NorthCarolinaTennessee
SouthCarolina
Alabama
Mississippi
Arkansas
Louisiana
Missouri
Iowa
Minnesota
Wisconsin
Georgia
NorthDakota
Carlsbad Reserve Development Assets
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HB Solar Solution Mine Development Property
Operating Solar Evaporation Solution Mine
Operating Conventional Mine
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Supplying a Growing America™
Includes:
Oil & Gas
Flux
� Trio® markets further diversify crops and
customers
� Industrial market primarily consists of oil
and gas drillers
� Potash used as a nutritional supplement
in animal feed
� Ability to granulate ~80% of current
production, providing flexibility to meet
end market demand
Capital Investment for Diversified Markets and Flexible Product MixCapital Investment for Diversified Markets and Flexible Product Mix
5
Potash Sales for 2011
Industrial
AgriculturalAnimalFeed
Includes:
Barley
Citrus
Corn
Cotton
Hay
Nuts
Potatoes
Rice
Soybeans
Tobacco
Vegetables
Wheat
Product Size 2011 2012 YTD
Agricultural Granular 79% 79%
Industrial Standard 14% 14%
Animal Feed Standard 7% 7%
Includes:
Cattle
Pet Food
Pork
Poultry
®
Supplying a Growing America™
Our 2012 Capital Investment Budget of $225 - $300 million Represents the Highest Level of Capital Investment in Our History
Capital Projects are Focused on Growth, Flexibility & MarginCapital Projects are Focused on Growth, Flexibility & Margin
6
GrowthGrowth FlexibilityFlexibility MarginMargin
� Incremental low cost tons
� HB will represent an
estimated 25 percent
increase in potash
production volumes
Pro
ject
Ben
efi
tsP
roje
ct
Ben
efi
ts
� Capability to respond to
changing market and
customer demands
� Produce products with
best margin profile
� Increased recoveries
from langbeinite ore
� Lower per ton operating
costs
� Langbeinite dense media
separation plant
� Modernization of plant
assets
� Focus on cash cost
component of production
� Langbeinite granulation
� Moab compaction
� North compaction
� Wendover compaction
� HB Solar Solution Mine
� Langbeinite Recovery
Improvement Project
� Expansion and creation
of Moab horizontal
potash caverns
Majo
r C
ap
ital
Pro
jects
Majo
r C
ap
ital
Pro
jects
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Supplying a Growing America™
$22$12
$31
$94$104 $93
$136
$225 - $300
$0
$50
$100
$150
$200
$250
$300
2005 2006 2007 2008 2009 2010 2011 2012E
An
nu
al C
ap
ita
l In
vestm
en
t in
$m
m
Major 2012 Capital Investments
– HB Solar Solution Mine
– North Compaction
– Moab Cavern System
Since Inception Intrepid has Invested Over Half a Billion Dollars into its Mines and FacilitiesSince Inception Intrepid has Invested Over Half a Billion Dollars into its Mines and Facilities
7
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Supplying a Growing America™
Select Capital Investment Projects to be PresentedSelect Capital Investment Projects to be Presented
� HB Solar Solution Mine (Carlsbad)
� Langbeinite Recovery Improvement Project (Carlsbad)
� Compactor Upgrades (Utah and Carlsbad)
8
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Supplying a Growing America™
HB Solar Solution MineHB Solar Solution Mine
� Why Invest in Solution Mining?
� Project Overview
� Benefits of Capital Investment
– Production Growth
– Incremental Reduction in Overall Cost per Ton at Carlsbad Operations
9
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Why Invest in Solution Mining?Why Invest in Solution Mining?
�A proven, effective and safe mining technique
�Maximizes recovery of a potash deposit after conventional mining is completed
�Used successfully around the world – including Intrepid’s facilities in Utah
10
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Understanding How Solution Mining WorksUnderstanding How Solution Mining Works
� Pumps inject a salt-saturated brine underground to dissolve and recover potash in previously mined areas
� Potash is preferentially dissolved and extracted from existing pillars and surrounding floors and walls
� Existing salt and rock is left largely undisturbed – reducing the level of potential surface disturbance
Step 1: Recover potash from existing mine works
11
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Understanding How Solution Mining WorksUnderstanding How Solution Mining Works
� Once saturated with potash, the brine is pumped out of the mine works through extraction wells
� Pipelines transport and deposit the saturated brine into lined solar evaporation ponds located on Intrepid’s property
� The brine evaporates and leaves behind salt and potash on top of the liner’s protective salt layer
Step 2: Transport brine to solar evaporation ponds
12
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Understanding How Solution Mining WorksUnderstanding How Solution Mining Works
� Precipitated salt and potash are harvested from the evaporation ponds
� Then transported for processing to a flotation plant
� Potash is separated from the salt and refined for sale
Step 3: Separate and refine potash
13
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HB Solar Solution Mine - Project ComponentsHB Solar Solution Mine - Project Components
� Uses solution mining and solar evaporation to extract potash from previously conventionally mined areas
� Environmentally friendly
� 12 to 18-month construction phase including:– Water supply wells and associated
piping– 6 injection wells and 5 extraction
wells with 37 miles of pipeline (primarily on public land)
– 572 acres of evaporation ponds (on Intrepid property)
– A new flotation plant
14
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Supplying a Growing America™15
HB Solar Solution Mine – Key FactsHB Solar Solution Mine – Key Facts
� Five million tons of proven and probable reserves (28 year mine life)
� Capital investment of $200-$230 million
� Production cost per ton estimated to be $60 to $80 per ton, making HB one of the low cost potash mines in North America
� Estimated annual production – 150,000-200,000 tons with higher volumes in earlier years
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Supplying a Growing America™16
HB Solar Solution Mine – Production Growth through Incremental Low-Cost TonsHB Solar Solution Mine – Production Growth through Incremental Low-Cost Tons
Potash Pillar
HB Solar Solution Mine Pond Liner Installation
� Construction commenced in March 2012
� Invested $60.5 million through June 30, 2012
– Engineering, design and procurement
– Pond construction
– Pipeline construction
– Wells for water, injection and extraction
� Leverages our solution mining and solar
evaporation expertise
� Improves our overall cost profile and margin
opportunity
� Anticipated production timeline:
– First production to begin fall of 2013
– Ramp up of production expected in 2014
– Production levels increasing into 2015
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Supplying a Growing America™
Langbeinite Recovery Improvement Project (LRIP)Langbeinite Recovery Improvement Project (LRIP)
� Project Overview
� Benefits of Capital Investment
– Improved Recovery
– Production Growth
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Supplying a Growing America™
LRIP Project OverviewLRIP Project Overview
� Replaces existing East langbeiniteplant
� New langbeinite recovery plant
– Dense media separation (DMS)
– De-brining and drying (D&D)
– Pellitization
� Commissioning
– DMS and D&D commenced in Dec 2011
– Pelletizing commenced in April 2012
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Supplying a Growing America™
LRIP – Benefits of Capital InvestmentLRIP – Benefits of Capital Investment
� Designed to increase Trio® recoveries to approximately 50 percent, resulting in:
– Production growth of 100,000 – 120,000 additional tons per year representing an annual ~75 percent increase in Trio® production
– Reduced per ton cash production cost
� Capacity to granulate 100 percent of standard Trio®
production, effectively tripling our granular capacity
� Total project investment on budget, at $85mm - $90mm
19
®
Supplying a Growing America™
Compaction Upgrade ProjectsCompaction Upgrade Projects
� Purpose
� Project Overview
� Benefits of Capital Investment
– Production Growth
– Improved Flexibility and Marketability
20
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Supplying a Growing America™21
Purpose - Additional Granulation Capacity is Key to Marketing and Production FlexibilityPurpose - Additional Granulation Capacity is Key to Marketing and Production Flexibility
Focus on Increasing Granulation Capacity at all Facilities
Facility Product Anticipated Granulation Capacity Estimated In-Service Date
Moab, Utah Potash 100 percent of annual production In service
Wendover, Utah Potash 100 percent of annual production In service
Carlsbad, New MexicoNorth Facility
Potash100 percent of annual production from West Mine and anticipated HB Solar Solution Mine production
Commenced construction in Q2 2012; estimated in service date in the first half of 2013
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Supplying a Growing America™
� Upgrade of existing granulation facility to provide capacity to granulate all mill concentrates
� Commissioned in December 2010
� Total capital investment - $10 million
� Excellent product quality
22
Utah Compaction FacilitiesUtah Compaction Facilities
Moab Compaction Project Moab Compaction Project
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Supplying a Growing America™
� Upgrade of existing granulation facility to improve compaction quality and provide capacity to granulate all mill concentrates
� Commissioned in December 2011
� Total capital investment - $13.1 million
� Excellent product quality
23
Utah Compaction FacilitiesUtah Compaction Facilities
Wendover Compaction Project Wendover Compaction Project
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Supplying a Growing America™
� Upgrade of our existing granulation facility designed to increase capacity and further improve product quality
– New production from HB Solar Solution Mine
– Increased production capacity from our West mine
� Total capital investment for the project is expected to be approximately $95 to $100 million
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Additional Granulation Capacity is Key to Marketing and Production FlexibilityAdditional Granulation Capacity is Key to Marketing and Production Flexibility
North Compaction Project North Compaction Project
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Supplying a Growing America™25
Summary
� Capital Investment Program Targeting:
� Growth of Incremental Low Cost Tons
� Increased Flexibility and Product Marketability
� Improved Margins