Intrepid Announces Successful Completion of Phase One and Provides Update on Phase Two of the HB Injection Pipeline Project
Denver, June 21, 2023 - Intrepid Potash Inc. ("Intrepid," "we," or "our") (NYSE:IPI) today announced the successful completion of Phase One and provides an update on Phase Two of its HB Injection Pipeline Project ("the Project").
Project Update & Outlook
As a result of the successful completion of Phase One of the Project, we have proven injection rates at up to 2,000 gallons per minute ("GPM"), which is almost triple the average injection rate of approximately 700 GPM over the previous five years. Until the completion of Phase Two of the Project, we anticipate operating at average injection rates of approximately 1,100 GPM, which is approximately 55% higher than injection rates prior to starting the Project. Following the completion of Phase Two, we anticipate operating at injection rates in the range of 1,500 to 2,000 GPM. For Phase Two, we continue to work through the permitting requirements prior to commencing construction but still anticipate we will begin construction by the end of the year, with commissioning expected in the first quarter of 2024.
Management Commentary
Bob Jornayvaz, Intrepid's Executive Chairman and CEO commented: "Our primary focus for 2023 is the successful execution on our growth projects designed to improve our brine grade and availability. Completing Phase One of the HB Injection Pipeline Project on schedule and within budget is a great first step in increasing our annual potash production, which should significantly improve our unit economics. Due to the nature of the brine injection and evaporation cycle, we expect to see production improvements at HB starting in the fall of 2024."
Project Background
The key goal for the new injection pipeline system is to increase the amount of brine injected into the HB cavern system to improve our brine grade and maximize brine availability, both of which are essential for the efficient operation of the HB Solar Solution Mine. The HB Injection Pipeline Project has two phases: Phase One is the installation of a new 21-mile pipeline to increase brine injection rates; Phase Two is the installation of an in-line pigging system to clean the pipeline and prevent scaling to help ensure more consistent flow rates. Capital spending for Phase One totaled approximately $16 million.
About Intrepid
Intrepid is a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed and the oil and gas industry. Intrepid is the only U.S. producer of muriate of potash, which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications and used as an ingredient in animal feed. In addition, Intrepid produces a specialty fertilizer, Trio®, which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. Intrepid also provides water, magnesium chloride, brine, and various oilfield services.
Intrepid serves diverse customers in markets where a logistical advantage exists and is a leader in the use of solar evaporation for potash production, resulting in lower cost and more environmentally friendly production. Intrepid's mineral production comes from three solar solution potash facilities and one conventional underground Trio® mine.
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Contact
Evan Mapes, CFA, Investor Relations Manager
Phone: 303-996-3042
Email: evan.mapes@intrepidpotash.com
