Compass Minerals International (CMP) 14 Feb 182017 Q4 Earnings call transcript

Good day and welcome to the Compass Minerals Fourth Quarter Earnings Conference. Today's conference is being recorded. At this time, I would like to turn the conference over to Theresa Womble. Please go ahead.

Thank you, Cynthia. Fran Minerals' our year fourth CEO, will Jamie XXXX our Compass review quarter morning, Malecha; CFO, and Standen, results. This and full

also will be our outlook. We discussing XXXX

me uncertainties could recent Company's contain risks. to forward-looking a cause make are we and and actual XX, within risks the date, to to differ refer to of call Company's Litigation The Before for involve Private of make Please expectations based statements results no we today's that obligation XXXX. today. Reform February our I may update them, and XXXX, today Act the these that undertakes full turn disclosure XX-Q forms of any let as discussion the Company that of today's remind the materially. over the Securities forward-looking meaning on most you Company's statements XX-K The statements

financial to operating understanding we may Our that feel disclosures also conditions. our important are of include remarks full a business non-GAAP provide and

can Investor release, or at our Web-site in on our reconciliations earnings the our earnings of You section. presentation, these Relations measures find

Now Fran. the over call I'll turn to

and the Thank financial with a of and I'll and Today begin our you, of the some operational good Theresa, recap factors discussing morning everyone. challenges highlights impacting outlook. before XXXX XXXX

the for growing Plant our by year Our of fourth are Salt and results balanced business having full Nutrition quarter the demonstrating our the value business.

significant our weakness. the North deicing faced Nutrition growth South sales, provided our of and for that we results environment, earnings Plant salt in particularly America to from Nutrition segment While a America a challenging full-year addition our offset Plant

revenue. Plant increase related results, improved a diluted special adjusted lower Nutrition $X.XX X% from increased mainly our first resulted of prior share, from year and earnings to impact total our the EBITDA XXXX X% tax adjusted earnings rate operating increased the fourth year The rose XX% share. business. changes, Earnings excluding a tax and Looking per prior from which at consolidated law X% on South increase in per America items to from quarter

our which the of and XX%, declined year, our segment results. the primarily full to For winter adjusted due earnings weather follow-on Salt effects that mild operating on was

very markets, sales of the both our half contracted winter the which quarter in volumes selling the mild reduced and deicing first season. volumes prices year current first was bid in and average for The reduced

Our have North portions served were of rates presence. with average. in where of winter the were our weather and the reduced some were fairly markets to production in In negatively America weakness America across impacted North we as eastern We slightly all the in and temperatures in U.K. where sales less also late snow the our concentrated able salt quarter, costs we in has been operating cold arrived mines. stronger of of above fourth December a offset

Of course, salt for winter weather business. is only our part of the story

growth for ton efficiencies strategy on in the salt the of increasing Our we business of every and our produce. value maximizing relies

capital our this at Goderich the One keys is the the to mine. major of of completion investment

operations project are well. there. longer November in and as projects and two these operating production remains haulage we there important complete relining project and mining continuous a in importance, you the conversion The method, has of mine on continuous ensure the progress many of All and continuous now spending continuous long-term of is the XXXX. of Both shaft new and expected haulage relining below as the no major a budget are the As of listening salt installed system. to systems and know, shaft are of made undertakings. to integrity the asset, are any mine The drill blast using ground, mining to to be our

the from have we will cost savings Jamie in more detail, As discuss achieved continuous already miners. XXXX some

however factors. to In workplace of have also up for to a reduced some is costs, employees. rates our a couple delays due full creating underground ramping There this been safer the air quality addition in improving and to transition design

slowed the September. ground-fall were in when down we happened First,

some area where the in encountered inconsistency are salt the quality we've Second, in mining. we

address to in expect these issues during We maintenance quality normal our March. shutdown

Our will the equipment new shutdown. the continue ramp-up with after

$XX Assuming This rate average when shutdown, this of and come at savings lower-cost savings means through we to rates we of in million is winter that end million achieve $XX normal Goderich expect to the XXXX. the continues production expect after the a by full salt sold. XXXX of run

and our offset full-year In and XXXX, is Plant results sales Salt plant expected weak us additional segment business declined. Our in our produce volumes cost nutrition production has to in growth XXXX. Nutrition helped America, North improved

commissioned We our at equipment of Ogden. have all new

also to broadened commercial reoriented end our portfolio more product partners deeply teams and our have focus We engage users. our on and distribution

research We opening development, Kansas in research have also in and including investments made City. measured a center new

South to We the drive we still innovation well-positioned SG&A overall spending. line America, product while With product to America our and North our in Brazil-developed well, the and North was as reducing execute able customer to this serve have are of additional first we into resources business needs. introduced both all

lines. are seed sold earnings they were originally Our the specialty experience seeking and X%, plant, EBITDA value to they had well believe XXXX. to products what the up each to shortfall of of farmers Specialty plant due not mainly did achieve We delayed our compared use. in fertilizers America directly our other some planting nutrition year each and in pound farm, and validates results anticipated, for We performed each high-value quite has strength Those we strength to business adjusted South with maximum to and farmers. Brazil this acre distributors. further continued critical innovative full-year this they in up sales operating X%, season revenue up X%, efficacy the micronutrients of in product attractiveness also adjusted

slowness Western all, support there the selection, the quality, hemisphere. with customer remain best So given some leader in we in the challenges expect production and we in which strategic effects demand the consecutive we have drive and Brazil key Goderich, areas progress in Yet committed in some been in this mild year future at significant Minerals earlier best the best being made to growth a profitability. All throughout have year. for of growers Compass to two business winters, the this for and issues

our Some headwinds efforts of stayed million our through have We've strategic almost these course XXX of and dividend investments positively the benefits this with impacted results. past to already year. our despite the shareholders returned

part X% dividend investors. value proposition about Our our for at current yield prices is attractive an and of is stock

allocation. disciplined to reducing made. forward driving to capital we capital the approach will look we've investments feature spending We This continue year in the dividend focusing our on and our from to value

facilities, of customer quality available all our our So our will customers focus and products be all they meet on of and needs. when for driving innovating to operating need safely through and improvements operational in XXXX and them, are efficiencies our where ensure manufacturing mines through our evolving optimize plants to

produce returns offer to and will which enable Our deliver we solutions be high-performance more and responsive success employees higher for how us needs, customers, innovative building, we're by to driven will culture the more and in the be our ultimately, more we and to shareholders. value-creating be customer

outlook. financial detail results So our and now, will Jamie on provide greater

significant discussing during then XXXX segment I'll outlook. tax the fourth U.S. I'd charges two results The settlement related reform like which for move Thanks first and quarter, new This the items by quarter. reach and the a tax and Company, quarter, to Fran. to of had We tax to period. we the to two in positions a impacts start this our Today tax and has XX-year U.S. the the a the charge generated components. U.S., tax second between net Canada, million charge that $XX.X law reported

tax the revaluation foreign the earnings one-time be to $XX.X an unremitted our tax $X.X that was on our under Offsetting new of million. liabilities. million estimate we law this tax approximately deferred First,

previously this with reassessments regarding The for have that resolved. in Between second cross-border about second Canadian a government this settlement tax the Company, the victory and Revenue. $XX.X several expense Canadian years transfer tax and year. Canada charge year, resolution This pricing $XXX Tax tax This million tax uncertain settlement addressed of between the is positions a inter-company IRS, the reached been settlement and resulted million. disclosed was the one-time involved Court earlier in the reached totaling tax

to you looking segment of for let's results, our Now, at our Slide on Salt which those turn X can be presentation. found

activity. in For concentration on largest quarter, negatively to declined and the X% and modest offset prices. sales. lower fourth both was the highway consumer sales deicing selling U.S. a by were Deicing consumer the volume of X% revenue winter late start lower average Eastern by volumes, products impacted increase weakness snow contributor to partially sales for The in

January strong shows, above is follow was to as has winter for up tracking year our Just track and the on and as fourth costs. X continued, activity quarter well we data sales XX pressured snow as developing, the volumes lower XX% chart X% the earnings average. how logistics operating the through increased event XX-year were Slide below Salt by in on cities snow prior

geographic Our depreciation of increases freight continuous continuous costs a costs. also include cost and mining equipment service. placed combination to by rates, being driven sales and a were in increased step-up due haulage fuel some mix, into Logistics

winter impact to the from weather in Before due release. weather We the included discuss estimate me Salt full-year press our turning winter variations financial quarter. results, the each impact we average let winter estimate to

business. negative a million to driver a million to $XX earnings. $XX on $X primary negative impact estimated The This quarter on consumer relates deicing operating and $XX to we sales the impact million have impact million our for

– concentration late Our our activity fourth winter Because these in were winter of the metrics below should deicing relationships. weather to average the of the winter the start for what weather sales quarter. estimate deicing consumer contemplates be the consumer winter sales and commercial in typical typical that should U.S., given Eastern average

was average the actual historical deicing ratio also to In commitments addition, quarter. below third our highway sales for

impact to compared XX% full the prior estimate was year. volumes Salt rates related in winter XX about approximately from declined from XX% earnings The declined XXXX for fourth our mild results however combination Nutrition earnings average per-unit North first grew an operating logistics increase sales X% declined expense. million Ogden due that the We the in of and XX due new XX% operating SOP selling our in depreciation decline million increased to production higher fourth Salt higher revenue equipment the to operating America year, and of increased X% For XXXX quarter quarter on location. to EBITDA margin results driven full-year weather lower related commissioning by Adjusted the expense our and also costs logistics and segment the quarters. when to and of costs prices. a at to Plant

our volume, directly price the business margins. Nutrition challenged, our SOP and is to benefited adjusted benefit business the segment For discussed which economic provided on growth the solutions South the XX% from to segment, These revenue sales price. in particularly broader growers efficiency This year-over-year modestly strong in selling X% of XXXX cost. improvement is of as more in weakness of oil Fran to growth by tied Brazil the distribution as some in earnings our sales results industry. as production was quarter somewhat full cash a chemical sales this sold benefits increase this well improved driven by X% a in reported products in but In lift Plant year, per-unit our some due This operating SG&A. in The mix FX channel. volume environment average results selling our well still America the and Brazil gains as driven more gas management price. sales were careful These and lower XX% to than that increased offset the high-value translated fourth in average growth

sales For from XXXX volumes the full year, declined results. X%

local mix However, selling for X% which average improved increase a and agriculture solutions in in chemical currency. the product drove total sales, both price

focus on channel our growth. nutrients strong plant innovative margin direct-to-grower and and improved high-value sales earnings provided operating Our

with this We expected the given XXXX. in economics are performance, Brazilian pleased weaker than

operating sales expectations, margins products, for stronger business, we of to that customers chlorine solutions business. also highly industrial lagged concentrated improved had which while sales chemical the some With

this overall segment, the broader the given agriculture America a So, economic year South there. and was environment solid for

outlook, Let's now move Salt. starting to with our

in due million half forward first high-cost and ground-fall incident from related XXXX. about Goderich product expense. of that logistics to About Looking last inventory half is million XXXX, cost cost the September. this to is Most $XX the of mine to at we expect of $XX short-term

operating lower-than-expected rates had mine. We also at that

half to $XX other and of shipping The handling. the million relates

about first Goderich increase $X.XX We per costs expect our salt market. Cote Blanche use half fully supplement expected to to serve to from That to is mine distribution the ton. Salt by the shortfall

Fortunately, second margins rebound of these XXXX. healthy and costs are short-term we half expect the in operating a nature in in

about at stopped We fourth when also will quarter. and already of mining and continuous finished Second-half blasting $X drilling we from XXXX fourth system the margins in Goderich. savings the achieved XXXX million mining in benefit installing savings completely

Given mining through some we to continuous the pull ground challenging geology ramp-up. decided mining we've have back and precautions, been additional on control our

as we expect these the However, March resolved to Fran issues shutdown. mentioned, have following

reduce taking year as savings. We to P&L savings result we mine, the savings to the first-in action our year, of rate, of XXXX in XXXX. half our savings By full impact our end second are mining have million our new run already expecting first-out of the and $XX $XX XXXX, to the the in started methodology. a due with we first incremental accounting being at workforce expect reach an to These million in from technology are expected the

the up operating compress. year-over-year So, the half to to while revenue margins to sum expect first be we XXXX, are up expected Salt for of outlook,

value more investment we distribution North which farmer sold XXXX. Given we channel. and for smaller who economics tends farmer decline. expectations somewhat further margins Plant volumes well. down fewer full-year something January increasing be these be Nutrition interest depreciation and and growth business logistics and a volume tend however for for in commodity in increased products, sales America, due are average through what Nutrition continued resources steady because In a inputs is expect growers commercialization, improving be economics, step-up South America, Operating as we've our to There winter innovative from Plant sensitive to serves of prices the more to This positive of strong in compressed of to to agriculture stable move at on innovation In costs. an sales year, expect through ups to should expected season our supportive and expense, we be increase the are with downs the it remainder indications pressure prices. to chain have for customers which when pursue will access have in

increase half sales factors, Plant South a expect these Nutrition XXXX. in increase an year-over-year in year for and first for we the volumes Given of revenue America the

of increase year. margin indicative Our the guidance Remember sales second seasonal during overall that is performance products for segment. the the of higher-margin half typically of the

factors expense for increase items outlined As each will business go, as far corporate our segment. depreciation the due to I've

And rate expected level continue focus our decline expenditure This rate we our value to major longer-term law. tax will previously be tax as effective investments on is result delivering the compares capital of U.S. the Our as about on we've last, to new a XX% already tax expected to made. of XX%.

we fundamentals me beginning recap quarter. cost let key although of the Before Q&A business near-term points Salt session, the are improving, headwinds. are our facing

million assuming weather in demand. delivering Our of Goderich winter mine deliver $XX end savings by the already XXXX, is is transition to run benefits average expected and rate

continue track. savings the to begin expected $XX growth. delivered million Corporate-wide the are Operator, $XX remains session? plan businesses It XXXX. steady in our million has in with cost savings on we to expected Nutrition can please date Plant Q&A Our And balance last,

Instructions] Anderson [Operator hear first Stifel. We'll with from Vincent

guidance Just any, going you including as in Plant on the be and to if to of guidance you're back willing effort? of able result kind North commercialization what briefly, or commercialization America sales, then Nutrition also expense that segment, would quantify the a

on quantify that we won't side. specifically, it. the XXXX. it invest than a was continue I in bit that slower think It I Vincent, little spin do We we in but to started expected

investment, of our will down then as It to commercialization about includes not results into And full-year what but value ready investment really and continued there we what talk a there, a innovation. terms in plan, is. we XXXX. that some expect get lot but from the XXXX, on in is in that the that is come that road so, we're in specifically the there built even And rate ramp-up of

are that's staying products, Nutrition, in efforts development that In you in your from you SOP, North it's pipeline? and but early, you conversations stand commercialization current out have internal know this Okay, missing any these pipeline. American particularly you. on initial own helpful. own Thank portfolio, your Plant that have XX products your have your your products as process, not I And there really are and

Vincent, it's Fran.

broader much point products. to two a we seeing today the the strong have pipeline a than We or growth year and in we're fertilizer had ago, specialty

have So, where to market. as and working we innovation, bring we gaps, on may are those some we're continue to through to partners going those mentioned, that find products to collaboration build to Jamie

invented it be So won't everything here.

talk combination and to about the be in come and products those those hope they I we fruition a as more we to will to bring think future it things market.

quick insurance could in, a number what sneak the business should should kind in is seeing I it If Thanks. disruption we and be of this year, some of payout one expect? we third not guidance, kind

we I not. position we situation. a continue So, to think We're not to ready recovery or whether have evaluate on that would that take

We actual season, out tons need those a have the find claim. in didn't that what to get exactly what are we to order to start through see the have, we developing

one claim. to a file have We year

is how we this we would to at just it actual shipping is complete. which So, know and because would don't it costs have related lost be business, decide premature illogical to point logistics until much winter

That's very you. helpful. Thank

And there's to nothing that, add the Vincent, just to the guidance, for nothing Jamie's comments. in in guidance

you, Great, guys. Right. thank

hear Jackson Capital from Joel Markets. We'll next with BMO

is, seeing exposure full how what your and like this at the if contracts year, of look you the Great forward? you're part have Eastern extent year? thinking some And salt maybe region mitigation Thanks. about for at down-time but think that on for at better perspective Goderich, that risk there snowfall, which going will go for and Lakes covered region deicing much strategy to mid-season of is of destocking there next maybe you a good something, you don't salt from you if sell were seeing looks snowfall, be about so think opportunities a your is and good question is, is as second look not there back going are entire on shipments, and Fran, your was salt would the some first might this more to taking you mix My your it

Sure, Joel.

to that snow helps brunt approach serve, year, XXXX. we of on the that year. First the the market maybe early if at in off, last if recent this the was bid our bit elevated felt timing us the But and I I the look disappointing think the snowfall, I due and through the the mean hurt share of maintained like early was XXXX function us our inventories geography across of we're at year, but and season geography a end the mild bearing pricing look probably a of you think the season, pricing a to just the we that being the and I and you the back oversupply we year think and bit

about expecting, price. have have and the bid it So, will on season as come I guess how a I'm January. in environment we're will That both optimistic volume we end terms hopefully season better of ahead, continues here through the seen if

with. there. we've on, with some mentioned that's the and slowing and of market really at to slowdown that. production that I issues ramping matter to Goderich, it to So, for just this It's a will we be our with consistent of business you just continue approach had Salt think the deal And dealing down up us, the aren't

to tons looking Cote and to of the the North that of going tons more year for also Blanche at less in year. even past demand how we that be the we last producing we North production more some in But and bit to shortfall South to the that. a just our over see in inventories incurred this cover we're addition, in quite kind So, will mine, produce believe going be South we're

up the be So, in I'd think that our expect demand ahead the of there. to will production to out meet at be all year we mines

that has on add to we've occur. shutdown, to got the regarding I think just required And maintenance

So to that and at we've those we typically the down March going shut time in geology. we're quality issues the address encountered same in

question Okay, that. on And is SOP. then second appreciate my

for expansion you a large So at It's very did been time. Ogden. some completed

for XXXX Nutrition volume Plant America for flat with SOP Your pretty North is XXXX. guidance

out is risk price isn't at there So, SOP of further really push this question to there erosion? a the of volume

I I we've think when that. of a our years that months the lower consistently that slower to at America based that you as from ag production couple last been curbed But demand would have talked if the and pace pricing but go assumptions lower we XX say used demand the estimates build kind build forward. over demand we project, back in – consistently the of North on production, would a with maybe drive going we bit a

so use increase those kind that and we and the competing markets looking can I as at production say we of our And crops to to SOP wherever production growth for in in we that and capacity selling augment up chloride using demand sensitive demand X% of would by the some crops continue in. X% we're KCl by mainly type other meet to to to look pond-based plan that we then

much. very you Thank

with Monness, hear we'll Chris Crespi. from Next Shaw

in salt time, everything guess looked was the – it's – having talk I quality everything I around, issues you saw when the at Goderich? mine that Can salt. one I about visited

So, just you're that impure does issues'? or when is what mean that it it's saying 'quality

– is solid Yes, there's lot a salt. it

at discernible. always look not it's it, I you think as that

we've to So is the salt of we're kind we're call we I mining like it. for anything can't the But under is impurities. them, that of level or we us the are what that this of to kind impurities, in this hard the would there forward. guess geology the us other operated that down just that looks ahead terms experienced It's for determine XX lake, precise like of with because mine we area haven't mining amount kind I in we of we of as are go at predict time. today in quite would say drill we because I It's small the XX years exact mine, what of vertically, just that that a can't of be

So, shutdown we've that, them when quality Then impurities. period, will that We'll install these our the and out we customers solutions our which with come highway customers. our the find we should is mechanical through be of we be need able what March. that out done to deliver deal levels to of normal in and separate to chemical effectively

just I dealing it's geology with. we're that think So, the

We have a handle on it and we have a solution as we go forward.

more I The chemical guys? to important the road impurity is the customer assume salt than

They quality the mean are customers. higher customers the chemical the highway are. I than specs on

going on production it Okay. be the guess [indiscernible], discussed it guess what full continuous a versus anything guess to outside call, Then get was but more in – back on the collapse, cited the XXXX of maybe is is at I just – savings of you Goderich bit, anything the to that's both like the and different was the else collapse also question third guess I track. that I really putting roof Maybe, happened off back and the so that rate? the quarter seemed cost from delaying that everything run mining guys roof was I the terms to you impurities now happened, there

collapse detail. The to reduced through maybe comment and the there with we that as add a by thing can have on in would have to would we force and we that say labor the had probably our make I'll is more that roof quickly only challenge maintaining with I Jamie maybe – the a have mine we as roughly of kind anticipated quarter. that, not that prior

mine Jamie, I'm So, part initiated savings the XXXX. the sure early not the some delaying that at as of of Jamie process that we've earlier, is mentioned you… and here if in

sure that while, ramp-up. focused I on the us, ground slowed a the is right we on make we because got And think important September focus so ground-fall, the to equipment we've in want to we the that through and control went as down this just No, experienced timing really little for it. that and of really

about just labor got So, we out issue, why that it and delayed as through control basically taking a out the now we've That's pushing ground months. ramp-up. got it's we're six

Okay, great. you. Thank

with from Credit Chris Parkinson we'll Next Suisse. hear

on impact the costs You run further half the freight mentioned hit this I geographic also expense, have given overall transportation just and in thoughts the preliminary higher for then shifts you long-term just bit. high-cost any then can And mix? Thank think you. just from inventories? that do little a first through selling the a you breakout little but Jamie of your

and inventory carryover So the to cost so back being going about talked is the think as in $XX carryover, which half first higher XXXX, million half that it high-cost $XX.X I Southern from million, and then a – our and also salt big Cote the shipping from logistics North. mine cost it but really comes just generally from lower operating of Blanche rates, portion is of

So, that is premium freight.

to the versus move salt, import salt, utilize and transporting our and finding pay through. and other expense So, up North river up some otherwise here incremental as on Company salt own balance, it's it best bringing the freight to mine off it for system

that related and be quarter. to XX.X carryover logistics. basically expect XX.X it's the of gone by likely high-cost So, and inventory do first to end We

into may drag it second Some of quarter.

degree if Salt we I I what year, of in add, the difference just through ahead stronger book our think of look might back best-margin maybe to as customer. to normal for a we and our occupy Eastern greater our I would territory mines lowest season the more with can business bit think with as would freight should the next more that the I weather salt terms those business expect bidding a swing to And we be in and East, on that go

happen the had mentioned. weather you that can can driven always year-to-year differences by freight those impact So, as there's that the

to longer-term a from And then increases. logistics we're perspective, X% X% freight seeing rate

fuel, at this that. oil got year barrel, lower than you've much You've it a was $XX earlier got

recapture market highway the on oil to difficult got so in our across depending these we've costs in U.S., very season, particularly So, and tight truck a it's business.

in So, the rising of logistics. our recapture point, whatever look as short are can optimize, netbacks and through seeing medium-term, to do we go our we we we'll at inflated these But logistics bid and to to season, cost. some Fran's

Great. still of the how strategy you. a evolving kindly XXXX to just you in seems the quick your just out grower to could quick be parse or a market little see given some And those in on Brazil, appreciated. you in And key also breakdown follow-up, would be that Thank bit a and factors improvements just comment volatile? then sales also direct pricing

Sure.

So happened. kind talk me has pricing, of about let the what

to margins what are and our lower products. seen in particularly full-year of to year-over-year are prices the think lot sales better, I lot quarter our fourth we've more pricing there's higher, related benefit is direct-to-grower, higher through and sales a and a the distribution

products So, that that full-year through and lower-price we've sold distribution. got growing rapidly less of are went was and products selling lower-value those, what more we that we're high-value

So, through looking we older real year-over-year. that's products. into say, higher some looking of mentioned the our some products that's we very in pushing have those in of some smaller we've next rapid also my been we're the year, BXC, now to products interest those I value that push growers we're replaced, at in been would the got as at those to go distribution. to that will I benefit we used driving which of to mix also script by rates, but sell continue grow some

priced. lower So, those bit a little are

it So, of in won't growth volume as as as XXXX a play. much play be a price much

are up as of now volume lower channel value we So, sales stabilized and will adding the incomes pick of that we farm some high-value some more improve. to distribution expect we'll stuff be too but

a more team increase very on more continue add force just per the continue to then sales ground amount Brazil customers, comments, get expect that sales the down And increase see we on to and of hectares, I to Jamie's and management work fee, significant the to with in salesperson, time. there I we might over have to

there's a there for these and competitors space. think this we better I of just in potential of lot than more us on the have ground feet our in penetration down any because markets

Thank you very much.

with Jeff we'll J.P. Zekauskas hear next And Morgan. from

I is quick This taxes. Jeff just on had [indiscernible] Zekauskas. on two for questions

tax of charges, do First, how million in $XX what what and much tax you And expect cash? be one-time that rate of it XXXX cash was then in secondly, your XXXX? in your to was

million million, the be of The it first. let ultimately total will net of So, – me last the the is of $XX answer all cash. $XX one

portion be it However, deferred. of large will a

will related of about million be amount So, foreign so paid that period. $XX will earnings $X years, over or the be million million of paid eight at unremitted to $X that think

$XX million, be refund that paying will the of So, net large government the we and be the then in will – other be taxes so number, significant the Canadian from portion, we in to will getting cash that's paid IRS XXXX a XXXX. a

the to in quite Think XXXX of $XX taxes we $XX And rate would expect So, about in in about be get our effective million then would the high. million U.S. cash in back XXXX tax we of plus XXXX. cash taxes IRS. additional from

and million of million finalization about it's net in and XXXX cash this like of So, that $X year on taxes price big going $XX then that's and the a XXXX. transfer we then or million that $XX as I big should forward. a as a said, in $X for And million part you comes think repatriation, lower get the

Very helpful. Thank you.

Goldman Koort Sachs. from next hear Robert with We'll

expenditures Bob. Dylan or these maintenance I bit question, Campbell that is capital secondly, the Quick And on expenditures, cash is decline, talk priorities proportion wane flow could about you a on your guess for as of capital for little This what CapEx? utilization?

that sheet, the at capital capital I along executing the And shaft spend of improving than maintenance may XXXX. the and terms three years mentioned the business. assets, priorities, portion A we of nearly will generating all to be of CapEx guess would probably investing forward. sheet of take as to I the of in in is focus that base cash as the maintenance capital. close majority, is vast is spend that out once and have earlier, continued close shaft we've the us kind maintaining getting balance talked that pretty getting maintenance That relining. of rest be be, we'd ahead would we is normal The as shorter-term the our plan, to on Goderich capital next business relining. going two – And finish, balance say dividend million really on the $XX Sure. of our to the around and acquisition And year range business current about, business more a and you in of in in investment what that what what be really the kind areas are the complete our think our I with our focus would or increased look of significant flow, balance in our

we're the over thinking shorter-term. how it generally about that's So,

you. Thank Got it.

with from Management. next hear Garo We'll Palisade Capital Norian

long part or purity. make kind wanted is the last you going in this the needing at regarding how be you do have do have Goderich think understood correctly kind to sure But to to expect this mechanical March. this separation that installed of extra going I'm guys I to to situation It you mine going how a of in seems you're lower the are of solution curious, long I to separation? be

part for years, be I consistently we're the that mine geology of it like will mean this. to going doesn't this be but several in the next mean probably

As I that's mentioned earlier, predict. to difficult

number able you those years we'll sorting mine mechanical come. equipment with, be in, but for deal this impurities of a be putting to operating area it's the will a to we of separation as we're So, and mentioned, that in with

Okay. of And this then the of the for free and can year leverage cash you you sense a separately, expect expected flow where end year? end at to give

Sure.

that's expense, what's of generally cash we And that to payment would've view driving free in out I of and about about negative but interest cash pulling a that, XXXX. out cash taxes our into described this million flat XXXX, tax XXXX it ago, $XX in pushing few flow it's given of of thought expect, really million we settlement the to given as really for we cash flow $XX generating XXXX. minutes $XX So, million that flow in

expect flow basically would dramatic XXXX we improvement to in in as XXXX $XX a moves free cash million XXXX. So, from now

result? the as at leverage a XXXX the end And of

I Xx. approximately think

Thank you.

time at Ms. conference will or the remarks. question-and-answer That today's I any session. this additional turn Womble, closing concludes back for to you

you Thank Relations. your in we Investor contact appreciate have please Compass Cynthia. questions, and interest again, you, any Minerals, follow-up Thanks. Once if

you gentlemen, participation. for all Thank that your conclude call. and Ladies today's does

disconnect. may You now