Compass Minerals International (CMP) 17 Dec 242024 Q4 Earnings call transcript

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Compass Minerals Fiscal Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions].

I would now like to turn the conference over to Brent Collins, Vice President, Treasurer and Investor Relations. ahead. go Please

our Good Fourth operator. Call. welcome the and to we XXXX. Thank and morning, Full Minerals provide results recent Quarter discuss Conference for Year Compass fiscal will you, our and outlook XXXX Today, Earnings

remarks with Cathey. Edward Jeffrey our President We Dowling; prepared and our and will from begin CFO, CEO,

Supply Nichols, Sales Officer; and Joining in of portion Chief question-and-answer the call Hood, our Chief Chain for the will Officer. be Ben Jenny

make everyone SEC we XX, financial to today could risks started, results assumptions differ actual we be will involve the Before that in of XXXX. December investors.compassminerals.com. and the located that risks these entail reflect can found remind operational date, that materially. filings at as get outlooks outlook and online A and expectations company's of our cause uncertainties remarks I today's These discussion

include measures. remarks non-GAAP Our certain also today financial

online. our call or You of which can earnings our find available release now in reconciliations these both presentation, to items Ed. I'll turn in of are over the

Brent. was work in November strategy, for focus transition months want you, aligned remarks our in Salt brief to few was on renewed eventful on thank to The by commitment the you good February. terminated It's you Plant was lithium everyone, which core transitional Good restatements. Nutrition understatement. pivot our of Utah, as the and with 'XX improving speaking recap we efforts in company in and formally my year us announced to later businesses. an significant today. and call pause we a but would a after be performance to fiscal suspension be the This for project the our we've began XXXX when company, the of our take major a a again to for had a begin say through I joining morning, today Thank providing to year

and different it a it's only that involves skill amplified jobs know sets shift different in all We require strategy. when

mines our to the the President the the ensure team, quarter's one company towards leadership, of a we were Goderich execute last organization As very to the hard dividend, within take In my at weakest ramifications these seasons take financial look including us our midst discontinue reordered improve and place in in other in as across changes production arose the century. led of and cost back-to-basic clearly changes American to appointment deicing and to in our CEO, from that, of the curtail North and highway effectively. and at they had experienced that which were senior team right structure. and markets operations to leadership made and mine directions They served our strategy, January actions

happy of to had in to Clearly, or issue had business year, that we us. we'll our fiscal a Fire also months. was had in recent to the its reporting share There be restatement well fair as have Retardant and pause way Fortress we development in our take the through as of behind 'XX we challenges work financial

and before However, of dawn, darkest I'm saying I Metals. applicable it's reminded Compass at it's here the think

have could Certain not Salt assets and remains replicated irreplaceable and established Plant advantaged of long-standing frankly, with high-quality quite fact privilege that the unchanged are, markets. The those operating we Nutrition be assets today. of

Lake Lakes X,XXX port The region. Goderich a the the essential in has friendly processes. deepwater other fact facility Lake Ogden, allows operate minerals the use world's feet we us line geological Huron. low-cost mine of processes underground In to Ontario, When of Great Goderich, produce naturally sulfate in located that correctly, than access below done the the operate positions largest occurring of extract of at environmentally of Salt production more a our Western and this and lower we cost attributes potash to be much largest its a producer manner to Utah, to kind from salt it example, for For SOP hemisphere. the Great

our close areas proximity relative such is nuts. of as facility major also West beneficial crops Ogden the of given location on fruits chloride-sensitive The its producing high-value and Coast to

Our confident These reduce is we back-to-the-basic assets are these our improve potential already assets. efforts operations focused a underway. strategy that do can Through focus, job renewed the managing better and efficiency capital and other maximizing intensity. on of these to this I'm

As operations reconfiguration Mains time. effort ground cost a will Goderich an expect over which relocation ventilation, the of example, production operations. higher provide mill the number flexibility will mine, East the to mine our mine's we the improved to of of access in benefits at Those improved control include for allow the abandonment project, of benefits is a added areas, of of part and areas development

All of profitability being those have the potential improve things mine, equal. to of all the

platform can of the company across efforts the the to reduce of of the the debt cost levels used that improve profitability be absolute similar higher of structure and in the company. operations, the generation for resulting company our ultimately lower and should of cash These levels

challenging of. the are not year, there sight also some Despite should we positives lose

for have harm priority people, the for operational for significant in a thing right First, is history. to high a because business. safest on we right our top our the in build do of The Minerals zero the operations. culture and reinforce it's seen incidents. Safety years continue us X it's thing Compass potential performance. is also a do across reduction and We've to to been of indicator past Safety the our leading

We Minerals, drive day. our able care here to give the for commitment levels to our the of have demonstrates they and at people environments employees to The work lost safety. complex focus proud of these time number Compass we've that and every incredibly and our been operating reportable accidents I'm fact of a to

the in important the Great we Salt Utah Utah the of increased and by outlines state. water sustainability predictability diverse with commitments that that towards an legislation and by future agreement September, policymakers allotment state burden In enacted step agreement work and Ogden a other binding in long-term provides collaboratively water and benefit tax early the the to this of efforts We environment, to company our arrive state that the In in conservation of health the also on of executed use of to meaningfully Lake. an better with supports stakeholders lake. making the the company agreement that at voluntary is the recent extraction ensure mineral avoidance the enables also are

capital business, In the I'll and will on made, weak comments up plans with our that XXXX, a priorities the few comments we've following goal consistent to prior reduce cash harvest in winter. Salt make year's inventory in to fiscal be our Moving hung last the for year. has working levels

the earlier, for As revisit year, in the We'll mine deicing curtailed we've production chance overhang. months mentioned I highway had production we at activity. last inventory the a to levels mine after this Goderich address coming to engage

produced This rate on consistent into working business, or engaged of efficient, in Plant restoration costly has will and more is Ogden. Complex be with our plant. purchase KCL. we've at should less plan processes Ogden [indiscernible] a couple SOP allow tons potash The the This process improve for on to focused our materials operations, In of team that advancing Nutrition raw supplement for multiyear of is with developing discussed at the implementing our a effort This going to years. past. been

This of year benefits. couple will provide a

demands will it on provide First, to the regenerate. harvest recover and more ponds them ease our time to

this in going efforts implementing early are well. Our

of quality feedstock improve the the will Second, it the for plant.

all-in have cost we product several initiatives see decline think that to year. this We efficiency allow us underway will

our with Fortress, the to plan At finalize is discussions U.S.

Forest the chloride-based non-magnesium our regarding fire potential for retardant contract Service product. for XXXX aerial

the will directed We've allocation to organized flex the This has and safety, process was environmental like highway deicing progresses. implemented plan year season our up dollars operations, capital proven and our capital helpful. highest projects. be after on last Regarding depending down and to health process, ranked how

of they Other better underway, sheet, covenants. in on structuring this moment. highlight with a to will detail are believe able intention as we to current balance into increasingly the that with a With be that structure strategy. the a aligns Jeff the our in move this provides in new more debt respect expect stack comment we improvement refinance progress. year way initiatives them we'll around to flexibility that We will more

free aggressively I'll winters, call strong in strong winters. free outstanding we normal for vision and to vision second call, my in goal, generates the and changed, achieve cash the cash the Back even that in taking to such mild over Jeff. it not flow coming leadership goal. company winters free over to the senior steps which to turn I and Board that, That flow years. My has cash are company is our gear shared our quarter shared that by team, is With flow

Thanks, perspective around quarter begin for providing discussing by and our financial my before outlook Ed. XXXX. I'll remarks our performance year-end

For quarter, served average revenue what to quarter the winter year-over-year. would a in see down led consolidated $XXX in was the XX% our activity The markets compared million, experienced in we winter fourth we decrease weak prefill fourth to typically activity. after

a Additionally, fiscal remember quarter when the that making fourth Fortress to U.S. included XXXX a comparison the results, contribution year to our it's prior from important from

contract. Service Forest

segment. water related of result of loss Consolidated loss net includes consolidated the our and to impairment of was for other quarter. which million a $XX Plant posted factors, and a noncash in these rights was write-down a adjusted million Nutrition million As $XX $XX approximately of certain million, we operating $XX approximately EBITDA the

We revenue Again, $XXX past full to this the the top mild Retardant noncash of contingent EBITDA was the $X.X includes was X% of adjusted year operating posted consideration just down impairments extremely For clearly gain million. had the impairments related on for the well fiscal net year, $XXX Nutrition line. we Fortress in Reported Fire I was billion, included as of to an our and $XXX Lithium, which businesses. noncash million and referred which winter that experienced loss year liability impact loss year-over-year. million, Plant million as $XXX a the consolidated the

the was to million, $XXX results. XX% to up in business, per In ago. was Salt the million Drilling quarter segment down fourth $XXX.XX revenue year-over-year ton. Pricing into year $XXX a the compared

$XX per compared However, period. that adjusted down XX% I volumes to ton year-over-year distribution to little moment revenue X% per which the lower increased On muted EBITDA per directly a Net ton, ago. operating to accounts were to down a X%, over per X% at program for prefill increased volumes related basis, in prior year $XX.XX per to highway earnings $XX.X. costs, Lower came ton ton. the a ton, referred deicing while

get you that low a look can sales bit a those straight-line per back to sales DD&A worth company our in the trends regard noting the because adjusted volume odd because volumes, ton depreciation significant add EBITDA without for that basis It's records quarters. in on quarters of

fiscal full the million, totaled For $XXX XX% year-over-year. down year, revenue

tons. which and tons over volume achieve Salt did absolute Highway We year-over-year consumer EBITDA our year, the As and dynamics declines products X.X last and over past and Despite down winters this were mildest I million earnings operating seen highway that of we to served XXXX. a segment's impact deicing year-over-year. with the were this year, volumes, one period segment have past respectively. the million only both the Total in XX approximately were down markets down years, navigated Ed the X.X X%, same volumes had referenced both X% and X% fiscal significant results. increasing we adjusted year-over-year positive which in were experienced meaningful C&I C&I on volumes to by deicing prices, pricing that XX% deicing down includes XX% X% we've

year to expansion million. operating margin XXXX of increasing earnings $XXX was million, adjusted were in the measures $XX.XX. EBITDA adjusted $XXX and increasing over Adjusted margin Operating those XX% saw EBITDA the to ton fiscal for to little a with and XX%. XX% Both per EBITDA year for margin increased

our on segment. Moving Plant Nutrition to

we As for recall, a the the segment note, On to results year XXXX positive what normalize I'll sales you last abnormal impacted the of to period. to continued conditions this some prior saw year, about quarterly in has compared demand weather speak may year. year saw throughout comparisons calendar which that very noise creates first.

per the quarter, last of fourth potassium-based pricing year seen led to for to $XXX XX% this prior decrease the For which that trade price The were but global sequential past continues track up SOP period. to We increases unfortunately, over dynamic streak a year-over-year XX% fertilizer, ton. with quarterly was volumes quarter. the year, per from had price in broken ton

increase The net nutrition of in volumes of sales and pricing effect higher lower resulted XX% in an plant year-over-year. revenue

costs distribution portion nutrition business As a reminder, a the significant are plant of fixed.

per cost in $XX increase per benefited volumes roughly XX% the ton the in quarter, sales distribution So year-over-year. declined to ton which

certain Plant As we water Nutrition noted impairment of rights a $XX the the approximately noncash of during in segment quarter. release million in recognized yesterday, our press

X% drivers all-in cost ton The to EBITDA the adjusted Excluding year-over-year. is a impact product declined impairment, roughly fourth up of that approximately loss net per were quarter $X of these million.

segment to the volumes XX% Echoing XXX,XXX increase XX% fixed costs. support year-over-year. for ton, was as the ago within down were approximately moment by improve were I year, per For these about the a said tons, year-over-year ton. full is saw the $XXX to we Average per which there approximately year more volumes distribution pricing a costs X% what

mentioned his as the a we nutrition pond million $XX All-in mentioned million. and product second impairment million Operating continue business adjusted costs remarks. year we tempered restoration financial EBITDA reflecting was as include in more year the process for well plant as our earlier quarter, was a the outlook the for water $XX the in for recognized rides loss $XX impairment long-term while

Next, balance and we At of $XXX revolver I'll quarter quickly capacity end, of million. around liquidity million million, summarize of of had cash $XX sheet. comprised our $XXX

ratio within company's X.Xx covenant the was net consolidated of total net the X.Xx. Additionally, leverage leverage

idea thinking highly of position more around around program. Term as variability business the debt provides As different we that reordering RCF with calendar be today, project the to on would Loan that recognizing put stack in a Where thoughts mentioned, we and I'll an is we're XXXX, some the company with lithium with a we our Lithium a covenants weather. accommodate in we're need was company post structure to place A Clearly, provide the Lithium. capital in is today completion. in there the refinance to that in closer comprehensive that. we our a operate little our flexibility have a It The back-to-basic place think unusual. pursuing that is The how structure more was strategy, seasonal intention about is

options As we've us think XXXX. there a that covenant would spoken are to light we credit in early of number structure banks, calendar investors and allow move into a more to

weak for commitments, in commitment a XXXX, we year-over-year Finally, sales the expecting an I increase in Salt. of winters starting expecting to moving should note we've that experienced. the we outlook At trailing X%. those our our that sales volumes account ratios with around guidance, take ratios. recent to of are decrease midpoint are based in Despite sales historical fiscal on an volumes into increase

between As and a result, we are forecasting adjusted million EBITDA $XXX somewhere $XXX million.

a the rightsizing key And mentioned we with down through associated adjust monitor realizing Ed comments, schedule levels currently, is we capital release to production working inventory and As will drawing activity as his continue positive focus progress this our closely during winter deicing accordingly and season. year our inventory. the

profitability. conducive dynamics. on in Plant is million based MLP adjusted are of what this the to declining however, to we positive are in Shifting for obvious The million, stating improving the Nutrition business. seeing prices current $XX Nutrition. not year the unfortunately, market There And range are, Plant the developments to outlook EBITDA is that $XX

of are those We for and are X% volumes product out plans expecting Ogden, roughly mentioned important XXXX. to ponds all-in health the to assets. which to approximately the sales in to year-over-year, long-term utilize restore expecting be KCL is by help increase in down Ed costs X% we our

Moving on to corporate.

includes Nutrition expense everything segments. Salt to related Plant not our corporate Our and

expected it Fortress, So deep corporate store does overhead, and and cost both include our revenue. any

continuing with the are We U.S. work to

on Service a fire contract season. coming for Forest this

business. any purposes, are we a to discussions ongoing although not there Fortress fiscal G&A those is amount related outlook, our included revenue XXXX that of from guidance small in have As for

as those the we update discussions. when concluded appropriate have will market We

for year company mine expenditures needed million year, back event million in Preparing Ogden. silos includes million in would that the of scheduled investment work $XX XXXX including capital to fiscal this winter. nonrecurring scaling expected projects that This within be million. of the capital of for allow of back in $XXX the a range are refurbishment at Goderich manner expenditures the the Total to a mild relocation $XXX program and larger as for capital for to of at of half preparation mill a we in $XX amounts our fiscal

clearly actions our comments, are year echo challenging was necessary With and that, To taking to performance set focused it for over a up we Ed's forward. the questions. the improved for turn I'll company, on ourselves for call moving

Capital Jackson question Joel Markets. BMO We'll the Instructions] from our [Operator first with of take line

X So X you sorry, the instructions. question, plus I X, say missed

One plus one, Joel.

Okay.

then I suggesting to guidance through margins roll to you Can the situation -- is, you never your causing you're assuming contract Can that margins average points talk drag work look in basis get to things compare want 'XX, if as what we thanks I a your 'XX, of if they that? some salt we you will 'XX normal outlook. normalize question if of that's 'XX, at so And First winter, happening . in do when the down EBITDA XXX propagates 'XX about with about normal ask like could winter, sort you're in that of margins? 'XX. 'XX, doing,

is this Joel, Yes, Jeff.

see move at of around driver XXXX, be big we higher obviously, you're the I balance terms EBITDA on there. cost we that's make Goderich in margins as weather of into in driver inventory that the production with based vis-a-vis that's of winter throughout progress decisions really reflected the And mine, by will impacted year. big of XXXX, respect the by to that the what we here looking XXXX, resulting think and curtailment the when being fiscal largely as XXXX year we

Okay.

that Compass some be So might there may play. in so be, headlines or were a ago there month

you there right you I are of company to topics. the the be a your sell trying guys to . people where a you've of through might or improve ready You now improvement are as for sense it? sale? company But looking you -- on Do that realize working enough longer do steward company guys it's interested. How you term? think got see this

Well, Joel, this is Ed.

really as in As strategic markets or company, sale invest to confident, just and tactical public we rumors. a management our if on comment regularly Board every are we're day, that don't for matters policy, speculations and wants evaluate or company. out I'll somebody the a point

transparent better margins which working of been some that what our and about be as in business. So of a benefits expanding activities bear over our is past, we others doing this course this the we've on more year. make going of profitability, about hard that, on, these That's we'll new we're some of are that really start to speaking to number bringing and the

next David [Operator line Bank. Instructions] of Our Deutsche with question Begleiter from the

sales Ed, commitments, on us -- I highway can sales? this forecasting the deicing, to can to average X%, up actual is with volumes the being between down gap you X%. on commitment that but the are down on committed ratio, X% be And up volumes X% help sold you bridge but know the

call based And average what weak, sales weak is is particularly Yes. sort on -- winters, a we much had moving number We sort of that X performance. calculation. of use kind number it's lower. a we've And because that commitment of past really X

out calculation. that so in our what when because it means, it's that's we basically look at So using look when different really adviser the a you pops at that answer

what is. really that's So it

about very at focused volume. it assets, as to tons of season, but chasing And we're we we're we've okay? we course, value not that just competitive, bidding price, think be got say all great any over are going and the I'd was

is Ben. this that XX just last lightest season fact would within the was 'XX-'XX winner also the to I the the point And David, years.

artificially you're you is an number, do a what the comparison against when that's low kind where seeing of so year-over-year And growth.

has the just solved And on to -- new the formulation? team develop problems formulation a fully with been that it. then prior the that been tested been Got able Fortress, out? has that Has

David.

supports our evaluation by the magnesium based to undergoing products chloride that not we're this. NCSC So going in about speak

. those So products. speak to we're not going to

that But we on your there been are can fair? that made gather has part. continuing, since Is progress negotiations some

Yes.

consideration, do through talking that's script about we have this under an under and morning. alternate we're that product what development is So and the

Okay. some Would in you the half expect negotiations 'XX? on these resolution first of

We're everyone process. in X for It's to to on too And update continues script, we'll the me their that as process. comment as the services following process unfold. we said soon

David Our next question the will with of Silver King. CL come from line

you couple the a Plant start A to year to questions. in propose I a separation this But Nutrition from like and I X, or X- maybe evaporation and would just brine question production guess X-year harvest to of kind segment. it's with of process. longer-term perspective.

as I does back . words, mind, the and brine be meaningful original I don't making pump Nutrition, for a path And past? is there when the mean, it been out I the in the that maybe structure has back path thought economics in on where that cost I there Plant guess, is structure. quarter your from a whatnot, perspective something right In the about it like to that more the the or production needs with I cost just fourth look words, saturated the I'm is as done? out know, appropriately, Plant other change keeping minerals? to guess, in sure and is at So the In Or you look results I it pricing just in Nutrition. wondering the back strip overall other shift, simple

really Okay. start restoration of Ben There's We're here. comment out at as This that. X is and fronts then sort well. efforts ask the Ogden. on to of Ed, I'll hard working

of And the that's pond occurring. which first The you call restoration.

that. do in mix, plant and too we're terms dryer volumes, We a of projects on to which the collector, dust on the that. some should early are which over the the engineering improve adding the the about speak to and with helps It's and then we in And time. dry capital potash there need improvement quality are working really of to

plan. restoration But what on I good would say that is this we're progress seeing

really our we Our remain short But comment profitability. to back high. to ask are about improving. that. too along is volumes speak lower I'll are Ben want get Pricing to Costs little These are a Ben to to year-over-year. plan. according moving but are you critical improving, on?

Yes.

said pricing exactly ago. years I is think back impact run-up with a a the I following of moved dynamic historical what more to Ukraine-Russia the couple norms is

business. we so believe really And in this

a base. have established We very customer

over quarters. I last of think couple returning seeing volumes you're the that in the

hard so business profile cost believe return be. it profitability the deliver we year-over-year. to how to where working And we should can generate this That's the

XXXX My next overall flow. to cash guess, the Okay. about perspective. thinking question I an I'm ultimately relates And guidance, free from

and So if we take course, the contingencies based thinking kind midpoint of of on there. And de-icing XX the interest, company think But of XXX [ the kind kind EBITDA point. There head winter [ some line. maybe ] for [ volume. of tax but XXX And more starting I about scratching ] interest. the ] and maybe is of my on layer in I'm and that's CapEx room for I'm

ranges look you happens allowances there where the -- Will on So your be maybe to you the like credits from liability? you able I cash that things hit case -- expecting. there? scenario, valuation XXXX. be can to you do liability the the noticed guidance your was you assuming that will this tax the quarter, is that wasn't some Or and means were I get other line? remind what cash is hit can tax a under midpoints, the about fourth me, the might the But a there credit, small if tax which midpoints guidance what apart talk for rate, nominal of in

Yes.

you're of effective delivering cash on a everyone, from maybe And book foreign play a touch we the I the have growing nonsensical. it jurisdictions. being on we coming the do will tax in rate because income look out U.S. say our by you that little anticipate So bit side our year. cash bit how based remind I ultimately hit are but base flow is say taxes little mix. losses I offset there, then to on What guidance, the a little right, case this perspective on bit And does would free it I'll a XXXX kind think will depend on

and a And increase becomes closer loss effective off answer pretty as from nonsensical tax any tax to the and throws foreign those spread narrows book so that aggregate income the in X, jurisdictions rate. closer on

okay. it back guess I right? you're in complicated, queue. the it's -- jurisdictions. saying pretty So what I depends, know multiple I'll is But get

Instructions] [Operator line a have Silver David CL of from the We King. with follow-up question

Okay.

highest, apologies I'm the noted making the And the I past margin if believe or records one over you my in And salt yourself. But strength just here ton I'm margins -- repeat fixed the about sure very the at back not deicing low operation. XXXX, the least to I'm fourth have I aware can think, be variable But was going high that the in cost and that. a salt in also Just side that cost, quarter year certainly on volume-sensitive so. per more. I

actually that lower, but are interesting improved. the it's mean, have the margins I me, to volumes So

of And your could still impact on like cost to underground at some facilities some And what would there. firstly, you I are and if that? maybe give you equipment Goderich. on doing a update do -- you're us an the comment But things. Just position couple underground things expecting of relocating could

volume to or And doing is I what or And I in would a done the else has what winter mean much what team maybe what year, greater potential you mean, that were secondly, X able In current someone production you were over said look this glib a X maybe performance? that do year not then past as your correctly normalized find created I then are X, on ask margin not think maybe through done you to out other able more what way. system was the innovate was -- years? or you to is delivery words, and the a for at or instance? differently But if you Compass right

X-part here. a of kind question That's Okay.

some first The that salt is is part of margins to as and better and other things it are timing. going to of related

talk want inventory. through second a Jeff You what that flows about

thing sure low in one what really bit DD&A current and company this to on volume touched point fourth the EBITDA is We out Jeff. quarter. make prepared quarters, you're on a inventory depreciation this the and had [indiscernible] of the this sheet. in our balance touched that records is that basis on a as amounts straight-line We we was year understood which on that inclusive capitalized in is The But impact the is depreciation, that wanted to little the seeing added -- gets back are to remarks. what

little a that a when you so DD&A per is is ton higher get And add-back in pushing bit. up quarter, number a low-volume that

site sort excavation were doing just terms reinforcement at in deeply, once ground future the to you going particularly chance of will control, skin of to speak. the we're doing where Goderich areas excavation what work say different is asking the first we're [indiscernible] of be we've a particular at some that had in that decades for let's transparent the the that's that foreseeable David, that the of we're probably is equipment be so more stable. to through mine, We'll on cetera. in be stable relocating about We're We've Then of more project couple sure spring. got ways et cat, that point bit work. Right on mill is now, to the looking dig We're And, mill. a starting Okay. underway for ahead. that's the a area the making storage, relocation. moving Engineering of

have in quite into us few. are the a first once ties drive the a all, to access that I helps we'll going mean, quicker the it's be mill exit the to couple around the the of areas. the things located in way and that working -- One out all between So the that really and showing this Main out working mine, mine materials than the with. East of and the advantages going is around to people brings is rather mine. areas shaft, of The

of and of at sort mine, ventilation mining think methods behavior. some us drilling flexibility to be continuous kind managed and importantly, different allows I be at will mining look some combination a blasting that to between able better the perhaps and

control ground keep mine a really ultimately and we I we the up. have that side to [indiscernible] where we capital expenses -- think the that will roof invest and the of spend abandon lot of

was know don't the mine. approaching 'XX exact ground $X of part from but yet, I for -- it's a think ton control the and that terms in fiscal costs year what I of number probably just

things abandon And a these much and mine. lower mine. simpler All that going have cost together, to so we're we

going be not but I we're is, see the So ground going make to stake you to in much think that's better. about any could stick that a promises what or

in a direction of last question think in I headed the question where lithium I In what's Well, of here strategies. diversification first company And terms looking at of the at sort is of -- other have We've off a different is all, a and back some really from happened? downstream the strategy the -- basic, think levels. number may diverted our past the team really that which lot, [indiscernible] we're is the to was focus changed now.

I'm I speculating to have that. a right think We of what other been example, on that And work, get on really were the going what's you're this a some we're for where very and focus benefit that -- these management difference might bit distracted what We're just now, on. of being continue careful really maybe seeing -- is the to place. COO, things is, here on in important about that

helps. I So David, hope that

have We for, okay? out focus about very we're clear a what

all color. lot great appreciate of shared A you there. No, Yes.

from will of question Joel next line Our with Markets. Jackson Capital come BMO the

over think to Compass time. of trying Just about sort normalization

[indiscernible]? is sort is should million little is tons averages. think look over I to normal Is of guidance it the what be What volume. of is normal? million -- kind different think do you year. X And guys what X.X your this tons Like trying what over I'm a [indiscernible] normal

you on a are basis? asking demand Joel,

mean normal? winter to or trying you figure you're exactly. looking just when but the kind what like inventories Union. you asking Again, [indiscernible] for happens. I'm asking the run normal when capacity. of look whatever those of normal plan portfolio historically not [indiscernible] about working look Yes, at illusive I'm Godridge know. plan out is like weather -- Yes. normal at seemed normal, if looking of I I'm guys And what in tonnes [indiscernible] sort goals, was mine, the rate winter maybe million we [indiscernible] a just here be are X.X very winter. I sales it do you'll back a normal capital,

Yes.

pending million prior too to X.X tons, we range, hate think X.X obviously, a X.X I of think I served about in but you million a new give big to appropriate. markets But the that to seasons. on our X big X. is year probably

on follow up me Let that too.

business cost highway operating expand that and up of season. depending will that's this different we're down the can we focusing planning planning, on on planning, more margins. deicing flex flexibly, much so is And the terms what In and on we're

And things But just of that, going you kind we can what and averages So over at is. be a to in year, look any time, that's it given have baseload. like Joel.

to control flexibly. control, cost things So that can the operating ability we it's and the which sort really of is mines our

to that a to So that also we to fixed season now organized attack the We've And demonstrated if that flex to. how prepared really as we'll capital structure and [indiscernible] do we've bit. maybe or this things at the able to goes. on the up need the cost do try down we Goderich ability we're year, down be depending ramp our

that market I is. and effectiveness, what's business to going thing The what important away goes on to more the operations take be talking I that's markets is this in we'll key. focused served going it building on. to We're think, here. meet the -- be cost we're and about to So But as year from is think our flexibility

you business, for you Joel, have an was average deicing gave North American the of business. obviously should the also and our then clarify our service And to include kind I I We U.K. chemical business. number highway

quick a just So clarification.

segment. looking I'm [indiscernible] of because the Okay, at

said, X.X% like you chemical like X.X%, and something salt So if that? about then

roughly So just U.K. $X And ] below then is chemical. for roughly [ [indiscernible], million [indiscernible].

Okay.

looking So makes a I question question, when to nuanced said But about was wanted other not actually you're I sense whole right makes the sound deicing ask follow-up next the looking the Okay, which was guiding XX%, correct? you've [indiscernible] last trend that a business I That of volumes. what sell looking or morning. used What the at this decade I've quarter the decades ago to how there's Compass years. was December -- bunch I deicing X my to in necessarily. sold I and downward about X.X% question. of average or business, a noticed what of in to very is at ago, is kind clear volumes at

weather, I'm there a years are volumes look season? December like XX quarter so lower March So you XX historical years sales Is weaker with that what had prebuying last we average quarter December -- going quarters winter Or the have just lower is similar March the something you on with ago. than at? getting versus on where salt industry something get going there lower is are Do quarter? as

statement there it's data forecasting I But customers, the we is to and winter we calendar towards a a that Joel, data little don't trend. look as with our I think to trying and on a also a not we we And Yes, that, QX at that shifted definitive we've as but feeling question. think would time more obviously. We're has see frame, that common that, as overreact discussed, monitor bit well. QX, same make

that so something more move Or -- like like saying snowfall that? not early what April, getting so you're like you're Is to December shifted, in there's April? Winter at?

There's you same a you trend sense shift. tell the type if you're on change out of monthly we would happened. behavior market the that or around I that a just there's may are. thing have seeing some not at the definitive from basis, that look in that, communication But

session. will turn and the question-and-answer CEO, conclude for to closing our Ed back over call That Dowling, I'll President remarks.

Compass look out Brent, Thank speaking very your to to interest next Thank in you much. you any Okay. don't you very all have We Minerals. if Thanks Please forward hesitate Regina. to for the quarter. you in much reach to follow-up questions.

And Thank today. call that our you all for joining. concludes

You disconnect. now may