Compass Minerals terminates lithium brine project in Ogden, Utah

Compass Minerals has determined that it is no longer in the best interests of shareholders to continue the pursuit of the lithium brine project at its Ogden, Utah operation at this time. As part of this action, Chris Yandell, head of lithium, has departed the company and the lithium development team has been disbanded. “The environment surrounding our lithium project today is markedly different than the one that existed a couple of years ago when we started down this path. The simple fact is that the regulatory risks have increased significantly around this project. When combined with other changes to the commercial landscape, it became clear that the risk-adjusted returns on this project are inadequate to justify the investment,” said Dowling. “I want to thank Chris and the exceptional team he assembled for their efforts to advance the project over the last couple of years. We wish those who are leaving the company the best in their future endeavors.” As a result of the decision to terminate its lithium project, the company recognized a total of approximately $77.3 million of expense in the first quarter including the impairment of certain lithium project assets and future commitments (approximately $74.8 million, reported in Loss on impairment of long-lived assets, net in the consolidated statement of operations) and restructuring charges associated with the departure of certain lithium and Ogden team members (approximately $2.5 million, reported in Other operating expense in the company’s consolidated statement of operations). These items are included as adjusting items for the calculation of adjusted operating earnings and adjusted EBITDA. Compass Minerals will continue to monitor and engage in legislative and regulatory processes in Utah to preserve the long-term optionality of the lithium potential at its Ogden operations.