IPI

• Executive and Strategic Themes

• Management frames performance and outlook around three core priorities: improved operational execution, clear growth opportunities, and sustained capital discipline.
• The company completed the sale of the South Ranch non-core asset for $68.9 million net of transaction adjustments, with $62 million in cash proceeds received in Q2, strengthening the balance sheet and focusing the portfolio on the core fertilizer business.
• A new capital allocation framework was introduced: the company targets holding ~$50 million in cash for balance sheet resilience through business troughs, ~$35 million for working capital needs and cash flow variability, and allocates remaining cash to high-return investments or shareholder returns based on opportunity. The board expanded share repurchase authorization to $50 million, with repurchases set to begin in Q3 2026.
• The Wendover lithium project is progressing, with partners advancing engineering and permitting; management expects to provide a full update in Q4 2026.
• New CFO Jason Tremblay was welcomed to the team, bringing deep mining and potash industry experience aligned with the company's strategic priorities.

• Market Highlights

• Global potash demand remains strong, with record H1 shipments to key markets Brazil and China, and balanced channel inventories. Announced production maintenance cuts in Belarus are expected to keep supply-demand balances tight through the end of 2026, with no meaningful new near-term capacity expected. North America's June summer fill program saw solid customer response, with stable pricing relative to spring levels.
• TRIO's differentiated positioning as a natural, low-chloride sulfate fertilizer has strengthened amid global sulfur supply disruptions tied to geopolitical events, which have constrained output of competing sulfate-based fertilizers including sulfate of potash and ammonium sulfate. Recent appreciation in corn and soybean prices supports grower economics and yield-focused nutrient investment.

• Operational Improvements

• Broad-based execution gains across all sites, including improved process control, maintenance planning, and recovery, driving higher production and lower unit costs. H1 2026 production improvements add incremental volume compared to 2025, with no forward tonnage pulled into 2026 from 2027.
• Potash Operations: HB mill recovery improved 3% year-to-date; Moab achieved a 2% year-over-year recovery improvement adding over 1,000 tons of production, and largely mitigated the impact of late 2025 storms; Wendover adjusted its production schedule to increase evaporation and boost full-year output projections.
• TRIO Operations: Reduced downtime and improved process control increased mine output per operating hour by over 7%, with stronger ore grades and mill process changes lifting H1 recovery by 4 percentage points year-over-year, adding over 5,000 tons of incremental production. TRIO is on track to exceed 2025 full-year production by over 25,000 tons.
• Capital project discipline: The AMAX project near-term capital spending was deferred without impacting production targets, and the expected cost of Wendover's Primary Pond 8 was reduced via a revised construction approach.

• Full-year 2026 production guidance was raised for both segments: Potash production guidance increased to 290,000 to 300,000 tons, and TRIO production guidance increased to 295,000 to 305,000 tons.

• Full-year 2026 capital expenditure guidance was lowered to approximately $40 million, reflecting updated project timing and cost reductions for the AMAX and Primary Pond 8 projects.
• Q3 2026 Potash guidance: 55,000 to 65,000 tons in sales volumes, with an average net realized sales price of $380 to $390 per ton.
• Q3 2026 TRIO guidance: 30,000 to 40,000 tons in sales volumes, with an average net realized sales price of $400 to $410 per ton, reflecting expected upward pricing momentum from sulfate market dynamics.
• The 2026 full-year production increase reflects sustainable operational improvements and does not pull forward tonnage planned for 2027, so 2027 production guidance remains unchanged.

TRIO Segment: Q2 2026 sales were $35.7 million, up from $33.2 million in Q2 2025. Sales volumes were flat year-over-year, while average net realized selling price increased 6%. It delivered stronger gross margins, with the lowest cost of goods sold (COGS) per ton since Q4 2019. TRIO contributed 53.5% of total Q2 2026 continuing operations revenue. Potash Segment: Q2 2026 sales were $30.6 million, down from $34 million in Q2 2025. Sales volumes declined to 59,000 tons year-over-year, while average net realized selling price increased 8% to $391 per ton. Q2 2026 production grew 8,000 tons year-over-year to 52,000 tons. Segment gross margin was flat year-over-year, as higher prices and improved production were offset by lower sales volumes and higher average COGS per ton. Potash contributed 45.9% of total Q2 2026 continuing operations revenue. Total Continuing Operations: Q2 2026 revenue was $66.7 million, flat year-over-year. Gross margin increased 35% to $16.6 million. Net income from continuing operations was $2.4 million ($0.18 per diluted share), which includes a $5 million accrual for the Pecos water rights matter. Adjusted EBITDA from continuing operations increased to $17.5 million from $13.8 million in Q2 2025. Year-to-date cash flow from operations was $55.3 million, up from $42.9 million in the prior year period.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from current projections, as detailed in the company's SEC filings.

• Growers continue to face macroeconomic and market challenges, and are expected to remain cautious on input spending, which could impact near-term demand for both Potash and TRIO.
• Potential execution risks associated with planned organic growth projects (including East Underground Trio capacity expansion and MOP production enhancements) remain; management will not commit to formal guidance until expected returns, timing, resource requirements and execution risks are sufficiently defined.
• Permitting and engineering development of the Wendover lithium project is ongoing, with final timeline and commercial viability still to be confirmed.
• The company faces unresolved obligations related to the Pecos water rights matter, for which a $5 million accrual was recorded in Q2 2026.

Q: Did TRIO see demand softening in late Q2 2026 similar to Potash, and was this softness factored into Q3 2026 guidance? / A: There was minor softness in TRIO demand in late May to early June. However, the lower Q3 sales volume guidance for TRIO is primarily driven by inherent product seasonality, as TRIO is mostly a spring-applied product. This guidance matches historical seasonal trends, and management expects demand to rebound in Q4 as customers position inventory for the next spring application season.

Q: What is the current update on the timeline and progress of the Wendover lithium project? / A: The project is progressing broadly as planned, with partners advancing permitting work and engineering development toward a definitive feasibility study. Management expects to be able to provide a full, detailed update on the project on the next quarterly call, with most key milestones expected to occur in Q4 2026.

Q: Does the 2026 full-year Potash production guidance increase pull forward tonnage that was previously planned for 2027, or is it new incremental production from operational improvements? / A: The higher 2026 guidance does not pull any tonnage from 2027. The incremental production comes entirely from sustainable operational improvements including higher mill recoveries and increased throughput across the company's Potash facilities, so there is no expected adverse impact to 2027 production volumes.

Q: How will potential future cash inflows from Exxon impact the timing and size of future capital returns to shareholders, given the company's current strong cash position? / A: The company launched the $50 million share repurchase program in response to shareholder feedback, and repurchases will begin in Q3 2026 as planned. The timing of any future Exxon-related cash inflows is uncertain, and management will adjust capital allocation plans if and when those funds are received, with no premature commitments to additional returns currently planned.