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Disseminated on behalf of Atlas Salt Inc. ValueTheMarkets, a trading name of Digitonic Ltd., was compensated by Atlas Salt Inc two hundred and sixty thousand US dollars starting 4th November 2024 for a period of 4 weeks until 30th November 2024 to produce and disseminate this content. Digitonic Ltd. does not own a position in Atlas Salt Inc.

INVESTOR UPDATE: NOVEMBER 2024

Atlas Salt: Targeting Long-Term Success in North America

Materials

Atlas Salt | Listed on: (TSXV: SALT) (OTCQB: REMRF)

Thank you for being an Atlas Salt (TSXV: SALT) (OTCQB: REMRF) shareholder. There’s no doubt Atlas Salt has a remarkable asset in its Great Atlantic deposit, which contains an estimated 860 million tonnes of Rock Salt with high purity levels1.

The resource’s unusually shallow depth, grade, size and outstanding setting all add up to massive potential. And as North America’s first new salt mine in 20 years, Great Atlantic has the potential to outmuscle competition – especially from overseas imports.

Throughout 2024, the Atlas Salt leadership team has conducted a busy schedule packed with activities and milestones. Notably, the Great Atlantic Salt Project has undertaken the environmental assessment stage2, established a de-risked development schedule3 and signed non-binding Memorandums of Understanding, which include a joint venture allocating 50% of its production for Canadian salt distribution4 and the supply of cutting-edge equipment and battery-electric underground technology for the mine5.

As progress accelerates, this is an exciting time for Atlas Salt shareholders as key developments drive momentum in the Great Atlantic Salt Project.

Atlas Salt CEO, Rick LaBelle, provides an exclusive update for Shareholders:

Environmentally Conscious

Environmentally Conscious with one of the world’s lowest GHG emission mining projects.

In early 2024, Atlas Salt engaged Stantec Consulting Ltd. (Stantec) to complete a study of greenhouse gas (GHG) emissions6. The results highlight that once in operation, The Great Atlantic Salt Project will be one of the world’s lowest GHG emission mining projects.

Indeed, the forecasted operational GHG emissions of 79 tonnes annually is comparable to the emissions of the annual carbon footprint expected from just four Newfoundland families of four7.

Atlas Salt is further improving its green credentials by utilizing Newfoundland and Labrador’s low GHG intensity hydroelectricity. At just 17 grams of CO2e per kilowatt-hour (kWh), this is far below the Canadian average of 110g CO2e/kWh. The company also intends to integrate cutting-edge battery electric technologies to substantially cut diesel use, further reducing emissions across the board.

Utilizing battery electric vehicles at the Great Atlantic Salt Project is a key element in our environmental strategy,” noted Bob Booth, Atlas Salt’s VP of Engineering and Construction. “This choice reflects Atlas Salt’s dedication to reducing GHG emissions and illustrates our innovative approach to combining state-of-the-art technology with sustainable mining solutions.

Together, these measures are projected to keep emissions well under both provincial and federal guidelines, positioning it as a leader in environmental responsibility within the industry.

Atlas Salt released its inaugural ESG report in August 20248. Titled The Path to a Sustainable Legacy, it provides a comprehensive overview of the company's performance in 2023 in health, safety, social, and environmental areas. The report emphasizes the company’s dedication to environmental responsibility, community involvement, and sustainable mining practices.

Environmentally Conscious with one of the world’s lowest GHG emission mining projects.

“My vision for Atlas Salt is to create an industry-leading example in sustainable underground mining. We have the potential to build the greenest, cleanest, and safest underground mine in the world. Our team at Atlas Salt is not just building a salt mine, we’re building it responsibly for future generations.”

Rick LaBelle, Atlas Salt CEO.

Innovative Mine Design

Atlas Salt innovative mine design with modern continuous mining technology .

Atlas Salt’s Great Atlantic mine is marching toward construction with plans in place for an innovative and environmentally friendly design. Using large-scale continuous miners and battery-electric truck haulage, the company is employing technological innovations with scalable production potential.

State-of-the-art mining equipment includes electric and battery-electric units, ensuring high performance, low emissions, and reduced ventilation requirements. This forward-thinking approach to mine design is sure to enhance operational efficiency and align with energy-efficient practices in the mining industry.

Atlas has already lined up Sandvik Mining and Rock Solutions as its preferred equipment supplier and integrated project delivery partner5. Their battery-electric fleet plans include continuous miners, haul trucks, scooptrams, and an AutoMine® system with tele-remote and autonomous operation1.

Additionally, the mine’s adaptive infrastructure and modular expansion capability underscore its ability to grow to achieve expansionary goals of 4.0 million metric tons per annum (Mtpa) of production1.

Atlas Salt is aiming for long-term success in the mining sector. The project’s extensive inferred mineral resources total 868 million tonnes1, and the leadership team has a realistic expectation of extending the life of the mine beyond 34 years1.

Atlas Salt innovative mine design with modern continuous mining technology .

Competitive Advantage

De-Icing with Road Salt - Atlas Salt Inc.

The Great Atlantic Salt Project claims a prime location at the heart of North America’s road de-icing market. This is one unchanging competitive advantage (an economic moat) that Atlas Salt asserts because it can count on enduring access to domestic markets versus overseas suppliers. Their foreign counterparts are subject to more complex supply chain challenges, long-distance shipping logistics, higher shipping costs and increased environmental emissions. 

Commerce needs to flow, and to do that, North America is relying on imports of rock salt from distant places like Chile and North Africa. At a time when dependence on overseas countries for critical materials makes little sense and is politically divisive, Atlas Salt is a supply-chain winner because it presents a cost-effective domestic solution.

The North American salt industry is a significant player in the global market, with a demand of approximately 70 million metric tons per annum (Mtpa) out of a total global demand exceeding 325 Mtpa1. Around 25% of North America’s salt demand, roughly 18 Mtpa, is met through imports. Key importing regions include Chile, Mexico, Egypt, and Brazil. Import volumes have increased substantially from 7-10 Mtpa between 2010-2013 to current levels, indicating a growing reliance on imported salt to meet domestic demand1.

De-Icing with Road Salt - Atlas Salt Inc.

Atlas Salt’s Key Points of Differentiation

  • Premier Asset and Infrastructure

    Due to its shallowness, high grade, and location, The Great Atlantic Salt Project is positioning to become a low-cost, long-life producer and the first new underground salt mine in North America in more than 20 years. Power, roads and a deep-water port surround the deposit, it is close to key markets, and the team will deploy advanced technology in construction and operation to ensure long life and minimal environmental impact.

  • Financing and Construction Ready

    A feasibility study and greenhouse gas (GHG) emissions survey confirm The Great Atlantic Salt Project's viability. This Tier 1 asset focuses on sustainability with low GHG impact. It has passed its environmental assessment with conditions, lined up equipment financing, and started pre-construction. The project is expected to add $4.8 billion to regional GDP.

  • Strong Market Potential

    Salt demand and price are stable with diversified end markets. Competing mines have aging assets, and international suppliers can be displaced based on cost, significantly shorter shipping distance, greenhouse gas emissions, and security of supply. The company's recent announcement regarding an offtake agreement and JV with a key industry player underscores its ability to capitalize on these advantages.

  • Winning Team Assembled

    Driven by accomplished leader Rick LaBelle, Atlas Salt is in great shape as it advances toward construction. CEO LaBelle has spent over 40 years in mining and was pivotal in establishing a major North American mining contractor as a global underground mine builder. Supporting the CEO is a team boasting extensive operational expertise in mining and a wealth of large-scale project construction experience.

  • Path to Revenue Fueled by Strategic Offtake

    Atlas is on a path to sustainable revenue through a cornerstone strategic offtake with Scotwood Industries, allocating approximately 50% of its production for the Canadian retail market. This partnership leverages Scotwood’s retail expertise and Atlas’s high-quality, made-in-Canada salt. This partnership, along with Atlas’s low costs, robust NPV and IRR figures, strong cashflow potential, key partnerships, and green initiatives, positions the company to capitalize on its prime location and drive long-term revenue growth.

  • Valuation Upside and Growth Potential

    SLR Consulting’s Feasibility Study valued the project at over $550 million (after-tax NPV at 8%) with an 18.5% after-tax IRR over a 34-year mine life. As the project progresses and is further derisked, using a 5% discount rate, the valuation jumps to $1.1 billion. Atlas Salt's prospects are strengthened by historical mining industry M&A activity and consolidation in the salt sector. De-risking strategies support an expansion case, offering the potential for increased production, project life and enhanced financial returns. Once operating, robust economics, strong free cash flow conversion and infrastructure will support potential expansions.

Latest News

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Sources:

1. Atlas Salt. Corporate Presentation: A unique & differentiated story. September 2024. Retrieved from https://atlassalt.com/

2. Atlas Salt. Atlas Salt Announces Release With Conditions Under the Environmental Protection Act for the Great Atlantic Salt Project. April 19, 2024. https://atlassalt.com/atlas-salt-inc-announces-release-with-conditions-under-the-environmental-protection-act-for-the-great-atlantic-salt-project/

3. Atlas Salt. Atlas Salt Announces De-risked Development Schedule for the Great Atlantic Salt Project. August 12, 2024. https://atlassalt.com/atlas-salt-announces-de-risked-development-schedule-for-great-atlantic-salt-project/

4. Atlas Salt. Atlas Salt and Scotwood Industries Sign MOU for Strategic Salt Production Offtake & Canadian Joint Venture for Packaged Salt and Related Products. August 20, 2024. https://atlassalt.com/atlas-salt-and-scotwood-industries-sign-mou-for-strategic-salt-production-offtake-canadian-joint-venture-for-packaged-salt-and-related-products/

5. Atlas Salt. Atlas Salt Enters Strategic MOU with Sandvik Mining and Rock Solutions for Underground Mobile Equipment Supply, Including $73 Million Financing. September 9, 2024. https://atlassalt.com/atlas-salt-enters-strategic-mou-with-sandvik-mining-and-rock-solutions-for-underground-mobile-equipment-supply-including-73-million-financing/

6. Atlas Salt. Greenhouse Emissions Study Validates Low Carbon Great Atlantic Salt Project. January 15, 2024. https://atlassalt.com/greenhouse-emissions-study-validates-low-carbon-great-atlantic-salt-project/

7. Statistics Canada. Map 1 Household greenhouse gas emissions per capita, by province and territory, 2021. December 20, 2023. https://www150.statcan.gc.ca/n1/daily-quotidien/231220/mc-c001-eng.htm

8. Atlas Salt. Atlas Salt Announces Publication of Its Inaugural ESG Report: The Path to a Sustainable Legacy. August 15, 2024. https://atlassalt.com/atlas-salt-announces-publication-of-its-inaugural-esg-report-the-path-to-a-sustainable-legacy/

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