Atlas Salt's Updated Feasibility Study Signals Structural Advantage in North America's Road Salt Supply Chain

• Atlas Salt's Updated Feasibility Study demonstrates a 66% increase in Post-Tax NPV8 to C$920 million and a 21.3% Post-Tax IRR, reinforcing the project's Tier-1 economics.
• The 4 million tonnes per annum production rate and 24-year mine life establish Great Atlantic as one of North America's most advanced, long-life salt developments.
• Operating costs of C$28 per tonne (FOB port) and a payback period of 4.2 years highlight its low-cost resilience amid tightening winter de-icing demand and import disruptions.
• Strategic tidewater access to Eastern Canada and U.S. Northeast markets underscores competitive logistics and ESG alignment through hydropower-supplied operations.
• Near-term catalysts, financing progress, offtake agreements, and early works readiness, support an investment case built on scarcity value, execution readiness, and stable jurisdictional advantage.

North America's Dependence on Imported Road Salt

North America consumes an estimated 25 to 36 million tonnes of road salt annually, with 30 to 40 percent imported primarily from Chile, Egypt, and Morocco. This dependency exposes municipalities to shipping delays, cost volatility, and supply chain disruptions. Cargill's 2021 closure of its Avery Island salt mine, which previously supplied 2.5 million tonnes per annum to the U.S. East Coast de-icing market, eliminated significant domestic capacity. Remaining operations face operational challenges and limited expansion potential.

Climate volatility, infrastructure funding, and ESG pressures are reshaping procurement patterns, creating a structural demand floor for stable, local, low-emission supply. Institutional capital increasingly favors projects addressing supply-chain security and domestic production gaps, the same thesis driving North American lithium, uranium, and fertilizer investments.

Nolan Peterson, Chief Executive Officer of Atlas Salt, frames the opportunity:

"Imports, this is the real critical issue. De-icing road salt is at an import deficit or production deficit in North America. That means that we are importing salt from foreign jurisdictions pretty much every year in the amounts of 10 million tons per annum."

Economic Validation: Atlas Salt's Enhanced Feasibility Metrics

The Updated Feasibility Study delivers investment-critical data establishing project credibility. Post-tax NPV8 increased 66 percent to C$920 million, while post-tax IRR improved to 21.3 percent. Pre-tax NPV8 reaches $1.68 billion. The payback period of 4.2 years indicates rapid capital recovery, while life-of-mine post-tax cash flow totals C$3.93 billion. Annual EBITDA of C$325 million demonstrates consistent cash generation across the 24-year mine life.

The NPV-to-capex ratio improved to 1.56, a key institutional benchmark for capital efficiency. Capital expenditure requirements total C$589 million, allocated across mine development, port infrastructure, and processing facilities. Operating costs of C$28 per tonne FOB port position Great Atlantic at the lower end of the North American cost curve. The 24-year mine life is based on Proven and Probable Reserves, with 868 million tonnes of inferred salt resource excluded from the current production plan, supporting potential mine life extension.

Peterson reinforces the financing implications:

"We have all the material we need at least to get this thing off the ground right now."

Operational Advantage: Shallow Deposit, Scalable Infrastructure & ESG Alignment

Shallow & Homogeneous Deposit

The salt deposit sits at approximately 180 meters depth, compared to 600 meters at legacy operations such as Goderich. This shallow configuration allows decline access rather than costly shaft sinking, reducing upfront capital requirements and long-term operating costs.

Peterson describes the cost implications:

"The key distinction that makes this a very attractive project besides the infrastructure considerations is that it's shallow. Most new mines tend to be deeper, we're talking 500 to 600 meters deep to start. We're 200 meters deep. The critical importance of that is that we can mine with a conveyor system, continuous miner onto a conveyor and drift mining… That's what allows us to operate on the lower end of the cost curve."

Salt grade reaches 96 to 98 percent purity, minimizing processing requirements and reducing waste handling.

Infrastructure & Logistics Edge

Great Atlantic's project location provides direct adjacency to Turf Point Port, integrated into the Trans-Canada Highway system. This configuration eliminates truck haulage between mine and port, reducing transport costs and carbon emissions. Estimated shipping time to key markets, Boston, New York, Toronto, requires less than three days compared to over 14 days from Chilean or Egyptian suppliers.

Port capacity is designed for scalable throughput up to 4.0 million tonnes per annum. The UFS incorporated port and logistics improvements including upgraded stockpile and shiploading configurations. The company is exploring opportunities to further debottleneck port operations.

ESG & Power Profile

The fully electric operation powered by Newfoundland and Labrador's hydropower grid would generate Scope 1 greenhouse gas emissions of only 79 tonnes per year, equivalent to approximately four Newfoundland households, according to the company's August 2024 ESG Report. Battery-electric mining equipment, specifically Sandvik continuous miners, would eliminate diesel consumption from underground operations.

Peterson quantifies the environmental performance:

"The greenhouse gas emissions are the equivalent of four Newfoundland households per year at the mine site. This is a very green operation, certainly one of the greenest mines that will be in operation in the entire world."

The continuous mining process generates no tailings, requires no water for processing, and produces no wastewater requiring treatment or storage.

Market Positioning: A Strategic Solution to an Aging Industry

North American de-icing salt imports total an estimated 8 to 10 million tonnes per annum, representing approximately one-third of total consumption. Municipal contracts increasingly seek local, reliable, year-round suppliers to mitigate shipping disruptions that have intensified following pandemic-related supply chain stress.

Few new salt mining projects have advanced to production in the past three decades, resulting in an aging asset base concentrated among established operators. Great Atlantic's development timing aligns with industry renewal cycles as legacy mines face resource constraints and rising sustaining capital requirements. New projects benefit from technological advances in mining equipment, automation, and energy efficiency that reduce operating costs below legacy operations.

Financial & Strategic De-risking: From Feasibility to Financing Readiness

Great Atlantic received conditional release from the provincial Environmental Assessment process in April 2024. The Early Works Development Plan was approved in 2025, authorizing site preparation activities. This regulatory progression positions Atlas Salt as the most advanced undeveloped salt project in North America, representing the first new salt mine development in nearly three decades.

Atlas Salt has a memorandum of understanding with Scotwood Industries, the largest distributor of packaged retail de-icing salt in the U.S., covering targeted volumes of 1.25 to 1.5 million tonnes per annum. The company remains in active discussions with Scotwood to finalize definitive offtake agreements, with strong appetite on both sides to advance the MOU toward binding commercial terms.

A non-binding memorandum of understanding with Sandvik covers equipment financing arrangements totaling C$73 million in principle for the provision of mining equipment and engineering support. The company expects to advance toward firmer contracts as the project is further de-risked.

Atlas Salt engaged Endeavour Financial for project finance advisory, advancing debt financing discussions with potential lenders. The company is advancing debt and equity financing in parallel. Management expects to complete debt financing arrangements by year-end 2025, positioning the project for construction decision and equipment procurement in 2026.

Management Execution & Governance Quality

Nolan Peterson, Chief Executive Officer and Director, brings over 20 years of experience in operations and development across industrial assets. Rowland Howe provides underground salt mining expertise developed at Compass Minerals' Goderich operation. Robert Booth, Vice President of Engineering and Construction, has delivered over C$1.5 billion in mine construction projects for Newmont, Hudbay, and other producers.

Insider ownership exceeds 40 percent of outstanding shares, aligning management interests with shareholder outcomes. As of October 31, 2025, the company maintains a clean balance sheet with C$11.4 million net cash and no warrant overhang.

Jurisdictional Strength & Policy Alignment

Newfoundland and Labrador ranked 9th globally among mining jurisdictions according to the Fraser Institute's 2025 Annual Survey of Mining Companies, reflecting regulatory transparency, permitting efficiency, and political stability. Federal and provincial policies supporting domestic mineral production and carbon reduction increasingly favor low-emission operations. The project's fully electric, hydropower-based design positions it to capitalize on Buy Canadian procurement preferences and carbon pricing mechanisms that penalize high-emission alternatives.

Near-Term Catalysts & Path to Re-Rating

Project financing announcement represents the primary near-term milestone for construction readiness. Definitive offtake agreements securing long-term sales contracts provide revenue visibility and reduce market risk. Detailed engineering completion and early works execution demonstrate technical progress and timeline adherence. Potential strategic partner involvement could accelerate development while validating project quality.

The Investment Thesis for Industrial Minerals & Infrastructure Supply Chains

• Secular demand for road salt remains anchored to infrastructure maintenance and climate adaptation requirements that sustain long-term consumption independent of economic cycles. Winter road safety represents non-discretionary municipal spending that persists through recessions, providing revenue stability rarely found in commodity markets. Infrastructure funding trends support sustained or growing procurement budgets as aging road networks require increased maintenance spending.
• Supply deficit conditions created by closure of aging mines and import reliance generate pricing stability and scarcity value absent from oversupplied commodity markets. Limited elastic supply response protects margins and supports disciplined pricing among domestic producers. New capacity additions face multi-year permitting and construction timelines that constrain rapid supply growth even during periods of elevated prices.
• Atlas Salt's positioning as the only near-construction, Tier-1-grade salt project with direct port access in North America creates unique exposure to this supply-demand imbalance. The company benefits from first-mover advantage in an industry that has seen minimal new capacity development in three decades. Project scale, cost position, and logistics advantages establish competitive moat characteristics difficult for subsequent entrants to replicate.
• ESG and policy alignment through clean hydropower operation in a top-tier jurisdiction supports institutional adoption and customer preference increasingly driven by carbon accounting requirements. Federal and provincial policies favor low-emission domestic production, creating regulatory tailwinds absent from high-carbon import alternatives. The operation's environmental profile positions Atlas Salt advantageously as scope 3 emissions reporting becomes mandatory for procurement agencies.
• Valuation upside emerges from the disconnect between post-tax NPV8 of C$920 million and current market capitalization. Pre-construction projects typically trade at significant discounts to NPV reflecting development risk, financing uncertainty, and illiquidity. Systematic reduction of these risks through permit approvals, offtake agreements, and financing progress typically compresses discounts and drives share price appreciation. The asymmetric risk-reward profile favors entry ahead of financing announcement and construction decision.

A Structurally De-Risked, High-Margin Asset Ready for Market Transition

The Updated Feasibility Study redefines Atlas Salt's Great Atlantic Project as a strategically timed, capital-efficient, and ESG-aligned industrial mineral asset positioned to capture North America's structural salt supply deficit. The combination of Tier-1 economics, 21.3 percent IRR, C$920 million NPV8, and 4.2-year payback, establishes financial credibility while shallow deposit access and integrated port logistics deliver operational advantages unavailable to legacy producers or international suppliers.

The investment case rests on scarcity value meeting execution readiness in a market undersupplied for decades. Financing progress, definitive offtake agreements, and early works execution represent near-term catalysts capable of re-rating the company toward asset quality benchmarks established by mid-tier industrial mineral producers. As North America retools infrastructure and supply chains to prioritize domestic resilience and carbon reduction, Atlas Salt's combination of strong economics, logistics efficiency, and governance discipline represents an investment opportunity grounded in both immediate catalysts and long-term structural relevance.

TL;DR Summary

Atlas Salt's Updated Feasibility Study positions Great Atlantic as North America's leading undeveloped salt project, addressing a structural 8-10 million tonne annual import deficit. The project delivers institutional-grade economics with C$920 million post-tax NPV8, 21.3% IRR, and C$28/tonne operating costs—among the lowest in North America. A shallow 180-meter deposit enables decline access rather than costly shaft development, while direct port adjacency provides sub-three-day shipping to major Northeast markets versus 14+ days from foreign suppliers. The fully electric, hydropower-based operation generates minimal emissions, appealing to ESG-focused procurement. With Environmental Assessment approval secured, Early Works Plan authorized, and financing discussions advancing toward year-end 2025 debt closure, Atlas Salt offers exposure to supply-chain security themes driving institutional capital allocation across critical minerals sectors.

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