Atome (ATOM) H2 2023 earnings summary

Executive summary

• Aiming to develop the world's largest green fertilizer facility by 2027, with the 145 MW Villeta project in Paraguay and additional flagship projects in Costa Rica and the 300 MW Iguazu/Yguazu project, targeting significant decarbonization of the fertilizer sector.

• Villeta project targets 264,000 tons/year of calcium ammonium nitrate, with income from day one of production and construction expected to start post-FID by end of 2024.

• Completed FEED for Villeta, selected Casale as EPC contractor, acquired land, and secured environmental and operational licenses.

• Management and board have deep industry experience, strong local presence, and backing from major shareholders including Schroders, Baker Hughes, and Trafigura.

• Focused on decarbonizing a sector responsible for 5% of global emissions.

Financial highlights

• Ended 2023 with a US$6.8 million loss, with US$4.8 million capitalized as project development costs for Villeta.

• Raised US$5.1 million in 2023 and an additional US$2.5 million in early 2024, with management and major shareholders participating.

• Market capitalization as of 25 June: US$28.5 million; issued shares: 44,923,186; share price: 56p.

Outlook and guidance

• Targeting FID and start of construction for Villeta by end of 2024, with commercial production expected in 2027.

• Offtake agreement for Villeta expected in early Q3 2024; project funding and EPC contract to be finalized in H2 2024.

• 300 MW Iguazu/Yguazu and Costa Rica projects targeting PPAs by end of 2024.

• Expects rapid commercialization and value creation post-FID, aiming to replicate the business model across new projects.