Atome (ATOM) H2 2023 earnings summary

Executive summary

• Aiming to develop the world's largest green fertilizer facility by 2027, with flagship projects in Paraguay (Villeta) and Costa Rica, targeting production in 2027 and focusing on decarbonizing a sector responsible for 5% of global emissions.

• Villeta Project in Paraguay is set to be the largest dedicated green fertilizer facility globally, with construction targeted to start by end of 2024 and expected to produce 264,000 tons/year of calcium ammonium nitrate.

• Completed FEED for Villeta, selected EPC partners Casale and Urbas, finalized land acquisition, and secured all environmental and operational licenses.

• Pipeline includes a 120 MW project in Costa Rica and a 300 MW Yguazu project in Paraguay, both aiming for power purchase agreements in 2024.

• Management and board have deep experience in engineering, finance, and fertilizer markets, with strategic investors including Baker Hughes and Schroders.

Financial highlights

• FY 2023 loss was US$6.8 million, with nearly US$5 million of development costs capitalized as project assets.

• US$5.1 million raised from institutional and private investors in 2023, with management participating at the same share price as new investors.

• Additional US$2.5 million raised in early 2024, supported by the chairman and largest shareholder.

Outlook and guidance

• Final Investment Decision (FID) and start of construction for Villeta targeted by end of 2024, with commercial production by 2027.

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

• Aiming to secure power purchase agreements for Yguazu and Costa Rica projects in 2024, advancing both to next development stages.