Top 12 Reasons Atlas Brings The Power of SALT to Investors
Atlas President Rowland Howe, affectionately known as “Mr. Salt”, helped turn Goderich into the largest underground salt mine in the world during his tenure with Compass Minerals (NYSE: CMP). Atlas CEO Patrick Laracy, who has deep Newfoundland resource sector roots, has assembled a winning team, provides exceptional day-to-day management, and knows how to build shareholder value.
SALT has only 75.2 million shares outstanding, dominated by strong retail investors, management and close associates, and 39% ownership by strategic long-term investor Vulcan Minerals (TSXV: VUL). SALT is the #1 performing stock in the hot Newfoundland resource sector in 2021 with a year-to-date gain of 618% (through Sept. 30).
Atlas is fully-funded for Great Atlantic Feasibility Study and other initiatives with $7 million cash on hand through Sept. 30, 2021, thanks to a series of increasingly higher-priced private placements with strategic investors this year.
The Importance of Salt
Our bodies couldn’t survive without salt, but salt keeps us alive in more ways than one. The biggest single use of salt in the U.S. and Canada is for de-icing our roads, highways, sidewalks and parking lots. It’s a large recession-proof market with decades of consistency throughout every economic cycle. Statistics show that road de-icing salt saves lives every year, reducing collisions by up to 88%. No economic substitutes or alternatives for road salt exist in most applications.
Private equity has carried out $5.2 billion (U.S.) in acquisitions in the salt market since last year. Security of supply has become a major issue as the North American road salt market relies heavily on imports from Chile and North Africa to meet annual demand that can reach or exceed 30 million tonnes per year. Sharply escalating overseas shipping costs are driving up salt prices while reinforcing the need for fresh supply from North America where no new mines have been built in 20 years.
Top Tier Flagship Project
Atlas’ 100%-owned Great Atlantic Salt Project is one of the top undeveloped salt deposits in North America, combining ideal geology (large homogeneous high-grade system) with outstanding logistics (immediately adjacent to a deep water port). Atlas is primarily targeting the large road salt market with a potential 50+ year mine life at a production rate of up to 4 million tonnes per year.
Great Atlantic would feature environmentally friendly straightforward processing, operating very much like a “Salt Factory”. Unlike traditional metal deposits, no chemical processing is involved with an underground salt mine and practically all “ore” is shipped directly to market. New technology such as “continuous miners” cut the salt underground (no drilling or blasting). It is then screened to get it to the right particle size before being dropped onto a conveyor belt that brings it to surface. Processed salt is then delivered to the nearby port. Replacing overseas imports with Great Atlantic production would help reduce global carbon emissions.
The Right Jurisdiction
Newfoundland is experiencing an unprecedented “Resource Rush” led in part by the “White Gold” of the Great Atlantic salt deposit. Newfoundland-Labrador is ranked #8 in the world for overall investment attractiveness for mining and exploration, according to the Fraser Institute's latest survey.
Years ago, Atlas acquired the Fischell’s Brook Salt Dome approximately 15 km south of Great Atlantic. Given recent developments in the renewable energy space, specifically hydrogen plus potential underground energy storage, the Fischell’s Brook acquisition has taken on much greater importance. With Atlas squarely focused on the Great Atlantic Salt Project, the company sees a strong opportunity to develop the Fischell’s Brook asset and further build shareholder value through a strategic spinout of this compelling underground energy storage opportunity.
Additional Atlas Value Drivers
Atlas generates cash flow from its Flat Bay open-pit gypsum mine immediately adjacent to the Great Atlantic Salt Project. This gypsum operation is profitable and has the potential to scale up considerably over the next few years. In Labrador, Atlas owns the Black Bay Project, a potential nepheline deposit (source of aluminium, sodium and potassium used in the manufacture of glass and ceramics).
Strong News Flow
Atlas = Action. A drill program and other initiatives associated with the ongoing Great Atlantic Feasibility Study, combined with developments around Fischell’s Brook and the Flat Bay mine, will drive steady news flow this quarter. Meanwhile, the road salt sector in general is expected to be a hot topic in the news over the coming months given industry dynamics at the moment and, of course, winter weather!
Cutting Edge Marketing/Communications Strategy
Atlas understands the importance of communicating its message to investors not only effectively but powerfully. From our website to various campaigns to increase investor awareness of SALT, we are very conscious of our brand and the need to tell our highly compelling story in just the right way. The team at Atlas is constantly driven to grow this business and build shareholder value