What changed in this filing

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Item 2. Properties

2024-03-07 compared with 2023-03-07 · 212 added, 144 removed, 552 unchanged (39% of the section changed)

7 unchanged sentences

We operate Intrepid South located in Lea County in southeastern New Mexico, which is comprised of 21,834 surface acres, 27,858 acres of BLM grazing leases and 10,400 acres of pending State of New Mexico grazing leases.

In March 2020, we sold approximately 320 surface acres from our Intrepid South property, reducing our surface acre ownership from 22,154 acres acquired at the time of purchase, to the 21,834 acres we operate today.

We conduct most of our mining operations on properties that we lease from states or the federal government.

10 unchanged sentences

Additional information is provided in the Individual Property Disclosures below.

Summary of Mineral Resources in Millions of Tons of Sylvinite and Langbeinite as of December 31, 2022, and 2021.

Summary of Mineral Resources in Millions of Tons of Sylvinite and Langbeinite as of December 31, 2023.

Based on $450/potash product ton mine site and $470/langbeinite product ton mine site.

10 unchanged sentences

Total 72.0 10.0 60.0 10.0 132.0 10.0 — —

We did not have any material changes to our mineral resources during 2022.

The material assumptions and criteria used for the mineral resource estimates are discussed in more detail in Section 11 of the respective Technical Report Summaries filed as Exhibits 96.1 through 96.3 to this Annual Report.

Summary of Mineral Reserves in Millions of Product Tons of Potash and Langbeinite as of December 31, 2022, and 2021.

Summary of Mineral Resources in Millions of Tons of Sylvinite and Langbeinite as of December 31, 2022.

Based on $406/potash product ton mine site and $425/langbeinite product ton mine site.

Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources

Amount (Mt) Grade (%K 2 O)

IPNM 370.0 15.0 200.0 14.0 570.0 14.6 — —

Moab 113.0 26.0 190.0 25.0 303.0 25.4 38.0 23.0

Wendover — — 250.0 0.5 250.0 0.5 1,360.0 0.5

Total 483.0 17.6 640.0 12.0 1,123.0 14.4 1,398.0 1.1

IPNM 50.0 10.0 60.0 10.0 110.0 10.0 — —

Total 50.0 10.0 60.0 10.0 110.0 10.0 — —

Summary of Mineral Reserves in Millions of Product Tons of Potash as of December 31, 2023, and 2022.

Based on $360/potash product ton mine site for 2023, and $325/potash product ton mine site for 2022.

Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves

10 unchanged sentences

Total 6.3 6.1 25.3 23.3 2.0 2.5 5.9 8.5 8.3 8.6 20.0 19.0

IPNM 4.6 4.9 8.6 8.5 1.2 1.2 9.1 9.1 5.8 6.1 8.7 8.6

Total 4.6 4.9 8.6 8.5 1.2 1.2 9.1 9.1 5.8 6.1 8.7 8.6

1 - In situ grade corresponds to the amount of K 2 O in the contact area of the caverns

2 - In situ grade corresponds to the amount of K 2 O in the brines

Summary of Mineral Reserves in Millions of Product Tons of Langbeinite as of December 31, 2023, and 2022.

Based on $340/langbeinite product ton mine site for 2022.

Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves

Amount (Mt) In Situ

Grade (%K 2 O)

Amount (Mt) In Situ

Grade (%K 2 O)

Amount (Mt) In Situ

Grade (%K 2 O)

2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022

IPNM — 4.6 — 8.6 — 1.2 — 9.1 — 5.8 — 8.7

Total — 4.6 — 8.6 — 1.2 — 9.1 — 5.8 — 8.7

1 - In situ grade corresponds to the amount of K 2 O in the langbeinite ore

As noted, we have relatively long-lived proven and probable reserves and consequently expect to conduct limited and focused additional exploration in the coming five years.

We are not reporting any langbeinite reserves as of December 31, 2023, only langbeinite resources because, in the opinion of the Qualified Person, none of the langbeinite resources are economically mineable.

As noted, we have relatively long-lived proven and probable potash reserves and consequently expect to conduct limited and focused additional exploration in the coming five years.

We plan to drill core holes in areas near our Carlsbad, New Mexico, facility, in order to further define the ore body.

Development of the underground mines is expected to be coincident with the continued advancement of ore zones.

Development of the solution mine and brine evaporation operations is expected to be enhanced by the drilling of additional wells and flooding of new solution mine caverns.

31 unchanged sentences

The IPNM properties are pledged as collateral for our revolving credit facility.

A reclamation bond is currently in place for approximately $4.4 million.

During 2023, we recorded impairment charges of $41.8 million related to our IPNM material properties.

After the impairment, at December 31, 2023 the net book value of our IPNM material properties was $175.2 million.

Various surety bonds are currently in place for approximately $6.2 million.

IPNM has all necessary operating permits and is in production, both underground and solution mining, and through permit reporting maintains environmental compliance.

Environmental studies are conducted for major project expansions and

modifications to any operations.

Environmental studies are conducted for major project expansions and modifications to any operations.

The most recent Environmental Audit was completed in 2015 for the expansion of the HB In Situ Solution Mining project to include the solution mining of the abandoned AMAX potash mine.

The work referenced the initial Environment Impact Study ("EIS") for the HB In Situ Solar Solution Mining Project EIS.

The work referenced the initial Environment Impact Study ("EIS") for the HB In Situ Solar Solution Mining Project.

East Mine and Plant

5 unchanged sentences

The maximum productive capacity of the plant is 400,000 tons of Trio ® concentrate annually.

There are five active sections within the East Mine, the operations of which consist of a miner and a shuttle car loading onto a belt conveyor.

There are five active sections within the East Mine, the operations of which consist of miner and shuttle car loading onto a belt conveyor.

Each mining section produces approximately 240,000 tons of run‐of‐mine ore each year.

16 unchanged sentences

In 2012, IPNM commenced filling the HB solar evaporation ponds.

The extraction brine sourced from the mined‐out areas of the 1 st ore zones of the former underground workings of portions of HB Eddy, HB South, HB North, and the HB Crescent, collectively referred to as the HB Mine, contains approximately 21.7% NaCl and 7.0% KCl.

The extraction brine sourced from the mined‐out areas of the 1st ore zones of the former underground workings of portions of HB Eddy, HB South, HB North, and HB Crescent, collectively referred to as the HB Mine, contains approximately 21.7% NaCl and 7.0% KCl.

The brine is collected and crystallized in 18 solar evaporation ponds.

16 unchanged sentences

We anticipate the need to construct a new sylvite processing facility to handle the higher insoluble and higher carnallitic ores that are contained in the 8th and 10th ore zones.

A new processing plant is expected to have a plant recovery of 75%, which is supported by the metallurgical test work done on the 10 th ore zone ore by Tetra Tech in 2009 in support of Phase 1 of the North Mine Reopening Feasibility Study.

A new processing plant is expected to have a plant recovery of

75%, which is supported by the metallurgical test work done on the 10th ore zone ore by Tetra Tech in 2009 in support of Phase 1 of the North Mine Reopening Feasibility Study.

Leases and Permits

IPNM controls the right to mine approximately 143,000 acres in New Mexico.

Of that acreage, 32,000 acres are leased from the State of New Mexico, 106,000 acres are leased from the U.S.

through the BLM, and 300 acres of mineral rights are leased from private owners.

IPNM owns 4,700 surface acres near the mine site, adjacent to the federal and state mining leases.

Most mining operations are on properties leased from the state or the federal government.

These leases generally contain stipulations that require IPNM to commence mining operations within a specified term and continue mining to retain the lease.

The stipulations on IPNM leases are subject to periodic readjustment by the applicable state government and the federal government.

We control the right to mine approximately 143,000 acres in New Mexico.

Of that acreage, we lease 32,000 acres from the State of New Mexico, 106,000 acres from the federal government through the Bureau of Land Management (“BLM”), and 280 acres from private owners.

We own 4,700 surface acres near the mine site, adjacent to the federal and state mining leases.

Most mining operations are on properties leased from the State of New Mexico or the federal government.

These leases generally contain stipulations that require us to commence mining operations within a specified term and to continue mining to retain the lease.

The stipulations on our leases are subject to periodic readjustment by the State of New Mexico and the federal government.

Federal leases are for indefinite terms subject to readjustment of the lease stipulations, including the royalty payable to the federal government, every 20 years.

Leases with the State of New Mexico are issued for terms of 10 years and for as long thereafter as potash is produced in commercial quantities and are subject to readjustment of the lease stipulations, including the royalty payable to the state.

Royalty payments equal a percentage of product sales less freight.

Most of our leases with the federal government stipulate a five percent royalty rate.

However, certain federal leases contain a sliding scale royalty rate of a minimum of two percent and up to a maximum of five percent based on the grade of ore extracted under the lease.

In 2023, IPNM paid royalties of $5.9 million to the federal government.

Our leases with the State of New Mexico are issued for terms of 10 years and for as long thereafter as potash is produced in commercial quantities and are subject to readjustment of the lease stipulations, including the royalty payable to the state.

Royalty payments equal a percentage of product sales less freight.

Our leases with the State of New Mexico stipulate a five percent royalty rate.

In 2023, IPNM paid royalties of $1.8 million to the State of New Mexico.

History of Operations

8 unchanged sentences

Mineral Resource and Reserves Comparison to Prior Year

We had no material changes in our mineral resource at the New Mexico Property at December 31, 2022, compared to December 31, 2021.

Our New Mexico Property mineral reserve product tons at December 31, 2022, decreased from mineral reserve product tons at December 31, 2021, due to 2022 production.

We engaged RESPEC, a qualified firm and independent of Intrepid, to prepare a technical report summary for our IPNM material properties as of December 31, 2023 because changes in our cost of production resulted in material changes in the mineral reserves and mineral resources estimates from the revised technical report summary prepared as of December 31, 2021 for the New Mexico properties.

As of December 31, 2023, we no longer show mineral reserves for our East mine because, in the opinion of the Qualified Person, none of the langbeinite resources are economically mineable.

The technical report summary for the IPNM material properties as of December 31, 2023 is included with this Annual Report on Form 10-K.

Mineral Resource and Reserves

1 unchanged sentence

Exploration includes the drilling of core holes from the surface and underground, and the collection of channel samples, which are collected as mining advances.

We provided Agapito Associates, Inc.

("Agapito") their dataset beginning in 2007.

We provided RESPEC their dataset beginning in 2007.

Since that time, we have added multiple data points by reassessing several drillholes.

11 unchanged sentences

The geology was modeled using Carlson Software (2020).

A basic inverse distance squared algorithm was used with a search radius of ¾ mile to prepare the 100‐foot by 100‐foot grids for bed thickness and grade.

A basic inverse distance squared algorithm was used with a search

radius of ¾ mile to prepare the 100‐foot by 100‐foot grids for bed thickness and grade.

The search radius was applied for Measured and Indicated Resources of ¼ mile and ¾ mile, respectively.

7 unchanged sentences

Inputs to the estimation of the break‐even cutoff analysis are cost of goods sold, product sale price, mill recovery, and nominal grade.

The cutoff for solution mining in flooded abandoned underground potash mines is a function of the grade of the brine being extracted which results in enough product tons to just cover the cost of production.

The cutoff for solution mining in flooded abandoned underground potash mines is a function of the grade of the brine being extracted which results in enough product tons to cover the cost of production.

The cutoff grade for resources of abandoned underground sylvinite is not a parameter for use in the estimation of solution mining resources but does establish an operational minimum limit for the brine grade reserves.

3 unchanged sentences

When mining using solution methods in proximity to other mines, or other underground mines not within the control of IPNM, the critical factor in establishing a flood elevation is to keep adjoining properties dry or to protect structures such as shafts.

IPNM—Summary Mineral Resources in Millions of Tons of Sylvinite effective December 31, 2022 and 2021.

IPNM—Summary Mineral Resources in Millions of Tons of Sylvinite effective December 31, 2023.

Based on $450/product ton mine site.

7 unchanged sentences

Inferred mineral resources — — —

IPNM—Summary of Mineral Resource in Millions of Tons of Langbeinite Mineralized Rock in Place effective December 31, 2022 and 2021.

IPNM—Summary Mineral Resources in Millions of Tons of Sylvinite effective December 31, 2022.

Based on $406/product ton mine site.

Langbeinite Mineralized Rock (Mt) Mechanical

Resources Mechanical

Mining Cutoff 2

Processing Recovery (%)

Grade (%K 2 O)

Contained K 2 O

Measured mineral resources 370 15 56 45-59 75-85

3 unchanged sentences

1 Sylvinite is a mixed evaporite containing NaCl and KCl.

2 Solution mining resource cutoff is the old workings boundary.

Mineral Resources were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid.

Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis.

2 Solution mining resource cutoff for flooded old working is the mining extents boundary.

Mineral Resources were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid.

Mineral Resources are reported exclusive of Mineral Reserves.

Mineral Resources are reported using Inverse Distance Squared estimation methods.

Mt = million tons, % = percent K 2 O = potassium oxide, ft = feet

We did not have any material changes to our IPNM mineral resources during 2022.

IPNM—Summary of Mineral Resource in Millions of Tons of Langbeinite Mineralized Rock in Place effective December 31, 2023.

Based on $470/product ton mine site.

Resources Mechanical

Mining Cutoff

Langbeinite Mineralized Rock (Mt) Grade (%K 2 O)

Contained K 2 O

Measured mineral resources 72 10 7 25 68

Indicated mineral resources 60 10 6 25 68

Measured + Indicated resources 132 10 13

Inferred mineral resources — — —

IPNM—Summary of Mineral Resource in Millions of Tons of Langbeinite Mineralized Rock in Place effective December 31, 2022.

Based on $425/product ton mine site.

Resources Mechanical

Mining Cutoff

Langbeinite Mineralized Rock (Mt) Grade (%K 2 O)

Contained K 2 O

Measured mineral resources 50 10 5 32 68

Indicated mineral resources 60 10 6 32 68

Measured + Indicated resources 110 10 11

Inferred mineral resources — —

Mineral Resources were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid.

Mineral Resources are reported exclusive of Mineral Reserves.

Mt = million tons, % = percent, K 2 O = potassium oxide, ft = feet

The material assumptions and criteria used for the IPNM mineral resource estimates are discussed in more detail in Section 11 of the Technical Report Summary in Exhibit 96.1 to this Annual Report.

13 unchanged sentences

Mechanically Mined Reserves

Economic modeling indicates cutoff grades for reserves at the IPNM East Mine of 43 ft% K 2 O for langbeinite resource.

Modeling also indicates a cutoff of 75 feet-percent K 2 O for the high‐insoluble sylvinite resources in the 8th and 10th ore zones, which requires the capital investment of a new plant and refurbishment of shafts.

Modeling indicates a cutoff of 64 feet-percent K 2 O for the high‐insoluble sylvinite resources in the 8th and 10th ore zones, which requires the capital investment of a new plant and refurbishment of shafts.

A cutoff of 54 feet-percent K 2 O is indicated for the West Mine sylvinite resources which requires the processing plant, mine equipment, and associated infrastructure to be rehabilitated.

4 unchanged sentences

In-Place KCl (Mt) In Situ Grade 1 (%K 2 O)

(Mt) Brine Cutoff Grade 2 (%K 2 O)

Brine Cutoff Grade 3

Processing Recovery (%)

2 unchanged sentences

Total Mineral Reserves 5.3 22.9 4.0

IPNM—Summary of Langbeinite Mineral Reserves effective December 31, 2022.

IPNM—Summary of Potash Mineral Reserves effective December 31, 2022.

Based on $325/product ton mine site

(Mt) Cutoff Grade (ft%K 2 O)

In-Place KCl (Mt) In Situ Grade 1 (%K 2 O)

Brine Cutoff Grade 3

Processing Recovery (%)

2 unchanged sentences

Total Mineral Reserves 5.7 21.6 4.5

1 In situ grade is the amount of K 2 O in the contact area of the caverns.

1 In situ grade is the amount of K 2 O in the contact area of the caverns and is used to calculate the In-Place KCl.

2 Product is calculated by multiplying In-Place KCl by:

dissolution factor of 96%, areal recovery of 100%, geologic factor of 94.2%, plant recovery of 85%, cavern loss factor of 98%, and a product purity factor of 103%, and a handling loss factor of 97%.

3 Brine cutoff grade is the amount of K 2 O in the extracted brine necessary to cover the costs of production.

3 In situ grade (diluted) is the amount of K 2 O in the ore body with consideration for dilution occurring during mining.

4 Mineral Reserves are reported based on a flood elevation mining plan, dissolution factor of 96%, areal recovery of 100%, geologic factor of 94.2%, plant recovery of 85%, product purity of 95%, and cavern losses of 2%.

5 Mineral Reserves are reported based on a detailed conventional mine plan, random impurities of 10%, plant recovery of 68%, and product purity of 94.4%.

Mineral Reserves were prepared effective December 31, 2021 by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid, and updated to December 31, 2022 by Intrepid to account for depletion that occurred due to 2022 mining operations.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis.

4 Product is calculated by multiplying In-Place KCl by:

dissolution factor of 96%, areal recovery of 100%, geologic factor of 94.2%, plant recovery of 85%, cavern loss factor of 98%, and a product purity factor of (1/.95).

Mineral Reserves were prepared effective December 31, 2023, and 2022, by RESPEC, a qualified firm for the estimate and independent of Intrepid.

Mineral Reserves are reported exclusive of Mineral Resources.

Mt = million tons, % = percent, K 2 O = potassium oxide, ft = feet, ROM = Run-of-Mine

IPNM—Summary of Potash Mineral Reserves effective December 31, 2021 Based on 325 $/product ton mine site

In-Place KCl (Mt) In Situ Grade 1 (%K 2 O)

(Mt) Brine Cutoff Grade 2 (%K 2 O)

Processing Recovery (%)

Proven Mineral Reserves 5.5 20.8 4.1 2.0 85

Probable Mineral Reserves 0.3 19.1 0.2 2.0 85

Total Mineral Reserves 4

IPNM—Summary of Langbeinite Mineral Reserves effective December 31, 2021 Based on 340 $/product ton mine site

(Mt) Cutoff Grade (ft%K 2 O)

The table below shows the Breakeven Cutoff for mechanically mined langbeinite reserves as of December 31, 2022.

IPNM—Summary of Langbeinite Mineral Reserves effective December 31, 2022.

Based on $340/product ton mine site.

Cutoff Grade (ft%K 2 O)

Processing Recovery (%)

2 unchanged sentences

Total Mineral Reserves 21.5 8.7 5.8

1 In situ grade is the amount of K 2 O in the contact area of the caverns.

2 Brine cutoff grade is the amount of K 2 O in the extracted brine necessary to cover the costs of production.

1 ROM Ore is reported based on a detailed conventional mine plan adjusted for random impurities of 10%.

2 In situ grade (diluted) is the amount of K 2 O in the ore body with consideration for dilution occurring during mining.

5 Mineral Reserves are reported based on a detailed conventional mine plan, random impurities of 10%, plant recovery of 68%, and product purity of 94.4%.

Mineral Reserves were prepared effective December 31, 2021 by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis.

3 Product tons are calculated by multiplying ROM Ore by:

In-Situ Grade (Diluted)/22.70%, plant recovery of 68%, and a product purity factor of (1/.944).

In-situ Grade (Diluted) is divided by 22.70% to convert K 2 O grade to pure langbeinite by mass.

Mineral Reserves were prepared effective December 31, 2023, and 2022, by RESPEC, a qualified firm for the estimate and independent of Intrepid.

Mineral Reserves are reported exclusive of Mineral Resources.

Mt = million tons, % = percent, K 2 O = potassium oxide, ft = feet, ROM = Run-of-Mine

16 unchanged sentences

Elevations range from 3,900 feet (ft) to 4,400 ft above mean sea level.

The property is located approximately 20

miles west of Moab, Utah, which is 234 miles southeast of Salt Lake City, Utah.

The property is located approximately 20 miles west of Moab, Utah, which is 234 miles southeast of Salt Lake City, Utah.

The Colorado River runs north–south along the eastern boundary of the property.

26 unchanged sentences

The concentrates are then dried, compacted, and screened into premium grades of white potash.

We ship the product to market in trucks or rail cars.

We ship the product to market in

trucks or rail cars.

Both potash and salt products are processed at the plant facility at a rate of 400 to 1,200 tons per day.

12 unchanged sentences

The Moab property is pledged as collateral for our revolving credit facility.

We have a reclamation bond in place for approximately $5.6 million, which we expect to increase to approximately $7.5 million.

We have a reclamation bond in place for approximately $7.5 million.

There are no other significant encumbrances to the Moab property, including current and future permitting requirements and associated timelines, permit conditions, and violations and fines.

As of December 31, 2023, the net book value of our material Moab property was $79.5 million.

There are no significant factors and risks that may affect access, title, or the right or ability to perform work on the Moab property.

1 unchanged sentence

Leases and Permits

Our Moab potash leases include 10,100 acres from the State of Utah and approximately 200 acres from the U.S.

We own approximately 3,800 surface acres overlying and adjacent to portions of the mining leases with the State of Utah.

At our Moab facility, we lease approximately 10,100 acres from the State of Utah and approximately 200 acres from the federal government through the BLM.

We own approximately 3,800 surface acres overlying and adjacent to portions of acres leased from the State of Utah.

These leases generally contain stipulations that require us to commence mining operations within a specified term and to continue mining to retain the leases.

Our lease with the federal government is for an indefinite term subject to readjustment of the lease stipulations, including the royalty payable to the federal government.

Royalty payments equal a percentage of product sales less freight.

The current royalty rate stipulated in the federal lease is five percent.

In 2023, Moab made no royalty payments to the federal government.

Our Moab leases with the State of Utah are for terms of 10 years subject to extension and possible readjustment of the lease stipulations, including the royalty payable to the State of Utah.

Our Moab leases with the State of Utah are operated as a unit under a unit agreement with the State of Utah, which extends the terms of all the Moab state leases as long as operations are conducted on any portion of these state leases.

Our Moab leases with the State of Utah are currently extended until 2024 or so long as potash is being produced and stipulate royalty rates of five percent.

In 2023, Moab paid $2.5 million of royalties to the State of Utah.

History of Operations

Texasgulf, Inc.

began conventional underground mining began in 1964, but various mining problems caused management to convert to a system combining solution mining and solar evaporation in 1971.

Prior to 1970, approximately 6.5 million tons of sylvinite ore was mined and from that, 1.7 million tons of potash produced.

began conventional underground mining in 1964, but various mining problems caused management to convert to a system combining solution mining and solar evaporation in 1971.

Prior to 1970, approximately 6.5 million tons of sylvinite ore were mined and from that, 1.7 million tons of potash produced.

Mining was by continuous miners and made difficult by the irregular floor, gas, and high rock temperatures.

9 unchanged sentences

It was believed that solution mining over the prior 32 years had solution mined most of the remnant pillars in the old workings and that active solution mining was restricted to the updip faces of the mine ribs.

We evaluated methods to enhance the production rate and resulted in the decision to develop solution mining in Bed 9.

We evaluated methods to enhance the production rate and decided to develop solution mining in Bed 9.

Bed 9 is located 800 to 1,000 feet below Bed 5 and is of higher KCl content.

1 unchanged sentence

A novel method of solution mining was adopted for recovery of potash from Bed 9.

Moab Salt‐27 and Moab Salt‐28 were drilled “horizontally” in 2002 in Bed 9 to connect and provide pathways for the liquor injected in Moab Salt‐27 to contact the sylvinite and differentially dissolve the sylvite before being lifted from Moab Salt‐28.

Moab Salt‐27 and Moab Salt‐28 were drilled “horizontally” in 2002 in Bed 9 to connect and

provide pathways for the liquor injected in Moab Salt‐27 to contact the sylvinite and differentially dissolve the sylvite before being lifted from Moab Salt‐28.

Currently, Moab Salt‐29 connects Moab Salt‐27 and ‐28 and serves as an alternative to Moab Salt‐27 for injection.

Mineral Resource and Reserves Comparison to Prior Year

We had no material changes in our mineral resource at the Moab Property at December 31, 2022, compared to December 31, 2021.

Our Moab Property mineral reserve product tons at December 31, 2022 decreased from mineral reserve product tons reported at December 31, 2021, due to 2022 production.

We engaged RESPEC, a qualified firm and independent of Intrepid, to prepare a technical report summary for our Moab material property as of December 31, 2023 because changes in our cost of production and recent capital investments resulted in material changes in the mineral reserves and mineral resources estimates from the revised technical report summary prepared as of December 31, 2021 for the Moab property.

The technical report summary for the Moab material property as of December 31, 2023 is included with this Annual Report on Form 10-K.

Mineral Resource and Reserves

The ore resource model created from the exploration and sampling database in 2007 serves as the basis for this evaluation.

Personal inspection of the properties has occurred over the years by Agapito personnel.

The most recent inspection by Agapito took place on May 17, 2021.

Personal inspection of the properties has occurred over the years by the QP, with the most recent inspection done on May 17, 2021.

The inspection began with a tour of the tailings lake then the solar evaporating ponds.

6 unchanged sentences

All the core holes used in this resource estimation report both bed thickness and grade values that lie within the mine lease boundary.

As an exception to this, the two potash exploration Wells 28 and IPI‐037, which report bed thicknesses with no assay data, are included in the resource estimate for thickness modeling.

As an exception to this, the two potash exploration wells, Wells 28 and IPI‐037, which report bed thicknesses with no assay data, are included in the resource estimate for thickness modeling.

The rationale for the measured, indicated, and inferred limits is based on industry practice in the potash industry.

1 unchanged sentence

In addition, the indicated resources are selected to be within ¾ of a mile (3,960 feet) of a hole and the inferred resources are selected to be within 1½ miles (7,920 feet) of a hole.

Indicated tons exclude measured tons, inferred tons excludes the indicated and measured tons.

Indicated tons exclude measured tons, inferred tons exclude the indicated and measured tons.

This convention is considered reasonable for the geologic characteristics of the Cane Creek potash deposit.

29 unchanged sentences

Inferred mineral resources 38 23 9 Minimum of 3-ft and 18.95%K 2 O

Moab—Summary of Mineral Resources in Millions of Tons of Sylvinite in Place effective December 31, 2022 Based on $406/product ton mine site

Processing Recovery (%)

Measured mineral resources 113 26 30 Minimum of 3-ft and 18.95%K 2 O

Indicated mineral resources 190 25 47 Minimum of 3-ft and 18.95%K 2 O

Measured + Indicated mineral resources 303 25 77

Inferred mineral resources 38 23 9 Minimum of 3-ft and 18.95%K 2 O

1 Sylvinite is a mixed evaporite containing NaCl and KCl.

Pure KCl equates to 63.17% K 2 O by mass.

2 Solution mining resource cutoff for flooded old workings is the mining extents boundary.

Mineral Resources were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid.

Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis.

Mineral Resources were prepared by RESPEC, a qualified firm for the estimate and independent of Intrepid.

Mineral Resources are reported exclusive of Mineral Reserves.

Mineral Resources are reported using Inverse Distance Squared estimation methods.

13 unchanged sentences

The mine plan for Bed 9 includes the three existing operating caverns and three additional planned caverns.

Estimate of the reserves within the current and future well system area use grade and thickness drillhole data and production to date.

Estimate of the reserves within the current and future well system area uses grade and thickness drillhole data and production to date.

No estimate was made of the ore tons, average thickness, and average grade for the previously solution‐mined areas from Bed 9, only the equivalent tons of K 2 O and KCl were estimated.

5 unchanged sentences

In-Place KCl (Mt) In Situ Grade 1

(Mt) Brine Cutoff

Processing Recovery (%)

2 unchanged sentences

Total Mineral Reserves 3.5 28.4 2.6

1 In situ grade is the amount of K 2 O in the contact areas of the caverns.

2 Brine cutoff grade is the amount of K 2 O n the extracted brine necessary to cover the costs of production.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis.

Mineral Reserves are reported based on a solution mine plan, dissolution factor of 89%, areal recovery of 94%, geologic factor 94%, plant recovery of 83%, product purity of 95%.

Mt = million tons, % = percent, K 2 O = potassium oxide, ft = feet

Moab—Summary of Potash Mineral Reserves effective December 31, 2021 Based on 325 $/product ton mine site

Moab—Summary of Potash Mineral Reserves effective December 31, 2022.

Based on $325/product ton mine site.

In-Place KCl (Mt) In Situ Grade 1

(Mt) Brine Cutoff

Processing Recovery (%)

2 unchanged sentences

Total Mineral Reserves 3.3 27.3 2.4

1 In situ grade is the amount of K 2 O in the contact areas of the caverns.

2 Brine cutoff grade is the amount of K 2 O n the extracted brine necessary to cover the costs of production.

Mineral Reserves were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis.

Mineral Reserves are reported based on a solution mine plan, dissolution factor of 89%, areal recovery of 94%, geologic factor 94%, plant recovery of 83%, product purity of 95%.

1 In situ grade is the amount of K 2 O in the remaining pillars of old works and is used to calculate In-Place KCL.

2 Product tons are calculated by multiplying the In-Place KCl by:

dissolution factor of 89%, areal recovery of 100%, geologic factor of 94%, plant recovery of 86%, handling loss factor of 97.5%, and product purity of 104% (1/0.96).

3 Brine cutoff grade is the amount of K 2 O in the extracted brine necessary to cover the cash costs of production.

4 Product tons are calculated by multiplying the In-Place KCl by:

dissolution factor of 89%, areal recovery of 94%, geologic factor of 94%, plant recovery of 83%, and product purity of 1/95%.

Mineral Reserves were prepared by RESPEC., a qualified firm for the estimate and independent of Intrepid.

Mineral Reserves are reported exclusive of Mineral Resources.

Mt = million tons, % = percent, K 2 O = potassium oxide, ft = feet

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The cores are collected and analyzed for ore zone identification.

Cores are compared to the gamma‐ray log to determine sampling intervals.

compared to the gamma‐ray log to determine sampling intervals.

Duplicate samples are collected with one sample sent to the on‐site lab and the other stored with the corresponding core box from which the sample was sourced.

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Because the basin is closed topographically and has no outlet, loss of water is ultimately through evaporation.

BSF was formed through the prolonged accumulation of evaporite minerals in conjunction with periodic lacustrine events.

The BSF was formed through the prolonged accumulation of evaporite minerals in conjunction with periodic lacustrine events.

There are three aquifers known to exist beneath the BSF, in descending order, the shallow-brine aquifer, the alluvial-fan aquifer, and the deep-brine aquifer.

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The majority of personnel live and work in Wendover, Utah or West Wendover, Nevada, approximately three to six miles from the operation.

The Wendover Airport is

located near the operations, although most commercial flights serve the Salt Lake City Airport, which is approximately 115 miles from the operation.

The Wendover Airport is located near the operations, although most commercial flights serve the Salt Lake City Airport, which is approximately 115 miles from the operation.

We have operated the property continuously since 2004.

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We use monitoring wells drilled in October 2005 to evaluate brine quality in the shallow-brine aquifer.

Leases and Permits

Intrepid owns approximately 57,500 acres located in Township 1 North, Range 18 West;

Township 1 South, Ranges 17, 18 and 19 West;

Township 2 South, Ranges 18 and 19 West;

and Township 3 South, Ranges 18 and 19 West.

The BLM and the State of Utah own approximately 32,800 acres of the Wendover site, which we lease (excluding lands used for highway and utility purposes).

The State of Utah owns several state land trust sections within the site boundaries.

We hold leases from the federal government that include 24,700 acres adjoining the Wendover property to the east.

We also lease 8,100 acres of property from the State of Utah under special use and mineral leases.

The state leases are interspersed among our property and the federal leases.

The Wendover property is pledged as collateral for our revolving credit facility.

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There are no other significant encumbrances to the property, including current and future permitting requirements and associated timelines, permit conditions, and violations and fines.

As of December 31, 2023, the net book value of our material Wendover property was $42.2 million.

There are no significant factors and risks that may affect access, title, or the right or ability to perform work on the property.

Wendover holds numerous environmental and other permits and governmental approvals authorizing the operations at the facility.

Leases and Permits

We own approximately 57,500 acres of the Wendover site.

The BLM and the State of Utah own approximately 34,000 acres of the Wendover site, which we lease (excluding lands used for highway and utility purposes).

We hold leases from the federal government that include 25,900 acres adjoining the Wendover property to the east.

Our Wendover federal leases have an indefinite term subject to readjustment of the lease stipulations, including the royalty payable to the federal government.

Royalty payments equal a percentage of product sales less freight.

The current royalty rate

stipulated in the federal leases is three percent.

In 2023, Wendover made $0.3 million in royalty payments to the federal government.

The State of Utah owns several state land trust sections within the Wendover property site boundaries.

We lease approximately 8,100 acres of property from the State of Utah under special use and mineral leases.

The Wendover state leases are interspersed among our property and the Wendover federal leases.

The Wendover state leases are for an indefinite term subject to readjustment of the lease stipulations, including the royalty payable to the State of Utah.

Royalty payments equal a percentage of product sales less freight.

The current royalty rate stipulated in our Wendover state leases is four percent.

In 2023, Wendover made $0.1 million in royalty payments to the State of Utah.

History of Operations

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Mineral Resource and Reserves Comparison to Prior Year

We had no material changes in our mineral resource at the Wendover Property at December 31, 2022, compared to December 31, 2021.

Our Wendover Property mineral reserve product tons at December 31, 2022 decreased from the mineral reserve product tons reported at December 31, 2021, due to 2022 production.

We engaged RESPEC, a qualified firm and independent of Intrepid, to prepare a technical report summary for our Wendover material property as of December 31, 2023 because changes in our cost of production resulted in material changes in the mineral reserves and mineral resources estimates from the revised technical report summary prepared as of December 31, 2021 for the Wendover property.

The technical report summary for the Wendover material property as of December 31, 2023 is included with this Annual Report on Form 10-K.

Mineral Resource and Reserves

The ore resource model used to determine resources and reserves was created from a database of brine sampling data in 2007 and include brine sample from the active mining horizon.

Agapito has previous completed reserve estimation and analyses under SEC Guide 7, including personal inspection of the property.

The most recent inspection was on May 19, 2021 and included the potash plant, evaporation ponds, wellheads, and ditches.

The ore resource model used to determine resources and reserves was created from a database of brine sampling data in 2007 and includes brine samples from the active mining horizon.

The QP's most recent inspection was on May 19, 2021 and included the potash plant, evaporation ponds, wellheads, and ditches.

No traditional drilling exploration has taken place in Wendover.

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Cutoff grade assumptions are based on historic cost data sourced from operations.

Product sales prices used in the cutoff grade analyses is based on historical sales and marketing results and forward-looking pricing provided by Intrepid marketing and compared to third party sources.

Product sales prices used in the cutoff grade analyses are based on historical sales and marketing results and forward-looking pricing provided by Intrepid marketing and compared to third party sources.

Resource estimates for shallow-brine aquifer were based on the difference between historic well data collected between 1965 and 1967 and current monitoring data with consideration of the cutoff grade.

There has been no change in trend

of KCl grade to the primary pond or in potash production with brine grade held steady at approximately 0.97% for 58 years without declining.

There has been no change in trend of KCl grade to the primary pond or in potash production with brine grade held steady at approximately 0.97% for 60 years without declining.

Resource estimates for the deep-brine aquifer were based on current deep-well draw-down, pumping rates, and historical brine concentration variations.

This resource is classified as an indicated resource due to the hydrological uncertainty of the aquifer and is expected to support production for at least 25 years.

Wendover—Summary of Mineral Resources in Millions of Tons of Sylvinite as of December 31, 2022 and 2021.

Wendover—Summary of Mineral Resources in Millions of Tons of Sylvinite as of December 31, 2023.

Based on $450/product ton mine site.

Resources Processing Recovery

Sylvinite Brine 1

K 2 O Brine 1

Contained K 2 O 2

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Inferred mineral resources 1,358 0.5 6.8 0.23 85

1 Sylvinite brine is NaCl and KCl in solution at average concentrations by weight.

2 Solution mining resource cutoff is grade at which production covers operating costs.

Mineral Resources were prepared Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid.

Mineral Resources are reported exclusive of Mineral Reserves, on a 100% basis.

Wendover—Summary of Mineral Resources in Millions of Tons of Sylvinite as of December 31, 2022.

Based on $406/product ton mine site.

Resources Processing Recovery

K 2 O Brine 1

Contained K 2 O 2

Measured mineral resources — —

Indicated mineral resources 250 0.5 1.2 0.19 85

Measured + Indicated mineral resources 250 0.5 1.2 0.19

Inferred mineral resources 1,360 0.5 6.8 0.19 85

1 K 2 O Brine is the recovered KCl bearing brine in solution at average concentrations by weight.

2 Contained K 2 O is calculated by multiplying K 2 O Brine by the Grade.

3 Solution mining resource cutoff is the grade at which production covers operating costs.

Mineral Resources were prepared RESPEC, a qualified firm for the estimate and independent of Intrepid.

Mineral Resources are reported exclusive of Mineral Reserves.

Mineral Resources are reported using Inverse Distance Squared (ID 2 ) estimation methods.

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Based on $360/product ton mine site.

Sylvinite Brine 1

In Situ Grade 2 (%K 2 O)

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Total Mineral Reserves 832 0.5 1.7 0.3

1 Sylvinite brine is NaCl and KCl in solution at average concentrations by weight.

2 Solution mining reserve cutoff is the grade at which production covers operating costs.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis.

Mineral Reserves are reported based on an overall recovery factor of 60% and a product purity of 95%.

Mt = million tons, % = percent, K2O = potassium oxide, ft = feet

Wendover—Summary of Potash Mineral Reserves effective December 31, 2022.

Based on $325/product ton mine site.

Sylvinite Brine 1

In Situ Grade 2 (%K 2 O)

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Total Mineral Reserves 820 0.5 1.7 0.3

1 Sylvinite brine is NaCl and KCl in solution at average concentrations by weight.

1 Brine advanced through the pond system.

2 In-situ grade is the amount of K 2 O contained in the brine.

3 Potash Product tons are calculated by multiplying Brine by:

the In-Situ Grade divided by 63.17% K 2 O/KCl conversion factor, an overall pond recovery factor of 30%, processing recovery of 85%, a handling loss factor of 97%, and a product purity factor of 105%.

4 Solution mining reserve cutoff is the grade at which production covers operating costs.

Mineral Reserves were prepared by Agapito Associates, Inc., a qualified firm for the estimate and independent of Intrepid.

Mineral Reserves were prepared RESPEC, a qualified firm for the estimate and independent of Intrepid.

Mineral Reserves are reported exclusive of Mineral Resources, on a 100% basis

Mineral Reserves are reported based on an overall recovery factor of 60% and a product purity of 95%.

Mineral Reserves are reported using Inverse Distance Squared (ID 2 ) estimation methods.

Mt = million tons, % = percent, K2O = potassium oxide, ft = feet

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• The HB mine has a current estimated productive capacity of 180,000 tons annually.

The productive capacity may vary between approximately 160,000 and 200,000 tons of potash, primarily due to evaporation rates.

Potash produced from our HB mine is shipped by truck to the North facility for compaction.

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• The Moab mine has a current estimated productive capacity of approximately 110,000 tons of potash annually.

evaporation rates have historically varied and, consequently, productive capacity may vary between approximately 75,000 and 120,000 tons of potash.

• Potash at Wendover facility is produced primarily from brine containing salt, potash, and magnesium chloride that is collected in ditches from the shallow aquifers of the West Desert.

1 unchanged sentence

• The Wendover facility has a current estimated productive capacity of approximately 75,000 tons of potash annually.

evaporation rates have historically varied resulting in actual annual production between approximately 65,000 and 100,000 tons of potash.

Conventional Underground Mines

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1,393 224 1,472 270 1,732 287

1,348 7.8% 226 1,057 8.6% 228 913 8.9% 213

East 1,285 7.3% 216 1,348 7.8% 226 1,057 8.6% 228

Total Primary Products 440 496 515

1 Mill feed grade shown is as percent of K 2 O.

Mill freed grade is a measurement of the amount of mineral contained in an ore as a percentage of the total weight of the ore.

Mill feed grade is a measurement of the amount of mineral contained in an ore as a percentage of the total weight of the ore.

For potash it is often represented as a percent of potassium oxide (K 2 O) or percent potassium chloride (KCl).

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We have permitted, licensed, declared and partially adjudicated water rights in New Mexico under which we sell water primarily to support oil and gas operations and developments in the Permian Basin near our Carlsbad facilities.

During the extraction of potash and Trio ® , we recover marketable salt, magnesium chloride, metal recovery salts, water, and brine containing salt and potassium from our mining processes.

During the extraction of potash and Trio ® , we recover marketable salt, magnesium chloride, water, and brine containing salt and potassium from our mining processes.

Our salt is used in a variety of markets including animal feed, industrial applications, pool salt, and the treatment of roads and walkways for ice melting or to manage road conditions.

Magnesium chloride is typically used as a road treatment agent for both deicing and dedusting.

At our Moab and Wendover facilities, we also produce metal recovery salt, which is potash mixed with salt, in ratios requested by our customers.

Metal recovery salt is a combination of potash and salt that chemically enhances the recovery of aluminum in recycling processing facilities.

Our brines are used primarily by the oil and gas industry to support well development and completion activities.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties