Evercore Investment Banking Pitch Book
SIRE Situation Analysis
Deca Rehydration
Commentary
SIRE's surface site includes a network of natural ponds used
to recapture soda ash lost in processing trona through a
process called deca rehydration
During trona processing, an evaporative crystallizer
technology is employed to refine and reuse soda ash
throughout the purification process. A concentrated
aqueous solution is introduced to maintain the purity and
quality of the refined soda ash product. Run-off from this
stream flows to the facility's pond network
SIRE developed a solution to reduce the capacity of these
ponds and recover purified soda ash crystals (chemically,
sodium carbonate decahydrate) to be used as an
additional feedstock for trona ore during processing
The Partnership considers its ore-to-ash ratio (i.e., tons of
trona ore needed to produce one ton of soda ash) a key
operating performance metric
A lower ratio results in lower costs and improved
efficiency
After introducing deca rehydration in 2009, the Partnership
reduced its ore-to-ash ratio by 11% over the next three years
Deca rehydration also reduced the energy consumption
required per ton of soda ash produced
Over the past several years, SIRE has utilized its reserves of
deca from the ponds at a rate above SIRE management's
estimated rate of natural replenishment
Management expects to reduce deca consumption (and
the production capacity associated with deca rehydration)
beginning in 2024 to alleviate this depletion
Management estimates that SIRE's stable, long-term deca
rehydration-based production capacity is approximately
150,000 mtpa
Source: SIRE Financial Projections, SIRE management
EVERCORE
21
2.00
1.80
1.60
1.40
1.20
1.00
400
350
300
250
200
150
100
50
1.80
1.74
Confidential - Preliminary and Subject to Change
331
Historical Ore-to-Ash Ratio
1.61 1.60
317
1.56
1.59
188
1.52 1.52 1.50 1.50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1H22
350
Historical and Projected
Deca Sales Volumes (Thousand Metric Tons)
1.54
296 296
150
1.51
1.60
1.56 1.58
I
I
ISIRE Management
150,000 Metric Ton
Estimated Annual
Replenishment
150 150
'18A '19A '20A '21A 22E '23E 24E '25E '26E '27E '28E
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