Itafos Taps Castlelake Partner for Board, Signaling Strategic Shift

HOUSTON, TX – January 16, 2026 – Itafos Inc. (TSX-V: IFOS), a global phosphate and specialty fertilizer producer, today announced a significant change to its Board of Directors with the appointment of Joseph McConnell, a Partner and Deputy Co-Chief Investment Officer at Castlelake, L.P. The move places a key figure from the affiliate of Itafos’s principal shareholder directly into its governance structure, signaling a strategic tightening of the relationship between the company and its primary investor.

McConnell’s appointment, effective immediately, sees him replace Isaiah Toback as a nominee by CL Fertilizers Holding LLC (“CLF”), Itafos’s majority owner and an affiliate of global private investment firm Castlelake. The change was framed as a strategic enhancement by the company's leadership.

"We are pleased to announce the appointment of Joe to the Board of Directors. His experience and expertise will strengthen the Board’s ability to provide oversight and guidance, bringing valuable skills and new perspectives as the Company advances its business objectives and strategic initiatives,” stated Anthony Cina, Chairman of Itafos's Board of Directors. Cina also extended his thanks to the departing Mr. Toback for his contributions.

The Investor's Hand on the Helm

This board reshuffle is more than a routine corporate update; it represents a deliberate move by Itafos’s controlling shareholder to embed one of its top strategists within the company’s highest decision-making body. Castlelake, through its affiliate CLF, holds a commanding majority stake in Itafos, reported to be over 60%. This ownership grants it significant influence, including the right to nominate directors pursuant to an investor rights agreement.

By appointing McConnell, Castlelake is not merely filling a seat. As Deputy Co-Chief Investment Officer, McConnell is central to “guiding and executing the firm’s global investment strategy across asset classes,” according to the company’s announcement. His presence on the board suggests a desire for more direct alignment between Itafos’s operational strategy and the investment philosophy of its principal backer. Castlelake is known for its focus on asset-based and opportunistic investments, managing a portfolio of approximately $25 billion. This appointment could herald a more hands-on approach to unlocking value from Itafos’s extensive asset base.

A Strategist's Eye on Fertilizer Assets

Joseph McConnell brings a specific and potent skill set to the Itafos board. His career at Castlelake, which he joined in 2007, has seen him co-head the firm’s Aviation and Real Assets businesses before ascending to his current role. His expertise lies in identifying and executing complex, value-driven investments in asset-heavy industries. This background is particularly relevant for Itafos, a company whose value is intrinsically tied to its vertically integrated physical assets.

These assets span three continents and include the Conda phosphate fertilizer business in Idaho, which produces around 550,000 tonnes of fertilizer products annually, and the Arraias business in Brazil, with a capacity of 500,000 tonnes of single superphosphate. Furthermore, the company is advancing two significant growth projects: the Farim high-grade phosphate mine in Guinea-Bissau and the Santana mine and plant project in Brazil. These capital-intensive initiatives, alongside a crucial program to extend the mine life of its Conda operations beyond 2037, require sophisticated financial oversight and strategic capital allocation—areas where McConnell’s experience will be directly applicable.

His track record at Castlelake involves overseeing large fund portfolios and guiding investment teams, suggesting a disciplined approach to capital deployment and risk management that will be instrumental as Itafos weighs its next major strategic moves.

Navigating a Volatile Global Market

The timing of McConnell’s appointment is critical, as Itafos navigates an increasingly complex and volatile global fertilizer market. The outlook for 2026 is clouded by several challenging factors. A primary concern is the tight global supply of phosphate, driven largely by China’s decision to curtail exports through at least mid-2026 to secure its domestic supply. With no other major producer positioned to fill the gap, prices are expected to remain elevated.

Simultaneously, fertilizer producers face mounting pressure from high input costs, particularly for sulfur and natural gas. This has squeezed margins across the industry. Compounding these market dynamics is a wave of new regulations. The European Union’s Carbon Border Adjustment Mechanism (CBAM), which imposes carbon pricing on fertilizer imports, takes full effect in 2026, while the U.S. is implementing stricter standards for greenhouse gas emissions. Navigating this confluence of supply constraints, cost pressures, and regulatory change requires sharp strategic acumen. McConnell's expertise in global investment strategy and risk assessment provides Itafos with reinforced leadership to steer the company through these turbulent waters and potentially capitalize on market dislocations.

Building on a Foundation of Strength

Despite the market headwinds, McConnell joins a company that is operating from a position of considerable financial strength. Itafos has posted impressive results, reporting strong revenue and net income growth through 2024 and 2025. Critically, the company has successfully deleveraged its balance sheet, achieving a zero net debt position by mid-2025 and boasting over $165 million in liquidity.

This robust financial health provides a solid platform for growth. Operationally, the company has increased production at its core facilities in Conda and Arraias. It is also making tangible progress on its strategic goals, including the restart of the granulation circuit at Arraias and advancing the permitting process for its Conda mine life extension, with first ore shipments from the new site expected in the latter half of 2025. McConnell’s appointment is therefore not a course correction for a struggling firm, but rather a strategic reinforcement designed to accelerate value creation and guide the company’s next phase of expansion and optimization.