Rodman & Renshaw Conference
09.09.15
2
Safe Harbor Agreement
September 2015
This presentation contains forward-looking statements that are subject to
significant risks and uncertainties, including statements related to the future
operating and financial performance of the Company.
Although the
Company believes that the expectations reflected in its forward-looking
statements are reasonable, it can give no assurance that such expectations
will prove to be correct.
Cadiz Inc.
3
About Cadiz
Renewable resources company (NASDAQ: CDZI) with diverse land and
water assets –
o 45,000 acres of land
o
Abundant groundwater resources at all properties
o 20-year organic farm development
o Permits to implement new, innovative water supply project in ‘droughtstricken’ California
4
Cadiz Assets in Southern California
5
Market Overview: Urgent Need for Water in CA
o 4th Year of drought -- historic
mandatory rationing and use
restrictions.
o Long-term challenges for
traditional water infrastructure
o Water pricing reflects surging
demand
• Rates have historically
increased approx. 6%/year.
• Market prices for reliable
supply $1K/af - $2K/af
•
Drought penalties @ $3K/af
6
Cadiz Water Resources
o 1,300 sq. mile watershed - size of
Rhode Island.
o Approx. +20 MAF, comparable to
Lake Mead in gw storage.
o Estimated average natural
recharge 32,500 af/year
o Cadiz Inc. only significant overlying
land user.
o Water pumped by Project is
otherwise lost to evaporation each
year from hyper-saline dry lakes.
7
Cadiz Valley Water Project
Innovative and Sustainable Water Source for
Southern California
Phase 1 – Conservation & Recovery
o Expand existing well-field and manifold system on Cadiz Inc.
property to create “picket fence” to intercept and conserve water.
o Recover 2.5 million acre-feet of water, transport it through a 43 mile
pipeline to the Colorado River Aqueduct and then throughout So.
Cal.
o NO adverse environmental impacts from Project operations
o Creates reliable supply for 400,000 people served by retailers in 6
So. Cal. Counties receive water.
8
Cadiz Valley Water Project - Phase 2
o Once hydraulic barrier established in Phase
1 limiting loss of water to evaporation,
Project can store imported water in wet
years and return it to the system when
needed in dry years.
o Facilities – Additional pipeline, pump station
and spreading basins.
o Total storage capacity = 1 million acre-feet.
o Larger than most surface reservoirs in So.
Cal.
9
Interconnects Major CA Water Infrastructure
10
Construction & Contracts
o Phase 1 build-out costs estimated at
$250M, includes
 pipeline,
 expanded wellfield,
 ancillary facilities, including CR6
treatment & ROW improvements.
o Project fully subscribed, with contracts
and options to deliver 50,000 AFY @
approx. $960/AF.
o Storage reservations starting at
$1,500/AF.
11
Water Project Next Steps
Q3 2015 Achievements
 Pre Construction Engineering/
Geotechnical Exploration
 Lucid Energy Green Power
 Affordable Chrome 6 Treatment
 CRA Capacity Review
 Amicus Support Filed in Appeal
Q4 2015 Final Steps
o
o
o
o
BLM Certification of RR ROW use
MWD transportation arrangements
CEQA Appeals hearings
Contracts
12
Agricultural Development
o 45,000 acres of land held in fee
simple with water rights all zoned
to be developed for Ag.
 9,600 acres under conditional
use permits for Ag
development
o Comps at $7K - $11K/acre at full
build out.
o Agriculture would be developed
consistent with Water Project
permits or would be built out, if
Project delayed.
13
Financials
@6/30/15
Shares Outstanding
18 Million
Market Capitalization
$140 Million
Cash
$10 Million
Debt – Sr. Secured *
$46 Million
Debt – Convertible*
$60 Million
Enterprise Value
$246 Million
• Senior Secured Mortgage - $45M:8% Interest PIK, $35M Maturity March 2016, $11M Maturity June 2017 &
Convertible Notes - $60M:Convert at $8.05/share, 7% Interest PIK, Maturity March 2018.
14
Questions?
For more information, visit www.cadizinc.com
Email: IR@cadizinc.com
Twitter: @Cadiz_Inc