Also around 4.3 million tons of ammonia, of about 17 million tons of ammonia traded. Twenty percent of the LNG is blocked right now, and obviously that impacts India, Pakistan, Europe and China. With the events overnight, gas prices in Europe have gone up to $25. India just announced today they're banning exports of ammonia and urea. Twenty-two percent of global DAP and MAP is behind the Strait of Hormuz in Saudi Arabia. It's about 6 million tons out of 28. More even impactful to phosphate is 45% of globally traded sulfur is in the Strait of Hormuz.
Right now, you know, if you look at China, Morocco, Jordan, Egypt, Tunisia, all these countries that rely on sulfur from the strait, you know, from those Persian Gulf countries, they're concerned, and nothing's moving. I think most phosphate producers around the world were anticipating a lower sulfur price in Q2. My instinct is that most of them are gonna be running low on sulfur as we enter into the second quarter. You know, we don't know what impact that's going to have on global operating rates. This is significant. I've never seen anything like this in my life. You know, this is probably, you know, much worse than what happened in 2022 with the Russian invasion of Ukraine. You know, obviously at that time, the pipeline to Europe was blown up.
Since then, nitrogen production in Europe's been impacted. They've been up and down. This is impacting N and P markets in a big way. We will continue to watch. I know there have been Ukrainian drone strikes on Russian nitrogen plants. You know, I can't name the number of plants that have been impacted, but it's significant. I think, you know, overnight the Qatari LNG facility was hit. India relies a lot on LNG to make nitrogen. Those rates earlier in the week were cut by 30%. Also India relies very heavily on Persian Gulf production for urea imports. What they have bought in the last 30 days is blocked.
Between nitrogen output being curtailed, not able to get urea, you know, there are a lot of countries around the world obviously that are very concerned right now. I think the impact on global oilseed and grain production could be impacted with just from a sheer lack of fertilizer to grow those crops. We obviously don't know what that full impact's going to be, but I do feel like there will be an impact on global oilseed and grain production based on the events of the last 20 days. I don't see this, even if it ended today, I just think the impact, it's gonna take a while to clean things up and get back to pre-war levels, based on just the sheer damage that's happened in that region. I will say, December corn prices are now closer to $4.95.
They were $4.40 not long ago. Bean prices are up, wheat prices are up. You just wonder, you know, globally, countries that are importers of those commodities, how they think about this post-war in terms of ensuring they have strategic grain reserves and supplies, and how that changes maybe global demand the next two or three years. I'll close with China, you know, was a major exporter of phosphate in the 2010s, and then about four years ago, they cut back that export capability from about 30%, 33% of global trade to around 15% today.
They have 30 years or so of rock reserves, and they're wanting to ensure that their farmers have enough phosphate, and they've also diverted obviously a lot of P2O5 to electric vehicles to make LFP for electric vehicles. A lot going on there. They had indicated they would not export phosphate until August of this year, around 4 million tons, let's say of DAP, MAP of again a 28 million ton market. I think the fear now is if they can't get sulfur, you know, what happens to that ability to export and the volume of exports that they had planned? Does that even happen? Again, a lot of impact on both commodities, on gas, oil, LNG, sulfur, nitrogen, and I think the world is scrambling right now in terms of supply.
I'll stop there. I know there will be questions. I'll turn it over to you, Matt.
Thanks, David. If we could move forward a slide, John. It's just our standard disclaimer relating to our resource statements and forward-looking statements. Just a quick overview of our business. Conda is our flagship asset located in Southeast Idaho. Our other operating asset is Arraias in Brazil, and we have two undeveloped assets, one being in Brazil with Santana, and the other one in Farim, which I'll touch on in a little bit. If you could move forward. This really just is the statement that sort of underpins what it is we do. We strive and we have been successful in being the leader in operational performance in North America. Our operating rates, our utilization rates, are second to none. We've been able to really run our business at high utilization rates.
It's allowed us to clean up our balance sheet, increase liquidity, and really allow us to fund our growth capital through internally generated cash flows, also while de-leveraging the balance sheet. Even before the impact of this conflict, there were strong market fundamentals. Supply was difficult and costly to bring online. Demand was steadily increasing, and we felt that, you know, at best, the market was in balance, if not slightly below, you know, just tight market. This is just gonna further exacerbate that. In terms of the value creation side of our business, we continue to look at our assets and how we can drive performance and shareholder returns.
Really demonstrated by the sale of a non-core asset last year, where we generated gross proceeds of a little under $44 million from the sale of a rare earth project that we had to an Australian mining company. If you move forward to the next slide. This really underpins the nature of our business. As you can see here, we compete against two much larger public peers in the North American market. There's also a fourth producer, Simplot, who are private, so we don't have their data. But you can see on the left our operating rates, our utilization rates and what happens on an EBITDA margin basis.
Although we're the smallest producer and the most geographically isolated, given our utilization, the quality of our resource and the work of the team, we've outperformed our peers from an overall margin perspective. It's really a testament to the overall performance of the company. Next slide. This just demonstrates, you know, what we've done from a balance sheet perspective. We've completely cleaned up the balance sheet. You can see on the right the amount of liquidity we have. Net debt is 0.1 times at the end of the year. Really testament to the operating performance. It's, as I've said, allowed us to delever the balance sheet, but also, fund all our internal growth capital that we've had to spend, over the last 36 months. As I said, strong market fundamentals.
David touched on it a little bit. China had reduced exports. Very little incremental supply coming on. Continued strong demand globally for phosphates. Brazil, India are large importers of phosphate. The conflict is only gonna exacerbate this shortage, and continue to drive strong market fundamentals in our industry. If we go through to the next slide, you know, here what we're really trying to demonstrate is sort of what our capital spend has been. Our first and consistent priority is continuing to invest in our maintenance capital. I think that is a key differentiator between ourselves and some others in that we are very reliant on the performance of our business, and we haven't short-changed what we've done at all in terms of investing into our assets.
You can see that through our operating results. Operating cash flow has been significant, as you can see here. We've generated over $500 million of operating cash flow in the last four years. That's allowed us to delever the balance sheet, as I said, as well as fund our new mine development. The new mine is fully operational, extends our mine life through 2037, and we've got exploration activities ongoing to extend that even further. We've also developed and released a new preliminary economic assessment for our Brazilian operations as well. One of the key things about our business is, you know, we have traded at a historical gap to some of our peers.
This gap has narrowed over the last 12 months, but it still exists, especially for a company that's performing as well operationally as we have. A couple of dynamics at play here. We are the smallest and so have a key reliance in our single asset. We also have a major investor who owns two-thirds of our stock, and so it has had an impact on liquidity. Those volumes around our shares have increased significantly both in Canada and on the OTCQX as well in the US. If I could move forward. Just a quick overview of our assets. As I said, Conda is the flagship business. It's our key operation in Southeast Idaho. Just quickly on raw material inputs, 'cause David talked about how they could potentially be impacted globally.
Our supply all comes from North America. We get our ammonia from Canada, from a Nutrien facility. We get our sulfuric acid needs from Rio Tinto that are located in Utah, and we get the remainder of our sulfur requirements from Canada. We're isolated from some of the impacts that we'll see globally. Clearly prices are moving in relation to sulfur, which has the potential impact on our business. We would expect fertilizer prices to move as well. Our ammonia is priced off a Canadian gas index, and so we would expect that we're a little bit more insulated from potential movements up in ammonia prices because of the conflict. You can move forward a slide. As this slide shows, it's our workhorse asset. It's really what drives our overall business.
You know, one of the unique things about what we do is that we do not sell at a retail level. We sell major part of our business off a long-term contract. It's a ratable contract. That does differentiate us in that we're not having large increases in working capital in the summer and winter. Those contracts are ratable and are taken every month. Help certainly from a working capital perspective, as well as the perspective of just our overall margins and the consistency of our margins quarter on quarter. This slide just highlights where we are with our mine. It's up and running.
It's a testament to the team out there, from the permit in May 2023, the notice to proceed, we were able to build a new mine and load-out facility that became fully operational in the fourth quarter of 2025. Our other major growth CapEx project right now is the Magnesium Reduction project. It is an upgrade to the front end of our production facility. We would expect that to be fully operational in the second half of 2027. Moving forward, what really excites us out at Conda is just the potential for the extension of mine life out here. We are currently operating in the North Dry Ridge and Husky 1 mines. We are testing the southern extension of that through exploration and appraisal activity.
We will drill a little over 60 exploration and appraisal wells this summer, and then the opportunity for further exploration on the Freeman Ridge mining interest that we also hold. We think there's the potential out here for multiple decades in resource upgrades. We're working through updating our technical reports, and over the next 36-60 months, we would expect to produce two more technical reports here that show a significant extension to our existing resource base that per the report is supposed to be complete by 2037. In relation to Brazil, I'm very excited about what's happening in Brazil. In 2019, 2020, this asset was in care and maintenance. We've been slowly redeveloping how we market and produce at this asset.
In 2025 we produced $13 million of EBITDA, so almost a $20 million swing to the positive in terms of our operational performance. We're looking to continue to define and build out our CapEx program there to restart our beneficiation circuit so that we can produce SSP that we expect to be able to sell into the Brazilian market in 2027. If you move to the next slide, what that will allow us to do is to produce a commodity base out there that is very, very much in demand. Brazil imports almost all its fertilizers, and so we think there's an opportunity to grow this business and have a sustainable business you know that will exceed the current EBITDA run rate as we start SSP production.
This is just really a slide that sort of shows what we need to do. Based on the preliminary economic assessments, 14 years life. There's incremental reserves that we'll true up as we drill out in that Domingues and other pits in our Brazilian asset. We've got about $8 million of CapEx associated with our beneficiation circuit that we expect to spend. If you use the sort of economic indicators in the PEA report, we think this business is a business that can generate, you know, somewhere between $20 million and $30 million of positive EBITDA, depending on market prices, input prices, et cetera. It's a pretty dramatic turnaround from where this business was as little as years ago. Just quickly touching on our non-developed assets. We wanna leave time for questions.
We have one of the best undeveloped resources anywhere in the world in Farim. Farim is located in Guinea-Bissau. We're currently doing some work in Guinea-Bissau around looking at alternative options to develop that resource, potentially through a phased development that would reduce the upfront capital. Looking to potentially export via Senegal rather than building a port in Guinea-Bissau. Lots of interest in this project from an offtake perspective. What we're looking to do is ensure we understand the resource completely and the development options, before we go and look at how we would market that asset, both from an offtake perspective but also, around the structure of that development, whether it be, you know, a potential sell down or outright sale of that asset, if we can attract value for it.
Then finally, on the undeveloped asset side, there is an asset that we hold called Santana. Not a lot of infrastructure around that asset, but Brazil is short natural resources on the fertilizer side. There's very little cost to holding this, and so we're gonna begin some work through studies on how the best way to optimize a potential development at Santana looks like, in the coming 12 months, so that we can be in a position to understand how the best way to unlock value associated with it. Just quickly on our financial results, which we released yesterday. Another very, very strong year. Very consistent with the prior year, in terms of overall performance.
Our operational and our safety performance was best in class from an industry perspective, so something that the entire team is proud of. Just here is just our updated guidance for 2026. You know, in terms of our capital spend, you can see the commitment to continue to maintain our assets, and so we'll continue to put money into those. The growth CapEx is largely related to Conda, and that magnesium oxide project. We do have some spend around our reclamation and environmental activities, as we ceased operations in our Rasmussen Valley Mine, in September of last year. Again, this is just a summary of the earlier slide. You've seen summary.
Really great operational performance, really strong market fundamentals and demand for phosphate, high barriers to entry, and then looking to continue to optimize our portfolio and create as much value as possible for our shareholders. Daniel, with that, I'm gonna leave it to you to open it up for questions.
Perfect. We've got a little bit of time. We do have some questions that have come in, but if you do have questions, please type those into the box and we'll get to as many as we can. David, I wanted to go back to you for a second. You highlighted increasing corn and wheat pricing. For those of us new to the story, can you just remind us what you're seeing from farmer affordability, and any concerns in this market moving forward?
Yeah. We had already projected at least a 20% decline in phosphate consumption in the United States, probably globally this fertilizer year, July 1 of last year to June 30th of this year. We think that's already happening. Part of that globally is a little bit of just supply availability and you know, from China and what do they do. I know they announced earlier in the year they wouldn't export anything until August. A year ago, they exported quite a bit of fertilizer that first six months of lower grade phosphate fertilizer, so Brazil was a big recipient of that. That just isn't available and so it's really turning them to buy more MAP fertilizer from other sellers in the market. But I...
You know, affordability is one thing, but I do think availability's gonna become a bigger issue moving forward with what's happening in the Middle East, and I think that's why there's been a little bit of a run-up in grain and oilseed prices just because, you know, what is going to be the impact on global grain and oilseed production if you can't get the nitrogen and phosphate around the world, as you plant your crops and, you know, if you're at your time of year, then that's gonna have an impact on yields. We were already at a pretty low level globally from a stocks-to-use ratio closer to 16%. So, you know, historically it ranges from 16%-19%. The lower the percentage, the higher grain prices are.
I think the world's kind of gotten a little relaxed at 16% just thinking, oh, everybody's gonna grow a big crop every year and we'll have plenty of grain and oil seeds, and I think that's kind of getting, you know, turned around right now just because, you know, people are thinking I don't have to keep a strategic grain or oil seed reserve, and there's plenty of crops out there. I just think this year it's just not one country. This could impact every country. I think about a country like Africa that, you know, my God, the amount of hunger that goes on there and food insecurity, they can't afford to lose any fertilizer 'cause they need it. A country like India, like 600 million farmers, they rely on fertilizer, and the government subsidize.
No matter what the price is, the government will subsidize fertilizer to ensure their farmers get what they need to plant the crops they grow. You know, Europe with $25 gas and really just the availability of nitrogen and LNG could just impact, and the farmers could throw in the towel. I'm not saying every farmer would, but there could be, you know, areas that go fallow this year because just no fertilizer. I'm very worried about Brazil and their ability. You know, Brazilian soils are not great, so they cannot afford a holiday on P or K. They're gonna use those products year in and year out. Potash has not been impacted at this point, but this is really a phosphate and nitrogen story. You know, it's a story around the world.
You know, China, do they keep their phosphate home because they can't get sulfur to run P2O5? You know, they're buying a lot of corn and beans in the world. More soybeans than corn, but do they pick up that pace and buy corn now, you know? Again, this is brand new, Dan. This happened 21 days ago, what, 20 days ago? We're still trying to assess the damage. You know, even if the war ends, how quickly can plants come back up? Obviously there's been a lot of damage to LNG and oil fields and shut-ins and ammonia plants are now shutting down because they're running out of storage. I could go on and on with this impact. I don't wanna be overly dramatic about it, but it is a serious situation.
It is severe. I wouldn't say it's catastrophic now, but if this continues, and I can't tell you how many more days, or if it's a month or two months, it becomes, to me, catastrophic in terms of food supply around the world.
Something that you've never seen before in your career.
Never. This has never happened. In 2022, as I said, Russia invaded Ukraine. People were concerned about just Ukraine's ability to grow and export food, and there had a big run-up in grain prices, and they've still been able to export, not to the level before 2022. I think people in 2022 thought that Russia wouldn't be able to export any fertilizer, which they ended up exporting just as much fertilizer post-war. This has impact on so many countries, whether it's production of fertilizer, sulfur, energy, LNG to make nitrogen. It's incredible. I would say what happened overnight just made matters worse with the Iranian-
Yeah
gas fields getting hit, and then Iran hitting the Qatari LNG you know, export facility, which is a big exporter to the world. Again, I don't wanna be overly dramatic about this, but I'm just trying to present all the facts as I know them.
No, it's really helpful, I think, for all the investors involved. We have just a minute left, but I wanna switch to some positive news now. You recently announced the Arraias PEA. Can you just remind us what the findings were there and why you're positioned to win in Brazil, and what makes Brazil such an attractive phosphate market?
Well, Brazil imports 85% of their phosphate, so this was, in a way, a dead asset that we figured out how to run it starting in 2022. We're selling sulfuric acid and these new phosphate products that have been accepted extremely well in the marketplace. What we have found is some zones of rock called breccia and conglomerate that are higher in P2O5. If you look at the entire body of the ore at Arraias, it's very low grade, 4%. We have found these zones and just from the drilling we've done to date, we have around 15 years of reserves. We're gonna continue to do drilling, and we think there's more there.
Once we start our beneficiation plant next year, we're gonna restart that, refurbish that later in the year, that we think we'll be able to even upgrade lower grade P2O5. We'll give you more information as we get it, but we're very high on what Arraias is doing, the products they're selling, great demand. I think we're gonna have another good year similar to this year in terms of volumes of products sold. Adding SSP in 2027 gives us the ability to raise that EBITDA number again. The team down there is switched on, they're doing a great job, and we just kind of figured out how to run that operation.
We're up on time, but David, Matt and John, thank you all for kind of changing up the slides a little bit and spending so much time discussing what's going on in Iran and the tentacles that it holds for the rest of the phosphate market and farmers in general. For those of you in the audience, thank you so much for your participation today. I'm sorry we weren't able to get to all the questions, but I've spoken with the company, and I do encourage you to reach out directly with any questions that you may have, or to myself. I would be more than happy to answer any issues that may come up. David, John, Matt, thank you again for being here. We look forward to seeing you soon.
Thank you.
Thanks very much.
Thanks, everybody.
Bye, everyone.