Thank you, operator. And good morning, ladies and gentlemen.

Thanks for joining us today for our conference call and Webcast. As usual, joining me today is Rohit Bhardwaj, our Chief Financial Officer.

Before I commence the review, I would remind you that our presentation contains certain forward-looking statements that are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. Further information identifying risks, uncertainties and assumptions, and additional information on certain non-IFRS measures referred to in this call can be found in the disclosure documents filed by Chemtrade with the securities regulatory authorities, available at sedar.com.

One of the non-IFRS measure we'll refer to in this call is adjusted EBITDA, which is EBITDA modified to exclude only non-cash items such as unrealized foreign exchange gains and losses. For simplicity, we will just refer to it as EBITDA as opposed to adjusted EBITDA on this call.

Both of these terms are fully defined in our MD&A. Turning now to the quarter, once again most of our businesses were stable for the second quarter.

We generated distributable cash after maintenance capital expenditures of $39.7 million or $0.57 per unit, compared to $38.8 million or $0.56 per unit for the same period last year. EBITDA for the quarter was $59.4 million, which is slightly higher than the second quarter of last year.

As Rohit will outline our two major segments SPPC and WSSC, both generated EBITDA slightly higher this quarter than they did in the second quarter last year. Regarding our water solutions business, we previously discussed our strategy of adding new plants, expanding our product range and stabilizing our alum business.

The second quarter results showed the positive benefits of these initiatives and we continue to be pleased with this business and our progress in improving it. Turning to our SPPC segment and its largest products, sulphuric acid there was a further development on one of the issues we had mentioned during our last call.

This related to the customer that makes another chemical caprolactam by using acid from our over defense [ph] acid plants. This customer publically announced on June 30, 2016 that their plant operations well gradually wind down over the next 16 months.

Our Augusta, Georgia customer -- our Augusta Georgia plants is essentially a dedicated plan for this customer. Although we are exploring other merchant marketing opportunities and equipment modifications to keep our assets plant viable, we do not expect to recover the same rate of earnings historically generated by this pipeline customer.

To put this in perspective, we anticipated generating EBITDA of about U.S. $7 million or free cash of about $6 million this year from this plans, which we acquired as part of our acquisition of general chemical.

The customer has an existing contract with us through 2021 and that contract includes a capacity reservation fee equal to about half of the EBITDA indicated above through 2021. We expect the customer to perform the contract through 2021 and if not we intend to pursue recovery of these fees, which is if successful will medicates some of this loss until 2021.

Clearly, it's not a desirable turn of events, but neither as a material when Chemtrade's earnings as a whole are considered. So to summarize, the second quarter of 2016 was one of generally steady performance from most of our businesses.

We are facing some future disruption because of the illuminant shutdown of a customer's operation, but are also seeing positive developments from our water solutions initiatives and a substantial organic growth opportunity in one of our specialty chemical businesses which I’ll talk about in my concluding remarks. Rohit will now provide you some additional details on the second quarter financial results.

Thanks Mark, good morning everyone. In general our businesses operated well in the second quarter.

Our water business was stable and our acid business performed well. The asset issue Mark mentioned will affect us in the future and in this quarter the write down affective net income, but since it's non-cash, it did not affect EBITDA.

Financial results modestly benefited from the stronger U.S. dollar, however this was offset by lower prices for sulphur in both our SPPC and international segments and lower volumes of sulphuric acid in our international segment.

Revenue for the second quarter of 2016 were $304.2 million a decrease of $34.6 million from 2015. The primary reason for the decrease was lower prices for sulphur in both our SPPC and international segments and lower volumes of sulphuric acid in our international segment.

For the three months ended June 30, 2016, distributable cash after maintenance CapEx was $39.7 million or $0.57 per unit, compared with $38.7 million or $0.56 per unit in 2015. Aggregate EBITDA for the second quarter of 2016 was $59.4 million, compared with $58.7 million in the second quarter of 2015.

Turning to segmented results for the quarter, SPPC generated revenue of $144.6 million and EBITDA of $38.9 million, compared with $158.4 million and $38 million respectively in 2015. The main reason for the decreased revenue year-over-year was lower selling prices for sulphur partially offset by the positive was stronger U.S.

dollar. The increase in EBITDA was due to continued strength in our regen products.

There is also a small benefit from the stronger U.S. dollar.

As Mark mentioned, our plant in Augusta, Georgia supply sulphuric acid to a customer that has publicly announced that their operations will be gradually winding down over the 16 months. Because the cash flows associated with our assets will no longer be able to support their carrying value, we recorded a write down of $55.7 million this quarter.

This was partially offset by a large income tax recovery of $27 million primarily as a result of the reversal of certain deferred tax liabilities associated with this asset that was written down. Finally, we also recorded an impairment loss of $3.1 million related to intangible assets associated with this customer.

Our WSSC segment reported second quarter revenue of $117.5 million, compared with $117.8 million in 2015. EBITDA was $31.5 million, up slightly from the $30.8 million generated in 2015.

Our international segment reported revenue of $42 million for the second quarter, compared with $62.5 million in the second quarter of last year. The lower revenue was due to lower volumes of sulphuric acid and lower selling prices of sulphur.

In general, international markets of sulphuric acid have been weak in 2016 relative to 2015. EBITDA for the quarter was $2.7 million compared with $3.5 million last year.

Maintenance CapEx for the second quarter were $8.7 million bringing our spending on maintenance CapEx for the year to date to $13.6 million which is below our anticipated annual run rate. However, as in recent years this is mostly a timing issue and we believe that we meet our expected spending levels as the year progresses.

We now expect the maintenance CapEx for 2016 to be somewhat less than the $50 million that we had previously indicated. Excluding unrealized foreign exchange gains and losses, corporate cost during the second quarter 2016 were $13.7 million, so essentially the same as the second quarter 2015.

Our balance sheet at June 30, 2016 continue to be in sound shape. We had drawn about U.S.

$470.2 million on our senior credit facility. Our term loan is fully drawn, but we maintain about U.S.

$444.8 million of undrawn capacity, which provides us with ample liquidity. The credit facility matures in October 2020.

I'll now hand the call back to Mark. Mark?

Thank you, Rohit. While our sulphuric acid business faced some residual challenges from the sourcing issues in first quarter, most of our businesses including the acid business performed well.

And we are able to generate distributable cash that was comfortably ahead of our distribution to our unit holders. The diversity of our operations means that the adverse issues, like the one that’s affecting our plant in Georgia will not be material to Chemtrade in the aggregates.

On a more positive note, we want to provide you some details on an organic growth opportunity that now coming in fruition. Previously, we had described some of our other recent organic growth initiatives such as a new adjuvants facility we are building, the expansion of our portfolio in the water solutions business and the expansion now completed of our [indiscernible] operations.

We indicated that all these activities with fall within the $10 million to $15 million growth CapEx forecast. We are pleased to now advice you about the growth project in our potassium chloride or KCL business in Midlothian, Texas.

At this facility, we make high purity KCL for the food and pharmaceutical markets. We see high purity potassium chloride as a key inorganic salt for both pharmaceutical and food markets.

Recently issued voluntary FDA guidelines recommend the U.S. food industry work towards a 50% reduction in sodium chloride or salt content in their products over the next 10 years.

And potassium chloride is one of the ways in which food industry can help meet these guide lines. Further the market for after pharmaceutical ingredient or API KLC is increasing as drugs used to treat diabetes and hyper tension find wider use.

We’ve decided to expand our existing facility by more than 50% at a cost of approximately $30 million. Recently, we concluded a long term sales contracts with our key API customer that links their growth with ours.

We expect this project will generate a return on capital in excess of 30% and it will come online sometime in 2018. Thank you for your attention this quarter, and Rohit and I will now be pleased to answer any questions.

Operator?

Just a few clarification questions on the Augustus facility. So have you guys decide -- has it been determined what -- how the facility will, I guess phase down over the next 16 months and does that mean that your run rate EBITDA of about U.S.

$7 million from that facility will gradually step down through that 16 months period as well?

It's not determined, a little bit more color, right, is as the customer winds down which time is still in fluxed, our plan will end up winding down with it. What supports a continued earning flow as I mentioned is regardless of how much they produce.

Until 2021 at least there is a capacity reservations fee that they will owe us which essentially equals about half of that EBITDA run rate that I mentioned. So it's hard to tell you what the linear answer to that question is.

I see. And have you written down the facility, down to zero or is there some -- I know it's non-cash but is there still some value you’re holding on the balance sheet for that facility?

No, we actually did write it down to zero, even though we are evaluating options there. From an accounting perspective, we didn’t want to try and create a model that [indiscernible] and onshore what the value is going to be.

So we wrote it down to zero.

Okay, and then I guess if that facility would no long be in use and you’d have to decommission it, do you know roughly how much it would cost to decommission facility like that?

It's not a big ticket item, as a general statement is the salvage value for any of them Steel would offset the cost of decommissioning. And again this is -- frankly this is still late breaking news, we’re not even sure, if it does shutdown whether or not we can use some of the capital equipment elsewhere in our system, as you know we have a number of assets plans.

No, I was just wondering from an environmental remediation perspective.

It's not a big pregnant cost near in the future.

Okay go you. So just on the CapEx side, you mentioned that KCL and some investments on the water side, so all in like 10 million to 15 million for water related investments and 30 million for the case sales, that’s about 40 million to 45 million, does that sound about right for the next year

Yes, so I mean the 30 is one off, right. So that’s for just that one project, the 10 to 15 on the water we had said obviously, as you see this year we haven't, we have spent about less than half of that this year, rebuilding a cent a bit more for next year.

But that 10 to 15 is probably good for couple of years and 30 of course is a onetime thing, right.

And the third area’s that the actually spending profile will still being workout, but it's probably 20 in next year and 10 in '18.

Probably yes.

Something like that.

Yes.

Something like that, and probably something in the fourth quarter this year. We encourage in '17 and we referred [ph] in '18.

And we can more clarity in the next conference call on that project.

Okay. Just one last question, it's going to already half way through Q3, does it look like it's going to be a pretty flat quarter, year-over-year, like are there any things or surprises we can expect in Q3, that we will have about in a few months?

Obviously, I think FX would be a potential a slight benefit and then yes still seem lower as fair down surprises. I mean FX, I don’t think is a great benefit year-over-year, right.

It is -- we haven't yet been surprised by the pulmonary stuff we’ve seen so this quarter.

Okay great. Thanks a lot guys.

Just on the expansion on the potassium chloride plant. Why are you deciding to do now number one and, two what return are you return are you are expecting among those investment?

Well, I’ll answer the last one first. So as we indicated, we are going to get -- we expect a return on capital of about 30% and $30 million.

So that’s in the range of the returned return. Right now actually as there is more demand today than we get reliably supply on our API product.

The drugs that were specked into actually that will go into -- that were -- aren’t will continue to be in production, actually have a growing demand base. So there demand full for the product.

Then on the food side, because getting both of these s when you expand is as we indicated there is drive towards reducing actual salt in a bunch of foods and potassium chloride has and will continue to be one of the key raise of actually replacing that sodium content.

I got on got on a call over the leak [ph]. But do you mentioned how long you think it's going to take you to build this facility?

Yes, we would be online in 2018.

2018, and do you think you will be able to sell all of that products and immediately?

Yes, we’re pretty close to -- work for all those data.

And then at 10 million to 15 million in CapEx, I assuming that covers off that pack platform expansion, you are talking about previously?

Yes, it does.

Okay, where are you at with that?

One is than there is property running and the second one is, remember it was going to be commissioned. Before the end of the year.

Before the end of year.

Before the end of the year, and then there is probably a third in next year.

And what type of returns do you think you are getting -- we’ll be able to get on that? Will that be similar to the potassium chloride one?

Probably not as high as potassium chloride, as we’ve said probably in the 20% kind of range, so.

Okay. And then on the WSSC division, can you talk about the EBITDA margins?

It looked to me like there was a slight improvement, how much of those U.S. dollars, I know that you had some issues in the past with -- I wouldn’t call a predatory pricing, but more competition I guess on the pricing side, are you seeing any, or that is that based on results?

So the FX shouldn't really be an issue for topline margin percentage because the revenue and EBITDA both are U.S. denominated.

So FX shouldn’t be a factor. And the pricing is little bit more stable.

We would have to -- there is number of different products in their, so it's hard to generalize. We can't generalize by saying that the margin is in our alum business are actually stronger this quarter than they were in the same period last quarter -- last year.

And did you cover off the impact of the forest fires in the quarter?

We didn’t mentioned, but it was not material to us. I mean like are some extra costs to running around those stuff just not materials to us.

But you’re basically getting a flat fee from that same crude?

We will get a flat fee and we get some upside depending on production throughput and pricing outlet by product that gets sold. But again the differential growth [ph].

Not material.

All right. That’s helpful thanks guys.

Just following with Nelson's question, were you saying that you see Q3 trending about flat with year-over-year some of which we saw in Q2 for overall earnings for Chemtrade?

I don’t think we want to get too precise with that kind of guidance, but I think the question was do we -- have we seen any surprises so far in the quarter, and we haven’t.

I am just ask them. So [indiscernible] my question, so earnings getting similar in Q3 year-over-year performance versus Q2?

It's okay, not sure what the comparison, what we saw, we saw it actually leak six months ago, than we thought of 2016 should look a lot like 2015, right. And I don’t see any reason to change that.

Okay, so similar earnings in '16 as '15, is still the guidance?

Yes.

In SPPC, so margins were really high, sulphure and sulphuric acids obviously have come down, price obviously have come down to get your best margin in that division for many years, can you talk about that, is that all on regen and what's going on in that business?

No, so I think as we said in the past that selling prices are high, our margin are low -- percentage margins are low. And conversely when selling prices come down the percentage margin goes up and that’s just a function of the way we have, we shape contracts particularly in the SPPC segment.

So it's not just a region thing, it's just general that’s what tends to happen in pricing -- in the low pricing environment.

But we can also say that the regen continue --.

Yes, it is performing well.

A good performer to us, as you know. And as you know, regen margins are general higher than merchant [multiple speakers].

Okay. With Valley [ph] and Copper Cliff, you have the issue in Q1 of being a good customer and taking more tons than you had to, how did that play out in Q2 and also if that situation is to arrive again in the future, have you had discussions about making sure that maybe Chemtrade is taking care of little bit better in the future?

I’ll give two answers at once, actually they ran I think above what we expected in Q2 as well, just not to the same magnitude, which is I think what we indicated in our last call, right. So they have now recently returned to a more usual run rate for us.

And look, we always have discussions with our long term partners like Valley [ph] about what an appropriate sharing of extra costs or extra benefits is, and we will continue to have those discussion with Valley [ph]. But quite frankly, we don’t feel hard put upon by actually continuing to serve them.

It’s been a good long term relationship for us and one of the values we add is an ability to handle peaks and valleys of by-product production.

Okay. And finally what is sort of the appetite now for acquisitions just in case they’re of running 2x, 2.5x or 2.6x leverage, you are adding a bit more growth capital here in Texas with the KCL plant, how you being pitched a lot versus last couple of years, what your appetite right now for M&A?

Our appetite is actually always veracious, but cautious. Sorry joking aside, look we are always looking to add size, scale and diversity of earnings as along as its in businesses we understand and that fit our business model.

And I think, I have said before is there is always assets available in the chemical industry, people are always taking things apart and putting them back together again. And we haven't continued to see a number of opportunities that if we chose to execute on them, we can do, but we continue to be disciplined and only actively pursuing things that we think fit us.

But there is -- there is plenty to do out there right now. If it fits our business model and valuations worked.

Just one more question actually, if I understand you did hit about flattish earnings in '16, second half year earnings have been higher than the second half of '15, is that right?

Yes, for the first quarter you know we were down, so I think I wouldn’t take those comments that literally because the first quarter we mentioned those three specific issues we had and the assets that were down about $4 million or $5 million. So it's unlikely that we will make that backup.

Okay so flattish earnings ignoring $5 million or $6 million hit you have in Q1?

Yes, that’s in the ballpark, I mean we’ve still got a few months to go, so we don’t --.

Look, we are not going to -- we don’t get frankly that precise, we have actually told you all about, again, this issue in Augusta which again is not material in aggregate. But if you are asking about $2 million to $3 million offs, period-vs-period we are not sure we’re going to be able to offset that, alright so.

Okay, thank you very much.

The organic build opportunity actually sounds quite attractive, I am just curious whether there is other opportunities within your system that might also be on the table at some point in the near future, could you elaborate on those? And maybe just a broader statement or question of statement is, this a reflection of the multiples being paid in sector right now and it’s just that much more attractive [indiscernible] growth versus acquire?

I’ll answer it in a bunch of different ways right, it is we have always been desirous of organic growth, but a number of the products that were in our portfolio didn’t really have an organic growth profile, and again I think if we go back a year and half ago or so, we actually said one of the attractive things of the assets we got when we acquired General is not only did we actually know a bunch about the business, but there were assets that actually had organic growth potential be adjuvants, the water business that they talked about and actually in that KCL. If you take those and our ultra-pure sulphuric acid business, that’s probably where we look for organic growth in the most likely places to find it.

So we will continue to actually look for where we can grow our business organically there is not a plethora of opportunities, but there are these ones that we are doing and hopefully we’ll find some others. But based on our current product portfolio we are not going to magically overnight turn into an ex-financial organic growth machine, despite the fact that we like to make it.

Understood. And is that something you contemplate then when you are looking at these new businesses is -- I know you have historically looked at some of these more matured type businesses perhaps with less organic growth.

But do you -- contemplating that as you look to broaden a portfolio or diversify?

Yes, certainly. We will look to same as we always do with this differences, we always -- I think we have said this before, we spend a lot more time diligencing the down side than actually the up.

But once we’re actually contain that we actually have boxed, the down side is certainly we than turn our minds to how could we growth what we have, either by just making it better. As we have said before, investing capital into the process and improving our processes, was within one other things we do to actually organically grow the business.

So yes, we defiantly will be looking for opportunities to do that. But again I don’t want to oversell it than our primary focus too will be actually protecting against the down ,primary focus to will be actually protecting [indiscernible] down.

Understood. And just one last one if I may on the in guess the facility.

Do you have a sense for when you will get clarity on the timing of the wind down or I guess the cadence of the wind down and how that regress your payments for might work on the recovery basis?

I think we will have better visibility on over defense guys wind down, frankly in the next two months probably, right. It might actually take another three or four months and after that for us the figure out the best and highest value use for our assets.

Understood, thanks guys appreciate.

Mark, just a point of clarification on the Georgia facility, the capacity reservation fee, just to be clear, that’s a fee that you would collect annually over the remaining term of the contract?

Yes.

Okay thank you.

Just a quick question on the plant closer, so I know this is the capital active, is this indicative something in the industry or it's just a one off for this individual client?

I think it's actually good for the industry there an industry that’s suffering from right. Is there industry is suffering from over capacity, which is depressing prices and all that good stuff.

So quite frankly, we don’t follow the overall industry that closely, because of the bunch of plants in Asia and things like that that we don’t deal with, right. I think this is the big event in the North American capital active industry, it would send a -- should have a good knot out that’s for the worldwide industry.

But I am not really sure how it would effects actually the industry outside of North America.

And we don’t have any other plans that are hooked into the industry directly like this.

Okay. And do you know where utilization rates go for the industry with this plant closing?

No. As we said in our I guess our last call, right, as the industry ties to force through -- capital active industry tried to force through a price increase that they all needed to actually make money and it wasn’t successfully and obviously part of the reasons it wasn’t successful was very capacity.

So force through a price increase that they all needed actually and make money. And that wasn’t successful and obviously part of reason it wasn’t successful is overcapacity.

So if you start watching now, it wouldn’t surprise if they come back and trying force through that price increase. But again as Rohit says, we’re really not too connected to that industry other than this one plant.

Okay. Thank for your time.

Thank you all for your attention and we look forward to talking to you next quarter. Thank you.