Intrepid Transitions to New Potash Plants

Intrepid Potash Inc of Denver, CO has reported 2013 net sales of US$307.5 million, down from US$422.2 million in 2012. The company’’s potash net sales declined 31% to US$264.0 million while sales of Trio langbeinite (potassium magnesium sulfate) rose 5.5% to US$43.4 million. Intrepid’s potash sales volume for 2013 fell 17.5% to 692,000 tons and potash production decreased 2% to 780,000 tons. The company’’s average net realized sales price for potash in 2013 was 16% lower at US$382/ton. Potash sales volume was impacted at year-end by lack of buyer confidence due to pricing trends. Intrepid’s langbeinite sales volume for 2013 declined 1.5% to 123,000 tons and production was 35% higher at 177,000 tons. The company’’s average net realized sales price for langbeinite in 2013 was 7% higher at US$352/ton. Bob Jornayvaz, Intrepid’s executive chairman, commenting on fourth quarter results, said, “It was a tough quarter of transition at our plants while decommissioning of old plants and commissioning and ramping up new plants, all against the backdrop of uncertain demand caused by plunging potash prices. The transition process increased costs while we produced intermittently from the old plants and tested and commissioned new plants. Having said that, we took on the challenge, cut costs where we had to and are looking forward to operating our new plants and seeing stronger demand. “With the uncertainty around potash prices, we will remain focused on managing our cost structure, optimizing the performance of our new assets; creating more sales flexibility and diversity; and realizing the value of the incremental, low-cost potash produced at our new HB Solar Solution mine. We believe our strategy is the right one for the current environment and for creating shareholder value in the long term.” During 2013, Intrepid produced the first tons of potash at its newly-constructed HB mill in Carlsbad, NM; finished commissioning the first and second compaction lines at the newly built North facility also in Carlsbad; and completed drilling and began injecting brine into a third cavern system at its potash solution mine in Moab, UT.

Volume 28 issue 5

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