Increased K sales volumes boost Intrepid 3Q

Denver — Intrepid Potash Inc. reported a 31 percent uptick in net income for the third quarter ending Sept. 30, 2012, to $33.3 million ($0.44 per diluted share) on sales of $129.3 million, compared to the year-ago $25.5 million ($0.34 per
share) on sales of $114 million. Third-quarter potash volumes were up 31 percent, to 249,000 st from the year-ago 190,000 st. Intrepid attributed the increased volumes to its continued efforts to expand its customer base, with more warehouse and consignment agreements. Intrepid says so far the fall season is suggesting overall normal demand for potash across North America for the 2012-13 growing season. Intrepid’s average realized potash prices for the third quarter were down 9 percent, to $444/st from the year-ago $489/st. Production was up, at 189,000 st from 173,000 st. While Intrepid’s langbeinite Trio product saw decreased sales volumes to 27,000 st from the year-ago 54,000 st, average prices were up 46 percent, to $336/st from $251/st. Production was level at 35,000 st. Nine-month Intrepid net income was $72.9 million ($0.97 per share) on sales of $340.4 million, down from the year-ago $84.5 million ($1.12 per share) on sales of $338.3 million. Nine-month potash sales volumes were up at 636,000 st, with a slight decrease in average price to $460/st compared to the year-ago 610,000 st and $464/st. Production was down at 578,000 st from 616,000 st. Trio sales volumes were down at 82,000 st with prices averaging $320/st, versus the year-ago 145,000 st and $226/st, respectively. Production declined to 98,000 st from 110,000 st. Intrepid is projecting fourth-quarter potash sales volumes of 190-220,000 st and production of 200-230,000. It projects full-year 2012 sales of 830-860,000 st and production of 780-810,000 st. Fourth-quarter Trio sales are projected at 35-50,000 and production at 25-40,000 st. Both full-year sales and production are seen at 120-135,000 st.