Denver—Intrepid Potash Inc. reported increased potash volumes with higher prices for the first quarter ending March 31, 2012, though net income was $20.6 million ($.27 per diluted share) on sales of $112.2 million, down from the year-ago $28.3 million ($.38 per diluted share) on sales of $105 million. Potash sales volumes were 203,000 st with an average net realized price of $477/st, compared to the year-ago 196,000 st ($442/st). The average potash gross margin was $206/st, down from $218/st. Production was 218,000 st, compared to 234,000 st. “I am very pleased with our first quarter,” said Bob Jornayvaz, Intrepid executive chairman of the board. “Intrepid was able to achieve solid potash sales despite hesitancy by dealers during the quarter. Because of our strong customer relationships, diverse markets, and the hard work of our sales team, we were able to capitalize on the sales opportunities available in our core geography. Intrepid is well positioned to meet the demands of our end markets, while earning the best margin on each ton of product we sell.” Intrepid noted that dealers have become risk adverse, and thinks they will end the season with low inventories. It believes they have added storage capacity so as to avoid risk. Intrepid believes spring and fall potash usage by farmers will be in line with historical levels. Trio sales volume was 28,000 st ($302/st), down from 52,000 st ($204/st). Production dropped to 30,000 st from 31,000 st. Trio gross margin was a negative $9/st, versus a negative $3/st. Going forward, Intrepid is projecting second-quarter potash sales of 125,000-175,000 st and production of 165,000-185,000 st. It projects 2012 sales of 810,000-860,000 st and production of 790,000-830,000 st. For Trio, it projects second-quarter sales and production of 35,000-45,000 st. For the year, it expects Trio sales and production of 180,000-200,000 st.
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