Intrepid Potash Inc. reports that on Sept. 10, with the approval of the Mine Safety and Health Administration, it resumed production at the West Mine near Carlsbad, N.M. As previously disclosed, on Aug. 26, 2015, Intrepid temporarily suspended production at the West Mine while it took corrective actions to resolve maintenance issues and salt build-up in the ore hoisting shaft at the mine.
Primarily as a result of the production outage at the West Mine, Intrepid has updated its second-half and full-year 2015 outlook. It has lowered its potash production ranges by approximately 45,000 st from estimates given in July. Second-half has gone from 440-460,000 st to 395-415,000 st while full-year went from 830-850,000 st to 785-805,000 st.
Second-half Trio production went from 75-90,000 st to 65-80,000 st with full-year from 155-170,000 st to 145-160,000 st.
Intrepid said it expects abnormal production costs for second-half 2015 of between $6-$8 million relating to the production outage at the West Mine, including incremental costs related to maintenance work in the ore hoisting shaft, some of which will continue into the fourth quarter.
Intrepid also updated the potash and Trio® sales volume outlooks to reflect current demand across the fertilizer sector, which has been slow to develop for the fall season.
Second-half potash sales went from 415-445,000 st to 300-345,000 st with full-year going from 790-820,000 st to 675-720,000 st. Second-half and full-year total cash costs for potash remained the same as earlier guidance at $275-$290/st and $285-$300/st, respectively.
Second-half Trio sales estimates dropped from 80-95,000 st to 55-70,000 st; full-year went from 175-190,000 st to 150-165,000 st. Second-half total cash operating costs went from $260-$275/st to $290-$305/st; full-year from $255-$270/st to $265-$280/st.