Intrepid Potash Inc. said Jan. 20 that it estimates the company produced between 215,000-225,000 st of potash, and sold between 210,000-220,000 tons of potash, during the fourth quarter ending Dec. 31, 2010. Production includes the seasonal production from the harvest of the Moab, Utah, solar evaporation ponds.
Intrepid estimates its average net realized sales price for potash during the quarter was approximately $380-$390/st. Intrepid estimates that it produced approximately 25,000-35,000 st of Trio(R) as it came out of the planned East plant maintenance turnaround in October, and sold approximately 20,000-30,000 st of Trio. Intrepid estimates that its average net realized sales price for Trio during the quarter was approximately $215-$225/st. Intrepid expects to release its audited, fourth-quarter 2010 and fiscal-year-end 2010 financial results after market close on Feb. 23, 2011.
For the full year ended Dec. 31, 2010, Intrepid invested approximately $90-$95 million in its capital investment program, including the successful execution and completion of the compactor at the mine in Moab, Utah, and the addition of two new mining panels at both the East and West mines in Carlsbad, N.M.
In 2011, Intrepid expects to invest approximately $140-$165 million related to its capital investment program, to be funded from existing cash and investments and operating cashflows. Significant capital investments in 2011 beyond sustaining capital of approximately $50 million will be focused on the Langbeinite Recovery Improvement Project at the East mine; the commencement of design, engineering, and construction of new compaction capacity at both the Wendover, Utah, facility and the North facility in Carlsbad; continued implementation of digital control systems; and the addition of new underground mining panels at each of the Carlsbad mines.
Intrepid says it was recently notified by the Bureau of Land Management’s (BLM) consultant that the schedule for the Environmental Impact Statement (EIS) review process for the proposed HB Solar Solution Mine has been extended in order for the BLM to complete preparation and review of the preliminary draft EIS. The revised schedule reflects issuance of a Record of Decision during the first quarter of 2012.
Intrepid received the groundwater discharge permit for the project from the New Mexico Environment Department (NMED) in July 2010, and is in the process of obtaining the NMED air quality permit for the project. Once the remaining regulatory approvals are obtained, Intrepid anticipates promptly commencing construction. The revised schedule will result in the shift of approximately $10 million of capital investment that would have occurred in 2011 into 2012, resulting in the remaining capital expenditures for the mine occurring in 2012 and 2013. Intrepid estimates that first production will commence approximately eighteen months after construction begins, with ramp-up to full production expected in the succeeding year, reflecting the benefit of a complete annual evaporation cycle applied to full evaporation ponds.