POTASH CORP-UNION AGREE ON MEDIATOR, SHARE PRICE ON THE UP AGAIN
By Daniella D’Alimonte – Exclusive to Potash Investing News
The cost of oil is bringing about an increased demand for alternate forms of energy, namely bio-fuels. This, in turn, creates an increased demand for agricultural plantings and the use of potassium-based fertilizers. Thus, potash’s status as the main potassium-bearing fertilizer explains the skyrocketing prices.
“We believe crop nutrients are today more essential than ever. They play a critical role in optimizing crop yields, helping meet the world’s surging demand for food, feed, fiber and fuel,” said Jim Prokopanko, Mosaic’s President and Chief Executive, in a statement. Mosaic, a producer and marker of concentrated phosphate and potash crop nutrients, had profits quadruple to $862.5 million in its fiscal fourth quarter. The company is also planning over $3.7 billion in mill expansions and for setting up new potash mines in Canada and the U.S.
Meanwhile, Potash Corp. of Saskatchewan (TSX: POT) announced a Q2 net income of US$905.1 million - a US$619.4 million increase as compared to the same period last year. The company has reported earnings of US$1.7 billion over the last six months.
A recent series of rotating strikes caused the company to lose US$3.47, or 1.69 per cent to US$202.42, but it is now back up to US$216.91 per share. Potash Corp. and the union, striking at three of its mines, ended talks July 29 with a mutual agreement to seek a mediator. They hope to resume discussions by August 1. Bill Johnson, spokesperson for Potash Corp., told the Star Phoenix that the company is pleased with the progress so far and was hoping to make advancements. Lee Edwards, a United Steelworkers negotiator, mentioned the union’s cautious “optimism” to the Star Phoenix. USW represents the almost 500 underground and mill workers who have been without a contract since the end of April. The union rejected an offer made on July 16, saying that it failed to address wages, overtime, pension, control over contracting out and vacation among other issues.
After Potash Corps Q2 earnings more than tripled from last year’s, workers further expressed their dissatisfaction with company support. Potash Corp. insists its offer would boost employees to the best paid potash-miners in the industry. Up 14.4 per cent, or US$0.44 to US$3.58 per share, Potash One Inc. (TSX: KLC) plans to announce updated financial results within a week, according to a spokesperson.
It recently completed its acquisition of the Legacy potash project from Invictus Minerals Corp. Potash One gained 100 per cent ownership of over 121 hectares of land located near Moose Jaw, after purchasing the first 25 per cent in May.
Compass Minerals first Q 2 results
Kansas-based Compass Minerals has announced its first Q2 results, with sales at US$162 million. This is a 27 per cent increase from US$127.5 million results in Q1. The company chalks it up to its improvement in the specialty fertilizer segment along with solid salt segment gains.
Pebble Creek’s application for Indian state survey accepted
Pebble Creek Mining Ltd. (TSX: PEB) announced that the state Government of Rajasthan, India, recently accepted the company’s application for reconnaissance permits in the Nagaur-Ganganagar basin. The government insists the application will be verified quickly as they do not require potash applications to get a secondary approval. According to a press release, within the 100,000 square kilometers, the Geological Survey of India has provided a historic estimate of “probable” potash of 404 million tonnes.
Potash exploration over
Western Potash Corp. (TSX: WPX) announced the completion of its first potash exploration within its Russell-Miniota Exploration Permits. Samples were taken from the main potash zone on the 555 sq kms bordering Manitoba. Results from the Saskatchewan Research Council Laboratory in Saskatoon should be available within 6 to 8 weeks.
Mantis gets permission to explore
Mantis Mineral Corp. (CNQ) recently announced the acquisition of potash exploration permits in prospective potash areas of Saskatchewan. Matis’ property includes 3957 hectares of land north of Potash Corps Lanigan Mine. Based on the Petrolane report, a geometrical projection predicts a potential 623 million tonnes of potash on the company’s newly acquired land, at an average depth of four metres.
