Intrepid Potash (IPI)

[CHA$E]

Intrepid Potash says fertilizer prices rose in 2Q



Intrepid Potash Inc. sold more potash and received higher prices for its fertilizers in the second quarter, the company said Tuesday.

The mine operator, based in Denver, said it sold between 220,000 and 230,000 tons of potash in the quarter ended June 30, after selling 190,000 to 200,000 tons in the previous quarter. It sold 129,000 tons in the same quarter last year.

Its average net sales price rose by about $20 per ton from the first quarter, to between $455 to $465 per ton, the company said.

Sales were helped by increased processing capacity and new marketing campaign, Intrepid said.

Intrepid produced as much as 215,000 tons of potash in the second April-to-June period, after producing up to 240,000 tons in the first three months of the year, the company said.

Intrepid is the nation's largest producer of potash, a potassium salt used primarily in fertilizers. The company calculates its average net sales prices by subtracting shipping costs from overall sales revenue, then dividing that amount by the number of tons sold.

Intrepid boosted production of Trio, a specialized fertilizer made from langbeinite ore. Langbeinite contains sulfur and magnesium in addition to potassium.

Intrepid produced 40,000 to 50,000 tons of Trio, compared with 25,000 to 35,000 tons in the first quarter. It sold 35,000 to 45,000 tons of the fertilizer, compared to sales of 45,000 to 55,000 tons in the previous period.

The average net price for Trio also increased by about $20, to between $215 and $225 per ton.

The company noted that last month it received a permit needed to build a new langbeinite processing plant near Carlsbad, N.M. Intrepid said it has started construction, and expects to complete the project early next year.

Also last month, federal regulators ended the public comment period on a draft environmental review for a separate proposed mining project in the area, Intrepid said. The company expects a final decision on that project, called the HB Solar Solution Mine, in the first quarter of 2012.

Intrepid is set to release its second-quarter financial results after the market closes on Aug. 3.

Intrepid shares jumped $1.32, or 4 percent, to $32.95 Tuesday


http://www.marketwatch.com/story/intrepid-potash-inc-announces-preliminary-second-quarter-2011-sales-and-production-results-and-a-capital-projects-update-2011-07-19?reflink=MW_news_stmp

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