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Turning out to be a very nice deal for KCL given that they own 13% of PON.
Tiny miner swept up by potash frenzy
ANDY HOFFMAN
00:00 EDT Thursday, June 05, 2008
What's a potash permit worth? About $38-million, judging by the stunning share price increase posted by Potash North Resource Corp. yesterday.
The junior miner, which was previously a shell company called Timer Explorations Inc., saw its stock climb 670 per cent on the TSX Venture Exchange in its debut as a potash play after disclosing it had won an exploration permit from the Saskatchewan Mines Branch.
The new resource play, whose backers include the high-profile mining entrepreneur Robert Friedland as well as Lukas Lundin, the successful scion of the Lundin family mining empire, is just the latest example of the frenzied interest in all things potash related.
"People are going be paying big money for these situations," said Craig Angus, a gold industry veteran who has been named president and chief executive officer of the new venture.
Potash North doesn't have reserves or even a resource estimate for how much of the mineral used to make fertilizer might be contained in the permitted 91,000-acre land package.
The site is east of Regina near the Manitoba border and just 20 kilometres from a pair of potash mines operated by Mosaic Group Inc.
Its few drill holes are historical, mostly from oil and gas explorers.
Still, by the end of trading yesterday, the new potash play could boast a market value of about $41-million.
Saskatchewan hasn't seen a new potash mine for nearly 40 years, in part because of a decades-long slump in prices and the fact that deep potash mines are particularly expensive to build.
Industry experts estimate it will take a minimum of five years for a new mine to be built at a cost of at least $2.5-billion.
Yet soaring prices, which have reached more than $600 (U.S.) a tonne from around $100 four years ago, have helped create a junior potash sector seemingly overnight. It is a phenomenon not dissimilar to the scores of uranium exploration companies that sprouted in 2006 and 2007 amid a rapid rise in the radioactive commodity's price.
"It's the start of an emerging trend you're going to see. It's much like the oil sands industry was 10 or 15 years ago. The potash industry was a sleepy little industry for a number of decades until the dramatic price increases," said Mr. Angus.
The new Potash North CEO believes that sustained high prices, driven by increased fertilizer demand from China and the developing world, will make long-dormant potash deposits in Saskatchewan economically feasible to develop.
The market capitalization of industry giant Potash Corp., the worlds largest producer, has swelled to more than $66-billion (Canadian), and the company has recently vied with banks and Research In Motion Ltd. as the most valuable company on the TSX.
As investors have piled into major producers such as Potash Corp. and Agrium Inc., some interest has now shifted to the new batch of smaller players which are competing to develop the next potash project.
"They are thinking 'I want to find the next play and go further downstream,' so they are looking at the junior space," said Robert Winslow, an analyst at Wellington West Capital Markets, who covers junior potash firms.
The sector got a lift last month when global mining behemoth BHP Billiton Ltd. bid $284-million in cash for Calgary's Anglo Potash Ltd. and its 25-per-cent interest in a potash development project in Saskatchewan. (BHP already owned the remaining 75 per cent.)
"Now, suddenly, you've got a new opportunity in the junior space that hasn't had that lift so investors are trying to get in as early stage as possible," Mr. Winslow said.
Vancouver-based Potash North expects to soon win a second exploration permit for another land parcel. Mr. Angus said the company plans to begin drilling its property this summer and hopes to have an official resource estimate by next year.
Mr. Friedland, is helping the company with "strategy," Mr. Angus said. He wouldn't disclose how much stock Mr. Friedland bought in the private placement. Mr. Lundin will have a 9.9-per-cent stake in the company once the deal closes and Potash One Inc., another junior which once owned the Potash North properties, will have a 13-per-cent stake.
POTASH NORTH (PON)
Close: $1.54, up $1.34
© The Globe and Mail
Your type of post is the very reason why forums like this don't work.
Best of luck to you
Maybe you should ask your friend from whom you received the tip from to share some of his DD with you. In turn you can share it with us.
There used to be a lot of information / misinformation sharing on various forums. The later pretty well killed all of them.
There is a "hard core" nucleus of Sungold gamblers left. It will take you some time to find them but they are out there.
Good luck and happy gambling.
Knock Pescod all you want. He ain't good but he is effective.
$2.55 ceiling gone
Saw the same yesterday around $3.30. Added some.
RAY interview. Worth listening to:
http://www.mineralstox.com/stocks/company.asp?id=4769&launchAudio=1
Would like to add some too but waiting until POT has finished going potty. Same goes for other fert farts.
That explains it. LOL
It's going. Just not in the right direction
Probably bought some of your stuff. Don't mind sitting on it a little while.
That's a good set-up.
A double dose of Viagra might be the better choice
Hope you are wrong. Just added a few traders. POT reporting this week. May provide a lift for everyone.
Fire sale just about over?
Let's not get hung up on details. The trend is still there and the "basket" is looking good.
Care to translate this into English?
Breaking News from The Globe and Mail
Potash prices on the rise
JOHN PARTRIDGE
Wednesday, April 16, 2008
In the sharpest price increase they have yet unveiled, Canadian potash producers are more than doubling the tab for fertilizer they are shipping to China this year, as concerns build about the rising cost of food around the globe.
Canpotex Ltd., the offshore marketing company owned by Saskatchewan potash producers, has reached an agreement on 2008 pricing with China's Sinofert Holdings Ltd. that is $400 (U.S.) a tonne higher than in 2007, according to a statement Wednesday from industry giant Potash Corp. of Saskatchewan.
This raises the price to $576 a tonne, an increase of 227 per cent, according to a news release issued by Mosaic Co. of Plymouth, Minn., another of Canpotex's owners.
By comparison, Canpotex said two weeks ago that it has bumped up prices for sales to Brazil and Southeast Asia to $750 a tonne, marking hikes of 40-per-cent for Southeast Asia and 85 per cent for the Latin American nation. This followed a 130-per cent price increase to $625 a tonne in a one-year contract with India.
Potash Corp. reiterated that because of “unprecedented demand” in other markets, it has prorated volumes destined for China and has allocated “only 1 million tonnes” to Sinofert for the balance of this year. The Canadian company owns 20 per cent of Sinofert, which is China's largest fertilizer distributor, and also a producer.
“Significantly higher potash prices and extraordinarily tight supply have become much more firmly entrenched since China's previous contract was signed 14 months ago,” Potash Corp. president and chief executive officer Bill Doyle said in the statement. “With the intense pressure on global food production and continued growth in potash demand, this is the reality for our industry for the foreseeable future.”
Fertilizer companies have seen their stock prices soar along with demand for their products, fanned by soaring grain prices. Potash Corp., for example, has seen its shares climb about 165 per cent in the past year, while Agrium Inc. is up about 50 per cent.
However, Agrium's CEO Mike Wilson warned at a conference two weeks ago that as grain and food prices continue to climb, setting off public protests and even riots in several developing countries, governments are being pressured to intervene and are threatening to impose caps on fertilizer prices and export taxes on agricultural products.
© The Globe and Mail
Agrium, Potash, Mosaic Set Records on Outlook, China (Update1)
By Christopher Donville
April 14 (Bloomberg) -- Agrium Inc., North America's third- largest crop-nutrient maker, and two rivals rose to records in U.S. and Canadian trading after Russian producer OAO Uralkali said potash prices may surpass $1,000 a metric ton this year.
Agrium jumped C$4.90, or 6.7 percent, to C$78.09 at 4:15 p.m. on the Toronto Stock Exchange after earlier touching an all-time high $78.25. The shares have advanced 67 percent in the past year as crop-nutrient prices rose and fertilizer producers sought to keep pace with expanding demand.
Potash, a form of potassium, may reach $1,000 a ton ``rather fast'' because world output trails demand by 1.2 million tons, Oleg Petrov, sales chief for Berezniki, central Russia-based Uralkali, told investors today on a conference call. A price topping $1,000 a ton would be a fivefold increase from 2007. Both Potash Corp. of Saskatchewan Inc. and Mosaic Co. set new highs.
Agrium, which sells potash and other nutrients, also gained after UBS AG analyst Brian MacArthur raised his price target on the Calgary-based company's New York-traded shares by 9.2 percent to $95, citing higher fertilizer prices. MacArthur also lifted his target for Potash Corp., the largest maker of crop nutrients, by 11 percent to $235 a share.
Potash and other nutrient prices will rise after China imposed duties of 100 percent or more on phosphate and urea exports, Toronto-based MacArthur said today in a note to clients.
``Panic will likely continue to unsettle the market'' for potash, MacArthur said. He rates Agrium shares ``buy.''
Price Forecast
MacArthur also forecast phosphate prices to surpass $1,100 a ton, to $1,105 this year. Urea, potash and phosphates are all used to make fertilizers.
Source: http://www.bloomberg.com/apps/news?pid=20601082&sid=avZa4TW9aibQ&refer=canada
Don Coxe (BMO) POUNDING the table big time on agri / fert stocks. Are we running out of food???
Good Q&A segment.
36 minutes well spent …
http://events.startcast.com/events/199/B0003/#
If it can move without Red, life is good. LOL
No ego at all, eh? LOL
Yup but it's also another sign of things to come.
The Mosaic Company to expand potash operations in Saskatchewan
The Canadian Press
Friday, April 04, 2008
PLYMOUTH, Minn. — — U.S.-based The Mosaic Co. said Friday it plans to expand its potash operations in Saskatchewan, raising its annual capacity to mine the fertilizer component to 15.1 million tonnes.
Mosaic, headquartered in Plymouth, Minn., said the expansion is a response to “continuing robust global demand for potash.”
“We believe the global demand and supply fundamentals support this growth in our capacity and will allow us to fulfil our growing customer needs,” stated president and CEO Jim Prokopanko.
The expansions at mines near Esterhazy, Belle Plaine and Colonsay are expected to take place over the next 12 years, with first production coming on line in 2009.
© Canadian Press
Starting to average up. Probably too early as always ...
Potash One Acquires New Potash Permits in Saskatchewan
10:47 EDT Thursday, March 27, 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 27, 2008) - Potash One Inc. (the "Company" or "Potash One") (TSX VENTURE:KCL) is pleased to announce that it has significantly expanded its potash permit holdings around its Legacy Project and acquired permit applications under review in southeastern Saskatchewan. The Company signed an agreement with an arms-length vendor to acquire 100% of three potash exploration permits in Saskatchewan (KP-355, KP-356 and KP-357) and two permit applications (KP-416 and KP-417) currently under review. All of the permits and applications border or are in the vicinity of existing or planned potash operations.
The land size covered by these permits and permit applications is as follows:
Permits: KP-355 - 72,181 acres; KP-356 - 87,002 acres; KP-357 - 79,920 acres (Total equals 239,100 acres)
Permit applications: KP-416 - 91,120 acres; KP-417 - 96,240 acres (Estimated equals 187,360 acres)
The newly acquired potash permits, KP-355 and KP-357, are immediately adjacent to Potash One's Legacy project (KP-289) to the northeast and southwest respectively. KP-355 borders Kennecott Canada Exploration subsurface mineral permits to the southeast. KP-356 is to the east of KP-357 and to the southeast of the Mosaic Company's KL-106-R mining lease. KP 356 is to the west of the City of Regina and subsurface mineral permits held by BHP Billiton and south of Kennecott Canada Exploration permits located to the north of Regina. The permits KP-355, KP-356 and KP-357 in addition to Potash One's currently held KP-289 subsurface mineral permit create a large contiguous potash-bearing property that almost completely surrounds Mosaic's Belle Plaine KL-106-R mining lease, which hosts one of the largest producing potash solution mines in the world.
The subsurface mineral permit application KP-417 is adjacent to KL-125 mineral lease held by Potash Corporation of Saskatchewan and the KP-339 subsurface mineral permit held by BHP Billiton, while subsurface mineral permit application KP-416 borders Mosaic's Esterhazy conventional potash mine to the north. These subsurface mineral permit applications offer Potash One some options with respect to developing another potash situation using conventional mining means or as a potential property for a joint venture or sale.
Historical exploratory drilling and seismic programs were conducted on the newly acquired properties in the 1950s and 1960s. This historic information will be reported once the Company has completed its review of all relevant historical data. Currently there is no NI 43-101 report on the new permit areas, nor are there any known mineral resources or mineral reserves on the new permit areas. Please visit our website (http://www.potash1.com/s/Permits.asp) to view the new Potash permits and permit applications.
The purchase price payable to arms-length vendor consists of 1,408,000 common shares of the Company (with a 4 month hold) and $2,897,880 in cash upon closing.
Paul F. Matysek., President and Chief Executive Officer of Potash One Inc., said: "We are very pleased to expand our potash asset base in Saskatchewan. The acquisition of new permits in the vicinity of KP-289 creates a critical mass in an area that is potentially amenable to potash solution mining. Potash One controls permits and permit applications that cover over 500,000 acres in this important potash producing region of the world. This allows us to position Potash One as one of the key potash development companies in Saskatchewan."
The agreement is subject to regulatory approval. The Company will pay a finder's fee in connection with this transaction.
The technical content in this news release has been read and approved by Stephen P. Halabura, Principal Geologist and Owner of North Rim Exploration Ltd. He is a Professional Geologist licensed in Saskatchewan and a Qualified Person as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer
About Potash One Inc.
Potash One Inc. is a Canadian resource company engaged in the identification, acquisition, exploration and development of advanced solution mine amenable potash properties. The Company holds an option to acquire 100% interest in a 97,240 acre Potash Subsurface Exploration Permit in Saskatchewan, Canada ("the Legacy Project"). The Legacy Project was previously explored by Imperial Oil Ltd. (now Exxon) and Lumsden Potash Corporation and is adjacent to the largest producing solution potash mine in the world. The Company has a solid balance sheet and experienced technical and corporate management to advance its current project to the next level.
Forward Looking Statement
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments, including the issuance of permits upon acceptance of permit applications, that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, the denial of permit applications by applicable government authorities, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Potash One Inc.
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
(604) 331-4431
(604) 608-4979 (FAX)
Email: info@potash1.com
Website: www.potash1.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Potash One Acquires New Potash Permits in Saskatchewan
10:47 EDT Thursday, March 27, 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 27, 2008) - Potash One Inc. (the "Company" or "Potash One") (TSX VENTURE:KCL) is pleased to announce that it has significantly expanded its potash permit holdings around its Legacy Project and acquired permit applications under review in southeastern Saskatchewan. The Company signed an agreement with an arms-length vendor to acquire 100% of three potash exploration permits in Saskatchewan (KP-355, KP-356 and KP-357) and two permit applications (KP-416 and KP-417) currently under review. All of the permits and applications border or are in the vicinity of existing or planned potash operations.
The land size covered by these permits and permit applications is as follows:
Permits: KP-355 - 72,181 acres; KP-356 - 87,002 acres; KP-357 - 79,920 acres (Total equals 239,100 acres)
Permit applications: KP-416 - 91,120 acres; KP-417 - 96,240 acres (Estimated equals 187,360 acres)
The newly acquired potash permits, KP-355 and KP-357, are immediately adjacent to Potash One's Legacy project (KP-289) to the northeast and southwest respectively. KP-355 borders Kennecott Canada Exploration subsurface mineral permits to the southeast. KP-356 is to the east of KP-357 and to the southeast of the Mosaic Company's KL-106-R mining lease. KP 356 is to the west of the City of Regina and subsurface mineral permits held by BHP Billiton and south of Kennecott Canada Exploration permits located to the north of Regina. The permits KP-355, KP-356 and KP-357 in addition to Potash One's currently held KP-289 subsurface mineral permit create a large contiguous potash-bearing property that almost completely surrounds Mosaic's Belle Plaine KL-106-R mining lease, which hosts one of the largest producing potash solution mines in the world.
The subsurface mineral permit application KP-417 is adjacent to KL-125 mineral lease held by Potash Corporation of Saskatchewan and the KP-339 subsurface mineral permit held by BHP Billiton, while subsurface mineral permit application KP-416 borders Mosaic's Esterhazy conventional potash mine to the north. These subsurface mineral permit applications offer Potash One some options with respect to developing another potash situation using conventional mining means or as a potential property for a joint venture or sale.
Historical exploratory drilling and seismic programs were conducted on the newly acquired properties in the 1950s and 1960s. This historic information will be reported once the Company has completed its review of all relevant historical data. Currently there is no NI 43-101 report on the new permit areas, nor are there any known mineral resources or mineral reserves on the new permit areas. Please visit our website (http://www.potash1.com/s/Permits.asp) to view the new Potash permits and permit applications.
The purchase price payable to arms-length vendor consists of 1,408,000 common shares of the Company (with a 4 month hold) and $2,897,880 in cash upon closing.
Paul F. Matysek., President and Chief Executive Officer of Potash One Inc., said: "We are very pleased to expand our potash asset base in Saskatchewan. The acquisition of new permits in the vicinity of KP-289 creates a critical mass in an area that is potentially amenable to potash solution mining. Potash One controls permits and permit applications that cover over 500,000 acres in this important potash producing region of the world. This allows us to position Potash One as one of the key potash development companies in Saskatchewan."
The agreement is subject to regulatory approval. The Company will pay a finder's fee in connection with this transaction.
The technical content in this news release has been read and approved by Stephen P. Halabura, Principal Geologist and Owner of North Rim Exploration Ltd. He is a Professional Geologist licensed in Saskatchewan and a Qualified Person as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer
About Potash One Inc.
Potash One Inc. is a Canadian resource company engaged in the identification, acquisition, exploration and development of advanced solution mine amenable potash properties. The Company holds an option to acquire 100% interest in a 97,240 acre Potash Subsurface Exploration Permit in Saskatchewan, Canada ("the Legacy Project"). The Legacy Project was previously explored by Imperial Oil Ltd. (now Exxon) and Lumsden Potash Corporation and is adjacent to the largest producing solution potash mine in the world. The Company has a solid balance sheet and experienced technical and corporate management to advance its current project to the next level.
Forward Looking Statement
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments, including the issuance of permits upon acceptance of permit applications, that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, the denial of permit applications by applicable government authorities, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Potash One Inc.
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
(604) 331-4431
(604) 608-4979 (FAX)
Email: info@potash1.com
Website: www.potash1.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
$3.25 to $3.50 ... I'll take all Mr Market wants to give me.
Potash One Initiates Engineering and Environmental Studies on the Legacy Project
09:31 EST Monday, March 03, 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2008) - Potash One Inc. (TSX VENTURE:KCL) (the "Company" or "Potash One") is pleased to announce that the Company has commissioned Golder Associates Ltd. to commence engineering and environmental studies in relation to Potash One's potash project in Saskatchewan (the "Legacy Project"). Phase I of this comprehensive environmental impact assessment program will allow the company to gather information which will direct and focus field activities, investigations and assessments. The Saskatoon office of Golder Associates Ltd. will conduct these studies. It is estimated that the initial work will be completed in approximately 8 weeks.
The purpose of Phase I of the EIA program is to initiate the collection of additional site-specific baseline data necessary for project planning, environmental assessment and subsequent regulatory permitting for Legacy Project.
Paul Matysek, President and CEO of Potash One, stated: "We are pleased to have retained a strong and local engineering and environmental services group. Golder is a premier company in Saskatchewan that has provided various services to major potash producers including Potash Corporation of Saskatchewan, Agrium and Mosaic. We look forward to working with Golder Associates Ltd. in this and subsequent phases of our environmental and engineering program."
About Golder Associates
Golder Associates Ltd., a global group of technical professionals specializing in ground engineering and environmental services, was established in 1960. The firm has strong integrated engineering and environmental capabilities and has experienced steady growth, now employing over 6,000 people who operate from more than 150 offices located throughout Africa, Asia, Australasia, Europe, North America and South America.
Golder has provided a variety of services to potash producers including the Potash Corporation of Saskatchewan, Agrium and Mosaic in Canada, Brazil and Argentina. Services have included geotechnical engineering, tailings management planning and construction, environmental baseline collections, environmental impact studies, regulatory permitting assistance, hydrogeological investigations, underground support evaluations, hydrological/surface water assessments, geophysics, brine containment engineering, and operational environmental auditing.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer
About Potash One Inc.
Potash One Inc. is a Canadian resource company engaged in the identification, acquisition, exploration and development of advanced solution mine amenable potash properties. The Company holds an option to acquire 100% interest in a 97,240 acre Potash Subsurface Exploration Permit in Saskatchewan, Canada ("the Legacy Project"). The Legacy Project was previously explored by Imperial Oil Ltd. (now Exxon) and Lumsden Potash Corporation and is adjacent to the largest producing solution potash mine in the world. The Company has a solid balance sheet and experienced technical and corporate management to advance its current project to the next level.
Forward Looking Statement
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address further production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions such statements are not guarantees of further performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Potash One Inc.
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
(604) 331-4431
(604) 608-4979 (FAX)
Email: info@potash1.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Are you guys crazy? 48 posts in a couple of days. How can anyone keep up? LOL
I am banking on it. Have been adding to my KCL traders in the last few weeks.
Related news:
Agrium reaps a record fourth-quarter profit
JOHN PARTRIDGE
Wednesday, February 13, 2008
The global agriculture boom has enabled fertilizer producer and retailer Agrium Inc. to harvest record fourth-quarter profit, as farmers seek to boost output to capture high crop prices, and the company is predicting more strong growth for this year.
Agrium said Wednesday it put $172-million (U.S.) or $1.24 a share on the bottom line in the last three months of 2007, a massive turnaround from a year earlier loss of $62-million or 47 cents a share and well ahead of analysts' forecasts, which ranged from 80 cents to 92 cents.
Revenue climbed to $1.49-billion from $944-million, the Calgary company said.
“Our performance this quarter was a result of our three business units all delivering record fourth-quarter results, due to a combination of excellent business fundamentals and strong operating performance,” Agrium chief executive officer Mike Wilson said in a news release.
Mr. Wilson also said the outlook for 2008 is “outstanding” as prices for “virtually all” major row crops are at record highs, “providing growers with a strong incentive to optimize use of crop inputs.”
The fourth-quarter numbers include natural gas hedging gains of $15-million or 8 cents a share, Agrium said, as well as stock-based compensation expenses of $50-million or 25 cents. The company also said its tax expense was $28-million or 20 cents a share lower than it had anticipated because of Ottawa's move to cut the federal corporate income tax rate. These figures net out to a gain of three cents a share.
Agrium is poised to become the largest retailer to North American farmers of seed, fertilizers, crop protection chemicals and agronomic and application services. through a proposed $2.65-billion takeover of competitor UAP Holding Corp. of Greeley, Col. Announced in December, the deal still requires U.S. anti-trust approval and despite delays, Agrium said last month that it still expects to receive the go-ahead this quarter. However, although in the fourth-quarter results news release it said only that it “remains confident of a successful close” but did not specify a date.
The company said its wholesale arm, which produces and distributes nitrogen, phosphate, and potash fertilizers, and other agricultural products and services, had total net sales of $908-million during the fourth quarter, up from $536-million
This produced earnings before interest, taxes depreciation and amortization (EBITDA) of $307-million, up from $99-million, and Agrium attributed the gain to “exceptional...prices and margins” as well as continued “solid demand.”
At the retail decision, sales rose to $55-million from $384 million year over year, while EBITDA shot up to $47-million from $28-million.
Meanwhile, Agrium's advanced technologies unit, which sells so-called controlled release products and micronutrients, saw sales climb to $70-million from $36-million and EBITDA rise to $4-million from $1-million.
More to come.
© The Globe and Mail
KCL ... Nice catch. Bought it yesterday. Should have waited. Oh well, what's a few cents?
I sure wish I had your crystal ball. LOL
What more do you need than this forum? It's real, it's realistic, it's informative. If you find a better one, please let me know.
Red: Just give it a rest. You have made your point.
KCL short position is lower than I had expected. Maybe the potential for a buyout or JV is holding shorts back ... ???
KCL ... It needs to fill the gap. I am with Red. Mid 3's is a good target.
CLL ... I don't have a clue why anyone would swap PBG for CLL. There is no blue sky in CLL that I can see and Mr. Market has long ago decided to dislike the stock.
Check out the pre-open of KCL. WOW!
Darn, I never buy enough of the good stuff.