DENVER, Dec 18, 2008 (BUSINESS WIRE) --
Intrepid Potash, Inc. (NYSE:IPI), today has announced that, consistent
with public announcements from other fertilizer producers, the Company
has seen the reduction and deferral of sales of potash and langbeinite,
which normally would occur in the fourth quarter, into early 2009. Due
to these reductions and deferrals, the Company expects sales levels for
the fourth quarter 2008 to be less than half of the levels seen in the
third quarter of this year. In addition, the Company anticipates
producing potash and langbeinite volumes for the full year that are
below the previous guidance range and anticipates that its corresponding
annual cost of goods sold for both potash and langbeinite will be higher
than previous guidance. The higher cost per ton numbers are a function
of the Company strengthening its workforce and continuing infrastructure
improvements while at the same time producing fewer tons. In order to
manage some variable cost elements, the Company has recently elected to
reduce its contract labor in Carlsbad, New Mexico through the end of
2008 and into 2009 as long as the current market conditions exist.
As a result of entering 2009 with relatively higher than historical
inventory levels, and in an effort to manage the supply demand balance,
the Company currently anticipates that 2009 potash production will be
below 800,000 tons.
Intrepid's Chief Executive Officer, Bob Jornayvaz, states "We are
evaluating the market in a real-time fashion and taking the appropriate
actions to navigate the Company through this period of general market
uncertainty. We will continue to actively monitor sales and production
rates to manage inventory levels against the near-term market demand
profile while at the same time being thoughtful about long-term
fundamentals. We firmly believe that the macro potash trends of world
population growth, improved diets and farmers investing for yield remain
unchanged. The strength of our debt-free balance sheet allows us to make
these proactive, real-time, operating and marketing decisions that are
in the best long-term interests of our stockholders."
The Company routinely posts important information about the Company on
its website under the Investor Relations tab. The Company's website
address is www.intrepidpotash.com.
Certain statements in this press release, and other written or oral
statements made by or on behalf of us, are "forward-looking statements"
within the meaning of the federal securities laws. Statements regarding
future events and developments and our future performance, as well as
management's expectations, beliefs, plans, estimates or projections
relating to the future, including statements regarding guidance, are
forward-looking statements within the meaning of these laws. Although we
believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, there can be no
assurance that our expectations will be realized. These forward-looking
statements are subject to a number of known and unknown risks and
uncertainties, many of which are beyond our control that could cause
actual results to differ materially and adversely from such statements.
These risks and uncertainties include: changes in the price of potash or
langbeinite; operational difficulties at our facilities; changes in
demand and/or supply for potash or langbeinite; changes in our reserve
estimates; our ability to achieve the initiatives of our business
strategy, including but not limited to the development of the HB Mine as
a solution mine; changes in the prices of our raw materials, including
but not limited to the price of natural gas; fluctuations in the costs
of transporting our products to customers; changes in labor costs and
availability of labor with mining expertise; the impact of federal,
state or local government regulations, including but not limited to
environmental and mining regulations; competition in the fertilizer
industry; declines in U.S. or world agricultural production; declines in
oil and gas drilling; changes in economic conditions; adverse weather
events at our facilities; our ability to comply with covenants inherent
in our current and future debt obligations to avoid defaulting under
those agreements; continued disruption in credit markets; governmental
policy changes that may adversely affect our business and the risk
factors detailed in our filings with the Securities and Exchange
Commission. Please refer to those filings for more information on these
risk factors. These forward-looking statements speak only as of the date
of this presentation, and we undertake no obligation to publicly update
or revise any forward-looking statement, whether as the result of future
events, new information or otherwise.
SOURCE: Intrepid Potash, Inc.
Intrepid Potash, Inc.
William Kent, 303-296-3006
Copyright Business Wire 2008