DENVER, Jan 21, 2010 (BUSINESS WIRE) -- Intrepid Potash, Inc. ("Intrepid" ) (NYSE:IPI) today announced estimated
sales and production data for the fourth quarter 2009 and the impact of
certain weather-related operational disruptions that occurred at
Intrepid's Carlsbad, New Mexico - East surface facility during December
2009.
Estimated Sales and Production Data
On an unaudited basis, during the fourth quarter of 2009, Intrepid
estimates that it produced between 120,000 and 130,000 tons of potash
and sold between 145,000 and 155,000 tons of potash. Intrepid estimates
that the average net realized sales price for potash during the quarter
was approximately $400 to $420 per ton. Intrepid estimates that it
produced approximately 40,000 - 50,000 tons of Trio(TM) and sold
approximately 20,000 - 30,000 tons of Trio(TM). Intrepid estimates that the
average net realized sales price for Trio(TM) during the quarter was
approximately $180-$200 per ton. Intrepid expects to release its
audited, fourth quarter 2009 and fiscal year end 2009 financial results
before market open on Monday, March 1, 2010.
December 2009 Production Disruption
During December 2009, Intrepid experienced a substantial production
disruption at its Carlsbad, East surface facility. Sub-freezing
temperatures in the region, which were substantially below historical
averages during the month of December, together with record snowfall,
led to a series of events at the Carlsbad, East surface facility. These
events included interruption of the fresh water supply and the
disruption of electrical power provided to this facility which
substantially impaired surface processing of potash. As a result,
Intrepid estimates that potash production at the Carlsbad, East surface
facility was limited to approximately 2,000 tons of saleable product in
the month of December, a nearly ninety percent decrease from historical
average monthly potash production at this facility. Intrepid expects
that normal potash production levels at the Carlsbad, East surface
facility will resume in late January 2010.
Intrepid estimates that Trio(TM) production during the month of December
was largely consistent with average monthly production rates for 2009.
Intrepid's Carlsbad, West surface facility, which uses a different
process to refine ore, as well as the underground mining operations,
were not significantly affected by the severe weather conditions.
As a result of these unexpected production disruptions at the Carlsbad,
East surface facility, on an unaudited-basis, Intrepid anticipates that
it will record abnormal production expense in the fourth quarter of 2009
of approximately $9.0 - $10.0 million, or approximately $0.07 - $0.08
per diluted share for the quarter. This estimated amount is
approximately $3.0 - $4.0 million more than was incurred in the third
quarter of 2009.
Fourth Quarter & Fiscal Year End 2009 Conference Call
Intrepid is scheduled to release fourth quarter and fiscal year end 2009
financial results before market open on Monday, March 1, 2010. The
teleconference call to discuss fourth quarter 2009 results is scheduled
for March 1, 2010, at 11:00 a.m. MST (1:00 p.m. EST). The call
participation number is (877) 419-5396. A recording of the conference
call will be available two hours after the completion of the call at
(800) 642-1687. International participants can dial (706) 902-2295 to
take part in the conference call and can access a replay of the call at
(706) 645-9291. All of the above calls will require the input of the
conference identification number 51822916. The call will also be
streamed on the Intrepid website, www.intrepidpotash.com.
In addition, the press release announcing fourth quarter 2009 results
will be available on the Intrepid website before the call under
"Investor Relations - Press Releases." An audio recording of the
conference call will be available at www.intrepidpotash.com
through April 1, 2010.
Intrepid reports "average net realized sales price" which is an
operating performance measure commonly used in the potash mining
industry. Average net realized sales prices are derived by subtracting
freight costs from gross sales revenue and then dividing this result by
sales tons.
Intrepid is the largest producer of potash in the U.S. and is dedicated
to the production and marketing of potash and Trio(TM), a product produced
from langbeinite ore. Intrepid owns five active potash production
facilities -- three in New Mexico and two in Utah.
Intrepid routinely posts important information about its business on its
website under the Investor Relations tab. The website address for
Intrepid 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 the 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 and power; 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 U.S.
Securities and Exchange Commission. All amounts presented in this press
release are unaudited and subject to change, and ranges have been
provided for such reason. Please refer to those filings for more
information on these risk factors. These forward-looking statements
speak only as of the date of this press release, 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 I. Kent, 303-296-3006