Intrepid Potash Announces Preliminary First Quarter 2012 Sales and Production Results
Intrepid Potash, Inc. (NYSE: IPI) announced today preliminary sales and production results for the first quarter 2012.
On a preliminary basis, during the first quarter of 2012, Intrepid estimates that it produced between 215,000 and 225,000 tons of potash and sold between 200,000 and 210,000 tons of potash. Production results for the first quarter include the seasonal harvest from the Moab, Utah mine.
Intrepid estimates that its average net realized sales price for potash sold during the quarter was approximately $470 – $480 per ton. We expect the drawdown of potash inventory held by retailers and distributors to continue into the second quarter and expect that dealers will look to end the spring season with minimal inventories of product in their bins.
Intrepid's cash cost of goods sold for potash for the first quarter of 2012, net of by-product credits, is estimated to be between $190 and $200 per ton.
On a preliminary basis, during the first quarter of 2012, Intrepid estimates that it produced approximately 30,000 – 35,000 tons of Trio® and sold approximately 25,000 – 30,000 tons of Trio®. Intrepid estimates that its average net realized sales price for Trio® during the quarter increased to approximately $295 – $305 per ton. We believe the strength in Trio® pricing is partially attributable to customers placing value on the magnesium and sulfate contained in this specialty nutrient. Trio® sales during the quarter were limited by our production and low inventory levels, as the demand for Trio® remained strong. We anticipate increased Trio® production once the Dense Media Separation component of the Langbeinite Recovery Improvement Project is fully commissioned during the second the quarter of 2012.
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