Intrepid Potash, Inc. Announces Preliminary Fourth Quarter 2010 Sales and Production Results and Capital Investment Update, and Schedules Fourth Quarter 2010 Conference Call
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Intrepid Potash, Inc. ('Intrepid?) (NYSE:IPI) announced today
preliminary sales and production results for the fourth quarter 2010 and
provided an update on its capital investment program.
Preliminary Sales and Production Results
On an unaudited basis, during the fourth quarter of 2010, Intrepid
estimates that it produced between 215,000 and 225,000 tons of potash
and sold between 210,000 and 220,000 tons of potash. Potash production
during the fourth quarter includes the seasonal production from the
harvest of our Moab solar evaporation ponds. Intrepid estimates its
average net realized sales price for potash during the quarter was
approximately $380 ? $390 per ton. Intrepid estimates that it produced
approximately 25,000 ? 35,000 tons of Trio ® as it came out of
the planned East plant maintenance turnaround in October, and sold
approximately 20,000 ? 30,000 tons of Trio ®. Intrepid
estimates that its average net realized sales price for Trio ®
during the quarter was approximately $215 ? $225 per ton. Intrepid
expects to release its audited, fourth quarter 2010 and fiscal year end
2010 financial results after market close on Wednesday, February 23,
2011.
Capital Investment Update
For the full year ended December 31, 2010, Intrepid invested
approximately $90 - $95 million in its capital investment program,
including the successful execution and completion of the compactor at
our mine in Moab, Utah and the addition of two new mining panels at both
our East and West mines in Carlsbad, New Mexico. Intrepid′s capital
strategy remains consistent with increasing reliability, efficiency and
productivity. In 2011, Intrepid expects to invest approximately $140
-$165 million related to its capital investment program that will be
funded from existing cash and investments and operating cashflows.
Significant capital investments in 2011, beyond sustaining capital of
approximately $50 million, will be focused on the Langbeinite Recovery
Improvement Project at our East mine, the commencement of design,
engineering and construction of new compaction capacity at both our
Wendover, Utah facility and our North facility in Carlsbad, New Mexico,
continued implementation of digital control systems and the addition of
new underground mining panels at each of our Carlsbad mines.
With respect to our proposed HB Solar Solution Mine in Carlsbad, New
Mexico, Intrepid was notified recently by the Bureau of Land
Management′s ('BLM') consultant that the schedule for the Environmental
Impact Statement ('EIS') review process has been extended in order for
the BLM to complete preparation and review of the preliminary draft EIS.
The revised schedule reflects issuance of a Record of Decision during
the first quarter of 2012. Intrepid received the ground water discharge
permit for the HB Solar Solution Mine project from the New Mexico
Environment Department ('NMED?) in July 2010 and is in the process of
obtaining the NMED air quality permit for the project. Once the
remaining regulatory approvals are obtained, Intrepid anticipates
promptly commencing construction. The revised schedule will result in
the shift of approximately $10 million of capital investment that would
have occurred in 2011 into 2012, resulting in the remaining capital
expenditures for the HB Solar Solution Mine occurring in 2012 and 2013.
Intrepid estimates that first production will result approximately
eighteen months after construction begins with ramp up to full
production expected in the succeeding year, reflecting the benefit of a
complete annual evaporation cycle applied to full evaporation ponds.
Fourth Quarter & Fiscal Year End 2010 Conference Call
Intrepid is scheduled to release fourth quarter and fiscal year end 2010
financial results after market close on Wednesday, February 23, 2011.
The teleconference call to discuss fourth quarter 2010 results is
scheduled for Thursday, February 24, 2011, at 8:00 a.m. MST (10:00 a.m.
EST). The call participation number is (800) 319-4610. A recording of
the conference call will be available two hours after the completion of
the call at (800) 319-6413. International participants can dial (412)
858-4600 to take part in the conference call and can access a replay of
the call at (412) 317-0088. The replay of the call will require the
input of the conference identification number 763324. The call will also
be streamed on the Intrepid website, www.intrepidpotash.com.
In addition, the press release announcing fourth quarter 2010 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 March 26, 2011.
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 ®, 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
Trio ®; operational difficulties at our facilities; the
ability to hire and retain qualified employees; changes in demand and/or
production of potash or Trio ®/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 Solar Solution Mine as a solution mine and the further development of
our langbeinite recovery assets; weather risks affecting net evaporation
rates at our solar solution mining operations; availability of water to
our operations; changes in the prices of our raw materials, including
but not limited to the price of chemicals, 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, and the
enforcement of such regulations; obtaining permitting from applicable
Federal and state agencies related to the construction and operation of
assets; 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; disruptions in
credit markets; our ability to secure additional federal and state
potash leases to expand our existing mining operations; 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. 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.
Intrepid Potash, Inc.
William I. Kent, 303-296-3006