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Potash (POT) says it will close two of its Canadian potash mines for eight weeks each to help...

Potash (POT) says it will close two of its Canadian potash mines for eight weeks each to help control rising inventories. North American potash supplies have built up as China and India, the top two consuming nations of the crop nutrient, have stopped purchases during most of H2.
Comments (1)
  • Chris Damas
    , contributor
    Comments (1182) | Send Message
     
    This brings inventory-related shutdowns to 57 mine weeks for 2012 YTD, assuming the others are running still, or more than a full year for one mine. Plus add 14 weeks shutdown in 2013.

     

    Why spend $7.73 billion in shareholder funds (2011 Annual Report, page 47) for the bragging rights to having the biggest potash capacity in the world, when some of it is sitting idle because now you had to shutter four of your six mines during the year. Surely 10 or 12 million tons in annual capacity would have sufficed, not 17.1 million tons, when you are selling barely 8 million?

     

    Any PotashCorp mine/mill employees out there - nice to get the part of the winter off, but do you get paid to be sent home for two months?
    14 Nov 2012, 05:49 PM Reply Like
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