Tuesday, July 30, 2013

Intrepid Potash to Report Tomorrow, Conference call on Wednesday (IPI)

They will be the first to talk to shareholders after the fertpocalypse unleashed by the low cost producer OAO Uralkali.
Intrepid is a very high cost producer (although not as high as Germany's K+S), $174 per ton cash cost as of the last earnings report.
In comparison Potash Corp. reported a cash cost of $US114 a tonne.

So why do I bring this up?

What if the whole thing is a bluff on Uralkali's part?
Uralkali brags that they are the lowest-cost producer ($65 tonne) and have the highest potash capacity so the announcements could be for real but what if it's just a negotiating ploy to hammer Belaruskali?
In that case you'd want the company most levered to realized prices.

Stay tuned.