Mosaic To Temporarily Curtail Production At Esterhazy Mine
Zacks Investment Research | Oct 14, 2019 08:06AM ET
The Mosaic Company (NYSE:MOS) recently announced that it will temporarily curb production at its Esterhazy potash mine. Previously, the company had stated that it will reduce production of potash, which along with the latest move, brings total curtailments to up to 600,000 tons.
Mosaic does not expect the curtailment to affect the pace of development at the Esterhazy mine K3 project. Growing inventories caused by temporary slowdown in global potash markets and higher risks of a delay in Chinese contract settlement was instrumental in the company’s decision to increase the curtailment.
Notably, the company’s performance may be impacted by nearly $150 million in adjusted EBITDA, in case the full amount of the curtailment is realized in lower fourth-quarter 2019 sales.
However, Mosaic continues to expect a strong application season in North America and Brazil along with better demand-supply balance in 2020. The company however noted that challenges in fertilizer markets will persist in the near term. It intends to provide an updated market view during third-quarter 2019 earnings results, which is slated to release on Nov 4, 2019.
Shares of Mosaic have lost 37.1% in the past year compared with the Original post
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