Mosaic Oct/Nov Potash Sales Volumes Down; Updates Outlook

(RTTNews) - Mosaic Co. (MOS) reported that its total potash sales volumes for combined month of October 2022 and November 2022 declined to 1.25 million tonnes from 1.31 million tonnes last year. But Potash sales revenues for the period rose to $780 million from $529 million in the prior year.

Phosphates sales Volumes for the period decreased to 914 thousand tonnes from 1.15 million tonnes in the previous year. Phosphates sales revenues for the period also declined to $785 million from $902 million in the previous year.

For the fourth quarter, the company expects total potash sales volumes to be in the range of 1.8-2.0 million tonnes with realized MOP pricing at the mine in the range of $560-$600 per tonne. Earlier in the quarter, the Colonsay potash mine was temporarily idled as a result of the slower-than-expected recovery in demand.

Phosphate sales volumes are now expected to be in the range of 1.5 million tonnes -1.7 million tonnes. Guidance for realized DAP prices on an FOB basis remains unchanged at $700-$750 per tonne. In addition to slower markets, lingering issues stemming from Hurricane Ian have continued longer than previously expected. Repairs to sulfuric acid plants supporting production at the Bartow facility are now expected to be completed early in the first quarter of 2023.

The company stated that demand recovery for both phosphates and potash has been slowed by seasonality in late 2022. But the company anticipates 2023 to be a strong year for nutrient application, supported by historically strong crop prices and constructive grower economics.