OTCPK:PTAUF - Post by User
Post by
brendellyon Jun 16, 2008 10:18am
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Post# 15188537
Canpotex
CanpotexCan somebody explain to me Canpotex's role in the price negotiation of Potash for the 3 owning companies (Ag,POT,Mosaic)? Do they sell the potash at a negotiated spot price and also charge the buyer with shipping, or would Canpotex sell the potash+shipping together in one lump sum price.
From the financial statements, it shows that Potash Corp is paying for trucking and railway costs and then use their own shipping company (Canpotex) as for shipping which is paid for by the buyer.
I guess on the plus side given the high shipping rates and potash prices, the whole operation is highly economical. This must also provide a positive in that they can promote themselves to other markets without tranportation issues.....although it sounds like Canpotex is starting to feel some capacity issues....anyway, if anyone has something to add that may clarify Canpotex's operation please feel free! Thanks