OTCPK:PTAUF - Post by User
Post by
kekovon Apr 24, 2009 12:22pm
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Post# 15942410
Long term objective
Long term objective I know for a fact that PCS is expanding their facilities, since I work at one of these mines. This will give this company more bang for its buck since it will cost another company 2 to 3 x more $ and time to build a mine from greenfield to production, so this company is strategically positioned well for the future.
I read one of PCS's past annual review and it stated that its storage capacity is as large as its biggest competitor can produce in one year. This company can afford to shut-down facilities and sit on inventories for a long time.
Saskatchewan farmers, as well as many other North American farmers have been seeing more and more benefits of using potash. When potash was 200-300 per ton, it was economical to use. When the spot price is $1100/ton, it becomes uneconomical and farmers will cut back. Certain crops need potash and won't have the luxury of cutting back, such as corn. These producers will probably cut their acers of production and grow something else. I am sure this is what other countries are doing as well. Wait until next year, when world stocks of grain commodities will be the lowest they have ever been!!! Check out the USDA crop reports as it will show a decrease of acres of crop production.
In their first quarter, PCS never had many sales to China, Brazil ie/ thier big customers. They still realized a profit of $300 million this quarter, almost half of their last years record sales. Not bad for very little production. They are simply reducing their stock.
This year will see more profits like the last quarter, half of last year. Next year the world will be hungry!!! AS for Lucky's comments, I feel you must be a disgruntled worker that is getting laid off. If you don't like it, get another job somewhere else, it is business. Short term, you may be right with the world markets causing nervous investors. The price could have new lows and I highly doubt it will get new highs for this year... until next year though.