RE: Traders missed drought signs "The poor market has something to do with it." said Love. "People have shied away from junior development companies and risk."
On Wednesday, the world's biggest producer of the crop nutrient, Potash Corp of Saskatchewan Inc , said it did not expect any new mines to start production in the next five years.
Potash Corp CEO Bill Doyle's comments may have hurt the junior companies' shares, but they are similar to statements he has made previously, suggesting other factors in the drop, said analyst Robert Winslow of National Bank Financial, who has an "underperform" call on Western.
In a webcast on Wednesday, Doyle singled out a print advertisement from one potash company, which he did not name.
"There was ... a paid ad by one of these promoters, and they showed the fellow sponsoring the project at the mine site," Doyle said. "He was standing in a field of grain. There's no mine, no construction, there's not even any equipment, and he says he's going to be on by 2015."