RE: cash costs Wpx's opex costs (including "sustaining capex")are $108 per ton plus transport at $60 per ton,. There is no way at current potash prices, that after royalties are taken In to account, that they will have $300 in free cash flow.
its pie in the sky.
Interest costs will add around $120 per ton in costs as well.
potash price $400
- $108(opex)
-$60 (transport)
- $70 (royalties)
-$120 (interest costs
If they have $50 in free cash flow they will be doing well.