My initial takeaways from FY results The two positives I see in this statement are that there looks to be scope for production and sales in 2023 to be higher than the guidance due to the recent mining licence, and that the company is still using a $500 per ton of potash equivalent in its guidance rather than raising it in light of current $1,000 prices.
However I am concerned as to why transport costs have gone up 8 fold, when volumes delivered are only up 64%. This has been flagged on here before and no decent answers given IMO. These costs can be gotten away with during periods of sky high potash, but what's the story when potash prices normalise. The notes say this is due to higher fuel prices, but there must be more to it than that (such as distances travelled increasing to reach new farmers). Fuel costs will also likely be higher still this year versus last. Qs for CV in due course.