Improving production has US Intrepid Potash still expecting higher 2024 output

HOUSTON (ICIS)–Intrepid Potash saw indications of improving production during Q2 which has helped support continued expectations that their 2024 potash output will be approximately 15% higher year on year.

In a project and operational update, the US fertilizer producer said at the HB Solar Solution mine in Carlsbad, New Mexico, it completed work on the replacement extraction well in June.

It is now serving as the primary source of brine for the current evaporation season and Intrepid expects it will be the primary for future seasons.

Also underway is phase two of installing a system to clean the injection pipeline and remove scaling to help ensure more consistent flow rates. All pipeline is installed with tanks set and the producer expecting to commission the project during Q3.

At the Brine Recovery mine in Wendover, Utah, the construction of primary pond 7 is finished and is being filled with brine. It is expected to increase the brine evaporative area and maximize availability, increasing grade, and improving production by the fall of 2025.

At the East Underground Trio mine the producer said because of the efficiencies from the two continuous miners placed into service in 2023, and the operation of a fine langbeinite recovery system, it had significant improvement in production rates and cost structure year on year.

Intrepid said for the first six months of 2024 the cost of goods sold totaled approximately $284 per short ton, which compares to the same prior-year figure of $320 per short ton.

The Q2 average net realized sales prices for potash and Trio averaged $405 and $314 per short ton, respectively, which compares to $479 and $333 per short ton during Q2 2023.

“Our strategic focus continues to be improving our potash production, and I’m happy to share that we saw the first indications of this in our second quarter results,” said Matt Preston, Intrepid Potash CFO and acting principal executive officer.

“Improved brine grades at HB from the Eddy Cavern and good early-season evaporation rates, allowed us to extend our spring production season and we still expect our 2024 potash production to be approximately 15% higher than 2023.”

Preston added that when looking at the quarterly results their operational and financial performance continues to be solid with significant improvement in both total and per ton production costs.

“As the broader potash market looks to be finding its midcycle pricing floor, we remain focused on improving our unit economics by means of higher potash production,” Preston said.