WAYNE R. BROWNLEE
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Preparing for tomorrow has long been a cornerstone of PotashCorp's approach to business, and now we are designing strategies that will direct our future growth.
Our goal is to maximize growth and minimize volatility, using our abundant and growing cash flow to generate long-term shareholder value. With a constant focus on the areas of our business that we expect will generate cash flow returns in excess of our cost of capital, we believe we can achieve this goal.
Our Potash First strategy is based on the expectation of a potash environment of tight supply and growing demand over the next several years. By expanding our world-class operations, we plan to capitalize on selling more tonnes at higher prices while per-tonne fixed costs and mining taxes decline with higher volumes, significantly boosting our potash gross margin and bottom line.
We continue to explore ways to use our cash flow to reward loyal investors, with reinvestment in our own potash capacity being top priority. Even so, we expect to continue generating substantial excess cash, so after splitting our stock three-for-one and doubling our dividend in 2007, we announced in early 2008 plans to repurchase up to 5 percent of our shares. We believe PotashCorp has consistently proven to be the best investment in the fertilizer industry, and will continue to be. We invite you to compare our performance against industry peers as proof.
The bottom line is that we are in a very strong financial position and poised to build on it as demand for fertilizer, especially potash, grows. Ultimately, our goal is to put our strengths – and cash – to work for our investors, building an even stronger company for tomorrow.
