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Stock/Shareholder information
| Q: |
How do I buy PotashCorp stock? |
| A: |
Common stock in PotashCorp is traded on the Toronto and New York stock exchanges under the ticker symbol POT. PotashCorp does not have a direct share purchase plan. To buy shares in the company, contact any brokerage firm. |
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| Q: |
What is the ticker symbol for PotashCorp? |
| A: |
Our common stock ticker symbol is POT on both the Toronto and New York stock exchanges. |
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| Q: |
On what exchanges does PotashCorp stock trade? |
| A: |
The common stock of PotashCorp trades on the Toronto and New York stock exchanges under the ticker symbol POT. |
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| Q: |
Does PotashCorp pay a dividend on its stock? |
| A: |
Dividends on PotashCorp common shares are paid as and when declared by the Board of Directors. Since 1990, PotashCorp has paid a quarterly dividend to common shareholders. See our Dividend Information section for the dividend record and payment dates. The current quarterly dividend, after our May 2007 three-for-one stock split, is $0.10/share. |
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| Q: |
Does PotashCorp have a Dividend Reinvestment Plan (DRIP)? |
| A: |
PotashCorp offers a Dividend Reinvestment Plan to any shareholder of record. See Dividend Reinvestment Plan for detailed information. |
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| Q: |
Does PotashCorp have a Direct Stock Purchase Plan? |
| A: |
PotashCorp does not have a direct stock purchase plan. To buy shares in PotashCorp, contact any brokerage firm. |
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| Q: |
How do I get a copy of the Annual Report? |
| A: |
The Potash Corporation of Saskatchewan Inc. Annual Report can be viewed on this website. If you require a hard copy, please contact us either by e-mail through Investor Briefcase or call toll free.
1-800-667-0403 - within Canada
1-800-667-3930 - from the US |
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| Q: |
How do I get a PotashCorp investor package? |
| A: |
A PotashCorp investor package can be obtained through Investor Briefcase. |
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| Q: |
What firms provide analyst coverage of PotashCorp stock? |
| A: |
PotashCorp has both Canadian and US analyst coverage. See Analyst Coverage for a listing of firms following our company. |
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| Q: |
When was the initial public offering (IPO) for PotashCorp? |
| A: |
PotashCorp went public on both the Toronto and New York stock exchanges on November 2, 1989, at $CDN 18.00 and $US 15 1/8 per share respectively. When considering the August 2004 two-for-one stock split and the May 2007 three-for-one stock split, this equates to $CDN 3.00 and $US 2.52 per share. |
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| Q: |
What was the offering price at the initial public offering (IPO) for PotashCorp? |
| A: |
The offering price was $CDN 18.00 and $US 15 1/8 per share on November 2, 1989. When considering the August 2004 two-for-one stock split and the May 2007 three-for-one stock split, this equates to $CDN 3.00 and $US 2.52 per share. |
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| Q: |
Who should I contact regarding my stock certificate? |
| A: |
You should contact PotashCorp's transfer agent, CIBC Mellon Trust Company, at:
P.O Box 7010
Adelaide Street Postal Station
Toronto, ON
M5C 2W9
1-800-387-0825
Website:  www.cibcmellon.com |
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| Q: |
How many PotashCorp shares are outstanding? |
| A: |
As of March 31, 2008, PotashCorp had 313,608,196 common shares outstanding. |
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| Q: |
I am a shareholder outside of Canada. What does this mean? |
| A: |
Dividends paid to residents in countries with which Canada has bilateral tax treaties are generally subject to the 15-percent Canadian non-resident withholding tax. There is no Canadian tax on gains from the sale of shares or debt instruments owned by non-residents not carrying on business in Canada. No government in Canada levies estate taxes or succession duties. |
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| Q: |
What is a transfer agent? |
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A transfer agent and registrar for a publicly held company keeps a record of every outstanding stock certificate and the name of the person to whom it is registered. When registered stock changes hands, the transfer agent transfers the ownership of the stock from the seller’s name to the buyer’s name. The registrar reconciles all transfer records and makes sure that the number of shares debited is equal to the number of shares credited. PotashCorp's transfer agent is CIBC Mellon Trust Company. |
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| Q: |
How do I contact the transfer agent for PotashCorp? |
| A: |
Our transfer agent is CIBC Mellon Trust Company. They can help with a variety of shareholder-related questions. They can be contacted at:
P.O Box 7010
Adelaide Street Postal Station
Toronto, ON
M5C 2W9
1-800-387-0825
Website: www.cibcmellon.com |
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| Q: |
How do I contact PotashCorp Investor Relations? |
| A: |
You can contact the Investor Relations department at PotashCorp by telephone, fax or mail.
Telephone: 306-933-8520
Toll Free: 1-800-667-0403 (within Canada) 1-800-667-3930 (from the US)
Fax: 306-933-8844
E-mail: Investor Relations
Mail: Investor Relations Department
Potash Corporation of Saskatchewan Inc.
Suite 500 122-1st Avenue South
Saskatoon, SK
S7K 7G3
Canada
You may be able to find the answer to your question by first looking at our frequently asked questions. |
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| Q: |
How do I change my address on my account? |
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If you own shares through a brokerage firm, you need to contact the brokerage firm directly to change your account address. If you are a registered shareholder contact CIBC Mellon Trust Company to change your account address:
P.O Box 7010
Adelaide Street Postal Station
Toronto, ON
M5C 2W9
1-800-387-0825
Website: www.cibcmellon.com |
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Corporate Finance
| Q: |
Does PotashCorp issue quarterly reports? |
| A: |
Yes, PotashCorp issues quarterly reports. You can look at all quarterly financials on this website under News Releases. Click on Investor Briefcase to view our quarterly 10-Q's. |
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| Q: |
When is the next earnings release? |
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For information on PotashCorp's next earning release, investor activities and other special events please visit our Investor Calendar or browse our Investor Relations section. |
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| Q: |
What is the company's book value? |
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At March 31, 2008, the book value of PotashCorp was US $6,244.7 million, compared to US $6,018.7 at December 31, 20071. PotashCorp's book value per share at March 31, 2008 was US $19.91 versus US $19.02 at December 31, 20071.
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| Q: |
What is total capital expenditure expected to be? |
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Our total capital expenditures in 2008 are expected to be US $1.3
billion, including sustaining expenditures but excluding capitalized
interest. |
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| Q: |
What are PotashCorp's annual sustaining capital expenditures expected to be? |
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Our sustaining capital expenditures for 2008 will be approximately $200 million. |
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| Q: |
What is the average depreciation expense for PotashCorp? |
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Depreciation and amortization are provided for on a basis and at rates calculated to amortize the cost of the property, plant and equipment over their estimated useful lives. Depreciation and amortization rates for all mine assets (including mine development costs) and potash mills are determined using the units of production method based on the shorter of estimates of deposit or service lives. Other asset classes are depreciated or amortized on a straight-line basis as follows: land improvements 5 to 30 years, buildings and improvements 6 to 30 years and machinery and equipment (comprised primarily of plant equipment) 20 to 25 years. In 2007, depreciation and amortization expense was US $291.3 million. The estimated depreciation and amortization expense for 2008 is expected to be US $315.0 million. |
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| Q: |
How do provincial potash mining taxes work? |
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The potash production tax is payable under the Mineral Taxation Act, 1983 (Saskatchewan). This tax consists of two components: a base tax of $11 (indexed) per K2O tonne of Saskatchewan potash sold and a profit tax of 15 to 35 percent on mine-by-mine profits less certain credits. In general terms, in 2008 we expect roughly 15 cents of every dollar of potash gross margin will be paid in provincial mining taxes, but could fall within a range of 14-18 cents. Where we fall within this range depends on several factors including potash price realizations, Canadian/US exchange rate, and the timing and amount of capital spending on potash projects in Saskatchewan. These taxes are not deductible for Canadian income tax purposes. |
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| Q: |
How do changes in exchange rates affect results? |
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PotashCorp and our operating subsidiaries have the US dollar as their functional currency and virtually all of our sales are in US dollars. We produce in Canada, Trinidad, Brazil and Chile as well as the United States, which gives us exposure to fluctuations in the value of currencies of those countries against the US dollar. Our largest currency exposure is with our operations in Canada, which affects both operating costs and monthly balance sheet translations. The largest impact comes from the conversion of our balance sheet at month-end. For 2008, at the current trading range, a one-cent change in the Canadian dollar relative to the US dollar affects our foreign exchange gain or loss by approximately $7.0 million before tax (or $0.015 earnings per share) but this is primarily a non-cash transaction.
Secondly, while we sell our potash in US dollars, our production and other related costs are in Canadian dollars. Therefore, as the Canadian dollar strengthens, our operational costs go up. Every one-cent change in the average exchange rate of the Canadian dollar impacts our earnings by share by approximately $0.015 on an annual basis.
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| Q: |
When are the fiscal year-end and earnings release dates for PotashCorp? |
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Our fiscal year end is December 31. Our results are usually announced in April (first quarter), July (second quarter), October (third quarter) and January (fourth quarter and year-end). To obtain the date of PotashCorp’s next earnings announcement, see our Investor Relations Calendar. |
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| Q: |
What companies or projects has PotashCorp invested in or acquired? |
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For a complete list of companies and projects PotashCorp has investment in or acquired, please refer to the History of Our Growth section of the website. |
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| Q: |
How has PotashCorp financed its acquisitions? |
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PotashCorp has financed its acquisitions through various sources including issuing common shares, debt financing and using funds from operations.
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Potash business
| Q: |
Why is potash important? |
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Potash is the major source of potassium. It is first and foremost a fertilizer but is also used as an animal feed supplement and in industry where it is used in such products as computer and TV screens, soaps, de-icers and water softeners. In plants, potassium raises yields and food value, builds disease resistance and improves shipping, handling and storage qualities. In animals, it helps growth, maintenance and milk production. Farmers in developed nations consider potash essential to grow their crops. They know that potash must be replenished in the soil after removal by the crop. It is becoming clearer in developing countries that potash is important but the amount farmers use is often limited by political and economic factors. As their agriculture systems evolve, so will their potash usage. |
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| Q: |
How is potash produced? |
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Potash is a term widely applied to naturally occurring potassium salts and the commercial products derived from them.
The most common method of producing potash is from ore that is mined deep underground by conventional mining methods. The mined ore is sent to a processing mill on the surface by conveyor and hoist. The salt (NaCl) and clays are separated from the potash (KCl) in a process called flotation.
Solution mining is another method of extracting potash from underground mines but it requires a lot of energy to recover the potash. Some potash is also obtained from salt lake brines like the Dead Sea by natural evaporation in solar ponds. |
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| Q: |
Which crops are the biggest users of potash? |
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In the US, corn is the major consumer of potash. Over 40 percent of the potash used is applied to corn. In China, where farmers in some regions grow 2 or 3 crops a year, rice is the largest consumer. In Brazil, roughly 60 percent of the potash is used on soybean, sugar cane and corn. In Malaysia, oil palm is the single largest consumer of potash using as much as 75 percent of the potash on that crop. |
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| Q: |
What are the feed uses of potash? |
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Potash is added to animal feeds as a supplement because potassium (K) is essential for human and animal life. It is involved in many body functions. It is required for proper muscle development. It is essential for chickens and turkeys during their first eight weeks and for cows when lactating. |
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| Q: |
What would it cost to build a new potash mine? |
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Potash mining is very capital intensive. It can take 5 to 7 years' lead time (excluding ramp-up to full productive capability) and at least $2.8 billion to bring into production a new 2-million tonne per year "greenfield" potash mine and mill in Saskatchewan. This excludes any infrastructure costs "outside of the plant gate" such as power, natural gas, water, roads, rail, port handling/storage, etc. The risks are therefore very high, both to capital outlay before generating positive cash flow, but there are also substantial physical risks particular to development and operations of underground mines. For example, water is often encountered in sinking a shaft, and the ore body can be irregular and difficult to mine. |
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| Q: |
What influences the unit costs of potash? |
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Potash production costs are affected by: ore thickness, consistency and continuity; ore depth, geological conditions and K20 grade; mill recovery, operational capacity, operating rate, and degree of automation. |
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| Q: |
How important is trade in potash? |
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While approximately 160 countries use potash, only 12 countries produce significant amounts. As a result, roughly 80 percent of the potash produced moves across borders. Canada is the largest exporter accounting for 40 percent of the total potash trade. |
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| Q: |
How does potash get to the North American markets? |
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Potash for the domestic market can be transported by rail, ship or truck. The majority of our Saskatchewan potash is sent by rail to strategically located warehouses and fan track locations, where it is stored or sent directly to customers by rail. We also ship product by rail to transfer points on the Great Lakes for delivery by vessel and to transfer points on the Mississippi river for delivery by barge. Most of this potash is shipped to PotashCorp warehouses, where our customers pick it up by truck. Customer trucks are also used for shipments to destinations that are close to our mines. |
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| Q: |
How does potash get to the offshore markets? |
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PotashCorp owns directly and indirectly shipping facilities on both North American coasts to facilitate ease of shipping to customers around the world. The offshore marketing and sales of our Saskatchewan potash is handled by Canpotex - the marketing company for Saskatchewan potash producers. Our Saskatchewan product is then sent by unit train to our large warehouses in Vancouver, BC and Portland, OR, or loaded directly onto vessels headed to offshore markets. These ships carry as much as 30,000 - 68,000 tonnes of potash to destinations such as China, India, and Australia. On the Atlantic coast, we load potash from our facilities in New Brunswick onto ships at the port of Saint John, NB for delivery to markets in Latin America and Europe. |
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| Q: |
After the flooding of the #3 mine at Berezniki in 1986, what conditions led to the formation of the sinkhole? How large was it and how long did it take to form? |
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For more information on the Berezniki #3 mine sinkhole, please see www.karst.edu.cn/igcp/igcp299/1994/part2.htm |
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Phosphate business
| Q: |
What is phosphate needed for? |
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Phosphate, which is expressed in nutrient terms as P2O5, is the major source of phosphorus, the energizer of plant production. It is crucial to photosynthesis and reproduction and helps other yield-developing processes. It is needed by animals as an energizer and for general nutrition and normal body growth, maintenance and repair. |
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| Q: |
How are phosphate fertilizers and other products produced? |
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Phosphate is found in underground ore deposits which contain phosphate rock. This is reacted with a mixture of phosphoric and sulfuric acid to produce phosphoric acid, the feedstock for other products. Phosphoric acid may be reacted with ammonia and granulated to produce solid fertilizers DAP and MAP, concentrated by evaporation to produce merchant grade phosphoric acid or further evaporated to produce superphosphoric acid. It may also be reacted with limestone or phosphate rock to produce animal feed products, or purified by solvent extraction to produce industrial grade phosphoric acids. |
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| Q: |
Which crops use the most phosphate? |
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In the United States, the crops that use the most phosphate are corn, wheat, soybeans and cotton. Asia applies phosphate fertilizers to rice, corn and root crops. Brazil applies phosphate to soybeans, corn, sugar cane and rice. |
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| Q: |
What influences the unit costs of phosphate rock? |
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Phosphate rock production costs are affected by ore thickness, consistency and continuity, depth, geological conditions and concentration ratio (tonnes of ore removed per tonne of phosphate rock). |
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| Q: |
How important is trade in phosphate? |
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In 2007, approximately 70 countries produced phosphate fertilization products, and around 32% of this production was traded. |
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| Q: |
What are the industrial uses for phosphate? |
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Industrial phosphates are used in applications such as water treatment, metal cleaning, production of food grade products, and for manufacturing refractory materials, fire fighting solutions, and quick setting cements. |
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| Q: |
How do phosphate products get to the North American market? |
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We have phosphate plants in North Carolina and Florida and are a major producer of fertilizer, feed and industrial phosphates. To handle liquid products we use a large fleet of specialized tank cars. We sell DAP and MAP mostly to the local market so truck delivery is important. But we also rail product in smaller lots to customers further away. |
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| Q: |
How do phosphate products get to the offshore market? |
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Our offshore exports of DAP and MAP travel from our facilities to the port of Morehead City, N.C., where they are loaded directly to ocean vessels. The offshore marketing and sales of our phosphate fertilizer products are handled by PhosChem, a marketing organization representing PotashCorp and Mosaic. |
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Nitrogen business
| Q: |
What value is there in nitrogen? |
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Nitrogen (N) is required by every living cell and is part of the genetic blueprints RNA and DNA. It is needed by animals for proper nutrition and maturation, and is the fundamental building block of plant proteins, improving yield and quality. |
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| Q: |
How do nitrogen fertilizers and products for industry get produced? |
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Nitrogen products are manufactured from feedstock ammonia synthesized from natural gas, steam and air. Ammonia is the most concentrated nitrogen fertilizer, and is upgraded to produce other nitrogen products. Urea, a solid nitrogen fertilizer product that is popular due to its high nitrogen content and excellent handling properties, is the major fertilizer source of nitrogen. The solid fertilizer ammonium nitrate is made from ammonia and nitric acid. Liquid forms of urea and ammonium nitrate are combined into nitrogen solutions. |
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| Q: |
Which crops use the most nitrogen? |
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North American crops that demand the most nitrogen are corn, wheat and cotton. Globally, wheat, rice and corn are the three largest consumers of nitrogen. |
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| Q: |
What influences the unit cost of ammonia? |
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Nitrogen production costs are most affected by natural gas prices. The cost of natural gas makes up 75-90% of the US cash cost of producing ammonia. The higher the cost of gas, the higher the percentage that it makes up of the unit cost of ammonia. |
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| Q: |
How important is trade in nitrogen? |
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In 2007, approximately 60 countries produced ammonia and most used their production internally, so cross-border trade was limited, averaging about 13 percent annually. Urea is more commonly traded, with around 27% of world production traded in 2007. |
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| Q: |
What are the industrial uses for nitrogen? |
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The uses of nitrogen products include:
Ammonia: Production of fibres and resins, as a coolant in refrigeration systems, in pulp and paper production, and for metallurgy.
Urea: For production of resins, dyes, adhesives and pharmaceuticals.
Nitric Acid: For production of fibres, resins, polymers and for metallurgy.
Ammonium Nitrate: For production of explosives. |
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| Q: |
How do nitrogen products get to market? |
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PotashCorp’s Trinidad operation primarily produces anhydrous ammonia, which is shipped in specially designed ocean vessels to DAP producers in Florida and other agricultural and industrial customers in the United States. Our US operations produce a full spectrum of products from anhydrous ammonia to liquid nitrogen fertilizers. These products are shipped by barge, rail car, truck and direct pipeline to our customers and through strategically located storage terminals in high consumption areas. The terminals provide off-season storage and also serve local dealers during the peak demand period. |
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Product Markets
| Q: |
Which US crops are most dependent on fertilizer? |
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Corn is the single largest consumer of fertilizer in the US, and uses more than 40 percent of each of the three nutrients. While soybeans are grown over a large area and application rates are high for potash and phosphates, less than 30 percent of the area planted to soybeans receive fertilizer and soybeans fix their own nitrogen. Soybeans are typically grown in rotation with corn which receive high rates of all three nutrients. Soybeans consume roughly 15 percent of the potash and 10 percent of the phosphate but only one percent of the nitrogen. Only 20 percent of the area planted to wheat receives potash. Wheat consumes roughly 15 percent of the nitrogen and phosphates, but only five percent of the potash. Application rates are higher for cotton than wheat but the area planted to cotton is much smaller. Cotton consumes about five percent of all three nutrients. |
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| Q: |
What kind of a return does a farmer get from using fertilizer? |
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The economics of buying and using fertilizer are compelling. The
excellent value it provides for the world's farmers was confirmed by a
recent International Plant Nutrition Institute (IPNI) survey, which
took into consideration higher crop prices and much higher fertilizer
costs. Most crops in the survey returned more than $3 for every $1
invested in N, P and K fertilization. Oil palm from a mature Malaysian
plantation returned $9 per $1 invested in fertilization. Crop quality
also improved. |
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