- Capability to substantially raise capacity in less time than and at a significant discount to comparable greenfield capacity
- Low-cost, flexible production, with a small percentage of fixed costs
- Declining per-tonne production costs and mining taxes with expanded volumes
- Long reserve lives from existing mine shafts
- Offshore potash-related investments add considerably to overall profitability
- Substantial barriers to entry, with high capital costs and long lead times
- Few world producers, little government ownership
- No substitutable products for potash
- High rail and ocean freight delivery costs for Saskatchewan potash, potential for bottlenecks
- Water inflows at New Brunswick and Esterhazy increase production costs there and risk loss of production
- Production costs exposed to Canadian dollar volatility
- High Saskatchewan resource taxes and federal and provincial income taxes, relative to global competitors
- Global food story, complemented by biofuels, is accelerating long-term growth expectations for potash consumption
- With competitors at or near maximum operating rates and limited expansion potential, planned capacity additions should enable PotashCorp to increase our percentage participation in a growing market
- Potash demand growth could exceed company's logistical capability to deliver in the short term
- Demand can be temporarily affected by changes in consumption patterns in offshore markets
- Substantial upward pricing trend may attract greenfield projects
- PotashCorp would be disproportionately affected by market weakness, particularly in the short term