PotashCorp - Phosphate

PotashCorp numbers at a glance

#3 in global capacity
#1 global producer of specialty phosphate products
2010 Net Sales¹ – $1.7B, 27.7 percent of PotashCorp total
2010 Gross Margin – $319M, 12.2 percent of PotashCorp total
2010 Sales Volume by Region
2010 Sales Volume by Customer Type
¹Non-GAAP Financial Measures and Reconciliations

Competitive strengths

High-quality, low-cost phosphate rock in significant quantity provides cost advantage over non-integrated producers

Permit to mine for more than 30 years at Aurora, North Carolina

Mining near processing facilities provides cost advantage over North American competitors

Ability to direct rock with low levels of impurities to diversified product line to optimize margins and reduce volatility

Strong position in North American purified acid, feed phosphate and liquid fertilizer markets

Snapshot of Phosphate

Strategy	Capability to Deliver	Risk	Mitigation
Optimize product mix to maximize gross margin and reduce volatility	New permits at Aurora allow for more than 30 years of mining In 2010, Aurora commissioned a new sulfuric acid plant and invested in truck-and-shovel mining equipment	Short-term cyclicality due to fluctuations in demand, changes in available supply, cost volatility and government involvement in the industry	Leverage strengths in less-cyclical industrial and feed products; optimize fertilizer operations to minimize production costs

Strategy

Capability to Deliver

Risk

Mitigation

Optimize product mix to maximize gross margin and reduce volatility

New permits at Aurora allow for more than 30 years of mining

In 2010, Aurora commissioned a new sulfuric acid plant and invested in truck-and-shovel mining equipment

Short-term cyclicality due to fluctuations in demand, changes in available supply, cost volatility and government involvement
in the industry

Leverage strengths in less-cyclical industrial and feed products; optimize fertilizer operations to minimize production costs

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