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PotashCorp numbers at a glance

#1 in global capacity
2012 Net Sales1 — $3.1B
2012 Gross Margin — $2.0B, 57 percent of PotashCorp total
2012 Sales Volume by Region
2012 Sales Volume by Customer Type
1Non-IFRS Financial Measures and Reconciliations

Where it comes from

PotashCorp mines potash from underground deposits left behind by ancient evaporated seas. The world's largest deposits are in Saskatchewan.

Applications

  • As fertilizer — improves root strength and disease resistance; enhances taste, color and texture of food
  • As feed — aids animal growth and milk production
  • Used in industrial products (food products, soaps, water softeners, de-icers and drilling muds)

Competitive strengths

  • Can substantially raise capacity at a significant discount to and in less time than comparable greenfield capacity
  • Lower-cost, flexible production with small percentage of fixed costs when operating at close to capacity
  • Per-tonne fixed costs decrease as sales volumes increase
  • Existing operations have significant reserves and are located in a geopolitically stable region
  • Offshore investments add global reach and profitability
  • Substantial barriers to entry: economically mineable deposits are rare, capital costs are high and lead times are long
  • No known substitutes for potash
Our Strategic ApproachPrioritiesRisksMitigation
  • Build on our potash position whenever value-enhancing opportunities arise
  • Match production to market demand to reduce downside risk and conserve the long-term value of our resource
  • Expand operational capability to meet anticipated rising demand
  • Enhance transportation and distribution capability
  • Attract and retain a skilled workforce
  • New supply creates market imbalance
  • Global demand insufficient to consume PotashCorp capacity
  • Lack of adequate transportation and distribution infrastructure
  • Underground mines face risks of water inflow and unexpected rock falls
  • Inability to execute on expansions affects our competitive advantage
  • Unsafe actions or conditions can result in serious injury
  • Match production to demand
  • Ensure sufficient investment is made in transportation and distribution infrastructure
  • Use advanced monitoring and geophysical techniques to help predict problematic mining situations
  • Ensure resources are in place for safe and efficient execution of capital plans
  • Enhance safety systems at all sites
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Last Reviewed: Mar 22, 2013