DENVER--(EON: Enhanced Online News)--Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the “Company”) comments on the current state of the Potash marketplace.
The Company comments:
What is the current status of product sales for Potash?
Potash sales volumes have weakened as consumers have significantly delayed purchases in anticipation of lower future prices. Total potash sales for 2013 are expected to be between 53 million and 54 million metric tonnes. On the pricing side, this has been the sixth consecutive quarter of declining prices although recent data appears to show things stabilizing.
How do you see shipments next year?
We agree with the general consensus that potash sales volumes will increase to between 55 million and 58 million tonnes in 2014.
What are the catalysts for an improved Potash marketplace?
The uncertainty around the splitting up of BPC is clearly weighing on market psychology. We believe that, like all market shocks, this will fade in the not too distant future and it will be business as usual for buyers and sellers of potash.
Where does this position the Company from here?
We have just received an Air Quality Control Permit to build and operate a potash mine and processing plant in the Holbrook Basin of Arizona. We have a low capital intensity, low cost project in a low political risk jurisdiction. We are going to continue the development of our project in a prudent manner and bring it online as soon as possible. While there will always be cyclicality in any commodity market, we think the long term trend is up for potash and intend to capitalize on it.
Regarding Forward-Looking Statements
With the exception of historical matters, the matters discussed in this press release include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements regarding current and future classification of Prospect Global’s potash resources, development of its potash resources and potash mining facility and the Pre-Feasibility Study. Factors that could cause actual results to differ materially from projections or estimates include, among others, potash prices, economic and market conditions, and the additional risks described in Prospect Global's filings with the SEC, including Prospect Global's Annual Report on Form 10-K/A for the year ended March 31, 2013. Most of these factors are beyond Prospect Global's ability to predict or control. The forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, Prospect Global does not assume any obligation to update any forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements.
About Prospect Global Resources Inc.
Prospect Global Resources Inc. is a Denver-based company engaged in the exploration and development of a potash mine located in the Holbrook Basin of eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital Market under the ticker symbol PGRX.
Additional details about Prospect Global Resources Inc. can be viewed at the Company’s website, www.prospectgri.com.