Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Germany-based fertilizer producer K+S AG (FRA:SDF1) revised up its production outlook on Tuesday, as weather-related production stoppages at its Werra potash plant are expected to be shorter than previously thought.
Production at the plant will now only be halted from December 24 to 26, K+S said, as recent rainfall raised water levels of the Werra river, used for minerals production and transport.
The Werra plant — which includes the Hattorf, Wintershall and Unterbreizbach sites — is the largest of its kind owned by K+S.
Production at the plant will now only be halted from Dec. 24 to 26, as recent rainfall raised water levels of the Werra river.
The German potash producer shut down its Wintershall site in late August, after a severe drought hit production at its main mine network in the third quarter.
In September, it also halted production at is Hattorf site, as the exceptionally low water levels in the Werra river restricted its ability to dispose of waste water.
“Due to the production stoppage, which is now shorter than previously assumed, K+S expects only an additional negative EBITDA effect of roughly 10 million euros in the fourth quarter of 2018,” the company said. It had previously expected a hit of up to 15 million euros.
K+S believes further stoppages in the potash production at the Werra plant to be unlikely in the first quarter of 2019, even in the event of drought.
