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.
Saskatchewan’s Potash Corp (NYSE:POT)- the world’s largest crop nutrient company – announced on Wednesday that it would buy up $2 billion of its own stock, totaling 5% of its outstanding common shares.
The re-acquisition will be made over a one year period and repurchased shares will be eliminated.
The announcement comes several months after PotashCorp decided to increase its quarterly cash dividend by 25% – totaling 35 cents per share.
These moves are the result of increased cash flow as the company completes a 10-year mine expansion program.
Potash Corp shares were up to $38.50 on the New York exchange at noon time on Wednesday.
Creative Commons image by: Tony Hisgett
