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Intrepid is a geographically advantaged US based potash only company. We have an intense margin focus using strategic marketing to participate in our markets and production flexibility that we use to our advantage. We are the high end margin North American potash producer. Our commitment is to reinvest into our business, through capital investments that are focused on product growth, through incremental low cost ponds for that flexible production facilities and delevering excellent rates to return on our capital investments.Intrepid is the largest producer of potash in the United States. We supply approximately 10% of the US market and we’re also one of only two global producers of langbeinite. Langbeinite is a specialty mineral that contains magnesium, potassium and sulfur and virtually no chloride. We have five active production facilities, each with excellent capital investment opportunities that are inside our fence, that are focused on growth flexibility and margin and you’ll hear me say that time and time again, today. We’ve begun construction of our sixth facility which is the HB Solar Solution Mine down in Carlsbad, New Mexico, and when completed, we expect that project will increase our potash production by approximately 25%. Further, the strength of our balance sheet provides the ability for us to execute on a robust capital investment program together with our disciplined approach to business development. Turning to the current potash market for just a moment, what we see is that the fundamentals remain strong basically despite the drought condition. If you look at the crop insurance program, this rally should mitigate the impacts from the drought conditions across large portion of the Midwest. There is a market by market variability that exists and there are certainly some areas of the country that are going to see above average yields. So you have to really put things in perspective and keep some balance. The Summerfield purchasing programs is moving along just as folks would expect it to at a very solid pace. And one thing we are seeing though is that we are seeing stocks to use ratio as tightened and we really expect that what’s that’s going to do is get people thinking forward at 2013 and we expect to see global, agricultural demand really increase. Farmer economics suggest that farmers will likely apply near normal potash levels in the fall and then going into the spring and we see industrial and our feed business being very stable. Demand also remains very strong for our Trio products as our customers continue to recognize the agronomic value of this product and the value that it provides to them in their crops.
Intrepid is really differentiated from our competitors based on our assets, our commitment to our folks, our facilities and our production growth profile. Our minds are geographically located in an area that we’re able to sell into a market that represents approximately five times what we produce on an annual basis.Further, we built to capacity and the flexibility through our production systems to maximize our margin opportunities by meeting the differing product demands of the end markets that we serve from our Carlsbad, New Mexico, and our Utah facilities. So what is a diverse product offering and geographically advantage really mean? Well quite simply, it means that we generate more cash per ton, than our competitors. This is on each ton of product that we produce and sell, because we’ve invested in the production flexibility and we’re simply closer to the market. based on our calculations, when we look at our average net realized sales price for potash over the first half of 2012 and we compare it to our North American peers, we are in $64 more per ton. When we look over the last five years, compared to our North American competitors, this represents an advantage of nearly 25% on a per ton basis for every, on a net realized sales price Read the rest of this transcript for free on seekingalpha.com