PLYMOUTH, Minn., Sept. 20, 2017 /PRNewswire/ -- The Mosaic Company
(NYSE: MOS) today issued the following update on its third quarter
business performance in connection with Hurricane Irma.
Prior to the hurricane, profitability metrics were tracking
ahead of the third quarter guidance with good demand and strong
operational performance. While Mosaic was fortunate to have avoided
significant damages in connection with Hurricane Irma, the company
expects approximately 250,000 to 350,000 tonnes of lower production
in the month of September. Together with the damage to
Mosaic's Bartow warehouse, this could result in a loss of up to
400,000 tonnes of finished phosphate product.
Mosaic will provide additional detail on the financial impact of
the hurricane in the month of September as part of its third
quarter earnings release.
This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to, statements about
our proposed acquisition of the global phosphate and potash
operations of Vale S.A. ("Vale") conducted through Vale
Fertilizantes S.A. (the "Transaction") and the anticipated benefits
and synergies of the proposed Transaction, other proposed or
pending future transactions or strategic plans and other statements
about future financial and operating results. Such statements are
based upon the current beliefs and expectations of The Mosaic
Company's management and are subject to significant risks and
uncertainties. These risks and uncertainties include but are not
limited to risks and uncertainties arising from the possibility
that the closing of the proposed Transaction may be delayed or may
not occur, including delays or risks arising from any inability of
Vale to achieve certain specified regulatory and operational
milestones and the ability to satisfy any of the other closing
conditions; our ability to secure financing, or financing on
satisfactory terms and in amounts sufficient to fund the cash
portion of the purchase price without the need for additional funds
from other liquidity sources; difficulties with realization of the
benefits of the proposed Transaction, including the risks that the
acquired business may not be integrated successfully or that the
anticipated synergies or cost or capital expenditure savings from
the Transaction may not be fully realized or may take longer to
realize than expected, including because of political and economic
instability in Brazil or changes
in government policy in Brazil;
the predictability and volatility of, and customer expectations
about, agriculture, fertilizer, raw material, energy and
transportation markets that are subject to competitive and other
pressures and economic and credit market conditions; the level of
inventories in the distribution channels for crop nutrients; the
effect of future product innovations or development of new
technologies on demand for our products; changes in foreign
currency and exchange rates; international trade risks and other
risks associated with Mosaic's international operations and those
of joint ventures in which Mosaic participates, including the risk
that protests against natural resource companies in Peru extend to or impact the Miski Mayo mine,
the ability of the Wa'ad Al Shamal Phosphate Company (also known as
MWSPC) to obtain additional planned funding in acceptable amounts
and upon acceptable terms, the timely development and commencement
of operations of production facilities in the Kingdom of Saudi Arabia, the future success of
current plans for MWSPC and any future changes in those plans;
difficulties with realization of the benefits of our long term
natural gas based pricing ammonia supply agreement with CF
Industries, Inc., including the risk that the cost savings
initially anticipated from the agreement may not be fully realized
over its term or that the price of natural gas or ammonia during
the term are at levels at which the pricing is disadvantageous to
Mosaic; customer defaults; the effects of Mosaic's decisions to
exit business operations or locations; changes in government
policy; changes in environmental and other governmental regulation,
including expansion of the types and extent of water resources
regulated under federal law, carbon taxes or other greenhouse gas
regulation, implementation of numeric water quality standards for
the discharge of nutrients into Florida waterways or efforts to reduce the
flow of excess nutrients into the Mississippi River basin, the
Gulf of Mexico or elsewhere;
further developments in judicial or administrative proceedings, or
complaints that Mosaic's operations are adversely impacting nearby
farms, business operations or properties; difficulties or delays in
receiving, increased costs of or challenges to necessary
governmental permits or approvals or increased financial assurance
requirements; resolution of global tax audit activity; the
effectiveness of Mosaic's processes for managing its strategic
priorities; adverse weather conditions affecting operations in
Central Florida, the Mississippi
River basin, the Gulf Coast of the United
States or Canada, and
including potential hurricanes, excess heat, cold, snow, rainfall
or drought; actual costs of various items differing from
management's current estimates, including, among others, asset
retirement, environmental remediation, reclamation or other
environmental regulation, Canadian resources taxes and royalties,
or the costs of the MWSPC, its existing or future funding and
Mosaic's commitments in support of such funding; reduction of
Mosaic's available cash and liquidity, and increased leverage, due
to its use of cash and/or available debt capacity to fund financial
assurance requirements and strategic investments; brine inflows at
Mosaic's Esterhazy, Saskatchewan,
potash mine or other potash shaft mines; other accidents and
disruptions involving Mosaic's operations, including potential mine
fires, floods, explosions, seismic events, sinkholes or releases of
hazardous or volatile chemicals; and risks associated with cyber
security, including reputational loss, as well as other risks and
uncertainties reported from time to time in The Mosaic Company's
reports filed with the Securities and Exchange Commission. Actual
results may differ from those set forth in the forward-looking
statements.
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SOURCE The Mosaic Company