raising at 55 cents, page-107

"the greatest incredulity of STB was the presentation stating 10mpta of potash production"

Please think why STB would revised the production level so drastically.

In 2010, 52mt of MOP was produced. 10mtpa is nearly 20% of the world output. How would your competitors and buyers react to such a volume coming onto the market?

Firstly, your competitors would reduce the price of potash (supply and demand) and tie up as many buyers as possible with long term contracts. You are left with bugger all.

Secondly, your buyers know your production capacity and would bargain for a price reduction knowing there is a cost in under utilizing the production facilities.

The result would be a collapsed in the price of potash. I am sure management realised this, but ignorant investors will screw them for incompetency.

I believe, STB can produce 5mpta but would adjust production levels to maximise its profits.