Shares of Europe's top potash producer soars after reopening mine
Shares in K+S AG (OTCMKTS:KPLUY), Europe’s biggest producer of potash, shot up on Friday after the German miner said it will recommence production at its Unterbreizbach mine on 2 December.
Production was suspended at the mine at the start of October after a fatal gas explosion.
The ADRs of K+S trading in New York were last up more than 8% after shares of the $5 billion company rose 5.8% to 20.50 euro on the German bourse.
K+S has been one of the worst performers on the DAX index this year after top producer Russia's Uralkali at the end of July sent stock prices in the sector tumbling when it decided to up production and exit a supply control agreement with partner Belaruskali.
The breakup of the selling organization that controlled more than a third of global exports has seen the potash price retreat from $400 a tonne to closer to $300 a tonne.
Earlier in November ratings agency Moody's cut K+S's debt to junk status after the company announced it is raising some $1.4 billion to fund around a third of its $4.1 billion Legacy project in Canada.
The Legacy mine, currently under construction, is expected to start production by the end of 2016, ramping up to two million tonnes per year in 2017 and reaching full capacity of 2.86 million tonnes by 2023.