In response to strong demand, fertilizer giant Nutrien (TSX: NTR; NYSE: NTR) is planning to increase potash production in the second half of the year by roughly half a million tonnes.
The production boost, which the company says should also pump up its earnings in the second half, will be reflected in updated guidance to be released with Nutrien’s second-quarter results.
Production from the company’s six potash mines is already fully committed through September, based on its original production guidance for 2021. Nutrien plans to add employees to help increase production across most of its potash mines, especially at its Vanscoy facility in Sakatchewan.
The company has already raised its earnings guidance once this year. In early May, the company raised its adjusted net-earn guidance for the year to $3.25 per share from $2.55. At the time, it projected 2021 potash production to be between 12.5 to 13 million tonnes. Nutrien also produces nitrogen and phosphate.
Nutrien has also been rumoured to be interested in BHP’s (NYSE: BHP; LSE: BHP) Jansen potash project in Saskatchewan, with BHP expected to make a decision on development by August.
(This article first appeared in the Canadian Mining Journal)