PGRX Market Commentary: Q&A Regarding State of the Potash Market
Potash Project is Well Positioned to Weather Market Fluctuations
DENVER -- October 28, 2013
Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the
“Company”) comments on the current state of the Potash marketplace.
The Company comments:
What is the current status of product sales for Potash?
Potash sales volumes have weakened as consumers have significantly delayed
purchases in anticipation of lower future prices. Total potash sales for 2013
are expected to be between 53 million and 54 million metric tonnes. On the
pricing side, this has been the sixth consecutive quarter of declining prices
although recent data appears to show things stabilizing.
How do you see shipments next year?
We agree with the general consensus that potash sales volumes will increase to
between 55 million and 58 million tonnes in 2014.
What are the catalysts for an improved Potash marketplace?
The uncertainty around the splitting up of BPC is clearly weighing on market
psychology. We believe that, like all market shocks, this will fade in the not
too distant future and it will be business as usual for buyers and sellers of
Where does this position the Company from here?
We have just received an Air Quality Control Permit to build and operate a
potash mine and processing plant in the Holbrook Basin of Arizona. We have a
low capital intensity, low cost project in a low political risk jurisdiction.
We are going to continue the development of our project in a prudent manner
and bring it online as soon as possible. While there will always be
cyclicality in any commodity market, we think the long term trend is up for
potash and intend to capitalize on it.
Regarding Forward-Looking Statements
With the exception of historical matters, the matters discussed in this press
release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking statements
include statements regarding current and future classification of Prospect
Global’s potash resources, development of its potash resources and potash
mining facility and the Pre-Feasibility Study. Factors that could cause actual
results to differ materially from projections or estimates include, among
others, potash prices, economic and market conditions, and the additional
risks described in Prospect Global's filings with the SEC, including Prospect
Global's Annual Report on Form 10-K/A for the year ended March 31, 2013. Most
of these factors are beyond Prospect Global's ability to predict or control.
The forward-looking statements are made as of the date hereof and, except as
required under applicable securities legislation, Prospect Global does not
assume any obligation to update any forward-looking statements. Readers are
cautioned not to put undue reliance on forward-looking statements.
About Prospect Global Resources Inc.
Prospect Global Resources Inc. is a Denver-based company engaged in the
exploration and development of a potash mine located in the Holbrook Basin of
eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital
Market under the ticker symbol PGRX.
Additional details about Prospect Global Resources Inc. can be viewed at the
Company’s website, www.prospectgri.com.
The Rose Group
Elana Weiss, 310-280-3710
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