The Mosaic Company (MOS) 18 Feb 212020 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to The Mosaic Company's Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions].

Your host for today's call is Laura Gagnon, Vice President, Investor Relations of The Mosaic Company. Ms. Gagnon, you may begin.

to quarter welcome XXXX full and call. earnings you, our and fourth Year Thank be Joc as provided Chief will comments Opening by followed Q&A. a open Executive O'Rourke, by fireside as chat well Officer, and President Clint Freeland, Financial Jenny answer also Vice Wang, your will and questions. Global Marketing, available Officer; Strategic and President, be Vice Senior President Chief to

on Actual about significant We management's furnished to projected results. differ are They are yesterday not but reports, filed The and, uncertainties. in statements Securities will be include, as forward-looking results. Factors results expectations making and subject those materially operating from forward-looking to, included beliefs statements actual the future in statements Exchange in of our cause may during results the Commission. materially are and and statements with differ based release this risks conference that call. date financial limited and press from today's and to are could our

presenting measures. certain We will non-GAAP also financial be

performance Our Form information measures. fourth non-GAAP quarter press on these contain data, attached filing also X-K exhibits important yesterday's to as release,

turn to the over for opening to like comments. Joc? I'd Now Joc call

for Thank you quarter today earnings for call. fourth our joining us

quarterly to get would we I from the report. like started, points key our Before earnings emphasize

benefits we see we are created. cost the have of beginning earnings realizing First, are transformation the to extensive our work, and leverage we

substantially. prices risen are globe prices Second, have X-year the and fertilizer very strong. Phosphate agriculture potash around markets and are at highs

results XXXX. significantly XXXX, expect We third, expect and the global great year. balance earnings tight and supply for this higher And remain demand we delivered to in we

Laura? questions, your to get we'll Now

case, us and of and the we've in up-to-date questions your outlook. hot Can the Joc, about a received topic, bring a large is with views? case you CVD number status the filing

in that OCP, for of duty I'd be the rates XX% CVD Commerce in PhosAgro XX% from for for the EuroChem. are The We're industry. rates findings and having final the of required. determine appreciate week, Laura. injury Commission announced adjustments We efforts with done week, caused X% enforce the adjusted Department Department announced The preliminary final this reviewing ITC their full happy upward phosphate whether rates hearing. trade U.S. are we its in day additional held about determining really them to Trade the International case, Thanks, public laws. the has Commerce to November. the its Last to. Also and work subject is to investigation our whether charged the last closely imports

to relevant surge effects imports the that resulting injury is during imports believe the The to itself revenue. in the curtailments continue forward our job and in this work we period. closures, of market case price thankful manifests industry, look plant which undeniable on harm We for especially those capacity or U.S. to compelling, above ITC's production vote We're and March XX. and given share, the case, and in reduction losses on and the its

the be the In the imports to with terms phosphates. trade seen and of current market flow into we've continues served the that shifts, such well U.S., expected U.S. expected

on comes priced market. fair free production supply be needs from, wherever not it fairly concern main Our the priced a and highly at is comes and based of expense that to the that subsidized

asks, and flat year-over-year, since we Russian be has UBS should related U.S. John a at quarter Morocco Joc, from have imports? Roberts XXXX imports question who first phosphate who the replaced

market their the North and Importers Saudis into the sales Thank the American the include Jordanians, the the increased have you, that John. Mexicans. Australians, Egyptians,

this to from have these imports. of also due market the excluded subsidized been All

some published we're historical where And market freer fairer Andy I'd well. our trade. and look as deck website on provides so encourage context now seeing to at you our update

should going forward? what fourth happened Vale we in reserve our tax Bernstein to think cash how provide asked, And can benefit had And was on both the how the you GAAP can quarter? Artem about VTB related to reversed Oxgaard Jonas the specifically if it acquisitions, related the was details we've asked, formed simplify from taxes, the Joc, Vodyannikov several you taxes at quarter? and and why questions in

Artem, you, over and bit you moves taxation the I'm give Thank some a a Clint to going to this Jonas. in little our hand in to on the of background straight quarter. of

question I'll second Maybe the back Jonas' start move with to afterwards. Joc. question then and Thanks,

the according rules. we related given to just improved that we XXXX, valuation earnings So That the of that, to under tax now that can a and to the profitability benefit of for affected came valuation we it profitability subsidiary, with to against, in GAAP acquired the the tax business when accounting, where with Vale put - that allowance Brazil assets. GAAP ended the associated point historic acquisitions, that has certain is that having What's our GAAP transpired year. remove allowance now the subsidiary up

as we bit effective you again got our provided came benefits rate down When and up through tax statement reported run that we income through lot earnings through tax the as the the and eminent, mix became they the these of to quite were that tax year, the be that finished opinions look we work, our quarter which foreign all and our tax and those it for would foreign P&L tax recorded. actually be take that's in going And tax our tax that on it that's on fourth the were our and needing recognize apparent some realized Now a but where when originally we rate ended a - came the on we that our last year, sheet. we our to But brought year, had as temporary level volatility line, analysis, again, permanent. need to to benefits to concluded the line. case, around benefits nature in for Jonas' at balance thought question be concluded in we out we effective earnings of to, our going out the foreign expected, what work rate that

keep mind. couple in As we things into of go forward XXXX, to a

recognized tax in foreign continue XXXX, our years. the rate we benefit in benefits expect that future to First, to we that

The States, in the phosphate is in other thing is income our our lowest more which United that the is jurisdiction. better generated does, business mind to keep the tax

So the better lower rate should that go. our business performs, the

about Andrews Joel next Cleveland Juvekar volume all our question Joc, sales BMO. Mike for XXXX. Piken comes our They've Jackson from from Vincent Citi, from P.J. Morgan from asked outlook and Stanley, from

in you Mosaic much Fertilizantes? channel as for pulled inventories XXXX? of from fourth and can quarter assess potash And the view strong help volumes of and implications we phosphates, of the our and investors how current producer about volumes Specifically, XXXX capabilities the production demand, were think

folks. you, Thank

these commodity and strong economics Soft prices expectation is ag the highs, at that will continue. are multiyear

that continuing strong us what fertilizers applies their So demand as for to for farmers is seek production. maximize

means to definitely our expected be further, we as inventories X phosphate tonnes as That volumes U.S. that customer said, to we into which strong that were venture, the work by meet and Our quarter constrained joint to from capacity include needs. our to NOLA up are we will production and bring even XXX,XXX they lowered shipments will we move XXXX. MWSPC, our

than shipments in to work consider. potash, quarter meet As extra maximize for our and to a the to lower inventories don't result, we in is A our and season. both things production to are to at prior the normal, be what regions strong we for historical performance products expect we X. few deferrals operating seasons. be We our fertilizer upcoming pretty spring X despite build channel facilities, needed In able strong North as expect quarter own potential minimizes but saw across we line to of phosphates American inventories with will the demand we believe which volumes,

U.S. to meet needs. those the more our of customer production phosphate here in U.S. keep We expect to

Joc, questions back amidst expanding for Can potash our on VTB, and next capacity and idle Vodyannikov from provide on Isaacson online? have any an Colonsay related optimization. of update asset increasing phosphate such Ben Do rates all and in you comes any strong or Scotia, you pricing? operating thoughts Andrews question to capacities plans asked the mine bringing who've from Vincent Artem

hard Thank customer folks. again, our assets we're today, Look, our running meet of needs. at working to and you, [indiscernible] we're all

to customers our production, the with production. increasing of going the meet terms In needs of we're

places probably have time. over we we debottleneck So where can

it it. justify idled, Now would the if we demand to remains Colonsay bringing long-term consider back economics but there and was the

not that we're going we but on to again, bring can we conditions that demand So capacity market isn't required, latent production have if some it. use do

XXX,XXX quarter incremental Joc, Vincent ask our fourth volumes. clarity for tonnes the some also in and on Artem

Thank you, here. happening Vincent are things and Two Artem.

of simply of our First, through deferral. full catch our the tonnes remaining large to Canpotex to reflect sales. And year portion inventory relate these of reduction portion meet sales a Canpotex a of

year-end our EBITDA virtually tonnes compared lower-margin out these basically, And noise pretty quarter, simple you of net other stuff. was the So typical when in all to impact net are lower-priced, the Remember, to sales. zero. nonnotable

prices? to and A and Moving Duffy shortly the Do producers America have will settlement. that's contract contracts. producer on BPC situation why of price, And past next Andrew think number asked the the at when of specifically, expect question, Suisse; you held Barclays; RBC; others you in case? settles up Fischer Crédit Parkinson Chris other Typically Bank recent the Indian and do publicly at of of the price? from differently? year, from [indiscernible]. this a And the Byrne Why from other analysts, producers hold? critical Can you higher haven't all economics for other Wong Joc. certain from been Steve about including this about one how end the China producers Canpotex talk for to out have

Look, the centered that. our suppliers, believe, tightness nonmarket towards. where the that political what the to price what this. than we're from as been that uncertainty Thank it. contract, played a in price seeing and BPC first to Canpotex, heard around at was settled highlights market here reality the year, pointing other fundamentals what you've you, From the represent were And was, we or pricing may I into I mover. have outcome folks. Belarus really and market the only But lower motivated is of the perspective, the including drivers over there Indian BPC given jurisdictions as surprising speculate do last can other the doesn't think

to and do. that involve, in Mosaic, or would holistic own do we're on of to expect internationally view prices, is. believe volumes, Canpotex buyers. as tight how economics grades which terms, market any We will the given mention durations. Indian impact we it producer a play and was Chinese which through important interacts like is And to come take won't other into can contracts therefore, to set be and contracts it But Not going to given number keep of out terms Canpotex our sell this. on allow mind we that to calls In it negotiating what Canpotex, we with

similar for exports. phosphate from Joc, is Seth with do a from and the high we've initiative Piken, number questions production Mark Connelly had from exports destruction What latest about align prices your of from increase expectation COVID phosphate and Mike demand Goldstein Isaacson to Ben Morningstar, potential XXXX? they operating for from curtailments, And how government's recoveries and Chinese Stephens rates?

indicated you. What X capacity down It saw is by and was tonnes, XXX,XXX to million million by too XXXX, is And our high. regard due last mix product exports increase year-over-year, increase From forecast same may roughly they but be shifting. going to characterize time, closures tonnes. likely with rates. Thank line to export expected conservative to is XXXX is year demand The in with both that to reduced Chinese be is expectations, capacity in believe the and significant. Chinese capacity domestic total approximately This to our in standpoint, we'd has we again. was once we X.X the fairly stable, desire magnitude government a tonnes by - operating phosphate at fell that

analysis already Chinese operating relatively rate a to in high effective points the capacity. Our

higher could would were So growth more dramatic assume increase Chinese export percentage portion in in that even no if availability demand tonnes. X easily we by those tonnes. X absorb upside million utilization of a a points, to step And than say, domestic of,

in Joel key into about in of costs? gross asking quarter outlook. Fertilizantes both quarter. you profit in how Samuelson we increase are fourth and think explain quarter-over-quarter a about decline progressing operating third per the the in gross Jackson Fertilizantes' Can and in the And the rate Despite tonne rise selling margins drivers should from Adam prices, Joc, Mosaic XXXX? declined

quarter a that historically, see X tonne X. in economy the demand by Thanks, the real by the gentlemen. to negatively our [indiscernible], from absorption. additional gross is in to delaying year, movement reflecting of COGS, Difficulty] the Look, the caused from about quarter we of the $XX X.X that exacerbated the which in a highest year of impact normal quarter per The of our impact [Technical our scale impact cost translational noneconomic lowering see end also quarter. probably decline It's seasonality fixed Brazil, and margin X it's of Brazilian the of quarter though, This noncash, margin million.

progress make because margins see of we our Looking towards time. our goals, to ahead, expect we to to improve and great that continue continue over transformation

against Joc, we the from rates market of application gains you about phosphate quarter production products? Brazil Brazil more prices, And was the capabilities? expansion share Brazilian Steve how imported sharp of Fertilizantes Chris and overall market inland can in Parkinson. much domestic have versus remind X growth given spike and questions in volume acreage your Byrne investors share from Namely, inland higher gain market and in by XX%

you. Thank

in driving distribution share But that us XXXX market is and production dominant this? was what roughly a access gives Brazil XX%. position. network a Domestic Our remember, in vast market

production concentrates in of million are and Our of tonnes phosphate X.X about Brazil potash. rates tonnes million X.X

was think factors, X we part definitely share of but quarter market Now it of it. a was growth specifically, regarding combination

allocation. Andrew and tough some A and Parkinson Joc, for capital during are years Chris Wong potash dividend cut years Mosaic phosphate. about ago, asking payments few

if conditions or persist, the corner, and it? needs, mostly with beyond current what capital thoughts are dividend market is around will will in that future? paydown to Now return Vale's is conditions Esterhazy have complete, increases your And flow have KX buybacks integration Are do cash you you improved on shareholders? share debt and what the

Yes. Thank you.

Our invest targeting we of priorities over really balanced unchanged. a and what capital pay allocation down and capital in return shareholders are allocation We're balanced debt approach capital to time, a business believe billion, cycle. priority. our talked projects value. $X sheet reducing grow an debt entire aiming and to about balance remains for that high-return maximize to our are We've by a We're and to fortify

on spending capital of winding mentioned, growth types you the on thinking new is about when KX, focused and we're as Our highlights down investments. return

in In to drive our we especially is capital terms But we'll you want and spending capital anything be [Technical we Taking profile, you more on will, Clint, call in return And Difficulty]. call, and are I'd encourage a returns a capital into March that? depth. our listen. to that we earnings to evaluating of XX policy. sustainable shareholders, needs sustaining add account hosting to what address And would specifically as allocation continue to

No, I think that covers it, Joc.

Thank you.

was despite Joc, why in of the improved P.J. Juvekar volumes flow asks, second half weak operating cash fourth XXXX? your the in of XXXX, quarter

If I'll Clint sum the it give on I you little up, biggest detail that. a bit Clint? think P.J. going let I'm to just - Thanks, of

because cash year, think an of as of receivables Difficulty] with million the our I about year, we associated facilities. our look [Technical inventories some as working cash sales. of level of primarily This $XXX at our capital in of during in we was million higher working use last liquidated capital idling elevated

Isaacson of Oxgaard global a clearly is outlook. prices, you are pricing on phosphate how it price out see both in we and settle take? where have to which well both asking what advance about need will Ben above Joc, prices they The perspective phosphate and moderating? sustainable. isn't Jonas long U.S. do will And Do

said we've adjust before, Thanks, final specifically, normal and Jonas. the CVD we next U.S. Look, trade the the on as new determination month. are Thanks, after going flows of petition to expect Ben. a the do find

parity adjusted freight like be U.S. differentials. international have and to will for basically Now prices at things

new markets, bring people more maybe U.S. parity imports. prices inclined other it less will in prices if to imports. And the So the U.S. words, with high, be in are are will if

of supposed Trade on that, on recent XXXX. but very and forget the given on prices ag markets a care It slow seasons solid expect So above apply finding in efficient will trend will it. demand commodity that And work are yields And as take convergence could calm trade potential growth. both never footing, and take we will of is impact is demand ability fertilizers. those work. More that to yields somewhere pricing, weather our markets of equilibrium. global to we the commodity at few appears generally can prices, - place

expecting prices in current are demand we lower given subsidy modestly to current the Now India scheme.

for What Samuelson more first explains spread increase current quarter? in of asks, the quarter-over-quarter the $XX than the calls would second Joc, expect increase average past and we realized tonne your rise risen if realized per over months. quarter X guidance less benchmark in the quarter-over-quarter a Adam hold, pricing price prices prices phosphate sizable this half should to for to would $XX mean prices have benchmark

to in Thank volumes of publications. first little of in actually was there to you, the New the thing Adam. at attached pricing range end the that some keep trade Look, reported were high recent the the mind Orleans them. is published And very

data is excluding the So actually smaller. those points, quite a bit delta

We customer hard well. our as needs meet worked to have

of, market, this prices ahead so lag means would our And cases, the given rapidly benchmark are our current this price push will to XX quarter. to between the see right. realized let's in But moving This and we've committed some in second it, price environment, pricing sales, in increases you further days. production. holds, call higher realized market prices of If ranges you absolutely within XX the

Joc, phosphate this Juvekar. clarify, sulfur? $XX P.J. He Difficulty] tonne your fireside of our last including to from just question asks, is cost mining per comes with and [Technical

we push the know, our on P.J. lower as on that curve. we cost third-party But quartile within continue to to cash and solidly really are production you, CRU this, sources the We ourselves reflect a second in Thank basis. you believe strive Yes. as such

raw ammonia. don't include sulfur conversion materials of obviously, Now or costs,

XXXX, - This the deck are the published that. we production. what updated is lead we're recent also sensitivities describes our modeling The our February a So and updating in inputs impact been of we release. where in process of to I'd you deck earnings in have on

can now you Operator, to our there Laura concludes fireside follow-up this open up so up That of further call. chat or you audience. the We'll it details. for additional you. And with can open to questions. Thank Paul part it

[Operator Instructions].

the first from Byrne line our America. come from question Steve have Bank We of of

see previous changing that like there to potential going about of in China China or in little It change level the constant. if hold in rates understanding? to so, you a of limits on of production course to do imports? those a your bit its government Would removed on what's crop application fertilizer that if wanted reduce use is And drive the Is ask up to your right now. Yes. consumption appears understanding government plans fertilizer and were

you, Steve. Sorry. Thank

just me Let Yes. comments. couple make of a

In fertilizer loosen has security. food own their in the obviously, also to they the And federal fertilizer of said production. fact, restrictions. want they their will are help to government those they've said And increase rate China

Let Jenny a if me bit Wang, give of ask details little she there. can

Steve. Thanks, Thanks, Sure. Joc.

think actually that with and X quoted the of been of very have a And growth years you time X Goal government was ago goals frame. the XXXX, policy declared specific fertilizer achieved. policy. the I set has by end

in their the no attempted to. - So part XXXX. new meet ensure as focus they policies demand production the government production and replacing domestic of basically came crop there's to to the import shifted out Instead,

potash recommendation, the the Ministry some interest in Agriculture, from and fertilizer the recommendation of in secondary with clear very the also of application should nutrients on along terms implication, a based of of indication China, micronutrient. be terms academic's the In demand the there's

over And there the years. phosphate. indication was demand need farmers indication the In to a their terms phosphate, to seen very that last the of we've phosphate X reduced manage to application clear

situation, onwards. to a are in We not they the story. country, foresee is needs in indication and this policy hard supply. to for that seen trends. farmers continue way. to to are more a to self-sufficient nitrogen. It's more and government new the limited XXXX. to clear different in built However, is or these to production import in a China, going we as reserve going capacity the Basically, rebounded to Back the appropriate reserve. explore X apply - phosphate rely be the XXXX from Nitrogen supply have very reduce they of support phosphate to on China Potash, encourage have Thus,

a potash import and to country, need So we agriculture to also continue they production. demand grow support as believe, as still to they their the

question of Suisse. next the Crédit our Parkinson line have from Chris We from come

Great.

the So steepening let's the export with There X for own I especially on Taking much just et to production of cost step back from been Chinese the flows, pretty curve, cost 'XX. Can plus cetera, components port and inflationary Bay, and a the cetera. outlook your a give million rock, around FOB guess So due distinct costs 'XX sulfur stick and fact at global tune to minus the action, which update spans products. et price us near-term the all across all how exporter cetera, safety, the is compare marginal HX of may or has your theme. still and China your you is of debates China both et rates? to you environmental believe the primary across this tonnes the calculation of current

really in So what into of get structural the the phosphate we're market. to just seeing components trying

where curve question cost a from Chinese end the you where understand the nonintegrated - those that cost been want of we curves little on they Jenny, or you're And top where do on curve. their the in bit today? those I particularly Chris. about represent on the basically going sit cost producers curve, have those I obviously, costs cost talk up. If sit curves on represent to think the and question There's some the no it - position cost of global right. China Thanks, sits or

Sure.

latest expansion the curve with whole globally, across producers. [indiscernible] margin all cost for price clearly, phosphate So the occurred the has

The FOB of to also natural rate mentioned, gas prices. depreciation Chinese to RMB producers, prices has raw price cost increases, like Chinese facing well. sulfur, exchange added the they are you and the as the also the related increases for ammonia foreign Specifically of material facing

is $XXX So breakeven time, price Chinese FOB ton. believe we at this metric DAP per the about

as mean the - to or as will just redirected Chris, to may than some that And that have - top of end I I as because be a also producers limit costs let well be think but price redirected higher market. well will the lot the that, be me to the structural export to add well. will very Chinese domestic

So it's breakeven a simple as not quite price. as

We have Zekauskas our of JPMorgan. the question next from come Jeffrey line from

will questions. International by Two What's the between the Department as Commerce Department the in as premise? positive secondly, that none And is, decisions Commission? the XXXX? taken dropped Do of that loss of income the the Trade of really in fourth premises your deliberations ITC be and relationship their of the are the equity the you your And mean is expect make? equity to conclusions what taken I of Or for quarter. of analysis Commerce some a

Jeff, Yes, thank Sorry. you.

Let obviously. me X take that pieces, in

is they are determination in the ITC, First and of the and of to be independent Department their all, Commerce of meant terms independent.

U.S. the subsidization decides presence of the whether or caused to imports of has DoC level So the the decides harm the and that those industry. ITC not

guess I that technically, you, you problem. there's material to of relationship coming but and not it says, there's in related, So some if be they're have got subsidized well, element that I suppose a harms

directly. So they're technically related though, believe don't I

of think most of Ma'aden equity that where quarter. and I is Ma'aden about we've before terms talked loss, delayed by is the X In

or arrears. earnings from Ma'aden equity our a losses in we quarter So report

phosphates to much expect so price to or a lower And a I at turn the certainly expectation. some that global equity of would you But would today, at gain for be point. again, look that my if loss

We line have Samuelson the our Goldman of from next Sachs. question come Adam from

and half frame would pricing, even the moves margin. sulfur XXXX, lagging how talk benchmark help side? the kind of of sight the you the can you pretty first Can side input input kind about you quarter about of first about taken. have an is could ammonia, of cost I about and on movement to line mean the thoughtful kind for comments from us how of the should sulfur or you on you'd first pricing. so to kind pricing well ammonia gave if quarter calibrating of good And Thinking just think the benchmark certainly the phosphate, the point be cost cash we cost impact on kind

Thank Yes. you, there lag, a and Certainly, we've it. say, is Adam. about as you talked

terms sulfur [Technical for you guess, of is sulfur, there's stoichiometric a both to also would ammonia. Difficulty] I just What point there, lag In for in lag I the requirement.

need for tonnes tonne [Technical produced. DAP Difficulty] Our ammonia represents about of per

Our about sulfur tonne sulfur represents DAP of use of for of every X.X produced. tonnes

you means, the as to add a the can to something see from overall a that increase it's price. some $XX to if increase like So sulfur moves that what going today, our $XX is at sulfur $XX in $XX

able be quarterly take So you should in Gulf sulfur, much fairly to the that in. price or our price work and

except produce X/X we thing, of same again, ammonia. that, our ammonia, of terms obviously, In

our X/X or ammonia to produced cost. of by buy X/X - ammonia is so ammonia X/X we of then of normal a long-term on contract. our our CF only at is - is spot. that our of on about X/X So And X/X

dampened, that it's on if much will. So you one, more

the from Jonas of Bernstein. have from line come question next We Oxgaard our

I as the the at limit had of river? If operations then in about that, to And Midwest? it's effect any deep deep a ask want or freeze. does freeze on a availability logistics follow-up sort potash your of on

Yes.

had our a very isn't we've with with actually me often. problems Louisiana that freezes Faustina in some Okay. Yes, Well, place let phosphates. freezing. plant start

plant, have the actually in plant. that of couple of of different we parts will probably So days shutdown a

have impact going an definitely on it's that. So to

area, being impacted. [indiscernible] of parts river sulfur interestingly definitely and at and ships down else. look kind happen. different is of course or No things The unloading this we business. slow other again, the are different loading in normal than definitely enough hurricane for and Mexico of have to when These - you being But as and just anything moving the of Gulf are

So prepared we're events. to well weather with deal

In I guess cold terms potash, in news there of the every deal weather. this Canada good with year is with we

weather. to are so supply the everything else, this And with and well railways chains cold equipped of deal the kind

years few ago the the delivery where a remember will you potash actually Midwest. of to Although delayed snow

Our of Joel next line comes Capital BMO from Markets. from Jackson question the

questions two Brazil. on have I

Brazil, forward does Belarusians, talked not First impact crop input also you Fertilizante Brazil talk crop you set Brazil here, products in with and And about you off, your there. of sell inventories the higher impacting in input Canpotex at the out? I a into too? have to seen Can much mean deals BPC what volumes How channel Brazil just that about some elevated comes the pricing, we've then down year Fertilizante prices. potash that, that and the about

Yes. Can your about you channel with I question first didn't Joel, the the...? quite get help inventory, me

we've like input Yes, wanted inventories the in some about how - how you larger crop would see channel different the now nutrition things of suppliers pesticide. in channel I Brazil some of of crop, see like comment And inventories talk crop you in the - seen to nutrition.

it. Got Okay.

Joel. good by Let saying start me morning,

inventories tonnes of in In terms those. the our and to main phosphates, the you it's of analysis, potash year, record fertilizers fertilizers being haven't I Brazil. of year, elevated we is use seen going in to and think I final another think million at top going XX last - if the mean be look I

particularly in in was So a big, the there fourth quarter and pull the country. really big third

now. And elevated right or don't inventories elevated normal so we above see

the the guess rest what other the are, of is I anyone they those selling terms would and In else don't Belarusians Brazil, the sales once of they say made - SMB. are I or into affect fertilizer what

products. we're has rate because it have this with pay sales, if and China, has to below really India, market for not people impacted seeing So up. They're those sales that willing other need market And rate the moved product. the they market

that almost more for leader market demanding potash is supply particularly, that is the and in potash. we're pay seeing in like normal which Brazil, market. a demand people the And So

Our line John next from Roberts comes question the of from UBS.

Congratulations even reason most was you on think had that on do list sustainable firm ever make important the to don't Barron's making we've you're companies list? fertilizer a list. an first that What firm before. the that think ag you XXX I the or most

question. a That's really John. Thanks, good

and both time, recently long of we it in been are we've on very years. We emissions X achieved and the I look, air for a new I think of from X concrete set anything, goals set But if for we've those water goals. just over is terms last years the use. suspect followed it that COX reason focused and water because for goals

reclamation first say, and resource do basic the a we in been impact long on of company, they projects, of And they fact. of that we more way. of it, aware and the when terms certainly and We we recognize recognizing. excellent that job on in big are, a that We we've why our that, assume a we not course, more of the very be after to again, that recovering what piece I honored then conscious of would environment. environmental believe running while are is as us do we're I understand running And focused So all, that have an that's would for time.

[Operator Instructions].

have question come Cleveland next Research. Piken our We line the Michael from from of

of cost might I sort break kind what and KX, of terms into bit you a on as boosting and talk brine of little about potentially this reductions Can the to million well? your just I tonnes savings, XXXX move we the versus X.X like more guys look about be how much from to talked know out cadence is as X million year. in KX to savings production actual inflow you wanted going

telling of probably under be a you Michael. looks has soon about It's like, We've this Thanks, talked before, it project where slightly topic. And KX Yes. budget. schedule. we'll I run significantly the great ahead think

So pleasing X-year or for project outcome. pretty project, that's a an XX-year a

design, the of extra tonnes to about amounts of ore. X incremental produce expected of That million at was from terms KX full tonnes when an In million potash it production. we to

we'll be So X up running when that whole incremental be say million tonnes, KX. means to of we we'll the capacity virtually

Colonsay, Now facility at couple a what about the cash at end Esterhazy $XX all up coming of we instead production This next does all costs. this first the fixed at what happens producing let's have production for Esterhazy that that the in really year out The And range. million And after cost of tonne of going good is all, slowly we producing $XX of of that part a our incremental that is KX over tonnes for the of do takes talked over this tonnes. And cost? probably is somewhere to - $XX a costs as the Esterhazy why from will - reason from cost all - drive versus is is $XXX and believe say, to going the years. we've mining tonne, our below cost system, in Colonsay. of it,

it to And that continue will down from will slightly go continue. So here.

cost be They cost one, peaked brine $XXX think some year. million brine at will by the of a course, other The immaterial and XXXX. basically of is end I

pretty that's forget for the think cost by start So towards we of the company. capital ramping of much well by down for the end conversion improvement. we'll that and cost be And cash will another another as better big Esterhazy, - Clint's big comments, XXXX, don't move

question from come of from We have line Stephens. our the Mark Connelly next

a the you Joc, bit could terms I per little in center is already how help that you've benefits just be what the cost wanted accomplished? soon to versus integrated left place? tonne in us if much of will ask And operating from how understand

Yes.

exciting it's picture there's say of going impact - I the cost a Okay, that Mark. center much what I think is the center phase from And it and say that in would of tonne it. of - - the terms integrated seen operations is operations too I the first slides. really that I What in we've is the what mean be. basis - per to integrated But our yet, of got our I wouldn't But out of we importantly, automating, more day targets our to start are we're continue I going I remote run of talking cars whatnot our going of And things. about. actually is it's one cost pit as is what changing to and that basis that, to - going the pretty things mining is I find new the drive say a we're will that how chance system. to start costs to and think every really it's

Okay.

the probably are So benefits most of this still ahead then? of

Yes. Absolutely.

no this may we time. questions at have Joc, continue. you And

Okay.

close, let management, the and I But COVID-XX. wrap our challenges March the know capital managing busy and this from Mosaic strong XX we join I a assets well analysts And that's that want for to guys down, on expect X:XX our just We're you will results be increasing and a.m. costs and call. a markets to today's agricultural before well. I of here. in-depth you us at performing invite wrap to to throughout improving see me like Freeland that, our global I'd expect competitiveness as have through XXXX. up our tailwinds Clint had very So to we But with we're morning. by optimizing driving presentation our say, I is on Eastern fertilizer doing. continue year, With

thank that, with for Please healthy a us. and day. you So joining have safe

our that Ladies disconnect. day. all conclude for and participating, Have for does you today. and may you gentlemen, now conference a great Thank