Uralkali shares fall as investors fear another permanent potash mine closure
Published: Wednesday, 19 November 2014
Investors are likely fearing that Uralkali’s capacity could lower by 20% if the Solikamsk-2 mine suffers the same fate as the Uralkali Mine 1 property, which closed in 2006 following increased brine inflow. The share price fall has been softened, however, by the positive long term rouble depreciation effect, and the possibility of higher potash prices.
Russia-based potash miner Uralkali
OAO’s shares fell by around 19% yesterday from the
post January share high of Russian rouble (R) 185 ($3.93*), on
the news of the company’s suspension of the
Solikamsk-2 potash mine.
Investors are likely fearing that the mine will suffer the
same fate as...