The Mosaic Company Announces Hurricane Ida Impacts

Rhea-AI Summary

The Mosaic Company (NYSE:MOS) disclosed that its North American phosphate operations will face disruptions due to Hurricane Ida, with repairs expected to take 8 to 9 weeks. An estimated production loss of approximately 300,000 tonnes is predicted in Q3, alongside ongoing production challenges. While Q4 operating rates may improve, they are anticipated to remain below historical levels. Additionally, navigational issues on the Mississippi River could hinder logistical operations during the busy fall application season. Mosaic also initiated a $100,000 disaster relief grant for affected communities.

Positive

• None.

Negative

• Estimated production loss of approximately 300,000 tonnes in Q3 due to Hurricane Ida.
• Ongoing repairs may affect production levels below historical averages in Q4.
• Logistical risks arising from navigational issues on the Mississippi River.

TAMPA, FL / ACCESSWIRE / September 2, 2021 / The Mosaic Company (NYSE:MOS) announced today that North American phosphate operations are expected to be negatively impacted by damage caused by Hurricane Ida.

Wind damage to the Faustina and Uncle Sam facilities from the storm is expected to result in reduced production as repairs are completed over the next 8 to 9 weeks. The following expectations also include estimates of production loss from an August equipment failure at the company's New Wales facility in Florida.

In the third quarter, relative to historical averages, production is expected to be down by approximately 300,000 tonnes. Fourth quarter operating rates are expected to improve sequentially, but production may still be down from historical averages. Mosaic plans to provide an update, including estimated financial impacts of the hurricane, when it reports third quarter results.

The hurricane also caused navigational issues on the Mississippi River, which could cause congestion during the busy fall application season and create logistical risks for Mosaic's production.

As Mosaic completes repairs to operations, the company is also supporting its employees and communities through a $100,000 disaster relief grant to the Capital Area United Way and by providing affected employees with access to funds through the company's employee-to-employee assistance plan.

About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single-source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the potential drop in oil demand/production and its impact on the availability and price of sulfur, political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa'ad Al Shamal Phosphate Company (also known as MWSPC), the timely development and commencement of operations of production facilities in the Kingdom of Saudi Arabia, and the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our long term natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic's decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic's operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic's potash mines; other accidents and disruptions involving Mosaic's operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

Contacts:

The Mosaic Company
Media:
Ben Pratt, 813-775-4206
benjamin.pratt@mosaicco.com

Investors:
Laura Gagnon, 813-775-4214
Paul Massoud, 813-244-0669
investor@mosaicco.com

SOURCE: The Mosaic Company

View source version on accesswire.com:
https://www.accesswire.com/662487/The-Mosaic-Company-Announces-Hurricane-Ida-Impacts

FAQ

What impact did Hurricane Ida have on Mosaic's operations?

Hurricane Ida is expected to disrupt Mosaic's North American phosphate operations, causing an estimated production loss of approximately 300,000 tonnes in Q3.

When will Mosaic's operations return to normal after Hurricane Ida?

Mosaic expects repairs to its facilities to take approximately 8 to 9 weeks.

How might Hurricane Ida affect Mosaic's fourth quarter production?

While Q4 operating rates are anticipated to improve, production may still be below historical averages due to the impacts of Hurricane Ida.

What financial assistance is Mosaic providing in response to Hurricane Ida?

Mosaic has initiated a $100,000 disaster relief grant to support affected communities and employees.