The Mosaic Company (MOS) to Curtail Colonsay Mine Production; Trims Q3 Expectations

In response to current crop nutrient market conditions, primarily related to delayed fertilizer purchases in Brazil and North America, The Mosaic Company (NYSE: MOS) announced today the Company will reduce production in its Potash business by extending maintenance downtime at its Colonsay mine, and maintain planned slower production in its Phosphates business.

Since the Company announced its third quarter guidance on August 4, 2015, domestic and international crop nutrient markets have softened. Currency volatility, lower grain and oilseed prices, political and economic uncertainty, as well as global equity market declines have adversely impacted market sentiment.

"The long-term positive outlook for crop nutrient demand has not changed, but the industry faces some near-term challenges in the current environment. In these times, we will continue to be diligent in looking for opportunities to create shareholder value. It is a time for leadership, and we are managing our production levels to match current demand, controlling our costs, and maintaining our discipline," said Joc O'Rourke, President and Chief Executive Officer.

In light of current market sentiment, volumes are lower than expected, and prices have weakened. Mosaic's reduced production is expected to impact per unit costs and segment margins. As a result, the Company has provided the following updates to third quarter guidance:

Phosphate volumes are expected to be at the low end of the previously communicated range of 2.1 to 2.4 million tonnes. The average DAP selling price is expected to be in the upper half of our previously provided range of $435 to $455 per tonne. The Phosphates segment margin rate is expected to be in the low-twenty percent range as previously guided.

Potash volumes are expected to be in the bottom half of the previously communicated range of 1.6 to 2.0 million tonnes. The MOP average selling price is expected to be in the bottom half of the previously announced range of $260 to $280 per tonne. As a result of these developments and lower operating rates, the Potash segment gross margin rate is now expected to be in the high teens, compared to prior guidance of the low- twenty percent range.

International distribution volumes and gross margins remain unchanged, and are expected to be close to the midpoint of previous guidance. Volumes are estimated to be in the range of 1.9 to 2.2 million tonnes and gross margins to be in the range of $20 to $26 per tonne.

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