Migao’s expansion on track amid financial turmoil

08 October 2008 16:28  [Source: ICIS news]

TORONTO (ICIS news)--Migao’s projects and expansions remain on track despite ongoing unfavourable capital markets conditions, the Toronto-listed specialty potash fertilizer producer for the Chinese market said on Wednesday.

 

"We remind investors that all of our production, across all of our facilities, is sold out until March 2009,” said CEO Liu Guocai.

 

“This includes a 23% increase in production capacity coming online this quarter,” he said.

 

During the turmoil on capital markets Migao would fund production expansion plans through internal cash and cash flow, Liu added.

 

Migao was selling its products at the highest prices ever amid continued strong demand in the Chinese fertilizer market, he said.

 

Migao’s share price dropped 3.33%, briefly hitting a 52-week low of Canadian dollars (C$) 2.90 before recovering to C$3.03 in volatile trading on the Toronto Stock Exchange. The stock traded at a 52-week high of C$11.20 in January.

 

The exchange’s S&P/TSX index was down 171 points to 9,658 despite the central bank’s 0.5-point cut in interest rates this morning.

 

($1 = C$1)

 

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Author: Stefan Baumgarten
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