DGAP-Adhoc: K+S Aktiengesellschaft: K+S increases capital expenditures for new potash plant in Canada

 | Source: EQS Group AG EQS Group AG 

K+S Aktiengesellschaft  / Key word(s): Strategic Company Decision

22.04.2013 14:22

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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- Basic engineering of the Legacy Project further advanced
- Supervisory Board agrees to the decision of the Board of Executive
Directors for raising the capex budget to 4.1 billion CAD
- Production capacity of 2 million tonnes will be available as planned by
2017
- Commissioning expected in summer of 2016 (so far end of 2015)
- Financing of the still economically attractive and strategically
important potash project secured
 
The Supervisory Board today has approved the decision of the Board of
Executive Directors to increase the capex budget for the new plant to 4.1
billion CAD (approx. 3 billion EUR). The so far assessed 3.25 billion CAD
were based on the feasibility study conducted in November 2011.

Taking all data of the profitability calculation into account the project
is economically attractive and still fulfills the requirement of the Group,
to earn a 15% premium on the cost of capital before taxes. The Financing
will be ensured by existing liquidity, future cash flows and new debt.

With the expected commissioning in summer 2016 the company still projects
to reach the two-million-tonnes-mark of production capacity at the new
location at the end of 2017. The gradual extension of the annual capacity
to 2.86 million tonnes of potash products will occur afterwards. So far the
company assumed a production start at the end of 2015.


K+S Aktiengesellschaft
Kassel, 22 April 2013
The Board of Executive Directors


22.04.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      K+S Aktiengesellschaft
              Bertha-von-Suttner-Str. 7
              34131 Kassel
              Germany
Phone:        +49 561 9301 0
Fax:          +49 561 9301 2425
E-mail:       investor-relations@k-plus-s.com
Internet:     www.k-plus-s.com
ISIN:         DE000KSAG888
WKN:          KSAG88
Listed:       Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
              Standard), Hamburg, Hannover, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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