AngloAmerican Investor Presentation Deck
Nutrient build-up components
Full implied POLY4
nutrient value8
Calcium
~10%
Magnesium
~10%
Sulphur
-30%
Low-chloride
~15%
Potassium
~35%
Anglo American
This information is provided as one
example of a method to value the
individual components of POLY4
nutrients. It is not intended as a guide to
pricing POLY4, & should not be relied
upon as an estimate of the current or
future indicative price of the product
Using spot prices:
MOP = $390/t
SOP = $545/t
AS = $284/t
Urea = $395/t
Kieserite = $232/t
Granular calcium = $100/t
Calcium content¹2
Granular calcium typically contains 50% calcium. POLY4 contains 17% calcium. To calculate the value POLY4 attributable to calcium, multiply the granular
calcium price by the ratio of the calcium content of POLY4 & the calcium content of granular calcium: $100/tx (17%/50%) = $34/t
Magnesium content¹3
Kieserite typically contains 25% magnesium & 20% sulphur. POLY4 contains 6% magnesium. Remove the value of kieserite attributable to sulphur by using
the sulphur value derived from ammonium sulphate & you are left with the value of kieserite attributable to magnesium. To calculate the value of POLY4
attributable to magnesium, multiply this value of kieserite attributable to magnesium by the ratio of the magnesium content of POLY4 & the magnesium
content of kieserite: (Kieserite price-Value of kieserite attributable to sulphur) x (6%/25%).
Value of kieserite attributable to sulphur = Value of AS attributable to sulphur* (20%/24%) = $104/t* (20%/24%) = $86/t
Value of POLY4 attributable to magnesium = (Kieserite price-Value of kieserite attributable to sulphur) x (6%/25%) = ($232/t-$86/t) * (6%/25%) = $35/t
Sulphur content ¹4
AS typically contains 24% sulphur and 21% nitrogen. POLY4 contains 19% sulphur. Remove the value of AS attributable to nitrogen using the value of nitrogen
derived from the urea reference price ¹4 & you are left with value of AS attributable to sulphur.
Urea typically contains 46% nitrogen therefore the value of AS attributable to nitrogen is: urea price x (21%/46%).
The value of AS attributable to sulphur is then simply: AS Price-[Urea Price x (21%/46%)] →$284/t- [$395 x (21%/46%)] = $104/t
To calculate the value of POLY4 attributable to sulphur, multiply this value of AS attributable to sulphur ($104/t) by the ratio of the sulphur content of POLY4
and the sulphur content of AS: $104/t* (19% /24%) = $82/t
Low chloride¹4
SOP typically contains 50% K₂O (low-chloride potassium) and 17% sulphur. Low-chloride potassium products are sold at a premium to high-chloride
potassium products. To calculate the implied low-chloride premium of POLY4, derive the implied low-chloride premium of SOP and then apply the ratio of the
K₂O content of POLY4 & SOP to this premium.
POLY4 Low-Chloride Premium = [SOP price - Value of SOP attributable to potassium (based on MOP) - Value of SOP attributable to sulphur (based on AS)] x
(14%/50%)
POLY4 Low-Chloride Premium = [SOP price - {(MOP price x (50%/60%)}-{(AS price-[Urea price x (21%/46%)]) x (17%/24%)}]x (14%/50%)
POLY4 Low-Chloride Premium = [$545/t-{($390/tx (50%/60%)}-{($284/t-[$395/tx (21%/46%)]) x (17%/24%)}]x (14%/50%)
POLY4 Low-Chloride Premium = [$545/t-$325/t-{$104/tx (17%/24%)}]x (14%/50%)
POLY4 Low-Chloride Premium = [$545/t-$325/t- $74/t] x (14%/50%) = $41/t
Potassium content¹4
MOP typically contains 60% K₂O (high-chloride potassium). POLY4 contains 14% K₂O. To calculate the value of POLY4 attributable to potassium, multiply
the MOP price by the ratio of the K₂O content of POLY4 & the K₂O content of MOP: $390/tx (14%/60%) = $91/t
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