Israel Chemicals Ltd. (TASE: ICL) has signed its second potash contract in India this month. The new contract is for 415,000 tons, with an option for an additional 25,000 tons, amounting to $203.4 million and $215.6 million if the option is exercised. It follows on the $490 million Indian contract for one million ton with a 100,000-ton option signed last week.
The average price in both contracts is $490 per ton, $120 more per ton than in Israel Chemicals' previous Indian contracts. The new contract will be delivered through March 2012.
In July, Israel Chemicals signed a $285 million Chinese contract for the delivery of 500,000 tons of potash at $470 per ton.
The three contract total $975 million, not including the options.
Earlier this week, Migdal Capital Markets raised its recommendation for Israel Chemicals to "Buy" with a target price of NIS 65.
Israel Chemicals' share price price rose 1.2% by mid-afternoon to NIS 48.55, giving a market cap of NIS 61 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011