Operator: Your next question comes from the line of Joshua Spector from UBS.
Lucas Beaumont: Good morning. This is Lucas Beaumont for Josh. So, just sticking with potash, the top – I mean 6 million tons to 7 million tons of capacity there on the cost curve, it accelerates pretty rapidly in terms of the cash costs from sort of low $200 million up to kind of $350 million range. And with the incremental capacity coming from the two phases of BHP, plus the rollback in and sort of Russia and Belarus through the end of the decade. I mean that’s pretty much equivalent to kind of what would be 10 years of demand growth kind of historically. And that’s not sort of counting any of the other smaller projects that may or may not sort of come online. So, do you think that top portion of supply is going to get pushed off the cost curve out there?
And if that does, I mean that would seem to imply that pricing support is really kind of back at 2016 to 2019 lows versus sort of what you guys were assuming sort of for your mid cycle pricing, which is quite a bit higher than that. So, if you could just kind of give us your thoughts there on the dynamics and how you see that evolving, that would be great.
Ken Seitz: Yes. Thank you, Lucas. And I think you described just a number of moving parts there that I would say have a lot of unknowns and risk associated with them. Again, we would have a lot of conviction around the fact that we are in a market that just continues to grow. And we can continue to talk about the reasons that it’s growing. But for disease resistance, drug resistance yield, potash is going to continue to be used. And again, we have seen that those growth rates over the last few decades and looking forward, we just have a lot of conviction that that’s going to continue to be true. So, taking that assumption and looking at the supply side, we do know that some of this FSU plant, and new plants production that was in the pipeline to come to the market is delayed, it is in fact delayed.
And it’s delayed, probably measured not in months, but in years. And so as that new volume is pushed out, of course that creates room in the market. Yes, there is an announcement of Phase 1 and Phase 2 at the new Saskatchewan mine. But I will just say, again, we have looked through our risk lens associated with bringing on those types of volumes in soft rock mining. And soft rock mining is a lot different than hard rock mining, I have done both. And those are challenging mines to bring on stream. There is always unknowns and there is always some surprises. So, as we have factored in a Phase 2 from BHP into our plans all along, but as we factor in these new volumes, we are applying our own lens which would say that the end of this decade, the start of the next decade that you put it all together, and certainly we believe there is room in the market for these tons.
There is room in the market for our growth with our customers in the market. And we are not talking about knocking someone off the high end of the cost curve.
Operator: There are no further questions at this time. And I will now turn the call back to Jeff Holzman. Please continue.
Jeff Holzman: Thank you for joining us today. The Investor Relations team is available if you have any follow-up questions. Have a good day.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
