8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Earliest Event Reported: December 9, 2008

Intrepid Potash, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-34025	26-1501877
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS employer identification no.)

700 17^th Street, Suite 1700

Denver, Colorado 80202

(Address of principal executive offices, including zip code)

(303) 296-3006

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 210.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On December 9, 2008, David W. Honeyfield, the Executive Vice President, Chief Financial Officer, Treasurer and Secretary of Intrepid Potash, Inc. (the “Company”), and William I. Kent, the Director of Investor Relations of the Company, are scheduled to attend the Merrill Lynch Small Cap One-on-One Investor Forum. A copy of the investor presentation that Messrs. Honeyfield and Kent will discuss at the conference is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description
99.1	Presentation slides to be used by David W. Honeyfield and William I. Kent at the Merrill Lynch Small Cap One-on-One Investor Forum on December 9, 2008.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INTREPID POTASH, INC.
Dated: December 9, 2008	By:	/s/ David W. Honeyfield
		David W. Honeyfield Executive Vice President, Chief Financial Officer, Treasurer and Secretary

EX-99.1

Investor Presentation

December 2008

Investor Presentation

December 2008

Exhibit 99.1

Forward-Looking Information

Forward-Looking Information

Certain statements in this presentation, and other written or oral statements made by or on behalf of us,

are

“forward-looking

statements”

within

the

meaning

of

the

federal

securities

laws.

Statements

regarding future events and developments and our future performance, as well as management’s

expectations, beliefs, plans, estimates or projections relating to the future, including statements

regarding guidance, are forward-looking statements within the meaning of these laws.  Although we

believe that the expectations reflected in such forward-looking statements are based upon reasonable

assumptions, there can be no assurance that our expectations will be realized.  These forward-looking

statements are subject to a number of known and unknown risks and uncertainties, many of which are

beyond our control that could cause actual results to differ materially and adversely from such

statements.  These risks and uncertainties include: changes in the price of potash or langbeinite;

operational difficulties at our facilities; changes in demand and/or supply for potash or langbeinite;

changes in our reserve estimates; our ability to achieve the initiatives of our business strategy,

including

but

not

limited

to

the

development

of

the

HB

Mine

as

a

solution

mine;

changes

in

the

prices

of

our raw materials, including but not limited to the price of natural gas; fluctuations in the costs of

transporting our products to customers; changes in labor costs and availability of labor with mining

expertise; the impact of federal, state or local government regulations, including but not limited to

environmental and mining regulations; competition in the fertilizer industry; declines in U.S. or world

agricultural production; declines in oil and gas drilling; changes in economic conditions; adverse

weather events at our facilities; our ability to comply with covenants inherent in our current and future

debt obligations to avoid defaulting under those agreements; continued disruption in credit markets;

governmental policy changes that may adversely affect our business and the risk factors detailed in our

filings with the Securities and Exchange Commission.  Please refer to those filings for more information

on these risk factors.  These forward-looking statements speak only as of the date of this presentation,

and we undertake no obligation to publicly update or revise any forward-looking statement, whether as

the result of future events, new information or otherwise.

Intrepid Potash

Strategically Located, Potash-Only Company

Intrepid has an intense production focus:

Improve reliability and efficiency

Increase production of incrementally lower-cost volumes

Innovate production methods

Our production focus combined with earnings leverage to potash price delivers margin

Florida

New Mexico

Texas

Oklahoma

Kansas

Nebraska

South

Dakota

Montana

Wyoming

Colorado

Utah

Idaho

Arizona

Nevada

Washington

California

Oregon

Kentucky

Maine

New

York

Pennsylvania

Michigan

Vermont

New

Hampshire

Virginia

West

Virginia

Ohio

Indiana

Illinois

North

Carolina

Tennessee

South

Carolina

Alabama

Mississippi

Arkansas

Louisiana

Missouri

Iowa

Minnesota

Wisconsin

Georgia

North

Dakota

HB Developmental Asset

Operating Solar Evaporation

Solution Mine

Operating Conventional Mine

North Mine Developmental

Asset

Company Overview

Company Overview

The largest U.S. producer of potash or potassium fertilizer

–

Only Western world producer created and dedicated solely to potash-related products

–

Supplies 1.5% of Global demand and 8.5% of U.S. demand

1 of 2 global exporters of sulfate of potash magnesia, or langbeinite (Intrepid Trio™)

5 active production facilities

–

Nameplate capacity of 1.2MM tons of potash and 0.25MM tons of langbeinite

Strong balance sheet

764 employees as of November 30, 2008

Over 280 customers

A Strong Cash Position, Zero Debt, and

Cash Flows

A Strong Cash Position, Zero Debt, and

Cash Flows

Pro

Forma

EBITDA¹

(In millions)

Balance Sheet as of September 30, 2008

1    Non-GAAP reconciliation available

Cash and cash equivalents

$139 million

Debt Outstanding

$        -

Availability under the

Credit Line

$125 million

$55.1

$36.2

$11.8

$12.2

$8.2

$8.2

$83.7

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

Q107

Q207

Q307

Q407

Q108

Q208

Q308

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Building Upon Our History of Value Creation

Through Innovation

Building Upon Our History of Value Creation

Through Innovation

February 2004:

Acquired Carlsbad

facilities from

Mississippi Chemical

April 2004: Acquired

Wendover facility

from Reilly Chemical

February 2000:

Acquired Moab

facility from Potash

Corp.

2008: Anticipated

launch of Phase 1 of

the HB Mine

2000

2005

2006

2008

2007

2004

2004: Doubled Moab

production by being

first to use horizontal

drilling methods

2007 and 2008: Build

out of management

team to execute

growth plan

August 2005: Began

langbeinite production

by building first-of-its-

kind plant in Carlsbad

$104 Million Invested Since Inception to Improve and Expand Facilities

September 2004: Built

deep brine well at

Wendover

Years added to Mine

Years added to Mine

Life: 120

Life: 120

Years added to Mine

Years added to Mine

Life: 30

Life: 30

Years added to Mine

Years added to Mine

Life: 59

Life: 59

Years added to Mine

Years added to Mine

Life: 28

Life: 28

The Intrepid Potash Growth Story

The Intrepid Potash Growth Story

Multiple organic growth projects in place to expand production at our existing

facilities

Significant increase in potash pricing environment

Attractive development assets

Narrowing the gap between effective and nameplate capacity

(1)  2010 and 2011 estimates include HB Mine production

(2)  FOB list price Carlsbad red granular potash price

Intrepid Potash List Price ($ per ton)

(2)

Intrepid Production Capacity (‘000 tons)

(1)

Potash

2007

2008

$800

0

100

200

300

400

500

600

700

800

900

J

F

M

A

M

J

J

A

S

O

N

D

J

F

M

A

M

J

J

A

S

O

N

D

600

900

1,200

1,500

2007

2008E

2009E

2010E

2011E

Effective

Nameplate

Why Consider an Investment in Intrepid Potash

Why Consider an Investment in Intrepid Potash

Strong Long-Term Industry Fundamentals

The Only Western World Potash Pure-Play

Attractive Leverage to Potash Price

Strategically Located Assets

Diversified Markets and Customer Base

Well-Defined, Attractive Organic Growth Opportunities

Long-Life Reserves

Experienced Management Team with Significant Equity

Ownership

Demand and Supply Conditions Have Created

Robust Pricing Environment

Demand and Supply Conditions Have Created

Robust Pricing Environment

Historical Potash Prices

Source: Green Markets, Fertecon, IPNI

Notes: (1) Posted price for red granular potash as of 12/1/2008

Example Prices   

($ / ton)

$816 contract                  

as of November 2008

Japan (cfr Japanese port)

$830 spot

U.S. Midwest (fob warehouse)

$1,003 spot

Brazil (cfr Brazilian port)

$590 contract                  

as of April 2008

China (cfr Chinese port)

$625 contract                 

as of December 2, 2008

India (cfr Indian port)

$800 spot

Carlsbad (fob mine)

(1)

$776 spot

Saskatchewan (fob mine)

Dec. 2006: Russian

mine flood removes

1.3MM tons of KCL

1991: Collapse of

Soviet Union

2006: Canpotex concludes

pricing negotiations with China

1997: Potacan

mine flood

removes 0.8MM

tons of KCL

1986: Berezinski

3

mine flood removes

1.8MM tons of KCL

2000: Acquisition

of Moab

2004: Acquisition of Carlsbad and Wendover

Aug. 2008: Labor strike

at three Potash Corp.

mines

Aug. 2008: Record low

potash inventories

0

100

200

300

400

500

600

700

800

1985

1987

1989

1991

1993

1995

1997

1999

2002

2004

2006

2008

50

100

150

200

250

300

350

400

450

Jan-06

Apr-06

Jul-06

Oct-06

Jan-07

Apr-07

Jul-07

Oct-07

Jan-08

Apr-08

Jul-08

Oct-08

Since January 2006

Minimal Potash Price Volatility

Minimal Potash Price Volatility

61

Corn

0

Potash

59

Gold

68

Crude Oil

82

Nickel

Number of

Weekly Price

Declines

(1)

Source: Bloomberg, Green Markets

Notes: (1) Number of weeks declined out of the last 153 weeks; As of 12/5/08

Indexed Potash Prices Compared to Commodity Prices

Nickel

Corn

Potash

Gold

Crude Oil

50

100

150

200

250

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Potash has the Best Fundamentals

Potash has the Best Fundamentals

Source: Green Markets

Notes:

(1)

Number

of

weeks

declined

out

of

the

last

48

weeks,

As

of

12/1/2008

Since January 2008

Indexed Potash Prices Compared to Other Fertilizers Prices

0

Potash

14

DAP

20

Urea

Number of

Weekly Price

Declines

(1)

Urea (U.S. Gulf Prill

Import)

DAP (New Orleans Barge)

Potash (Carlsbad)

20

40

60

80

100

120

140

160

180

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

IPI Produces and Sells Potash Not Oil

IPI Produces and Sells Potash Not Oil

Intrepid Stock Price Compared to Commodity Prices

0.91

0.95

(0.73)

IPI

Crude Oil

Corn

Potash

Correlation

–

The price of potash drives IPI earnings

–

Reductions in the price of crude,

complementary fertilizers, and natural

gas help our business

Sources: Bloomberg, Green Markets, As of 12/1/2008

Potash

Crude Oil

IPI Stock

Corn

Potash Price of $800

for December ‘08

Potash Price of

$503 at IPO

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1980

1984

1988

1992

1996

2000

2004

2008

10%

20%

30%

40%

50%

Increasing Population and Meat Consumption

Driving Record Grain Demand, Prices

Increasing Population and Meat Consumption

Driving Record Grain Demand, Prices

Note:

Grains

include

corn,

wheat,

barley,

oats

and

sorghum.

Stock

to

use

ratio

is

average

inventory

/

consumption

for

that

year;

data

updated

monthly

Source:

United

Nations

Food

and

Agriculture

Organization

(FAO),

U.S.

Department

of

Agriculture

(USDA),

PPI,

IFA,

Fertecon

(1)

Futures

prices

based

on

Closing

price

of

Chicago

Board

of

Trade

futures

contracts

as

of

12/5/08;

futures

prices

for

December

delivery

in

forecast

years.

Grain Production

Stock to Use Ratio

World Grain Production and Stock to Use Ratios

Hectares of Arable Land per Person

Crop

Prices

Over

Time

(1)

World Population vs. Fertilizer and Meat Consumption

CBOT

World NPK Fertilizer Consumption

World Population

World Meat Consumption

2010E

5 Year Average

5 Year Average

Current

Current

Sept. 2009

Sept. 2009

Soybeans:                    $7.21    

Soybeans:                    $7.21    

$7.83

$7.83

$8.04

$8.04

Wheat:                          $4.46                $4.58      

Wheat:                          $4.46                $4.58      

$5.24

$5.24

Corn:                             $2.81                $2.93    

Corn:                             $2.81                $2.93    

$3.38

$3.38

E

$0

$2

$4

$6

$8

$10

$12

1980

1984

1988

1992

1996

2000

2004

2008E

Wheat All

Corn

Soybeans

0

1

2

3

4

5

6

7

8

1965

1970

1975

1980

1985

1990

1995

2000

2005E

2010E

0

50

100

150

200

250

300

350

0.38

0.32

0.29

0.25

0.22

0.21

0.00

0.10

0.20

0.30

0.40

0.50

1970

1980

1990

2000

2010E

2020E

In spite of financial crisis,

population growth continues

Assuming a 1.17% growth rate               

in world population:

–

Each day -

220,000 more people

A city the size of Baton Rouge, LA

–

Each week –

1.5 million more people

Another Philadelphia, PA

–

Each year –

80 million more people

Approximately 10 more New York

Cities

Potash Deliveries Track Population Growth

Potash Deliveries Track Population Growth

Source:  FERTECON, US Census Bureau

Historical CAGRs (%)

Potash Deliveries          

5-Year Forward

CAGRS (2008 –

2012)

11.9%

6.0%

China

India

4.2%

Brazil

Since 1962

2.8%

2.5%

World Potash Consumption ex. FSU

World Potash Consumption

Since 2000

3.6%

3.5%

Collapse of

Soviet Union

India / China GDP Growth

NA

9.5%

0

10

20

30

40

50

60

70

80

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008E

2011E

0

1

2

3

4

5

6

7

8

World

World

ex. FSU

Strong Returns Continue for Corn Growers

Strong Returns Continue for Corn Growers

Corn

Farmer

Revenue

Less

Operating

Costs

(1)

(1)

Does

not

include

fixed

costs.

Operating

costs

are

defined

as:

seed

fertilizer,

pesticides

and

herbicides,

custom

operations,

fuel,

lube,

electricity,

repairs,   

purchased

irrigation

water,

interest

on

operating

capital,

and

labor

(2)

Profit

includes

both

fixed

and

variable

costs.

Government

subsidies

are

not

included

Source:

USDA,

Potash

Corp.,

Green

Markets,

Morgan

Stanley

Research

Corn

Farmer

Pre-tax

Profit

per

Bushel

(2)

-$1.50

-$1.00

-$0.50

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$0

$100

$200

$300

$400

$500

$600

40

45

50

55

60

65

70

75

80

2005

2006

2007

2008

2009

2010

2011

2012

Source:  Fertecon, Intrepid Potash, and public filings

Tight Supply Fundamentals Through 2012

Tight Supply Fundamentals Through 2012

World Potash Production vs. Consumption Growth

Assumes 92% Industry Operating Rate For New & Existing Supply

5.0% Demand Growth

Inventory Drawdown

in 2007

Potential future

production shortfalls

Few Global Producers, With Strong Balance Sheets

Few Global Producers, With Strong Balance Sheets

Source:

Public

filings

and

select

country

data

from

IFA

(1)

2007

figures

are

for

December

2006

through

November

2007.

Mosaic’s

fiscal

year

ends

on

May

31.

(2)

PCS

has

ownership

stake.

(3)

PCS

markets

Intrepid

Potash’s

products

outside

North

America.

(4)

Compass

Minerals

produces

potassium

sulfate

(SOP),

which

does

not

compete

directly

with

MOP.

Compass

Minerals’

SOP

is

produced

both

directly

and

by

reprocessing

MOP

purchased

from

other

producers.

Estimated

reprocessed

production

is

excluded

from

the

figures

for

Compass

Minerals.

Intrepid Is Currently Evaluating

Production Levels

Intrepid Is Currently Evaluating

Production Levels

Global Production and North American Inventory Levels

Source: IPNI, Fertecon, Intrepid Potash

Global Production

Potash Inventory Trendline

Risks to Production

–

Supply Shocks

–

Delays in Projects

–

Labor Shortage/Disputes

–

Depletion

–

Current market conditions may have an impact on inventories

–

Global production cuts likely to occur as inventories build

?

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

30,000

40,000

50,000

60,000

70,000

80,000

Why Potash Only?

Why Potash Only?

More Difficult

Least Difficult

Most Difficult

Logistics for Greenfield

24%

59%

17%

% of Overall Fertilizer Market

$1.5Bn for 1.1MM Tons

$1.0Bn for 1.1MM Tons

$2.8Bn for 2.2MM Tons

Estimated

Cost

for

Greenfield

(3)

Phosphate

(4)

Nitrogen

Potash

3 –

4 years

3 years

5 –

7 years

Time for Greenfield

81% Phosphoric Acid

82% Phosphate Rock

86% Ammonia

89% Urea

85% Potash

(93%

Effective

Capacity)

(2)

Industry Nameplate Operating Rate

(1)

47%

57%

19%

% of Production Government

Controlled

41% Phosphoric Acid

49% Phosphate Rock

13% Ammonia

39% Urea

64%

Market Share of

Top 5 Producers

(1)

Phosphate rock

Sulfuric acid

Ammonia

Natural gas

Potash ore

Key Inputs

~44

~60

12

Producing Countries

Market Structure for Key Fertilizer Nutrients

(1) Potash percentage represents 2007, nitrogen and phosphate percentages represent 2005 figures from Integer.

(2) Estimated by Intrepid Potash from historic production. Operating capacity rates for nitrogen and phosphate expressed as percentage of nameplate capacity. Effective

capacity for potash estimated based on historic production.

(3)  Does not include infrastructure outside the plant gates (e.g. rail, road networks, utility systems).

(4)  Includes all types of phosphate fertilizer production.

Current Market Considerations

Current Market Considerations

Global Buyer Hesitation

Building Producer Inventories

Elective Production Curtailments

Potential Intrepid Management Actions

Maintain Strong Balance Sheet

Actively Monitor Market Environment to Avoid Excessive Build of

Inventory

Elective Production Curtailments Through the Remainder of 2008

Deferral of Discretionary Maintenance Projects

Continue to Focus on Margins

16%

4%

19%

18%

42%

Potash

Salt

COMPO

Fertiva

Agrium

Potash

Nitrogen

Phosphates

Other

The Only Western World Potash Pure-Play

The Only Western World Potash Pure-Play

K+S

Potash

Potash

Phosphates

Nitrogen

Potash Corp

Mosaic

Uralkali

100%

Potash

Intrepid

Comparables

Revenue

by

Product

-

North

America

Comparables

Revenue

by

Product

-

International

ICL

19%

49%

31%

Potash

Fertilizer &

Phosphates

Chemicals &

Others

Advanced

Technologies

Nitrogen

Phosphates

Retail

Potash

Source:  Intrepid Potash, company websites and 2007 company financials

Complementary

Business

4%

6%

33%

9%

48%

31%

34%

34%

100%

52%

22%

24%

2%

Strategically Located Assets

Strategically Located Assets

Average Potash Consumption Over 5x Greater

than Production in Our Markets

Intrepid Mine Location

Low

High

Total KCL Equivalent Consumption in Region = 5.6MM Tons

Total Intrepid Potash’s Effective KCL Capacity in Production =  1.0MM Tons

Source: Association of American Plant Food Control Officials (AAPFCO), TFI; Intrepid Potash

New

Mexico

Texas

Oklahoma

Kansas

Colorado

Mississippi

Arkansas

Louisiana

Idaho

Washington

Oregon

Nebraska

Missouri

Iowa

Illinois

California

Wyoming

Utah

Arizona

Nevada

99

10

109

0

30

60

90

120

Realized

Price

Adjusted

COGS

Gross

Margin

Advantage

623

524

(213)

(223)

0

200

400

600

800

Realized Price

Adjusted COGS

Intrepid

N. American Competitors

Strategically Located: Location, Tax Advantage,

and Leverage to Potash Price

Strategically Located: Location, Tax Advantage,

and Leverage to Potash Price

(2)

(2)

Source: Green Markets and Fertecon

Notes:  (1) Based on most recently reported quarters for Intrepid Potash Inc., Potash Crop., Mosaic Co., Agrium Inc.

(2) Adjusted COGS include: Cash operating costs, including all royalty, profit and capital taxes; Royalties of $21 per ton for Intrepid; Royalty, profit and capital     

taxes of $107 per ton for N. American Competitors

Intrepid

vs.

North

American

Competitors

Most Recently Reported Quarter ($ per ton)

Intrepid’s Advantage                 

Most Recently Reported Quarter ($ per ton)

(1)

Our 3.5% net sales royalty rate is significantly lower than royalty and resource tax burden of our principal competitors

99

10

+

=

We sell Potash into 3 different markets:  

Agricultural, Industrial and Feed

–

Agricultural represents 64% of Intrepid sales

compared

to

an

industry

average

of

95%

(2)

Agricultural primarily consumes granular potash,

industrial primarily consumes standard potash

–

Standard potash costs less to produce

–

Pricing similar across segments

Industrial primarily consists of oil and gas drillers, a

segment historically characterized by steady

demand

Industrial customers rely on spot market sales and

just-in-time delivery

YTD

2008

Intrepid

Potash

Sales

(1)

Industrial

Agricultural

Feed

Diversified Markets and Customer Base

Diversified Markets and Customer Base

(1) Year-to-date through the third quarter ended 9/30/2008

(2) Source: IFA

28%

8%

64%

Low-Cost, Solar Evaporation Assets

Low-Cost, Solar Evaporation Assets

$446 per ton Capex to reopen an existing mine compared

to an estimated cost of ~$1,200 per ton for greenfield

projects

HB expected to be among the lower-cost potash mines in

North America

–

Same proven solar evaporation and solution mining

technology as used in Moab

–

Will share infrastructure with existing Carlsbad

operations

–

Production cost per ton estimated to be $65 to $70 per

ton

(1)

–

Estimated

annual

production

–

150,000-200,000

tons

Filed permit application in March 2008; Mine plan submitted

to the BLM in May 2008, Environmental assessment sent to

the BLM in August 2008

Production planned to begin 12 months after permit

approval

Total area available to be flooded: 1.3x size of Manhattan

HB Potash Solution Mine: Innovate and Increase

HB Potash Solution Mine: Innovate and Increase

Potash Pillar

(1) Based on third party feasibility study

Q1 2010

East

Q1 2010

$125

80

$10,000 –

$15,000

Langbeinite Recovery Flotation Project

279

$106,500 –

$121,000

Incremental Potash Production from Existing Facilities & HB Mine

Langbeinite Debottlenecking and Expansion Projects at Existing Facilities

Q2 2009

Q2 2009

Q1 2009

Q1 2009

Q2 2009

Estimated

time of

Production

Potash Debottlenecking and Expansion Projects at Existing Facilities

$446

175

$78,000 –

$88,000

HB

HB Solution Mine

$324

359

$116,500 –

$136,000

Impact of Current projects

80

$10,000 –

$15,000

Additional Langbeinite Production

$222

18

$4,000 –

$5,000

Q4 2008

Wendover

Deep Brine Wells

$500

10

$5,000 –

$6,000

Q4 2008

Moab

Additional Caverns

$400

15

$6,000 –

$7,000

Q4 2008

East

Thickener Upgrade

$278

9

$2,500 –

$3,000

Q1 2009

West

Columnar Flotation

$212

52

$11,000 –

$12,000

H1 2009

West

Storage and Hoisting Capacity Upgrade

$ Capital/

Ton of

Capacity

($/Ton)

Additional

Product

Tons

(000s Tons)

Estimate

on Capital ($000s)

Estimated

Facility

Capital Estimates ($MM)

Well-Defined Attractive Growth Opportunities to

Increase Production

Well-Defined Attractive Growth Opportunities to

Increase Production

2008 Capex

budget is $80 to $95 million, $25 to $35 million of which will fund portions of the projects listed above

Opportunity at the North Mine

Opportunity at the North Mine

Current infrastructure allows North Mine to reopen at a capital cost much less

than a greenfield

project

–

Full conventional underground mine and process facility, idled in early

1980’s

–

Two concrete lined shafts, utilities, brine disposal, tailings disposal and

other infrastructure already in place

Technology advances in underground mining expected to make North

Mine

more efficient than in previous years

–

The North Mine was producing between 300,000 and 350,000 tons of

MOP per year at the time of shutdown

17,061

Low-Cost, Low-Sovereign Risk Expansions

Low-Cost, Low-Sovereign Risk Expansions

Capital Cost Curve for Announced Potash Expansion Projects

Incremental

Annual

Production

Capacity

(2)

MOS / PCS / Intrepid

PCS

Rio Tinto

(Argentina)

MagMinerals

(Congo)

Greenfield Project

Greenfield Project

Intrepid Greenfield (HB)

Intrepid Greenfield (HB)

Brownfield Project

Brownfield Project

Intrepid Brownfield

Intrepid Brownfield

Notes:

(1)

Annual KCl production per year

(2)

Thousand tons of KCl

Mosaic

0

200

400

600

800

1,000

1,200

Intrepid 2008 Guidance as of Nov. 11, 2008;

However, the Market Seems to be Changing

Intrepid 2008 Guidance as of Nov. 11, 2008;

However, the Market Seems to be Changing

Production:

–

Potash 850,000 to 870,000 tons

–

Langbeinite (Trio™) 200,000 to 215,000 tons

Cash Cost of Goods Sold excluding royalties and by-product credits:

–

Potash $155 to $165 per ton

–

Langbeinite $75 to $85 per ton

Capital Investment of $80 to $95MM

–

$45 to $50 million to sustain and improve existing assets

–

$25 to $35 million to increase production

–

$10 million to reconstruct warehouse (reimbursed by insurance)

Average royalty rate of 3.5 percent of net sales revenue.  No profit taxes or capital taxes.

Impact of Potential Management Actions

–

Lower Production Levels

–

Higher Inventory Levels

–

Higher Cash Cost of Goods Sold Due to Fixed Cost Structure

Note:

Market

conditions

may

require

management

actions

that

could

influence

this

guidance

Why Consider an Investment in Intrepid Potash

Why Consider an Investment in Intrepid Potash

Strong Long-Term Industry Fundamentals

The Only Western World Potash Pure-Play

Attractive Leverage to Potash Price

Strategically Located Assets

Diversified Markets and Customer Base

Well-Defined, Attractive Organic Growth Opportunities

Long-Life Reserves

Experienced Management Team with Significant Equity

Ownership

Appendix

Appendix

Innovate and Increase Production

Innovate and Increase Production

93

30

2,800

Q1 2008

East

Additional Operating Panel

Unique and Innovative Growth Projects Completed Since 2002

200

10

2,000

Q3 2008

Wendover

2

nd

Deep Brine Well

91

220

20,000

Q3 2005

East

Langbeinite Plant

150

10

1,500

Q1 2005

Wendover

1

st

Deep Brine Well

250

20

5,000

Q4 2005

Moab

2

nd

Horizontal Potash Cavern

125

40

5,000

Q4 2004

Moab

1

st

Horizontal Potash Cavern

$ Capital/

Ton of Capacity

($/Ton)

Additional

Product

Tons

(000’s Tons)

Capital ($000’s)

Completed

Facility

Improvements: Reliability and Efficiency

Improvements: Reliability and Efficiency

Installed Mincom enterprise resource planning and asset management software to improve maintenance and mine planning functions

Upgraded lab equipment to enhance ability to respond to changes in ore feed and product quality, to include: additions of an x-ray diffraction analyzer,

an inductively coupled plasma (ICP) spectrometer, an ion chromatograph, and a new particle size analyzer

3-D seismic surveys and oil and gas logs to delineate potash ore zones

New state-of-the-art control panels to replace outmoded control equipment

Carlsbad-

Implemented a Behavior Based Safety Program

Detailed Process analysis and improved maintenance planning

Selected to be in MSHA Partnership program

General Capital

Improvements /

Corporate / IT

Purchased

high

productivity

mining

equipment

modified

for

potash

extraction

from

original

its

configuration

intended

for

coal

mining

applications

Conducted detailed risk assessment, implementing recommendations

Carlsbad, NM

Installed innovative processing facility to allow for the co-production of potash and langbeinite from one ore feed

Installed state-of-the-art wireless communications systems to increase safety, improve productivity and allow for future technology additions

Process optimization and improved recovery; K analyzer controls

Significantly upgrade storage warehouses

East Mine, NM

Installed new flotation equipment to improve potash recovery

Installed state-of-the-art wireless communications systems to increase safety, improve productivity and allow for future technology additions

Upgrade skips and hoist

Upgrade brine and tails system

West Mine, NM

Drilled and completed two corrosion-resistant deep-brine wells

Installed new flotation equipment to improve potash recovery

Replaced product dryer to increase throughput and allow fuel switching

Debottleneck Mill

Upgraded sizing and compaction

Wendover, UT

Drilled and completed first potash horizontal solution mining caverns

Refurbish warehouses

Upgraded electrical system

Optimized potash and tails leaching

Moab, UT

Project Description

Location

Long-Life Reserves

(1)

Long-Life Reserves

(1)

Conventional

Solar

93

120

30

Shallow Brine

1932

Wendover

-

-

28

Solution

2009E

HB Solution Mine

(2)

440

510

122

Underground

1931

Carlsbad West

210

250

43

Underground

1965

Carlsbad East

Sulfate of Potash Magnesia (Langbeinite)

966

1,200

Total Muriate of Potash

340

390

42

Underground

1965

Carlsbad East

93

180

124

Solution

1965

Moab

Muriate of Potash

Current Annual

Effective

Capacity in

Potash Product

Tons

Current Annual

Nameplate

Capacity in

Potash Product

Tons

Minimum

Remaining

Life

(years)

Current

Extraction

Method

Date Mine

Opened

Product / Operations

(1) Based upon reserves as estimated by Agapito Associates in accordance with SEC requirements.

(2) The Carlsbad HB Solution Mine reserves are based on the planned flooding of 4,400 of the 21,600 acres of the old mine workings and recovery of potash

from the residual pillars only with the brine extracted using submersible pumps.

Debottlenecking effective capacity brings on new low-cost tons

Mines Currently With Less than

15 Years Reserve Life

Historical Depleted Mines

Potash operations at Mosaic’s Hersey facility will be

discontinued in the first half of 2008

Mosaic, Carlsbad

Boulby, England

Soligorsk I, Belarussia

Taquari, Brazil

Theodore, Amelie, Marie Louis mines in France

Pasquasi and San Cataldo mines in Italy

Salzdetfurth, Friedrichshall, Bergmannssegen-Hugo,

Siegfried-Giesen, and Niedersachen-Riedel German

mines

Trona, California

Several West German / East German mines

Horizon-Amax, Wills-Weaver, Saunders in Carlsbad

Source:  Fertecon, Intrepid Potash, and public filings

Global Industry Susceptible to Production

Interruptions & Supply “Shocks”

Global Industry Susceptible to Production

Interruptions & Supply “Shocks”

Mine Closures Due to Water Inflows

PCA (Patience Lake)

(0.8MM tons KCL / yr)

Potacan mine

(0.8MM tons KCL / yr)

Mines with Water Inflows

•

K2 Mine Esterhazy

•

Penobsquis Mine,

Sussex

St. Paul mine

(Congo)

(0.8MM tons KCL / yr)

1980

1984

1988

1996

2000

2007

2004

1992

1976

Berezniki I

(1.3MM tons KCL / yr)

Berezniki 3 mine

(1.8MM tons KCL / yr)

Mine Closures Due to Depletion

In

the

70

plus

years

of

potash

mining

in

the

Carlsbad

area

there

has

never

been

a

mine

lost

to

flooding

or

a

water

incursion

due to geologic differences

Demand Growth from BRICs Reaching Recommended

Application Levels

Demand Growth from BRICs Reaching Recommended

Application Levels

China

Brazil

India

Source: IPNI, Potash Corp

Goal to attain self-sufficiency

of food supply

History of under application of   

potash

Need to increase yields

Increasing land use for

agricultural purposes

~15MM

~7MM

~5MM

0

2

4

6

8

10

12

Current

Potential

0

2

4

6

8

10

12

Current

Potential

0

5

10

15

20

25

30

35

Current

Potential

Fertilizer Use Far Below Recommended Rates

Fertilizer Use Far Below Recommended Rates

Source: Morgan Stanley, Agricultural Products Research, September 4, 2008

146% Shortfall

86% Shortfall

288% Shortfall

Global Application Rates (lb/acre)

60

112

24

59

17

66

0

20

40

60

80

100

120

Nitrogen

Phosphate

Potash

Current Application Rate

Scientifically Recommended Rate

Solar Evaporation and Solution Mining

Technology

Solar Evaporation and Solution Mining

Technology

-

Qinghai Salt Lake Potash Corp

-

Compass Minerals

1970

Intrepid Moab

1932

Intrepid Wendover

-

Rincon Salar

1996

SQM Salar

1973

Arab Potash Company

1970

Dead Sea Works (ICL)

Year Opened

Existing Solar Evaporation Facility

1970

Intrepid Moab

1989

Patience Lake

1964

Belle Plaine

Year Opened

Existing Solution Mining Facility

Carlsbad Potash Area

Carlsbad Potash Area

HB–

Phase I Potash Mine Flood Area

HB–

Phase I Potash Mine Flood Area

Conversion Rates

Conversion Rates

1

metric

tonne

=

1.102

short

tons

1

product

ton

of

potash

(KCL

or

KCL

Equivalent)

=

61%

K

2

0

1

product

ton

of

langbeinite

=

22%

K

2

0

1

product

ton

of

SOP

=

50%

K

2

0

Select Pro Forma Operating Data

Select Pro Forma Operating Data

Adjusted Pro Forma Net Income

(In millions)

Pro Forma EBITDA

1

(In millions, except gross margin percentage)

1    Non-GAAP reconciliation available

$55.1

$36.2

$11.8

$12.2

$8.2

$8.2

$83.7

21%

29%

23%

24%

40%

57%

62%

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

Q107

Q207

Q307

Q407

Q108

Q208

Q308

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$2.8

$5.3

$3.1

$15.9

$31.6

$49.8

$4.3

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Select Operating Data

Select Operating Data

Potash Net Sales Price

(Per short ton)

Langbeinite Net Sales Price

(Per short ton)

Granular Lang

Current list price

$356 per ton

Red Granular

Current list price

$800 per ton

$108

$109

$137

$137

$123

$188

$283

Q107

Q207

Q307

Q407

Q108

Q208

Q308

$178

$182

$193

$224

$295

$425

$623

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Pro Forma EPS Growth as we Capture most of

the Price Increases as Earnings

Pro Forma EPS Growth as we Capture most of

the Price Increases as Earnings

Net Sales

(In millions)

Pro Forma Earnings Per Share

(Diluted)

$0.05

$0.05

$0.07

$0.06

$0.26

$0.43

$0.66

Q107

Q207

Q307

Q407

Q108

Q208

Q308

$42.5

$50.8

$47.8

$51.3

$74.2

$99.5

$141.2

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Non-GAAP Reconciliation

Non-GAAP Reconciliation

Calculation of Pro Forma EBITDA

We define EBITDA as income from continuing operations before interest, income taxes, depreciation, depletion,

amortization and accretion. EBITDA is used as a supplemental financial measure by our management and by

external users of our financial statements to assess:

–

The financial performance of our assets without regard to financing methods, capital structure or historical cost

basis

–

our operating performance and return on capital as compared to other companies in the fertilizer business,

without regard to financing or capital structure; and

–

the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative

investment opportunities

Pro forma net income includes the results of the company and its

predecessor, as adjusted for stock compensation,

interest and income taxes

EBITDA is calculated and reconciled to income from continuing operations in the table below:

2008

2007

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Pro Forma Net Income

$49,719

$32,446

$19,284

$4,694

$5,358

$4,005

$3,585

Add:  Income tax expense

29,474

20,580

12,657

3,082

3,518

2,631

2,355

Add:  Interest expense, including derivatives

643

(1,201)

1,433

1,067

1,030

(552)

134

Add:  Depreciation, depletion, amortization and accretion

3,076

2,782

2,790

2,968

2,271

2,094

2,135

Add:  Write-off of term loan bank fee

-

456

-

-

-

-

-

Add:  Impairment Expense

756

-

-

-

-

-

-

    Total adjustments

33,949

22,617

16,880

7,117

6,819

4,173

4,624

Pro Forma Earnings Before Income Taxes, Interest

Depreciation, Depletion and Amortization

$83,668

$55,063

$36,164

$11,811

$12,177

$8,178

$8,209

Historical Production and Sales Summary

Historical Production and Sales Summary

September 30,

June 30,

March 31,

December 31,

September 30,

June 30,

March 31,

Production volume (in '000 per short tons)

Potash

200

210

224

217

233

210

218

Langbeinite

50

58

56

51

40

41

45

Sales volume (in '000 per short tons)

Potash

204

213

213

215

224

245

209

Langbeinite

50

47

93

26

32

52

48

2007

2008

INTREPID POTASH, INC.

SELECTED OPERATIONS DATA (UNAUDITED)

(Data in short tons)

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$50

$100

$150

$200

$250

Fertilizer Cost ($/acre)

Corn Growers Continue to Generate a Strong

Return on Their Fertilizer Investment

Corn Growers Continue to Generate a Strong

Return on Their Fertilizer Investment

Source: Iowa State University, USDA, IPI, Green Markets

Notes: (1) Cash Corn Price as of 11/17/08, DTN Ethanol Center; For Model See Appendix

(2) December ’09 Futures Price, CBOT, less $0.35 basis.  $875 potash price in 2009 is assumed for modeling purposes and is not an Intrepid price            

forecast.

Corn Growers’

Margins on Fertilizer

2008 Crop

Break-Even Line

Potash Input Costs

2009E

2008E

Corn Crop

$875

$325

Potash Cost

($/ton)

4 -

6%

2 -

3%

% of Corn Growers’

Input Costs

–

A $100 increase in the price of   

potash results in a $0.03 increase in

fertilizer cost/bu

corn

–

2008

Crop

assumes

$325

potash

(purchased

Q1

’08),

$460

DAP,

$450

Urea,

and

$3.50/bu

cash

corn

(1)

Estimated 2009

Crop

–

2009

Crop

assumes

$875

potash

(to

be

purchased

Q1

’09),

$525

DAP,

$285

Urea,

and

$4.15/bu

corn

(2)

2008 Corn Growers’

Margin Model –

74% ROIC

2008 Corn Growers’

Margin Model –

74% ROIC

2008 Estimate of Fertilizer Return on Corn

Source: Iowa State University, USDA, IPNI, Green Markets

Nutrient lbs/acre

Fertilizer lbs/acre

Nutrient

Product

needed

needed

$/st

$/acre

$/bushel

N

Urea

115

249

450

56

0.36

N

DAP

25

Total N

140

P

DAP

65

141

460

32

0.21

K

KCL

50

83

325

13

0.09

Per Acre

Per Bushel

          Total Fertilizer Cost

101

$       

0.66

$        

Cash Corn Price ($/bu)

3.50

$      

USDA Forecasted Average Yield with Fertilizer (bu/acre)

154

Average Yield without Fertilizer (bu/acre)

92.4

Positive Yield Impact of Fertilizer (bu/acre)

61.6

Yield Loss without Fertilizer (bu/acre)

40%

Variable Cost ($/bu)

0.37

$      

Additional Revenue from Fertilizing

216

$       

Additional Cost of Fertilizer

(101)

$      

Additional Variable Costs

(23)

$        

Gross Profit

92

$         

Pre-Tax ROIC of Fertilizer

74%

Farmer's Margin

2009 Corn Growers’

Margin Model –

99% ROIC

2009 Corn Growers’

Margin Model –

99% ROIC

2009 Estimate of Fertilizer Return on Corn

(1)

(2)

Nutrient lbs/acre

Fertilizer lbs/acre

Nutrient

Product

needed

needed

$/st

$/acre

$/bushel

N

Urea

115

249

285

35

0.23

N

DAP

25

Total N

140

P

DAP

65

141

525

37

0.24

K

KCL

50

83

875

36

0.23

Per Acre

Per Bushel

Total Fertilizer Cost

108

$      

0.69

$       

Corn Price $/bu

4.15

$     

USDA Forecasted Average Yield with Fertilizer (bu/acre)

157.3

Average Yield without Fertilizer (bu/acre)

94.4

Positive Yield Impact of Fertilizer (bu/acre)

62.9

Yield Loss without Fertilizer (bu/acre)

40%

Variable Cost ($/bu)

0.37

$     

Additional Revenue from Fertilizing

261

$      

Additional Cost of Fertilizer

(108)

$     

Additional Variable Costs

(23)

$       

Gross Profit

130

$      

Pre-Tax ROIC of Fertilizer

99%

Farmer's Margin

(1) $875 potash price paid by the grower in 2009 is assumed for modeling purposes and is not an Intrepid price forecast.

(2) Corn Price $/bu

is computed as the Dec. ’09 futures price less $0.35 basis

Source: Iowa State University, USDA, IPNI, Green Markets