The Mosaic Company (MOS) 8-K Bank of America Basic Industries Conference 2006

The Mosaic Company

Fritz Corrigan

President & CEO

May 4, 2006

Bank of America Basic Industries Conference 2006

Overview and Outlook

Exhibit 99.1

1

May 4, 2006

Good Morning and thank you for inviting Mosaic to present at this conference.  I am

Fritz Corrigan, President and CEO of The Mosaic Company.

1

May 4, 2006

Safe Harbor Statement

Certain statements contained herein constitute “forward-looking statements”

as that term is defined under the Private

Securities Litigation Reform Act of 1995.  Although we believe the assumptions made in connection with the forward-looking

statements are reasonable, they do involve known and unknown risks, uncertainties and other factors that may cause the

actual results, performance or achievements of The Mosaic Company, or industry results generally, to be materially different

from those contemplated or projected, forecasted, estimated or budgeted (whether express or implied) by such statements.

These risks and uncertainties include but are not limited to the

predictability of fertilizer, raw material and energy markets

subject to competitive market pressures; changes in foreign currency and exchange rates; international trade risks including,

but not limited to, changes in policy by foreign governments; changes in environmental and other governmental regulation;

the ability to successfully integrate the former operations of Cargill Crop Nutrition and IMC Global Inc. and the ability to fully

realize the expected cost savings from their business combination within expected time frames; adverse weather conditions

affecting operations in central Florida or the Gulf Coast of the

United States, including potential hurricanes or excess rainfall;

actual costs of closure of the South Pierce, Green Bay and Fort Green facilities differing from management’s current

estimates; realization of management’s expectations regarding reduced raw material or operating costs, reduced capital

expenditures, improved cash flow and anticipated time frames for

the closures; and the ability to obtain any requisite

waivers or amendments from lenders or regulatory agencies with oversight of The Mosaic Company or its phosphate

business, as well as other risks and uncertainties reported from

time to time in The Mosaic Company’s reports filed with the

Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

This presentation may not be distributed, reproduced, or used without the express written consent of The Mosaic Company.

Safe Harbor Statement

2

May 4, 2006

Before we start today, I want to remind you that there are forward-looking statements

in this presentation.  The remarks made today are based on information and

understandings that we believe to be accurate as of today’s date.  Actual results are

likely to differ from those set forth in the forward looking statements.

2

May 4, 2006

Business Overview

Phosphates

Potash

Nitrogen / Offshore

Financial Outlook

3

May 4, 2006

I’d like to start today with an overview of Mosaic and then discuss each of our

business segments.  I’ll also address Mosaic’s priorities for fiscal 2006 and give you

an

overview

of

our

expectations

for

the

remainder

of

the

fiscal

year.

Please

note

that

our fiscal year ends on May 31

st

.

3

Mosaic will be the global leader

in nourishing crops, delivering distinctive

value to world agriculture and to all we touch.

4

May 4, 2006

Mosaic is now 18 months old.  We are the product of an October 2004 combination

between the former Cargill Crop Nutrition and the former IMC Global Inc.  We are still

working hard to complete our integration, but remain very focused on reaching our

vision:  Mosaic will be the global leader in nourishing crops, delivering distinctive value

to world agriculture and to all we touch. 

No doubt, we have a lot of work ahead of us to achieve this vision.

4

May 4, 2006

Mosaic’s Sales and Operating Earnings

1213.3

1229.5

3122.0

68.8

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

Phosphate

Potash

Offshore

Nitrogen

Total Net Sales -

$5.4 billion

-51.7

-36.7

344.9

198.3

10

-100

0

100

200

300

400

Phosphate

Potash

Offshore

Nitrogen

Other

Total Operating Earnings -

$464.8 million

March 2005 –

February, 2006

5

May 4, 2006

Now let me turn to Mosaic’s net sales and operating earnings for the last twelve

months ending February 28, 2006.  Mosaic’s net sales were $5.4 billion, over half of

which were from the Phosphates business, about one-quarter from our Potash

business, and most of the remaining quarter from our Offshore business.  The Potash

business was the most profitable and accounted for about three-quarters of our

operating earnings while Phosphates was responsible for the majority of our

remaining earnings.  The challenge and opportunity to increase profitability in the

Phosphates business was a major reason for creating Mosaic.

5

May 4, 2006

Business Overview

Phosphates

Potash

Nitrogen / Offshore

Financial Outlook

6

May 4, 2006

Now I will discuss Mosaic’s Phosphates business.

6

Mosaic’s Phosphates Segment

Restructure to lower costs and operate efficiently

Close 1 high cost mine and 2 high cost concentrates plants in Florida

Operate remaining capacity at full capacity

Focus on marketing products with high value 

Such as MAP, MicroEssentials™

and feed

Phosphate

Restructuring Announced

May 2, 2006

7

May 4, 2006

Mosaic

is

the

largest

phosphate

producer

in

the

world.

However,

our

Phosphates

business has been producing unacceptable financial returns during a period of strong

overall market conditions and attractive industry margins.  Therefore, we announced a

restructuring of Phosphates on May 2

nd

which will result in the indefinite closure of

one mine and two granulation plants by the end of this month.  With this restructuring,

we plan to operate Mosaic’s remaining mines and plants at or near capacity as a low-

cost, globally cost competitive business.

One of our strategies is to promote mono-ammonium phosphates, or MAP, over di-

ammonium phosphates, or DAP, as it contains less nitrogen per tonne.  We believe

that farmers can more cheaply produce urea for their nitrogen requirements.  We are

also promoting other high value products such as our MicroEssentials™

and feed

phosphate products.

7

May 4, 2006

Phosphates Restructure Strategy

Indefinitely close Ft. Green Mine with capacity of 4.9 million

tonnes per year

Indefinitely close Green Bay Processing Plant with 1.3 million

tonnes per year of DAP & MAP

Indefinitely close South Pierce Processing Plant with capacity

of 0.7 million tonnes per year of GTSP

Run remaining 4 Mines and 5 Processing Plants at full capacity

Key:  Operate a low-cost and globally competitive Phosphates business

Key:  Operate a low-cost and globally competitive Phosphates business

8

May 4, 2006

The Phosphates restructuring plan will result in the closure of our Fort Green mine,

and

our

Green

Bay

and

South

Pierce

phosphate

production

plants.

The

Fort

Green

mine

has

high

costs

due

to

the

long

distances

between

our

mining

operations

and

phosphate rock processing and shipping facilities at Fort Green.

Following the closure of the Fort Green mine, Mosaic will have four active mines with

a

capacity

ranging

from

14.6

to

15.1

metric

million

tonnes

per

year.

And

Mosaic

will

have three, large, low-cost manufacturing facilities in Florida, as well as our

operations in Louisiana, where we produce phosphate products such as DAP and

MAP. 

We expect to produce about 9.5 million tonnes

of phosphates including about one

million tonnes

of feed phosphate products in fiscal 2007, which will be down from

about 10.2 to 10.5 million tonnes

expected in fiscal 2006.

8

May 4, 2006

Phosphate Restructuring Strategy

9

May 4, 2006

This map shows our Florida and Louisiana phosphate operations with circles around

the three operations we plan to close indefinitely.

We expect the closure of these operations will result in an after-tax earnings charge in

the

range

of

$300

to

$400

million

during

our

fiscal

2006

fourth

quarter.

Most

of

this

charge will be non-cash and relates to the acceleration of depreciation on the

remaining useful lives of the facilities to record them at zero value as of May 31,

2006.

We estimate that total cash expenditures related to the phosphate restructuring

activities

will

range

between

$55

and

$65

million

in

fiscal

2007.

These

expenditures

will be approximately offset by a corresponding reduction in capital expenditures as a

result of the restructuring –

largely due to the elimination of capital requirements for

the Fort Green mine.

We anticipate several benefits resulting from the closures.  In fiscal 2007, we estimate

our

actions

will

reduce

our

pre-tax

operating

costs

by

approximately

$130

to

$150

million

and

lower

our

capital

expenditures

by

$55

to

$65

million.

Additionally,

by

operating only our core facilities at or near full capacity we look to reducing working

capital by $20 to $30 million.

9

May 4, 2006

DAP Prices near record highs

DAP Prices have been on the rise for the

last three years and after a modest dip this winter are

back near $265 per tonne.

DAP Prices

US$ MT fob Tampa Vessel

100

125

150

175

200

225

250

275

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

Source: Fertecon

10

May 4, 2006

Now let’s look at recent phosphate prices.  DAP prices have been on the rise for the

last three years and reached $265 per tonne

FOB Tampa last summer.  Prices

declined modestly this winter, once shipments to India and Pakistan ended.

India

continues

to

be

the

largest

wild

card

for

the

2006

outlook

in

Phosphates. 

Imports soared to above two million tonnes

in 2005 and it now looks like India will

import similar DAP amounts in 2006.  The recent purchases by China and India have

tightened the market balance again, and prices have recently recovered back to

around $265 per tonne.  We expect DAP prices to remain strong through this

summer.

10

May 4, 2006

DAP Market Margins Pressured by Raw Materials

The DAP Market Margin has recently started to recover due

to falling ammonia prices and rising DAP prices.

DAP Market Margin

Calculated from Published Spot Prices for a Central Florida Plant

30

40

50

60

70

80

90

100

110

120

130

140

150

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

$ ST

Source: Fertecon, Green Markets, Mosaic

11

May 4, 2006

We manage our business based on margins.  This chart shows the DAP market

margin, or DAP margin minus sulfur and ammonia costs and before rock and

conversion costs.  Similar to the price trend, the DAP market margin also increased

over the last year and was near a 20-year high in mid 2005. 

The

DAP

market

margin,

however,

declined

this

past

winter

due

to

weaker

DAP

prices

and

climbing

ammonia

prices

which

rose

to

near

$400

per

tonne

in

Tampa

in

December.

Ammonia

prices

have

declined

to

around

$340

per

tonne

and

the

recent

increase in DAP prices has resulted in the market margins starting to recover.  We

expect ammonia prices to decline further, particularly in light of the closures we

announced which will reduce our significant appetite for these critical raw materials

and

project

the

market

margin

will

continue

to

increase

over

the

near

term.

11

May 4, 2006

Mosaic’s preliminary estimate of

Florida land holdings total about

260,000 acres or approximately 400

square miles

Develop a strategy to maximize

value of Florida land assets

Florida Land Holdings

Over 300,000 people move to

Over 300,000 people move to

Florida each year

Florida each year

12

May 4, 2006

Our Phosphate business covers lots of central Florida.  This chart shows our Florida

footprint.

We

are

one

of

the

largest

landowners

in

Florida

with

holdings

totaling

roughly

400

square

miles.

We

are

in

the

process

of

developing

a

strategy

to

maximize the value of our Florida land assets.  In the past, we have reclaimed the

land after mining it and sold it opportunistically when someone was interested.  As we

move forward, we plan to take a more proactive and strategic approach to capturing

value from our land holdings and will have more details as we develop this unique and

important strategy.  So stay tuned.

12

May 4, 2006

Business Overview

Phosphates

Potash

Nitrogen / Offshore

Financial Outlook

13

May 4, 2006

Now I will turn to Mosaic’s Potash business.

13

May 4, 2006

Mosaic’s Potash Segment

Great fundamentals

Canpotex -

China contract negotiations continue

Superior earnings with high cash generation

Excellent platform for growth

Low cost and intelligent operator

One of the largest manufacturers in the world

World Potash Demand Growth

to Continue

in Developing Countries

14

May 4, 2006

The Potash business has great fundamentals.  But today we face normal seasonal

demand swings in this business compounded by some unusual circumstances,

namely the protracted contract negotiations between Canpotex

and the Chinese.  As

a result, exports are slower than last year.  In response, Mosaic has reduced

production

at

some

of

our

facilities

to

control

our

inventories.

Longer

term,

however,

the Potash business has superior margins and earnings and is generating a lot of

cash.  Our goal is to expand this business, including the capacity expansion currently

underway at our Esterhazy, Saskatchewan mine.  We have opportunities for other

expansions also, but will try to time future expansions with demand growth.

14

May 4, 2006

Potash Price Stabilizes

Cornbelt-Saskatchewan Potash Prices

US$ ST Granular Grade

60

80

100

120

140

160

180

200

220

240

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

Cornbelt

Saskatchewan

Source: Green Markets

15

May 4, 2006

Potash prices have about doubled over the last three years due to very strong

demand and the industry’s tight supply/demand balance.  This followed a long period

of relatively stable prices. 

Demand growth was initially strong in Latin America, mainly Brazil, but the last two

years the growth has been in Asia, mainly in China and India.  While potash price

momentum has slowed from its recent torrid pace, prices are expected to remain

strong with excellent margins.

15

May 4, 2006

Business Overview

Phosphates

Potash

Nitrogen / Offshore

Financial Outlook

16

May 4, 2006

Now let me turn to Mosaic’s Nitrogen and Offshore segments.

16

Mosaic’s Nitrogen Segment

Equity stake of 50% in Saskferco Products Inc., a world scale facility

Energy-efficient plant with 1.2 million tonnes nitrogen capacity

Continued to run profitably even with high-priced natural gas

Mosaic is agency marketer for Saskferco production

Saskferco’s equity earnings were $8 million in the first 9 months of fiscal

2006

17

May 4, 2006

Our Nitrogen segment is our smallest and consists mainly of our equity investment in

Saskferco

Products Inc.  Saskferco

is a great performer and yields good cash flow. 

We market all of Saskferco’s

production through an agency relationship plus we are

also a distributor of other nitrogen products in North America.

Mosaic owns 50% of Saskferco, which is one of the most energy efficient sites in

North

America.

Mosaic’s

share

of

equity

earnings

from

Saskferco

were

$8

million

for

the first nine months of fiscal 2006.

17

Mosaic’s Offshore Segment

Emphasis on distribution of Mosaic’s production

Manages seasonality of global demand

Mainly Brazil and other large growth markets

Challenging short-term environment, but long-term platform growth

Reduce supply chain costs

On the ground expertise and timely market intelligence

Equity earnings of $20 million in the first 9 months of fiscal 2006

Offshore currently distributes about

1 million tonnes of Mosaic’s production

18

May 4, 2006

Our Offshore business segment differentiates Mosaic from our North American

competitors.

We

have

a

large

global

production

and

distribution

footprint

in

key

growth markets, particularly in Latin America and Asia.  It includes approximately one

million tonnes

of storage capacity at two dozen facilities worldwide. 

In addition, we have single super phosphate and feed production facilities in Brazil

and NPK compound and bulk blending plants in China.  Finally, note that we had

equity earnings of $20 million in the first nine months of fiscal 2006 due to our equity

positions in phosphate production facilities in Brazil and China.

Mosaic’s offshore segment helps manage the seasonality of our business and

provides us with valuable on the ground expertise and timely market intelligence.

18

May 4, 2006

Business Overview

Phosphates

Potash

Nitrogen / Offshore

Financial Outlook

19

May 4, 2006

Finally, let me address Mosaic’s financial outlook.

19

May 4, 2006

Fiscal 2006 Financial Outlook

Market Update

–

Good Spring is underway

–

Strong DAP sales to China and India

–

Canpotex and Sinochem potash negotiations

Sales rebounding in fourth quarter

Phosphate fertilizer and feed sales volume of 10.2 to 10.5

million tonnes

Potash sales volume of 7.1 to 7.4 million tonnes

Equity earnings of $35 to $50 million

Capital spending of $350 to $360 million

20

May 4, 2006

We continue to expect a strong fourth quarter, which is seasonally Mosaic’s best

quarter, and the supply and demand fundamentals over the medium term remain

attractive.

Based on our most recent information, we are projecting phosphate fertilizer and feed

sales volumes of 10.5 to 10.9 million tonnes

for fiscal 2006.  We recently announced

new DAP contracts by Phoschem

to China and India, which should result in a strong

export market in the fourth quarter and on into the first quarter of fiscal 2007.

Similarly,

for

Potash,

we

are

projecting

sales

of

7.1

to

7.4

million

tonnes

for

fiscal

2006. Domestic sales volume has been disappointing, and export volumes are lower

as well principally because of the protracted contract negotiations with the Chinese

which we hope will conclude soon.  North American dealers as well as offshore

markets

have

delayed

purchases

due

to

high

fertilizer

and

energy

prices.

However,

domestic sales have seasonally increased during our fourth quarter, which is the

North American planting season.

Equity earnings are projected to range from $35 to $50 million for fiscal 2006 and

capital spending should range from $350 to $360 million, at the low end of our prior

guidance.

20

May 4, 2006

Mosaic Finance Priorities

Restructure phosphate capacity to lower costs

Grow our successful potash business

Generate cash to pay down debt / lower interest expense

Investment grade goal

New ERP / SOX / financial controls

Be a market leader, react swiftly and exercise strong discipline

Focus on

Execution and Cash Flow

Generation

21

May 4, 2006

In conclusion, let me note that Mosaic has an experienced management team that is

driven to deliver superior returns during the industry’s cyclical swings.  Our immediate

priorities are to generate cash to pay down debt, with a goal towards achieving an

investment grade rating as soon as we reasonably can.

We are restructuring the Phosphates business which will result in a streamlined, cost

competitive business which should result in improved cash flow and operating earnings

next year.

We plan to grow our successful Potash business, including the expansion of capacity

at Esterhazy.

We are in the process of improving our internal controls and implementing a new

enterprise resource planning system in October.

Finally, we will continue to be a market leader in Potash and Phosphates by operating

as

efficiently

as

we

can

and

matching

our

supply

to

our

customers’

purchasing

activity. 

You should know that I believe strongly in Mosaic and our future.  We expect to

overcome our short-term challenges and emerge as a strong and successful market

leader.

21

Mosaic Overview

Management:   Fritz Corrigan, President & CEO

Jim Thompson, Executive Vice President

Larry Stranghoener, Executive Vice President & CFO

Website:  www.Mosaicco.com

Headquarters:  3033 Campus Drive, Suite E490, Plymouth, MN 55441

Trading Symbol:  NYSE: MOS

Investor Relations:  Doug Hoadley, 763-577-2867

22

May 4, 2006

Thank you for your time.  I will now take questions.

22