We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mosaic (MOS) Announces Early Shut Down of Potash Mine Shafts
Read MoreHide Full Article
The Mosaic Company (MOS - Free Report) recently announced that it is immediately shutting down the K1 and K2 potash mine shafts at Esterhazy. The closure of K1 and K2 are key pieces of the transition to K3. However, the timeline for the shutdown has been preponed by nine months due to recent acceleration of brine inflows.
The company also intends to resume production at the Colonsay potash mine and recalling workers as soon as practical. This restart is expected to offset a part of the production lost by the early closure of the K1 and K2 shafts. It will also position Mosaic to take advantage of the anticipated strong potash markets in 2022 and beyond.
By end of Mar 2022, the company's annualized potash production could increase by two million tons from the previous year’s levels, as Esterhazy K3 reaches full capacity and Colonsay returns to service.
Mosaic expects to eliminate brine management expenses after July 2021 due to these operational changes. It also intends to materially increase potash capacity for 2022 to take advantage of the expected potash market strength. During the expected transition period of Jul 2021 to Mar 2022, Mosaic expects its potash production to be reduced by roughly one million tons. Available annualized operational MOP capacity is anticipated to be 10.5 million tons by mid-2022.
Shares of Mosaic have surged 140.6% in the past year compared with 70.1% rise of the industry.
Image Source: Zacks Investment Research
The company, in its last earnings call, noted that it expects strong fundamental trends witnessed in the last three quarters to continue through 2021. Strong crop demand, affordable inputs and favorable weather indicate strong grower economics.
Chinese phosphate exports are expected to remain low in 2021 due to high domestic demand and recent industry restructuring limit supplies available for export.
The company projects $80-$90 per ton improvement in realized prices in the Phosphates segment sequentially in the second quarter. In the Potash segment, $20-$30 per ton improvement in realized prices is expected in the second quarter.
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 274.7% for the current year. The company’s shares have surged 53.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 259.9% for the current year. The company’s shares have gained 139.1% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 50.7% in the past year. It currently flaunts a Zacks Rank #2 (Buy).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Mosaic (MOS) Announces Early Shut Down of Potash Mine Shafts
The Mosaic Company (MOS - Free Report) recently announced that it is immediately shutting down the K1 and K2 potash mine shafts at Esterhazy. The closure of K1 and K2 are key pieces of the transition to K3. However, the timeline for the shutdown has been preponed by nine months due to recent acceleration of brine inflows.
The company also intends to resume production at the Colonsay potash mine and recalling workers as soon as practical. This restart is expected to offset a part of the production lost by the early closure of the K1 and K2 shafts. It will also position Mosaic to take advantage of the anticipated strong potash markets in 2022 and beyond.
By end of Mar 2022, the company's annualized potash production could increase by two million tons from the previous year’s levels, as Esterhazy K3 reaches full capacity and Colonsay returns to service.
Mosaic expects to eliminate brine management expenses after July 2021 due to these operational changes. It also intends to materially increase potash capacity for 2022 to take advantage of the expected potash market strength. During the expected transition period of Jul 2021 to Mar 2022, Mosaic expects its potash production to be reduced by roughly one million tons. Available annualized operational MOP capacity is anticipated to be 10.5 million tons by mid-2022.
Shares of Mosaic have surged 140.6% in the past year compared with 70.1% rise of the industry.
The company, in its last earnings call, noted that it expects strong fundamental trends witnessed in the last three quarters to continue through 2021. Strong crop demand, affordable inputs and favorable weather indicate strong grower economics.
Chinese phosphate exports are expected to remain low in 2021 due to high domestic demand and recent industry restructuring limit supplies available for export.
The company projects $80-$90 per ton improvement in realized prices in the Phosphates segment sequentially in the second quarter. In the Potash segment, $20-$30 per ton improvement in realized prices is expected in the second quarter.
The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
Zacks Rank & Key Picks
Mosaic currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Cabot Corporation (CBT - Free Report) .
Dow has a projected earnings growth rate of around 274.7% for the current year. The company’s shares have surged 53.3% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 259.9% for the current year. The company’s shares have gained 139.1% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 50.7% in the past year. It currently flaunts a Zacks Rank #2 (Buy).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>