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MOS Unveils New Facility in Palmeirante, Expands Presence in Brazil

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Key Takeaways

  • MOS opens new $84M blending and distribution plant in Palmeirante, Brazil, to expand market reach.
  • The facility will process 1M tons annually and is expected to deliver over 20% internal rate of return.
  • New plant provides access to MATOPIBA farmers and supports MOS's plan to grow sales to 13-14M tons by 2030.

The Mosaic Company (MOS - Free Report) announced the opening of its new blending, storage and distribution plant in Palmeirante, Tocantins, Brazil, which aligns with its strategy to increase reach in the market. The plant has been inaugurated, with its operations scheduled to begin this month.

Mosaic has invested $84 million in this facility with an expectation to earn a margin of $30-$40 per ton, implying an expected internal rate of return of more than 20%. The plant enhances blending capacity with a capability to process 1 million tons of fertilizer annually, and approximately 500,000 tons in 2025. This facility is expected to significantly contribute to Mosaic’s growth plan in the northern region of Brazil.

The Palmeirante facility not only adds significant warehouse capacity, automated blending & bagging systems, and a direct rail connection to the port of Itaqui, but it also provides more efficient fertilizer access to the farmers of the MATOPIBA region, which serves as a key growing region. Mosaic expects to derive benefits by growing distribution sales from less than 8 million tons in 2024 to around 13-14 million tons by the end of 2030.

MOS stock has climbed 22.7% over the past year compared with the industry’s 25.3% rise.

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MOS’ Zacks Rank & Key Picks

MOS currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Royal Gold, Inc. (RGLD - Free Report) ,Coeur Mining, Inc.(CDE - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . While RGLD and CDE currently sport a Zacks Rank #1 (Strong Buy) each, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RGLD’s current-year earnings is pegged at $7.47 per share, indicating a 42% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 9%. RGLD’s shares have gained 13.6% in the past year.

The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 69 cents per share, implying a 283.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 136.2%.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $7.28 per share, indicating a rise of 53.6% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have gained 141.4% in the past year.

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