Back to top

Image: Bigstock

Mosaic Streamlines Portfolio With Idled Brazil Phosphate Unit Sale

Read MoreHide Full Article

Key Takeaways

  • Mosaic closed the $111M sale of its inactive Patos de Minas phosphate mine to Fosfatados Centro.
  • The deal enables Mosaic to redeploy capital into higher-return phosphate and potash operations.
  • Fosfatados Centro assumes all site liabilities as it plans to restart domestic phosphate production.

The Mosaic Company(MOS - Free Report) has closed its deal with Fosfatados Centro SPE Ltda. for the sale of the idled Patos de Minas phosphate mining unit in Brazil. Under the terms of the final agreement, Fosfatados Centro will assume responsibility for the mine and the associated tailings dams, paying Mosaic $111 million in cash, of which $51 million is due at closing, with the balance to be paid in installments over the next four years. Mosaic anticipates recording a book gain in the range of $80-$90 million in the fourth quarter of 2025.

The strategic rationale presented by Mosaic is that the disposal frees up capital previously tied to a non-core asset, enabling its redeployment into higher-return opportunities. The sale was completed after receiving regulatory clearances, including approval by the Brazilian Administrative Council for Economic Defense. Fosfatados Centro is expected to restart the mining complex to supply phosphates to the Brazilian agricultural sector.

MOS Reinforces Strategic and Regional Focus

Mosaic is prioritizing the optimization of returns from its core, actively operating assets. As a result, future capital is more likely to be directed toward high-performing phosphate and potash operations, advancing innovation, and enhancing the overall product portfolio.

From a regional standpoint, the transaction allows Mosaic to maintain a strong commercial presence in Brazil without the burden of maintaining or reactivating underutilized assets. Brazil remains a critical market for Mosaic, and the company’s exit from this particular site does not signal a retreat; rather, it reflects a refined focus on growth and operational excellence within key areas of the business.

Shares of MOS have gained 43.8% compared with its industry’s 23.4% growth year to date.

Zacks Investment Research
Image Source: Zacks Investment Research

For full-year 2025, Mosaic expects phosphate production of 6.9-7.2 million tons and potash output of 9.3-9.5 million tons. Mosaic Fertilizantes sales volumes are projected to be at the lower end of the 10-10.8 million ton range.

For the third quarter of 2025, phosphate sales volumes are expected be in the band of 1.8-2.0 million tons. Potash volumes are forecasted to be in the range of 2.2-2.4 million tons.

MOS’ Zacks Rank & Other Key Picks

MOS currently has a Zacks Rank #2 (Buy).

 A few other top-ranked stocks in the Basic Materials space are CSW Industrials, Inc.(CSW - Free Report) , Galiano Gold Inc.(GAU - Free Report) , and Agnico Eagle Mines Limited (AEM - Free Report) . CSW and GAU carry a Zacks Rank #2 each at present, while AEM sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CSW’s current-year earnings is pegged at $10.26 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.60%.

The Zacks Consensus Estimate for GAU’s current fiscal-year earnings is pegged at 24 cents per share, indicating a 41.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two, delivering an average surprise of 17.08%. GAU’s shares have surged 104.8% over the past year.

The Zacks Consensus Estimate for CSW’s current-year earnings is pegged at $10.26 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.60%.
The Zacks Consensus Estimate for CSW’s current-year earnings is pegged at $10.26 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.The Zacks Consensus Estimate for GAU’s current fiscal-year earnings is pegged at 24 cents per share, indicating a 41.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two, delivering an average surprise of 17.08%. GAU’s shares have surged 104.8% over the past year.

The Zacks Consensus Estimate for AEM’s current fiscal-year earnings is pegged at $7.11 per share, indicating a 68.09% year-over-year increase. Agnico Eagle beat on earnings in each of the trailing four quarters, delivering an average surprise of 10.3%. AEM’s shares have rallied 117.9% over the past year.

Published in