New Fertilizer Giant Nutrien to Keep its Headquarters in Saskatchewan

LOS ANGELES, January 19, 2018 /PRNewswire/ --

FN Media Group LLC Presents USA News Group News Commentary 

USA News Group - Two major Canadian fertilizer companies, Agrium and Potash Corp of Saskatchewan have just merged to form Nutrien Ltd, which is now the biggest fertilizer producer in the world and according to the Province's Premiere, the new entity will keep its headquarters in Saskatchewan.

Companies on the move in the potash space include Compass Minerals International, Inc. (NYSE: CMP), Intrepid Potash, Inc. (NYSE: IPI), Nutrien Ltd. (TSX: POT) (NYSE: POT), and Potash Ridge Corporation (TSX: PRK) (OTC: POTRF).

About 95% of potash is used for fertilizer in agriculture and about 5% is used in commercial and industrial products. Potash fertilizers can correct the problem where soil is potassium deficient and boost crop yields and quality.

Potash companies have been watching the increase in global demand for potash this year, and believe that the merger by majors will benefit all players including Compass Minerals International, Inc. (NYSE: CMP), Intrepid Potash, Inc. (NYSE: IPI), and Nutrien Ltd. (TSX: POT) (NYSE: POT).

And while large producers of potash have benefited from stronger pricing over the last year, smaller potash focused companies are playing off of market strength. Potash Ridge (TSX: PRK) (OTC: POTRF), is a junior mining company getting attention for its North American interests, which are focused on near term production in Utah.

WHAT NUTRIEN PRODUCES 

Potash is a naturally occurring mineral created during the evaporation of ancient sea beds. It is most often referred to as Muriate of Potash or Potassium Chloride (MOP) and Sulphate of Potash (SOP) or Potassium Sulphate.

Potassium serves as the "Regulator" of many essential processes within the plant and is one of the three primary crop nutrients required for plant growth.

MOP, also known as KCI, is widely used in all types of farming, but contains a chloride ion that can be detrimental towards plant growth, especially fruits and vegetables. If the chloride content isn't managed, it can lead to low quality crops and inhibit place growth in dry soils and saline areas.

MOP is the most widely used potassium fertilizer, especially in major areas of use, such as China and Brazil. It currently has a global market size of about 55 million tons per year.

SOP is a premium form of potassium fertilizer and has a smaller market of about 8 million tonnes per year, but commands a much higher price for its ability to improve crop yield without chloride build up associated with using MOP.

THE BIGGEST POTASH COMPANY MAKES ITS HOME 

Nutrien is currently producing over 25 million tons of assorted agricultural products annually. The entirety of the company's potash mining executives are located in Canada despite having retail operations all over the region, including the largest network of farm retail stores in the US.

The company, which currently runs its executive operations from Chicago, plans to establish its head office in Saskatchewan. The move is expected to increase corporate office jobs to 300, reflecting a 15% jump.

According to Saskatchewan Premier Brad Wall, Nutrien will have all the executives working in the Saskatchewan office live in the province.

That commitment is already in partial fulfillment, with the Nutrien CEO Chuck Magro living in Calgary, Alberta, which was the head office of Agrium.

Executive Chairman Jochen Tilk also resides within the province, in Saskatoon. Nutrien spokesman Richard Downey said that while Magro will continue to reside in Calgary for the meantime, he has plans to purchase a home in Saskatoon.

The company is not receiving any incentives from the current Saskatchewan government, but with Saskatchewan's Ruling Party set to pick a new leader following the impending resignation of Wall, that may be set to change.

THE WHOLE POTASH MARKET WILL BENEFIT 

The analysts view the creation of Nutrien as a move to a more galvanized marketplace.

According to PotashCorp, the demand for potash and the strength in global demand will continue this year. It's pinned at about 62 million-65 million tons in 2017, which is up from ~60 million tons in 2016.

Potash prices have bounced back stronger too.

Granular potash prices in Brazil have risen as much as 17% YoY (year-over-year) to $274 as of the week ending October 6. In the US Corn belt region, prices have risen ~5% YoY. The standard grade of potash was also 5% higher YoY in the South East Asia region.

The global Potash Fertilizer Market is expanding with considerable growth potential during the next five years.

POTASH RIDGE IN GOOD COMPANY 

While MOP pricing continues to hold value, higher premium SOP (potash) could be a source of excellent value for junior miners. Potash Ridge is one of these looking to vitalize the sector.

Potash Ridge has two highly de-risked and advanced development stage potassium sulphate (SOP) projects; 1) the Blawn Mountain assets in Utah and 2) the Valleyfield project in Quebec, Canada.

Both projects are well received in their respective jurisdictions and have earned strong support from the various levels of government, agencies, financial groups, and stakeholders in their individual locales under Potash Ridge's guidance.

Potash Ridge announced late last year its plans to spin-out the Valleyfield project into a new public company in order to create greater value. So now, the company plans to focus its efforts on the development of its proposed 255,000 ton per year project at Blawn Mountain, Utah.

A prime source for SOP, Blawn Mountain is in its final stages of completion with all major environmental and regulatory permits in place. Blawn Mountain has the potential to become a significant potash resource and make Potash Ridge the lowest cost producer SOP in North America.

NO GOOD DEED 

In response to the merger announcement, Nutrien shares took a slight dive in Toronto, while moving slightly in the opposite direction in New York.

For the long term however, the merger seems to have positioned the company for some impressive growth numbers. Potash and various fertilizer products will be highly sought after commodities in the agricultural sector as the world's food demands grow with the rising global population.

Certainly the move to consolidate Nutrien Ltd. brings price strength and balance to supply levels. Increased market demand is expected to benefit junior miners and others looking to develop potash resources for the long term.

POTENTIAL COMPARABLES 

Compass Minerals International, Inc. (NYSE: CMP)

Compass Minerals International, Inc., produces and sells salt, and specialty plant nutrition and chemical products in the United States, Canada, Brazil, the United Kingdom, and internationally. It operates in three segments: Salt, Plant Nutrition North America, and Plant Nutrition South America. Compass Minerals International, Inc., produces and sells salt, and specialty plant nutrition and chemical products in the United States, Canada, Brazil, the United Kingdom, and internationally. It operates in three segments: Salt, Plant Nutrition North America, and Plant Nutrition South America. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in November 2003. Compass Minerals International, Inc. was incorporated in 1993 and is based in Overland Park, Kansas.

Intrepid Potash, Inc. (NYSE: IPI)

Intrepid Potash, Inc. produces and sells potash and langbeinite products in the United States and internationally. It operates in two segments, Potash and Trio. The Potash segment offers muriate of potash or potassium chloride for use as a fertilizer input in the agricultural market; as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes in the industrial market; and as a nutrient supplement in the animal feed market. Intrepid Potash, Inc. was incorporated in 2007 and is based in Denver, Colorado.

Nutrien Ltd. (TSX: POT) (NYSE: POT)  

Nutrien LTD, formally Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers, and related industrial and feed products worldwide. It operates in three segments: Potash, Nitrogen, and Phosphate. The company's products primarily include standard and granular potash; diammonium phosphate, monoammonium phosphate, and phosphoric acid; and ammonia, urea, nitric acid, ammonium nitrate, and nitrogen solutions, as well as purified acids and phosphate feed products. It owns and operates five potash mines in Saskatchewan and one potash mine in New Brunswick. The company was founded in 1953 and is headquartered in Saskatoon, Canada.

For a more in-depth look into PRK you can view the in-depth report at USA News Group:

http://usanewsgroup.com/2017/12/06/potash-supply-to-exceed-demand-by-2020-report/

Article Source: 

USA News Group 
http://usanewsgroup.com 
[email protected]

Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of USA News Group only and are subject to change without notice. USA News Group assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

DISCLAIMER: USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

Media Contact Information :
FN Media Group, LLC
Media Contact e-mail:  
[email protected]  
U.S. Phone: +1(954)345-0611
SOURCE USA News Group

SOURCE USA News Group