The potash industry saw some closures and layoffs in 2016–and a continuing theme of oversupply–which didn’t seem to bode well for the potash sector.
Still, there were some bright spots for the fertilizer’s industry in 2016. As such, the Investing News Network (INN), has compiled a list of its five top potash news stories of last year.
Read on to see what top potash news stories 2016 grabbed the attention of our investor audience.
First on our top potash news stories 2016 is the announcement Gensource Potash (TSXV:GSP) made at the end of April regarding its estimate for the Vanguard project it had just acquired. At the time, the news bumped Gencource’s shares up 10.34 percent to $0.08 per share. In the article, INN reached out and spoke with Mike Ferguson, president and CEO of Gensource to talk about the estimate and what was next for the company.
As evidenced by the next article, the year didn’t start out well for the potash industry. Potash Corporation of Saskatchewan–notably the largest potash supplier–announced in January that it would be closing operations at its facility in Picadilly, New Brunswick. The closure resulted in approximately 42o to 430 job losses.
As noted in the article, the closure was the second New Brunswick location that PotashCorp had recently shut down.
At the end of June, potash prices were feeling the pressure and some big news at the time was indicative of that trend to continue.
Belarusian Potash company had signed a deal with India to supply 700,000 tons of potash at a low price of $227 per ton, cost and freight. As noted, the price was the lowest in roughly 10 years, down from $332 per ton the previous year.
Coming in at number four on the top potash news stories 2016 is our potash outlook for 2017, published at the end of December. Throughout the year, potash prices did see a bit of a drop off, although it was noted that it was not uncommon for the sector.
While oversupply and mine shutdowns was a common theme in 2016, moving into 2017 and beyond will see growing demand and mines beginning operations, which will no doubt be beneficial for the industry.
Last but certainly not least, Gensource Potash’s asset purchase agreement and term sheet for an offtake agreement with Yancoal Canada Resources, rounds out the top five potash news stories 2016.
The agreement included two potash exploration permits for a price of $2,480,000. That said, Mike Ferguson, president and CEO of Gensource, was more excited about the term sheet for an offtake agreement.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Gensource Potash is a client of the Investing News Network. This article is not paid for content.