Agriculture

blue sky with clouds over a grain field

Wondering which Canadian potash companies to invest in? This list includes overviews of stocks listed on the TSX and TSXV.

The global potash market is dominated by Canada, the world's leading potash producer, with Canadian potash companies producing 14 million tonnes in 2020.

The potash industry has faced difficulties in the past few years, with prices and stocks dropping, but potash companies have remained resourceful and resilient. The latest test to the potash market comes in the form of the COVID-19 pandemic, and market participants are rising to this challenge as well.

Potash producers continue to push ahead despite headwinds, and exploration companies are working to develop projects to take advantage of rising demand for agricultural products.


For those interested in the market, here's a list of Canadian potash stocks listed on the TSX and TSXV; companies are listed from largest to smallest, and all had market caps of at least C$10 million as of November 30, 2021.

Nutrien

Market cap: C$48.36 billion

Formed on January 1, 2018, after Potash Corporation of Saskatchewan and Agrium completed a merger of equals, today Nutrien (TSX:NTR,NYSE:NTR) is Canada's largest potash company.

Nutrien bills itself as the world's largest provider of crop inputs and services, with an agricultural retail network that services more than 500,000 grower accounts. It says it is "committed to providing products and services that help growers optimize crop yields and their returns."

The potash-mining company produces a variety of different materials, but in terms of potash production it has over 20 million tonnes of capacity at its six potash mines in Saskatchewan.

​​Gensource Potash​​

Market cap: C$154.73 million

Gensource Potash's (TSXV:GSP) Vanguard area and Lazlo area projects are located in Saskatchewan. The company's main asset, the Tugaske project in the Vanguard area, is its central focus. Once in operation, it will create no salt tailings and will require no brine ponds. The environmentally friendly project is expected to produce 250,000 tonnes per year of final product at very competitive capital and operating costs.

"Gensource's business plan was created six years ago to specifically become a new and independent potash producer that approaches potash production in a different way," said Gensource Potash CEO Mike Ferguson in early 2020. "We're essentially turning every component of conventional potash production upside down. Our business plan has two pillars. The first is to be small and efficient. The second is to be vertically integrated."

Gensource announced in September 2021 that agricultural chemical company HELM, the offtaker for Tugaske, has committed C$50 million in project equity.

Verde AgriTech 

Market cap: C$97.5 million

Verde AgriTech (TSX:NPK,OTCQB:AMHPF) bills itself as an agri-tech company focused on developing innovative products that promote sustainable agriculture. Its main asset is its Cerrado Verde project, which holds a potassium-rich deposit and is located in the heart of Brazil's largest agricultural market.

Production began at Cerrado Verde in May 2017, and the company later exported its first shipment of Super Greensand, a fertilizer and soil conditioner, to US cannabis and organic markets. As a fertilizer it provides potassium, magnesium, silicon, iron and manganese, and as a soil conditioner it increases the capacity of soil to retain water and nutrients. The company also launched a new product in 2018 called Super Greensand Granular.

After announcing a 169 percent increase in revenue for the the third quarter of 2021, Verde AgriTech revised its annual revenue target up by 120 percent.

Western Resources

Market cap: C$38.37 million

Western Resources (TSX:WRX) and the company's wholly owned subsidiary Western Potash are working to build an environmentally friendly and capital-efficient potash solution mine at the Milestone project in Saskatchewan.

Milestone is close to Mosaic's (NYSE:MOS) Belle Plaine mine, which is one of the largest-producing potash solution mines in the world. Phase 1 development at Milestone is nearing completion, and in November 2020, the company announced an updated NI 43-101 report on the project that extends the mine life from 12 years to 40 years.

Karnalyte Resources

Market cap: C$10.12 million

Karnalyte Resources (TSX:KRN) is an advanced development-stage company focused on its construction-ready Wynyard potash project in Central Saskatchewan. The project also hosts mineable magnesium resources.

The company has completed feasibility studies and has obtained environmental approval for the project. Phase 1 production is targeted at 625,000 tonnes per year of high-grade granular potash and two subsequent phases of 750,000 tonnes per year each will eventually culminate in production of up to 2.125 million tonnes annually.

Karnalyte is also exploring the development of a small-scale nitrogen fertilizer plant, the Proteos nitrogen project, for which it recently completed a feasibility study. Its strategic partner and largest investor is Gujarat State Fertilizers and Chemicals, India's premier fertilizer and chemical manufacturing company.

If we missed a TSX- or TSXV-listed potash company you think should be included on this list, please send an email to editorial@investingnews.com

This is an updated version of an article originally published by the Investing News Network in 2015.

Don't forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Featured

MARKETS

Markets
TSX21357.56+64.60
TSXV902.99-4.05
DOW35911.81-201.81
S&P 5004662.85+3.82
NASD14893.75+86.94
ASX7393.90-80.50

COMMODITIES

Commodities
Gold1817.43+0.73
Silver22.96+0.03
Copper4.43-0.12
Palladium1880.14+11.13
Platinum973.64+2.64
Oil84.27+2.15
Heating Oil2.59-0.02
Natural Gas4.23-0.04

DOWNLOAD FREE REPORTS

×