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Here’s a look at the potash news articles that received the most buzz in the second quarter of 2015.
The fertilizer space hasn’t been in great shape in recent months; however, M&A activity has been strong, and there has been plenty of commentary indicating that market participants are optimistic about the future
The Investing News Network (INN) has put together the potash news articles that received the most buzz in 2015’s second quarter. Unsurprisingly, many discuss M&A activity and the outlook for the sector. Without further ado, here they are.
1. Uralkali Contract with Indian Company Could Stimulate Potash Demand
Q2’s top-read potash news article unsurprisingly discusses large supply contracts and the effect these deals may have on the market. Specifically, it outlines a deal between Russia’s Uralkali (LSE:URALL) and Indian Potash.
Notably, Uralkali CEO Dmitry Osipov noted when the contract was signed that it would “undoubtedly become one of the major drivers for industry development, stimulating potash demand.” Higher potash demand is of course positive not only for large companies, but also for low- to mid-cap companies.
2. 3 Top-gaining Potash Mining Stocks on the TSX/TSXV
In today’s tough markets it’s always nice to see companies succeed. In April, INN highlighted the three top-gaining potash stocks on the TSX and TSXV, some of which had gained over 50 percent year-to-date.
The top TSX gainer was Allana Potash, which was officially acquired by Israel Chemicals (NYSE:ICL) in June. On the TSXV, Encanto Potash (TSXV:EPO) was on top, having seen a 60-percent gain year-to-date; since then it’s had some ups and downs, but is still up 6.67 percent year-to-date. Sennen Potash (TSXV:SN), the third top-gaining stock, is now down 11.67 percent for the year.
3. PotashCorp Re-evaluating Stakes in SQM and ICL
After SQM (NYSE:SQM) released its Q1 results, recording a 27-percent drop in revenues, PotashCorp (TSX:POT,NYSE:POT) decided it was time to re-evaluate its stakes both SQM and Israel Chemicals.
PotashCorp also holds interest in other companies, including Sinofert Holdings (HKEX:0297) and Arab Potash Company, and while CEO Jochen Tilk considers those relationships “strategic” and beneficial, it’s evident he isn’t so sure about SQM and ICL. No further news on whether PotashCorp will sever ties with SQM and Israel Chemicals has been released.
4. K+S Shares Up 30 Percent on PotashCorp Takeover Proposal
PotashCorp has made various attempts to take over K+S (FWB:SDF1) in recent months, but has yet to be successful. The German company not only feels that PotashCorp’s offers undervalue its assets, but has also voiced concerns about job losses and mine closures should a transaction take place.
Nevertheless, the market reacted well to news of the possible deal when it was first announced, with K+S’ share price jumping 30 percent. The company’s share price remains high, and is up 60.54 percent year-to-date.
5. Highfield Reports Maiden Resource Estimate for Sierra del Perdón Project
Positive company news is always well received by market participants, and Highfield Resources (ASX:HFR) certainly saw that in April. The company released the maiden resource estimate for its Sierra del Perdón project, and it outlines an estimated indicated mineral resource of 41.8 million tonnes at 10.7 percent K2O and an estimated inferred mineral resource of 40.3 million tonnes at 10.5 percent K2O.
At the time, Highfield’s managing director, Anthony Hall, said the company is still focused primarily on its Muga project, but is happy with the results from this second project.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
Related reading:
5 Top Potash Stories for Q1 2015