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Top 5 ASX Agriculture Stocks of 2022
Sep. 06, 2022 01:40PM PST
With prices for fertilizers running high, how are ASX-listed agriculture stocks performing? These are the top risers so far in 2022.
From production to distribution, the food industry is one of the world's largest and most important industries. And as global supply chains face challenges, it's been thrown into focus this year.
Fertilizer prices have risen nearly 30 percent since the start of 2022, largely as a result of economic sanctions placed on Belarus and Russia, as well as export restrictions in China. For commodities like potash and phosphate, which are major components of fertilizers, prices are moving towards where they were in 2008.
That's good news for potash and phosphate companies outside the Russian and Belarusian markets that are trying to fill demand, and some have seen major share price increases on the back of these issues.
With that in mind, the Investing News Network has listed the top agriculture stocks on the ASX by year-to-date gains. Data for this list was gathered using TradingView's stocks screener on July 30, 2022, and all companies included had market caps above AU$60 million at the time.
1. Centrex
Year-to-date gain: 76.36 percent; market cap: AU$82.19 million; current share price: AU$0.14
Mining and exploration company Centrex (ASX:CXM) is focused on creating a sustainable agriculture future for Australasia. The company has three 100 percent owned projects: the Ardmore phosphate operation, the Oxley potash project and the Goulburn polymetallic project. According to Centrex, the Ardmore project in Northwest Queensland is notably one of the only undeveloped phosphate deposits in the world.
In a recent report, Centrex said Ardmore has achieved nameplate capacity and design performance. Its product yield is within the expected range, and its first export is planned for September of this year.
2. Kore Potash
Year-to-date gain: 18.75 percent; market cap: AU$65.53 million; current share price: AU$0.02
Kore Potash (ASX:KP2) has assets in the Republic of Congo. The company has honed its efforts on two of its high-grade potash projects, Kola and DX, which both have suitable access to high-grade minerals and transportation infrastructure. Kore believes it is on track to becoming the lowest-cost supplier of potash in the global market.
In late June, the company signed an agreement with SEPCO Electric Power Construction to construct the Kola project. As of late July, the companies were still finalizing terms and conditions.
3. Agrimin
Year-to-date gain: 24.24 percent; market cap: AU$126.44 million; current share price: AU$0.44
Agrimin (ASX:AMN) is aiming to become the world’s lowest-cost producer of sulphate of potash (SOP) and is focused on its Mackay and Lake Auld potash projects. The Mackay project has a mineral resource of 123 million tonnes of SOP, as well as a mine, processing facility and a port for easy access to distribution.
In April, Agrimin entered a binding agreement with Gavilon Fertilizer, a US wholesale fertilizer company. The agreement is for a seven year term starting June 30, 2026, and is for 50,000 tonnes annually.
4. Highfield Resources
Year-to-date gain: 6.15 percent; market cap: AU$346.21 million; current share price: AU$0.95
Highfield Resources' (ASX:HFR) flagship project is Muga, located in Spain's Navarra and Aragón provinces. With its fairly shallow depth of 350 metres below the surface, the asset is predicted to be relatively low cost.
In late June, the company began construction at Muga after receiving a construction licence. Construction includes, but is not limited to, fencing of the plot, installing staff facilities and excavation of the mine entrance.
5. BHP Group
Year-to-date gain: 4.23 percent; market cap: AU$195.78 million; current share price: AU$38.68
BHP Group (ASX:BHP) is a well-known base metals and materials miner with assets spanning the Americas and Australia. Its Jansen potash project in Saskatchewan, Canada, is expected to be the world’s largest potash mine.
BHP has announced an investment of US$5.7 billion in the Jansen Stage 1 project, and in mid-2022, the Canadian government revealed plans to support Jansen's development with a C$100 million investment.
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Securities Disclosure: I Marlee John, hold no direct investment interest in any company mentioned in this article.
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