skip to Main Content

US potash explorer aims to deliver district scale resource to corn belt


Investor interest in the potash sector reached fever pitch due to the meteoric career of AIM-listed Sirius Minerals, a potash developer with a Yorkshire-based project which fell to earth in 2019 and was taken on by Anglo American. But potash remains an area of significant investor interest. This week we took a position in a US potash project, which we think has some excellent short term prospects and is likely to be a target for acquisition.

One of the big catalysts in global potash markets since Sirius Minerals fell into the lap of Anglo American has been the Russian invasion of Ukraine in 2022. While there were big worries over the impact of that conflict and subsequent sanctions against Russia, it does mean that over half of the global potash supply is covered by a big strategic question mark (when you factor in China's output).

Canada accounts for another 30+%, but US buyers are also alive to the need for large scale potash sources close to the sprawling American corn belt. A staggering 95% of US potash imports come from other countries.

One of the key considerations for Canadian suppliers (and US buyers) is the cost of transportation, with a large slice of the US potash imports from Canada coming overland via rail. Wouldn't it be nice if there was a miner looking for potash much closer to US farmers who is already potentially in the sights of a buyer?

Want the full story? Access all of The Armchair Trader's content for just £5.99 per month.

Get weekly investment ideas and tips that will take your investing to the next level. Sign up here.

Free 28 day trial. Cancel anytime.

Log In or Sign Up to Armchair Trader+

Already a member? Log in here:

Not a member yet? Sign up for your free trial or check out the benefits of membership.

Further content of this article is not available as it is for members only. Please visit the registration page for Armchair Trader Plus+ for further details on the benefits of becoming a member.

Like this article? Sign up to our free newsletter.

This article does not constitute investment advice. Do your own research or consult a professional advisor.

The Armchair Trader's 'How to' Guides

In-depth Reports

Detailed reviews of selected companies and investment trusts.

Thanks to our Partners

Our partners are established, regulated businesses and we are grateful for their support.

FP Markets
Back To Top