The global potash market is dominated by Canada, the world’s largest potash producer, with Canadian potash companies producing 14 million tonnes in 2020.
The potash industry has struggled in recent years with declining prices and inventory, but the potash companies have remained resourceful and resilient. The latest potash market test comes in the form of the COVID-19 pandemic, and market players are responding to this challenge as well.
Potash producers continue to move forward despite headwinds, and exploration companies are working to develop projects to take advantage of growing demand for agricultural products.
For those interested in the market, here is a list of Canadian potash stocks listed on the TSX and TSXV; companies are listed from largest to smallest, and all had a market capitalization of at least C $ 10 million as of November 30, 2021.
Market capitalization: C $ 48.36 billion
Formed on January 1, 2018, after Potash Corporation of Saskatchewan and Agrium completed a merger of equals, Nutrien (TSX: NTR, NYSE: NTR) is today the largest potash company in Canada.
Nutrien positions itself as the world’s largest supplier of crop inputs and services, with an agricultural retail network serving over 500,000 producer accounts. He says he is “committed to providing products and services that help producers optimize crop yields and their income.”
The potash mining company produces a variety of different materials, but in terms of potash production it has a capacity of over 20 million tonnes at its six potash mines in Saskatchewan.
Market capitalization: 154.73 million Canadian dollars
The Gensource Potash (TSXV: GSP) Vanguard Zone and Lazlo Zone projects are located in Saskatchewan. The company’s main asset, the Tugaske project in the Vanguard area, is its focal point. Once in service, it will not create salt residue and will not require a brine basin. The environmentally friendly project is expected to produce 250,000 tonnes per year of final product at very competitive investment and operating costs.
âGensource’s business plan was created six years ago to specifically become a new independent potash producer that approaches potash production in a different way,â said Mike Ferguson, CEO of Gensource Potash at the beginning of 2020. âWe basically process every component of conventional potash production. Upside down. Our business plan is based on two pillars. The first is to be small and efficient. The second is to be vertically integrated. “
Gensource announced in September 2021 that agricultural chemicals company HELM, the buyer of Tugaske, had committed to invest C $ 50 million in the capital of the project.
Market capitalization: 97.5 million Canadian dollars
Verde AgriTech (TSX: NPK, OTCQB: AMHPF) promotes itself as an agricultural technology company focused on the development of innovative products that promote sustainable agriculture. Its main asset is its Cerrado Verde project, which has a deposit rich in potassium and is located in the heart of Brazil’s largest agricultural market.
Production began at Cerrado Verde in May 2017, and the company then exported its first shipment of Super Greensand, a fertilizer and soil conditioner, to the U.S. cannabis and organic markets. As a fertilizer, it provides potassium, magnesium, silicon, iron and manganese, and as a soil amendment, it increases the soil’s ability to hold water and nutrients. The company also launched a new product in 2018 called Super Greensand Granular.
After announcing a 169% increase in revenue for the third quarter of 2021, Verde AgriTech has revised its annual revenue target up to 120%.
Market capitalization: 38.37 million Canadian dollars
Western Resources (TSX: WRX) and the Company’s wholly owned subsidiary, Western Potash, are working on the construction of an environmentally friendly and capital efficient potash solution mine at the Milestone project in Saskatchewan.
Milestone is located near Mosaic’s Belle Plaine Mine (NYSE: MOS), which is one of the most productive potash solution mines in the world. Milestone Phase 1 development is nearing completion, and in November 2020 the company announced an update to the NI 43-101 report on the project that extends the mine life from 12 to 40 years.
Market capitalization: 10.12 million Canadian dollars
Karnalyte Resources (TSX: KRN) is an advanced development stage company focused on its ready-to-build Wynyard potash project in central Saskatchewan. The project also harbors exploitable magnesium resources.
The company has completed the feasibility studies and obtained environmental approval for the project. Phase 1 production targets 625,000 tonnes per year of high quality granular potash and two subsequent phases of 750,000 tonnes per year each will result in production of up to 2.125 million tonnes per year.
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 largest strategic partner and investor is Gujarat State Fertilizers and Chemicals, India’s leading fertilizer and chemical manufacturing company.
If we missed a potash company listed on the Toronto Stock Exchange or TSX Venture Exchange that you think should be on this list, please email [email protected]
This is an updated version of an article originally published by Investing News Network in 2015.
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Disclosure of Securities: I, Melissa Pistilli, do not hold any direct investment interest in any of the companies mentioned in this article.