Post by
Mineralrunner on Feb 23, 2022 2:23am
Brazil and Phosphate from Mosaic
If history is a marker, FY2021 results should arrive around mid to late March 2022. Perhaps they would provide some more details on the "strategic alternatives" they are considering for Arraias and Farim.
Three alternatives for Arraias:
1. Status Quo - continue to spend money on Care and Maintenance
2. Full Restart
3. Sale
4. JV Partner
I'm sure what to make of any of these. Any thoughts would be appreciated. Latest results (tonight) from Mosaic are very good for its phosphate line of business in Brazil and the outlook as well. Some highlights from today's Mosaic press release.
"The company expects upward pricing momentum to continue, with about 85 percent of first quarter sales committed and priced..... First quarter FOB realized prices for phosphates are expected to be more than $60 per tonne higher than prices realized in the fourth quarter."
"Mosaic Board of Directors has approved the establishment of a new $1 billion share repurchase authorization, which will take effect immediately following completion of the current program." (They are inferring obviously that their stock is undervalue)
"The Mosaic Board of Directors has also approved a regular dividend target increase to $0.60 per share annually from $0.45, beginning with the second quarter payment." (A 33% increase in dividends, regular being the key word)
"This decrease was more than offset by the rise in average realized selling prices to $618 per tonne, up from $360 in 2020."
"Strong agricultural commodity pricing trends are expected to continue driving demand for fertilizers through 2022. Global demand for grain and oilseeds remain high while stock-to-use ratios are at the lowest point in more than a decade. Food security concerns, rising biofuel consumption, and textiles are driving demand for corn, soybeans, wheat, rice, coffee, palm oil, cotton and other agricultural commodities. As a result, strong global fertilizer demand in 2022 is expected as growers seek to maximize yields. Grower profitability has receded from 2021's record levels, but farm economics in most global growing regions remain constructive. In North America, Brazil, and China, domestic crop prices continue to justify nutrient application."
https://s1.q4cdn.com/823038994/files/doc_financials/2021/q4/Press-Release-2.22.2022_FINAL.pdf