there is an urgent need to boost crop yields Markets look promising, we could be in a fortunate environment that offers exceptionally high risk premiums for certain asset classes, potash fertilizers will become top of mind for governments where food productivity is imperative. Responding to attractive agricultural commodity prices, world fertilizer demand is anticipated to rise steadily and there is an urgent need to boost crop yields. This will position potash companies favourably.
IC Potash's prefeasibility study is now complete, negotiations with potential marketing equity partners, distributers and/or end users can set in motion potential term sheets which are the pathway to monetizing the plan and create credit enhancement facilities to finance this massive resource into production.
ICP(TSX) is well positioned for strategic partnerships with global trading, fertilizer and mining companies.
IC Potash is positioning itself as a key player in the broader agrifood supply chain and a key factor in providing the inputs farmers need to grow more food sustainably. ICP is developing a world class, long life and low cost potash mine and production facility in Lea Country, southeast New Mexico, a stable and well-known mining jurisdiction where both the Mosaic Co. and Intrepid Potash are currently producing potash with excellent infrastructure with access to railways, ports, natural gas, roads and water. IC Potash Corp. intends to become a primary producer of Sulphate of Potash ("SOP") and Sulphate of Potash Magnesia ("SOPM") by mining its 100% owned potash Ochoa property in southeast New Mexico.
The property consists of +100,000 acres of federal subsurface potassium prospecting permits and State of New Mexico potassium mining leases. The deposit is highly advanced containing total proven and probable reserves of +400 million tons of ore within the proposed mine plan. IC Potash is focused on being one of the lowest cost producers of SOP in the world, a market that is 6 million tonnes per year and growing. SOP is a non-chloride based potash fertilizer that sells at a substantial premium over the price of Muriate of Potash ("MOP"). SOP is a significant fertilizer in the fruit, vegetable, tobacco, potato, and horticultural industries, and for agriculture in saline and dry soils. IC Potash also intends to produce SOPM, which is a highly desirable product for soils with magnesium deficiency, including those found in Europe and Southeast Asia. This specialty product has a total global market size of approximately 1.2 million tonnes.
Analysts prefer SOP over MOP juniors, and as one of only two players in the space, ICP is a favourable story.