Yet prospects are bright for Allana Potash and Verde PLC Po
Potash juniors in Brazil and Africa defy industry slowdown
..from The Globe And Mail
The world’s biggest fertilizer company, Potash Corp. of Saskatchewan, slashed 1,000 jobs in December, while Mosaic Co., a major U.S.-based producer, last year suspended part of its expansion plans. Yet prospects are bright for Allana Potash Corp. and Verde Potash PLC, two small producers developing low-cost potash mines in Ethiopia and Brazil respectively, far from the world’s main potash regions of Western Canada and eastern Europe.
Each promises a shortcut to fertilizer-hungry markets and has attracted strategic or government backing, removing some of the risk.
full story
https://www.theglobeandmail.com/report-on-business/international-business/potash-juniors-in-brazil-and-africa-defy-industry-slowdown/article17482788/
Shares of Verde, which is still in the early stages of project development, have doubled in value since July 30, when Belarusian Potash Co, one of the world’s biggest potash traders, broke up and potash prices went into free fall because of the prospect of increased competition.
Allana stock is slightly higher over the same period even as Karnalyte Resources Inc., owner of a similar project in potash-rich Western Canada, has lost about half of its value.
The faith in Allana and Verde shows investors are still willing to bet on the long-term fundamentals of potash, which are based on population and income growth in the developing world fuelling greater food demand. Even so, only junior projects with such unique, built-in advantages are likely to proceed in the near term.