RE:Brazilian Fertilizer Prices Highest Since 2008
Psalm9012 wrote: According to a recent article on Agrimoney, "the weakening of the Brazilian Real has caused a strong increase in domestic Brazilian fertilizer prices". Apparently, in terms of the Real, prices are the highest since the commodity peak in 2008. The article says imports are expected to fall 15-20% because farmers can't afford them with the Real continuing to hit new lows. This means domestic production is now very profitable. Unfortunately the MBAC plant sits idle. However, the original bidders or other outside potential buyers will see this improving metric for domestic production. I still believe one of the original bidders will take it directly to shareholders in the near future. There is just too much asset value and future potential here in the right hands. Regarding the debt, for a buyer like Mosaic from the U.S., they can easily manage or finance that debt at 1-2%. Speaking of Mosaic, they would seem like an ideal candidate having almost 20 facilities in Brazil - most of which are blending and warehousing operations - but of the 3 production facilities, one is a SSP plant several hundred kilometres south of the Itafos plant. Seems like it would be a perfect fit along with the other properties for future growth. Greg
Psalm9012 - really that is the only hope and prayer we have at this point.
You need a motivated team that wants to sell - these guys don't.
I can't believe Mosaic wouldn't be all over this - strategically it makes a lot of sense.