RE:RE:RE:Expansion Plans at K+S MineThere is definitely significant risk with EarthRenew, but the tailwind thesis is that agriculture will have to go renewable to combat climate change and avoid soil depletion, and ERTH is one of the only games in town regarding renewable products. They've spent a lot of time developing a supply chain that *should* allow them to their business profitably.
I don't hold it against them for switching gears from Strathmore feedlot to Replenish Nutrients, as the Strathmore facility has faced a great deal of local opposition. It may still happen, but it probably won't be quick or without compromise.
Biggest risks from my point of view are financing and, as a result, dilution risks. How will they build out the hoped-for regenerative fertilizer plants without diluting the heck out of shareholders. I don't know. It's sad to see a company with a bona fide climate solution struggle to raise funds. I can only hope they'll upgrade/build one plant to demonstrate the scale/profitability, and therafter be able to leverage debt financing to build out more.
Time will tell.
frostback wrote: Timing suggests that the management is taking a more reactionary position of increased commodity pricing? To me it seems that they are merely chasing the price wave rather than catching and riding the wave. I am concerned that ER may be behind the curve with this unless the company can gain some significant traction in raising capital and executing construction of new and existing facilities. Manpower and inflationary risks have increased in the past year and there is no sign of this easing up anytime soon. Does the management team have the competence and expertise to pull this off? Time will tell.