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Itafos Inc V.IFOS

Alternate Symbol(s):  MBCF

Itafos Inc. is a phosphate and specialty fertilizer company. Its businesses and projects include Conda, Arraias, Farim, Santana and Araxa. Conda is a vertically integrated phosphate fertilizer business located in Idaho, United States with a production capacity of over 550 Kiloton (kt) per year of mono ammonium phosphate (MAP), merchant grade phosphoric acid (MGA) and ammonium polyphosphate (APP), and approximately 27kt per year of hydrofluorosilicic acid (HFSA). Arraias is a vertically integrated phosphate fertilizer business located in Tocantins, Brazil with a production capacity of approximately 500kt per year of single superphosphate (SSP) and SSP with micronutrients (SSP+). Farim is a phosphate mine project located in Farim, Guinea-Bissau. Santana is a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil. Araxa is a vertically integrated rare earth element and niobium mine and extraction plant project located in Minas Gerais, Brazil.


TSXV:IFOS - Post by User

Comment by CanadianCodyon Dec 12, 2021 12:25pm
125 Views
Post# 34223044

RE:RE:RE:RE:Share price catalysts

RE:RE:RE:RE:Share price catalysts
Hello Nutcracker, thank you for the response. $25 per share would be in the far future 3-5 years if the projects I mentioned got up and running with a production capacity of +2Mt of product annually. The current share price is extremely devalued due to buyers calculating TTM of earnings. Last quarter EPS was .08.. Commodity prices have only increased since then and now there adding sulfuric acid production to there revenue. With all these factors if you look at forward EPS you should be around the .50 range. At an industry average of 8-10 P/E that would calculate to $4-$5 per share. So we should be in the 4-5range and currently were only at $1.50. Now we could speculate and and add 3-4 additional projects to that bottom line and boost the share price up a little more to around $6... the factors are all over the map depending on how you evaluate this company. My bottom line is yes, one day it could be at $25 easy, but for the short term I'm expecting $6 per share within a year. Inflation is going crazy, fertilizer production is way down, china and Russia are hording all the fertilizers they are producing, Europe shut down multiple production plants due to high energy prices. Also, the end value for farmers is historically high. Corn reserves are low, and prices for the product is high! Farmers are going to be planting more corn this spring and that will only move these fertilizers prices even higher. I see these factors as a win, win, win for shareholders. Also one more note, check out the current natural gas prices in Idaho vs. Its competitors locations. Itafos can produce these products way cheaper then its competitors which only increases there profit margins.
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