With shares of Nutrien (NRT) and Mosaic (MOS) rebounding after a pre-market drop caused by their JV signing a contract with China at lower-than-expected prices last week, the potash market has reached a turning point and the "bottom is in" with all markets showing an increase in buying according to equity research analyst in fertilizers and chemicals Joel Jackson from BMO Capital Markets:
https://www.bnnbloomberg.ca/video/cheaper-potash-deal-signals-bottom-is-in-analyst-actions~2702873 As this market development is beneficial for the industry as a whole, Sage Potash (SGPTF SAGE.v) is one compelling opportunity with a transformative approach to the potash industry and a modest market cap of only USD$13M.
Sage is focused on establishing a domestic supply of potash in the US to reduce dependence on imports from Canada which currently fulfill 94% of the nations potash needs.
Located in Utah's Paradox Basin, renowned for its abundant and underdeveloped world-class potash resources, Sage's Plains Project stands out as the largest potash deposit in the US near pilot production with an impressive inferred resource of 279.5 million ton potash,
With Tier 1 deposit potential, the project holds significant value as the resource exceeds an $18 billion Insitu valuation based on the current pricing of $645/ton.
Anticipation is high for the Plains Project PEA which is expected in the second half of 2023, as initial projections indicate a production capacity of 50,000 tonnes per year with plans to scale up to 150,000 tonnes over a span of 20 years.
Posted on behalf of Sage Potash Corp.