Potash stocks have become an attractive investment opportunity in recent years, as the demand for sustainable agriculture practices continues to rise.
Potash is a key fertilizer that is used in the agriculture industry to enhance crop growth.
With a rapidly growing global population and declining food production, there is an increasing demand for potash.
The global potash market size is valued at $26 billion (2021), and is projected to grow at a CAGR of 4.6% from 2022 – 2028 (Statista, 2021).
Growth in the potash market is a result of the increasing demand for potash in the agriculture sector.
Potash’s benefits include improved soil fertility, enhanced crop yields, and the reduction of crop damage caused by pests and diseases.
With the global population expected to reach 9.7 billion by 2050, the agriculture sector needs to produce more food to meet the growing demand.
However, the agricultural land available for cultivation is shrinking, and there is a need to improve crop yields to meet the increasing demand for food.
This is where potash comes in, as it is an essential nutrient that plays a crucial role in enhancing crop growth and productivity.
How is Potash Made?
Potash is typically extracted from underground deposits of evaporites, which are formed by the evaporation of ancient seas or lakes.
The ore is mined using conventional mining methods, such as underground mining or solution mining.
After the ore is extracted, it is crushed and milled to form potash particles.
The potash is then separated from the salt and other impurities using a flotation process, leaving behind a high-purity potash product.
Below, we will present the 10 Best Potash Stocks to Watch in 2023!
Best Potash Stocks to Watch for 2023
- BHP Group
- Vale S.A.
- The Mosaic Company
- Nutrien
- Altius Minerals
- Intrepid Potash
- Compass Minerals International
- Verde Agritech
- Western Resources
- Gensource Potash
1. BHP Group (NYSE: BHP)
- Ticker: BHP
- Dividend Yield: 9.11%
- Market Cap: $216.56 Billion
BHP is a global mining company that has significant potash assets in Canada, including the Jansen project, which is one of the largest and highest-quality undeveloped potash resources in the world.
It’s Jansen project located 140 kilometres east of Saskatoon has the ability to produce up to 4.35 million tonnes of potash per annum.
The company has a diversified portfolio of commodities, which provides a natural hedge against commodity price volatility.
BHP has a strong track record of operational excellence and cost discipline, which positions the company well in the competitive potash market.
2. Vale S.A. (NYSE: VALE)
- Ticker: VALE
- Dividend Yield: 5.04%
- Market Cap: $65.19 Billion
Vale is a Brazilian-based mining company that has recently entered the potash market through its acquisition of the Kronau project in Canada.
The project has significant potential, with estimated reserves of up to 3.25 billion tonnes of potash.
Vale’s entry into the potash market is a strategic move to diversify its portfolio and tap into the growing demand for potash in the agriculture industry.
With a strong free cash flow, an experienced management team, and significant reserves, Vale is a promising player in the potash market and a top potash stock to consider for 2023.
3. The Mosaic Company (NYSE: MOS)
- Ticker: MOS
- Dividend Yield: 1.85%
- Market Cap: $13.12 Billion
Mosaic Company is a leading producer and supplier of potash and phosphate fertilizers.
The company operates in six countries, serving customers in over 40 countries worldwide.
Mosaic’s potash business operates in Canada and the United States, where the company produces and supplies potash to the agriculture industry.
They hold expertise in crop nutrients, making them poised to benefit from the increasing demand for fertilizers in 2023.
4. Nutrien (NYSE: NTR)
- Ticker: NTR
- Dividend Yield: 3.16%
- Market Cap: $32.50 Billion
Nutrien Ltd. Nutrien Ltd. is the world’s largest potash producer and supplier.
Their operations of Potash mines in Saskatchewan produce up to 21 million metric tonnes of potash per annum.
The company has a diversified portfolio of potash, nitrogen, and phosphate products that serve the agriculture industry.
Nutrien operates in 14 countries, serving over 500,000 customers worldwide.
In addition to potash, the company also produces and supplies nitrogen and phosphate fertilizers, which are essential nutrients for crop growth.
5. Altius Minerals (TSE: ALS.TO)
- Ticker: ALS.TO
- Dividend Yield: 1.50%
- Market Cap: $1.02 Billion
Altius Minerals is a Canadian-based mining company with a diversified portfolio that includes significant potash assets.
The company owns a royalty interest in the world-class Prairie Royalties potash project in Saskatchewan, Canada, which is expected to produce up to 4 million tonnes of potash per year.
Altius also has a significant stake in the Scotia Potash project, which is currently being developed in Saskatchewan.
With its strong position in the potash market and a proven track record of success, Altius Minerals is an excellent potash stock to consider for 2023.
6. Intrepid Potash (NYSE: IPI)
- Ticker: IPI
- Dividend Yield: N/A
- Market Cap: $276.76 Million
Intrepid Potash is a US-based potash company that has a unique competitive advantage in the market.
The company has a low-cost production structure that allows it to produce potash at a lower cost than many of its competitors.
Additionally, Intrepid has a strong marketing and distribution network that enables it to sell its products in the US and international markets.
With a focus on sustainability and innovation, Intrepid Potash is well-positioned to capitalize on the growing demand for sustainable agriculture.
7. Compass Minerals International (NYSE: CMP)
- Ticker: CMP
- Dividend Yield: 1.87%
- Market Cap: $1.34 Billion
Compass Minerals is a leading producer of salt and potash with a strong position in the North American market.
The company’s potash assets are located in Saskatchewan, Canada, home to some of the world’s largest and most abundant potash mines.
Compass Minerals has a diversified customer base that includes agricultural, industrial, and consumer markets.
Therefore, investors should keep an eye on Compass Minerals as a top potash stock to watch for 2023.
8. Verde Agritech (TSE: NPK.TO)
- Ticker: NPK.TO
- Dividend Yield: N/A
- Market Cap: $115.70 Million
Verde Agritech is a Brazilian-based potash company that has developed an innovative and sustainable technology for producing potash.
The company’s technology uses a patented process that extracts potash from organic waste, providing a unique and environmentally friendly source of potash.
Verde Agritech’s technology has been shown to be cost-effective and scalable, which is a significant advantage in the potash market.
The Verde stock saw a meteoric rise in 2022, but has since crashed down back to earth. While the company is not profitable it continues to see high double digit revenue growth year-over-year.
With a patented extraction technology for Potash and a market capitalization of around $100 million, Verde Agritech is one top Potash stock to keep on your radar in 2023.
9. Western Resources (TSE: WRX.TO)
- Ticker: WRX.TO
- Dividend Yield: N/A
- Market Cap: $118.46 Million
Western Resources is a Canadian-based mining company with significant potash assets in Saskatchewan, Canada.
The company’s flagship project, the Milestone project, will produce up to 146,000 tonnes of potash per year.
While Western Resources Milestone project looks promising, its annual capacity is extremely minuscule in comparison to its competitors like Vale and Nutrien.
With a focus on operational excellence, innovation, and sustainability, Western Resources is a top potash stock to consider for 2023.
10. Gensource Potash (TSXV: GSP.V)
- Ticker: GSP.V
- Dividend Yield: N/A
- Market Cap: $53.74 Million
Gensource Potash is a Canadian-based potash company that is developing a unique and innovative approach to potash production.
The company’s selective mining approach involves producing potash in small-scale facilities located close to the end markets, thereby reducing transportation costs and minimizing environmental impact.
Gensource’s flagship project, the Vanguard One project, will produce up to 250,000 tonnes of potash per year.
Gensource Potash is a promising potash stock to consider for 2023, as the demand for sustainable and locally sourced potash continues to grow.
Investing in Potash Stocks: Wrapping Up
The global potash market will see significant growth over the next decade, as the agriculture industry looks for sustainable and innovative solutions to meet the needs of a growing global population.
However, like any investment, there are risks associated with buying potash stocks.
These risks include commodity price volatility, geopolitical risks, regulatory risks, and operational risks.
Investors should carefully consider these risks and do their due diligence before investing in any potash stock.
Overall, the outlook for the potash market is positive, and these 10 best potash stocks offer attractive investment opportunities for those looking to capitalize on the growing demand for sustainable agriculture practices and products.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
