Like most people, you might never have anticipated seeing chemistry/chemicals in the one business field truly separate from science — stocks. But, if you want to uncover huge profits you must not leave any stone unturned.
Potash is the common name for a group of minerals and compounds that contain potassium (chemical symbol K), a key nutrient for plants and a critical part of fertilizer. Potash is the most common form of agricultural chemical.
Potash (about 95 percent) is largely used in fertilizers to promote plant growth, increase agricultural output and disease resistance, and water preservation. Small amounts of potassium are utilized in the production of potassium-containing compounds such as detergents, ceramics, pharmaceuticals, water conditioners, and alternatives to de-icing salt. Potassium is also a necessity for humans.
Canada is the largest potash producer having 31.8% of the world’s total potash production.
5 Canadian Potash Stocks You Should Invest In
Here are five potash stocks that offer the best future prospects for Canadian investors interested in getting high profits.
Nutrien Ltd. (TSX:NTR)
Nutrien Ltd was formed in 2018 when PotashCorp and Agrium merged to form Nutrien. Nutrien Ltd is the world’s largest fertilizer producer by capacity. Nutrien manufactures all three major agricultural nutrients—nitrogen, potash, and phosphate—but its primary focus is potash, where it has around 20% of the global installed capacity. The corporation is also the country’s largest provider (agricultural retailer), offering commercial fertilizer, crop chemicals, seeds, and services to Canadian farmers directly through its physical storefronts and online platforms.
Nutrien is a global behemoth that annually produces over 27 million tonnes of potash, nitrogen, and phosphate-based agricultural products. Potash accounts for about 20 million tonnes of production, making Nutrien the world’s largest producer. Six mines in Saskatchewan, Canada, produce the majority of the company’s output. Through its agricultural retail network, it serves 500,000 grower accounts.
Available for trade in the stock market at $124.43 as of March 16, 2022 (6:07 AM), the company is taking over the potash market. The market capitalization of 68,793,570,799 speaks for itself. While the EPS of 6.93 and P/E ratio of 18.30 ensure a profitable future.
Verde Agritech (TSX:NPK)
Verde AgriTech promotes lucrative and sustainable agriculture by developing the Cerrado Verde Project, from which it produces crop nutrition, crop protection, soil improvement, and increased sustainability solutions. One of Verde’s sustainable products is the multi-nutrient potassium fertilizer K Forte, which is sold in Brazil under the trademark K Forte and worldwide as Super Greensand.
Verde is striving to increase the operational capacity of Plant 2 from 1,200,000 to 2,400,000 tonnes per year by Q4 2022, making it the country’s largest producer. It is also looking to upgrade local infrastructure to support Plant 2’s logistics while also providing additional capacity for a potential Plant 3.
The current market capitalization for this company is 400,669,014 with a trading volume of 119,016. Trading at $7.95 (common shares ) as of March 16, 2022 (6:24 AM), this Canadian fertilizer stock is expected to grow further in the coming years, thus making it the best time for Canadian investors to invest in it.
Western Resources Corp. (TSX:WRX)
Western Resources Corp is a resource business focusing on the development of its potash segment in Southern Saskatchewan, which is controlled by its wholly-owned subsidiary, Western Potash Corp. Its goals are to finish Phase I of the Milestone Project and demonstrate a novel mining technology that will be applied to Phases 2 and 3 of the project to develop a potash supply deposit in an environmentally responsible manner. The purchase, exploration, and development of mineral holdings, as well as the investment in real estate projects in Canada, are the company’s two reportable operating sectors.
On February 16, 2022, Western Resources Corp. signed a subscription agreement with Vantage Chance Limited, under which Vantage has committed to making a strategic equity investment of C$80,000,000 in Western Potash Holdings Corp., a newly formed Canadian company that will own 100% of Western Potash Corp. and its Milestone Potash Project after a reorganization.
Trading at $0.39 as of March 16, 2022 (6:41 AM), this stock has a tremendous long-term value. Although it is a penny stock, analysts believe that the continued development of potash projects will work as a catalyst for its growth.
Karnalyte Resources Inc. (TSX:KRN)
Karnalyte Resources Inc is a development stage firm focusing on producing and manufacturing two fertilizer products, potash, and nitrogen, in Saskatchewan. It owns the Wynyard Potash Project, which is ready for development and will produce high-grade granular potash. It’s also looking at the development of the Proteos Nitrogen Project, a proposed small-scale nitrogen fertilizer plant with a nameplate capacity of 700 metric tonnes per day of ammonia and 1,200 MTPD of urea and a target client market of Central Saskatchewan’s independent fertilizer wholesalers.
This Canadian fertilizer development company has completed feasibility studies and received project approval from the Environmental Protection Agency. Phase 1 output is expected to be 625,000 tonnes of high-grade granular potash per year, with two additional phases of 750,000 tonnes per year each, resulting in annual potash production of up to 2.125 million tonnes.
Currently trading at $1.05 as of March 16, 2022 (6:51 AM), analysts project a 20.5% share price climb in this stock by the end of 2022.
Gensource Potash Corporation (TSXV:GSP)
Gensource Potash Corp is a Canadian company engaged in resource development, with a particular emphasis on potash development. The corporation holds a stake in the Vanguard area project in Saskatchewan, as well as the Lazlo project.
Tugaske project in the Vanguard area will not produce salt tailings and will not require brine ponds once it’s operational. The eco-friendly project will generate 250,000 tonnes of potash per year at very low investment and operational expenses. When compared to traditional solution mining technologies, Tugaske will use up to 75% less freshwater per tonne of finished output.
Trading at $0.36 as of March 16, 2022 (7:08 AM), Gensource Potash Corp is a promising Canadian stock. The market cap of 151,376,039 with a healthy trading volume of 387,726 puts it in front as a big potash industry.
Why You Should Invest in Potash Stocks in Canada
Potash stocks may appear to be a dull investment, but there is one thing that should make you sit up and take notice of the industry: According to the United Nations, the global population will increase by one-third to 9.9 billion people by 2050. However, with more people comes more urbanization and less countryside to work with, leaving farmers with no alternative but to boost crop output to overcome the food inflation issue. It means that, despite shrinking arable land, more crops must be grown urgently to fulfill rising food demand increasing the demand for fertilizer. Potash is one of the three most extensively utilized nutrients in fertilizers, and it can help increase soil fertility and crop yield.
Potash fertilizer not only provides advanced crop nutrition to plants but also aids in the retention of water and the development of roots and stems of plants. Potash fertilizer, to put it another way, increases agricultural yields and food output while lowering fertilizer costs. The most important benefit of potash prices is low fertilizer prices regulating the cost of fertilizer needed. In short, potash is the answer to challenges in agriculture.
Phosphate and potash are becoming increasingly vital in crop development, and they will play a significant part in the growing cannabis business. All these facts show that it is a fast-growing market and now is the best time to invest in it.
The Bottom Line
Analysts believe that as we progress into a world in dire need of food, potash will become more profitable, emerging as a big player in the agriculture industry. We need to invest more in the potash business to satisfy the food production targets. In response to market demand, companies that produce potash and other types of fertilizer using environmentally friendly technologies will be extremely successful in the future.
Canadian Potash Stocks
The potash mining company produces many different materials but has over 20 million tonnes of potash at six potash mines in Saskatchewan. The global potash fertilizer market is dominated by Canada, the world’s largest potash producer, with Canadian companies producing 13.3 million tonnes in 2019.
A list of potash companies listed on TSX and TSXV has been compiled in recent years, with prices and stocks falling. Still, potash producers continue to move forward, and exploration companies are working on projects preparing for a market recovery. The second part of the list comprises ten potash companies registered with ASX, TSX and TSXV, all with a market capitalization of at least C $ 10 million at the time of publication.
KARNALYTE RESOURCES Inc is a cutting-edge Canadian development company specializing in producing two fertilizers, potassium and nitrogen, in Saskatchewan. The Canadian fertilizer company was formed in early 2018 after PotashCorp, one of the largest potash fertilizers producers globally agreed to merge with its smaller rival, Agrium. Potassium accounts for over 20 million tonnes of production, making Nutrien the largest producer in the world.
Potash production in Canada, 2010-2019 (p) Text version This bar chart showed the annual potash production in Canadian mines from 2010 to 2019 down 2.0 million tonnes from 22.9 million tonnes in 2018. Potash prices stabilize as demand in the major international markets catches up to supply thanks to the collective efforts of primary producers such as PotashCorp and Mosaic to decrease production over some time.
Agrium Inc, a member of North American Potash marketing joint venture Canpotex and is like potash, fell 5% to C $ 89.15 in its busiest trade since November 2012, raising concerns for investors. Fed policy moves The commodity index, which includes Potash Corp and other mining companies, fell 3.7%. Walmart’s expansion also slowed in the second quarter but not dramatically.
By the 1990s, PotashCorp had become one of the most valuable companies in Canada by market capitalization valued at nearly $ 63 billion and funded new projects, mainly from US companies.
The combined Nutrien  company based in Saskatoon was valued at approximately US $ 36 billion and became the world’s largest producer of potash fertilizers and the second-largest producer of nitrogen fertilizers. In addition, the company was the world’s largest producer of potassium and the third-largest producer of nitrogen and phosphate, the three primary nutrients used to produce fertilizers. As the largest producer of potash and phosphate fertilizers in the US, Mosaic also markets and ships worldwide.
With the stock trading at a price/book value of just 0.8, which is half the PotashCorp and 9.7 times the PotashCorps P / CF of 13, Mosaic is the expected start to production in the middle of the following year.
The BHP also announced today a 2.1-billion – write-off of its potash book value. Westshore Terminals confirmed this morning that it would continue to build the port infrastructure needed to handle the cargo from the potash mine.
The companies announced the deal in 2016 for the first time but did not receive the final regulatory approval needed to complete the deal until last week. Jansen is the story as fascinating as the decision to impose sanctions after a project proposal became a key topic of discussion for BHP’s hostile bid to buy Saskatchewan-based. Potash Corporation in 2010 after the Saskatchewan-based. Potash Corporation and Agrium completed the merger of partners. Today the. Potash Corporation of Saskatchewan is Canada’s largest potash company.
Potassium is the generic name for a group of minerals and chemicals containing potassium (chemical symbol “K”), an essential plant nutrient and an essential ingredient in fertilizers. The two most predominant ones are potassium chloride, also known as potassium chloride or MOP, and potassium sulphate, or potassium sulphate or SOP. They are also the only members of Canpotex, one of the most significant marketing associations in the world.