Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Mosaic Co. resumed potash output at a site in Canada’s Saskatchewan province, easing supply constraints from a production slowdown at a larger location, as the outlook for fertilizer demand improves.
The Colonsay site near Saskatoon was reopened in July to mitigate a temporary production drop because of planned maintenance at the Esterhazy potash complex on the eastern edge of the province, the US fertilizer producer said in its second-quarter earnings statement. Colonsay had been idled in December after weaker demand sent fertilizer prices sliding across North America.
Mosaic said global supplies of potash and phosphates are expected to remain tight “through 2023 and likely beyond” because of lower shipments from Belarus, port constraints in North America and exports from China that remain “well below” 2021 levels. Meanwhile, the company sees demand benefiting from “favorable grower economics” amid high crop prices.
“Mosaic is well-positioned to capitalize on the fertilizer market’s recovery, which is well underway,” chief executive officer Joc O’Rourke said in the statement.
Mosaic reported second-quarter adjusted earnings of $1.04 per share, down 71% from a year earlier and trailing analysts’ average estimate, mostly reflecting a drop in prices for crop nutrients.
(By Gerson Freitas Jr.)
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