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Investing in Junior Potash Fertilizer Producers

By Edited Nov 13, 2013 0 0

Potash fertilizer crop additive

There are still some junior potash fertilizer producers that you can invest in, but there may not be much longer. With the tremendous increase in value experienced by Potash Corporation, the biggest potash producer in the world, many investors have sought less expensive opportunities. This has had the effect of quickly boosting stock prices for the junior producers. Since the price of potash fertilizer is expected to remain high for the foreseeable future, however, you may still be able to profit from the rising values of potash companies.

Potash is a major fertilizer in use world wide to boost crop production. It has a high concentration of potassium, a key element needed by all living cells. Farmers have been able to greatly increase farm yields through the application of potash. Due to intensive farming practices over the years, some soil has become depleted of the natural potassium and must have potash applied in order to ensure crop profitability. This leads to increases in the price of potash fertilizer. Since the population of the world has increased so much in the past 50 years, and is expected to continue increasing for some time, demand for potash is expected to remain high.

Potash is found in deposits around the world. Many of these locations, however, have not yet been developed into producing mines. The ones that have are generating great revenue amounts for shareholders. Potash Corporation of Saskatchewan, Canada, for example, has announced record earnings. Their stock price has doubled in about 8 months, (to February 2011). This has allowed the company to more than double the share dividend and implement a 3 for 1 stock split as of February 18, 2011. Potash Corporation, (stock symbol POT), has become worth over $51 billion. While it may be reasonable to include these shares in your portfolio, they should be considered as part of your "blue chip" holdings.

There are other investment opportunities for lower priced junior potash producers. As mentioned, however, these companies are being discovered by investors seeking to duplicate the spectacular gains seen by Potash Corporation shareholders. If you can handle the speculative nature of these junior companies, you may want to invest in one or more of the following entities.

IC Potash Corporation, (Pink OTC symbol ICPTF, Canada ICP.)
This junior potash company is in the exploration phase. They have an interesting prospects for suphate of potash, (SOP), fertilizer that is less damaging to the soil. Their potential deposits are located in New Mexico, USA.

Encanto Potash Corporation, (Symbol Canada EPO)
This junior potash company is in the exploration phase. They have interesting potential deposits located in Saskatchewan, near those held by Potash Corporation. The company is exploring lands held by various Native people and has arranged partnerships necessary for stable operations.

Allana Potash Corp, (Symbol Canada AAA)
Another junior company with potential deposits of 150 million tons of potash located in Ethiopia. Their deposits are close to ocean shipping ports. The shipping distance to China, a large potash consuming nation, is half that from Canada or the United States.

Karnalyte Resources Inc. (KRN)
This startup potash company has seen great increases in their $7.50 stock price in barely two months. They control potential deposits located in Saskatchewan, Canada which are easily connected to infrastructure grids, (electricity, rail, road, etc.)



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