Everyone knows that the Potash Corporation of Saskatchewan is the world’s biggest producer of potash, by far (almost twice as much production as its closest peer), and that Canada overall has larger stores of potential potash than any other country. But there are other potash producers in Canada. Mosaic, for one, is another large producer. But Mosaic and Potash Corp. don’t have a monopoly on the market. There’s enough potash in Canada (mostly in Saskatchewan) that there’s room for other players. These are the only junior Canadian potash plays.* I’ll list them in increasing order of their trading volume, so you can see at a glance which are the most active.
Anglo Potash Ltd. (TSX: AGP) – Recently traded at: $8.11, volume was 22K. 52-wk trading range: $1.60-$8.13. Up until February 2008, Anglo used to be called Anglo Minerals. Then, I presume as a result of the potash boom, they changed their name to Anglo Potash. It must have worked because in May 2008, BHP Billiton put in an acquisition offer to buy them at a share price of $8.15. If the deal goes through, BHP will acquire this producer in July 2008 (yet another reason, I think, to load up on BHP if you haven’t already). So keep an eye out; you might want to buy Anglo if the deal doesn’t go through, but I haven’t seen anything indicating it won’t.
Athabasca Potash Inc. (TSX: API) – Recently traded at: $7.70, volume was 76.5K. 52-wk trading range: $3.60-$10.47. Another Saskatchewan-based producer. In 2007, they drilled five new holes in their wholly-owned Burr Project.
Hinterland Metals (TSX: HMI) – Recently traded at: $0.12, volume was 193K. 52-wk trading range: $0.07-$0.30. I just wrote about Hinterland in a recent post here; this company is a diversified minerals producer and has just entered the potash market in the Maritimes. Could be a good opportunity to get in on some non-Saskatchewan potash (the Potash Corp. of SK is already there mining in a nearby area, btw).
Potash One Inc. (TSX: KCL) – Recently traded at: $4.64, volume was 340.4K. 52-wk trading range: $0.93-$6.25. I own some KCL and it’s gone up about 25% since I bought it not too long ago. Potash One’s management most recently also had success with building up and selling a strong uranium company. Their Legacy Potash Project is located immediately adjacent to the largest potash mine in the world.
None of these companies pay dividends; these are all growth plays. But I’ve taken an interest due to the potash boom. From what I’ve read there is much more room for potash growth. China still can’t produce anywhere near enough it on its own, although you should check out the Qinghai Salt Lake Potash company and stay up to date on what they’re doing.
*Based on my own research and reports I’ve read. Of course, if I’ve left something out or have not heard of one, which is always possible, please do let me know.
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