Mosaic opens new fertilizer plant in Brazil’s northern region

TAMPA - Mosaic Company (NYSE:MOS), the $11.4 billion market cap fertilizer producer, launched operations at its new fertilizer blending, storage and distribution plant in Palmeirante, Tocantins, Brazil, the company announced Wednesday. According to InvestingPro data, the company has shown strong financial health with $11.1 billion in revenue over the last twelve months.

The $84 million facility, completed on time and within budget, has capacity to process 1 million tonnes of fertilizer annually, though it will handle approximately 500,000 tonnes in 2025. The plant features warehouse capacity, automated blending and bagging systems, and a direct rail connection to the port of Itaqui.

Mosaic Executive Vice President Jenny Wang hosted an inauguration ceremony with state and local officials on Wednesday. "The inauguration of our new plant in Palmeirante represents meaningful progress for Mosaic," Wang said. "We are providing farmers in the MATOPIBA region with more efficient access to the fertilizers they need."

The facility expands Mosaic’s presence in Brazil’s growing northern agricultural region. The company expects the plant to earn a margin of $30-$40 per tonne with an anticipated internal rate of return exceeding 20 percent.

The Palmeirante plant is part of Mosaic’s broader growth strategy in Brazil, where the company aims to increase distribution sales from less than 8 million tonnes in 2024 to 13-14 million tonnes by 2030.

Mosaic Company produces and markets concentrated phosphate and potash crop nutrients globally. The information in this article is based on a company press release.

In other recent news, Mosaic Company has adjusted its financial outlook, reflecting changes in phosphate and potash sales volumes. The company has revised its second-quarter phosphate sales volumes to 1.5-1.6 million tons, down from an earlier projection of 1.7-1.9 million tons, and its full-year production volume to 7.0-7.3 million tons. This revision is attributed to operational challenges, including extended downtimes at key facilities. Despite these setbacks, Mosaic raised its phosphate price guidance, with diammonium phosphate prices now expected to range from $650 to $670 per ton, indicating strong market conditions.

Mizuho Securities has increased its price target for Mosaic shares to $35, up from $32, while maintaining a Neutral rating on the stock. This adjustment considers Mosaic’s revised volume forecasts and the company’s anticipation of improved production rates in the second half of the year. Additionally, Mosaic’s CEO, Bruce M. Bodine, has sold 180,708 shares of the company’s common stock as part of a divorce settlement.

Meanwhile, the company continues to address production bottlenecks and aims for an 8 million ton target run rate across its U.S. phosphate assets. Potash sales volumes for the second quarter remain steady at 2.3-2.5 million tons, with full-year guidance unchanged. Mosaic Fertilizantes, the company’s Brazilian segment, is expected to perform better in the second quarter due to rising prices and favorable market conditions.

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