Mosaic to sell Brazilian potash mine to VL Mineração for up to $27 million

TAMPA - Mosaic Company (NYSE:MOS), a $9.9 billion market cap fertilizer producer currently rated as undervalued according to InvestingPro analysis, announced Wednesday it has reached an agreement to sell its Taquari-Vassouras potash mine in Brazil to VL Mineração Ltda for up to $27 million in cash, with the buyer also assuming approximately $22 million in asset retirement obligations.

The transaction involves a payment structure of $12 million upon closing, $10 million one year after closing, and $5 million over six years. The deal requires approval from the Brazilian Administrative Council for Economic Defense (CADE) and is expected to close by the end of 2025.

Mosaic will classify the asset as "held for sale" beginning in the third quarter, with an anticipated book loss of $50-$70 million. Despite this one-time loss, InvestingPro data shows the company maintains strong fundamentals with $1.94 billion in EBITDA and has consistently paid dividends for 15 consecutive years.

According to the company, the Taquari mine would require capital investments exceeding $25 million to ensure continued operations. Bruce Bodine, Mosaic’s President and CEO, stated that the sale allows the company to "focus capital on opportunities where we have a competitive advantage and are expected to generate higher returns."

VL Mineração, a subsidiary of privately-owned Brazilian agribusiness group VL Holding, plans to make investments to extend the mine’s operations. Daniel Moreira, CEO of VL Holding, said the acquisition would help maintain and expand domestic potash supply in Brazil’s fertilizer market.

The Taquari-Vassouras potash mine is located in Rosário do Catete, Sergipe, Brazil. Mosaic Company is a major producer and marketer of concentrated phosphate and potash crop nutrients, trading at an attractive P/E ratio of 10.57. For deeper insights into Mosaic’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and expert research reports.

This article is based on a press release statement from Mosaic Company.

In other recent news, Mosaic Company reported its Q2 2025 earnings, which fell short of market expectations. The company posted an earnings per share (EPS) of $0.51, compared to the forecasted $0.72, representing a negative surprise of 29.17%. Additionally, Mosaic’s revenue came in at $3.01 billion, missing the anticipated $3.16 billion by 4.75%. These financial results have captured the attention of investors and market analysts. The earnings report highlights significant discrepancies between actual performance and analyst projections. This development may prompt further evaluations and adjustments from financial analysts. Investors are closely monitoring these updates as they assess the company’s financial health and future prospects.

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