The Mosaic Company MOS has acquired the U.S. Army Corps of Engineers 404 permit. Per the company, this was the final pending permit related to its Ona phosphate mine project in Hardee County, FL. The move secures 160.2 million tons of phosphate rock for future mining.
The total project covers 22,483 acres, of which 16,778 acres have been permitted for mining. The western border of the project extends the life of Mosaic’s Four Corners mine by 14 years. Also, the eastern range will facilitate mining for future at the South Pasture mine after production is resumed at the mine.
Per Mosaic, the project will enable it to secure the continued operation of its Florida manufacturing facilities. It is also expected to deliver significant value to the investors along with the local community and employees.
Notably, permitting efforts for the Ona project started in 2011. Moreover, mining permits were issued by the State of Florida in 2015, while the local government gave permits in July 2018.
Mosaic’s shares have gained 6% in the past year, against the industry’s 15.2% decline.
In November, the company raised adjusted earnings per share (EPS) guidance for 2018, considering strong business performance and lower expected effective tax rate for the year. It expects adjusted EPS in the range of $1.80-$2.00, up from the previous view of $1.45-$1.80. It also expects adjusted EBITDA for 2018 in the range of $1.90-$2 billion, up from the previous view of $1.80-$1.95 billion.
Mosaic is likely to gain from rising global demand for fertilizers. The Vale Fertilizantes acquisition is also expected to deliver significant synergies. Additionally, the company is likely to benefit from cost-reduction initiatives and capacity expansion.
The Mosaic Company Price and Consensus
The Mosaic Company Price and Consensus | The Mosaic Company Quote
Zacks Rank & Stocks to Consider
Mosaic currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are Verso Corporation VRS, sporting a Zacks Rank #1 (Strong Buy); along with Ingevity Corporation NGVT and Cameco Corporation CCJ, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Verso has an expected earnings growth rate of 63.5% for 2019. The company’s shares have rallied 33.7% in the past year.
Ingevity has an expected earnings growth rate of 21.5% for 2019. The company’s shares have gained 8% in the past year.
Cameco has an expected earnings growth rate of 20% for 2019. Its shares have moved up 15.3% in a year’s time.
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