Good to see a bit of buying coming in to DNK on Friday and the stock closing up 10%
Potash would have to be the only global commodity where prices have not rallied in 2020 ?
Is this about to change?
I have no idea but I will be praying to the potash gods this evening that it does
MOP prices have been rallying in Asia and the Americas (prices have risen $50/t in the past three months to $235/t) This will be pushing up the cost base of Mannheim SOP production (which accounts for 60% of global SOP production)
In September China imported 1.2mt of MOP, the second highest monthly total ever recorded which appears to have sharply tightened global markets
Rising crop prices have meant global potash affordability is very favourable which is likely driving restocking in a number of regions.
Commentary from the major potash producers also seems to have turned significantly more bullish in the September quarter with both Nutrien and Mosaic noting increased demand and expecting global potash demand of 65 to 67 million tonnes in 2020, up from ~64 million tonnes in 2019.
Check out the 1 month charts on the above companies as well as Israel Chemical Ltd (ICL) and K+S etc
All $multi billion potash giants
All charts are very impressive as their respective share prices have rallied in this last month
DNK clearly have not!
No news on finance, Eritrean political issues and lack of communication about what, if anything is going on have all contributed
But these things turn around.
Especially if the underlying commodity price does in fact start to rebound and sentiment returns to the sector.
AFC, Afreximbank or anyone else looking to acquire Colluli for peanuts may have to think again
We are down but not out.
If any other shareholders or even good old topklopp (surprise us topklopp!) can add anything to the above it would be good.
Any news you've heard?
Other potash companies that you've noticed running hard?
Why?
Have they released any guidance numbers on pricing
Any articles you've seen declaring potash as the 'next sector to be in' (that would be a nice article to read)
I'd post the charts of the above companies I mentioned but I don't have the technical ability to do so! so anyone?
etc
etc
DNK Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
(20min delay)