11 Best Potash Stocks to Buy According to Hedge Funds

5. Compass Minerals International, Inc. (NYSE:CMP)

Number of Hedge Fund Holders: 29

Compass Minerals International, Inc. (NYSE:CMP) is a leading producer of essential minerals, including salt, sulfate of potash, and magnesium chloride. The company operates high-quality, low-cost assets, including the largest sulfate of potash facility in the Western Hemisphere located in Ogden, Utah.

Compass Minerals International, Inc. (NYSE:CMP) utilizes a natural pond complex-based process to produce sulfate of potash in Ogden, Utah. This approach is a more environment-friendly and cost-effective option and is particularly beneficial as it results in a product that is organic and approved by organizations such as the Organic Materials Review Institute (OMRI), California Department of Food and Agriculture (CDFA) and USDA National Organic Standards Board (NOSB). This makes it an ideal choice for organic crop growers. The location of the Ogden facility is also beneficial as it is located in the proximity of major producing areas on the West Coast.

Compass Minerals International, Inc. (NYSE:CMP) is focusing on the restoration of the pond at Ogden, which will improve the profitability of its plant nutrition business. This is a multiyear process and the company has been engaged with it for a couple of years. The company is implementing new processes, such as the use of potassium chloride. By supplementing its produced tons with potassium chloride, the company can reduce its reliance on harvested brine, which can be variable in quality and quantity. This approach will also allow the company to improve the consistency and quality of its sulfate of potash products, which is critical for meeting the needs of its customers. In addition to its pond restoration efforts, Compass Minerals International, Inc. (NYSE:CMP) is also investing in a new dryer and dust collector at its Ogden facility, which will help to improve the efficiency and cost-effectiveness of its sulfate of potash production process.