Potash is a group of minerals and chemicals that contain potassium, a vital nutrient for plants and animals. The term refers to compounds including potassium sulfate, potassium-magnesium sulfate, potassium nitrate, potassium carbonate, potassium oxide, and potassium chloride. Among these, potassium chloride (KCl), also known as muriate of potash (MOP), is the most commonly produced and used form of potash.
Potash is primarily used to produce fertilizers, which are essential for plant growth and development. Fertilizers containing potash help to support plant growth, increase crop yield, and enhance disease resistance. Additionally, potash helps to improve water preservation, making it an indispensable supplement to the natural nutrient content of soils. Soils often lack these essential nutrients, or growing crops have depleted them, making potash a necessary addition to maintain soil fertility. With approximately 95% of potash being used in fertilizers, its role in agriculture cannot be emphasized enough. The remaining 5% is used in the production of potassium-bearing chemicals, such as detergents, ceramics, pharmaceuticals, water conditioners, and alternatives to de-icing salt.
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Potash is mined from underground deposits, either through conventional underground ore mining or by injecting water into the underground ore body and extracting the resulting brine. According to a report by the Canadian Government, potash production was estimated at 67.5 million tonnes globally in 2023, with Canada contributing 32.4% of the global supply. Canada, Russia, and Belarus dominate global potash production and accounted for 65.9% of the total in 2023. Canada is the world’s largest producer and exporter of potash, with 11 active mines in Saskatchewan, producing 21.9 million tonnes and exporting 22.8 million tonnes in 2023, which accounts for over 41% of global exports.
Potash prices have fluctuated over the years, declining from 2013 to 2016 and remaining relatively low until 2020. However, in 2021, prices rose sharply due to strong demand, and the surge continued into 2022, peaking at $1,202 per tonne in April, driven by geopolitical tensions and the Russian invasion of Ukraine. By June 2023, prices had fallen to $328 per tonne as global supply concerns subsided.
Potash is a vital nutrient for plants and animals, and its importance in fertilizers cannot be overstated. As the world’s population continues to grow, the demand for potash is likely to increase. With that in context, let’s take a look at the 11 best potash stocks to buy according to hedge funds.
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Our Methodology
To compile our list of the 11 best potash stocks to buy according to hedge funds, we sifted through financial media reports and potash-related ETFs to find companies that are involved in the production and processing of potash. We then used Insider Monkey’s hedge fund database to rank 11 stocks with the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
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11 Best Potash Stocks to Buy According to Hedge Funds
11. Brazil Potash Corp. (NYSEAMERICAN:GRO)
Number of Hedge Fund Holders: N/A
Brazil Potash Corp. (NYSEAMERICAN:GRO) is a mining and exploration company focused on developing the Autazes potash mining project in the state of Amazonas, Brazil. The company was recently listed on NYSE American under the symbol “GRO” and commenced trading on November 27, 2024.
Brazil Potash Corp. (NYSEAMERICAN:GRO) is focusing on securing all required environmental licenses for the Autazes Project. The company has already made significant progress in this regard, with the majority of the Mura indigenous villages agreeing to support the project’s advancement. However, the company still faces legal challenges from the Ministerio Publico Federal (MPF) in Brazil, which has questioned the validity of its preliminary environmental license. Despite these challenges, Brazil Potash Corp. (NYSEAMERICAN:GRO) remains committed to obtaining the necessary licenses and permits to commence mining operations.
Brazil Potash Corp. (NYSEAMERICAN:GRO) is also working on engineering, procurement, and construction for critical path items. The company has allocated a significant portion of the net proceeds from its IPO towards these activities, which will enable it to advance the Autazes Project and ultimately commence mining operations. Furthermore, Brazil Potash Corp. (NYSEAMERICAN:GRO) is also focused on maintaining its mineral rights and purchasing the remaining land required for the project. These efforts are aimed at ensuring the long-term viability and success of the Autazes Project.
10. Intrepid Potash, Inc. (NYSE:IPI)
Number of Hedge Fund Holders: 6
Intrepid Potash, Inc. (NYSE:IPI) is a leading producer of potash and other essential minerals, including langbeinite, a potassium and magnesium sulfate fertilizer marketed as Trio. The company caters primarily to agricultural clients, supplying essential nutrients to farmers in the U.S. Intrepid Potash, Inc.’s (NYSE:IPI) mining operations are located in Utah and New Mexico.
Intrepid Potash, Inc. (NYSE:IPI) has been focused on executing key projects aimed at improving production rates. The company has successfully commissioned Phase 2 of the new HB injection pipeline, which is expected to increase potash production in the upcoming seasons. Additionally, the company has seen positive results from its asset revitalization process, with two consecutive quarters of higher potash production compared to the same periods in the prior year. These efforts have led to improved unit economics and margins, with the company’s potash segment cost of goods sold per ton decreasing by 14% in Q3 compared to the prior year.
Intrepid Potash, Inc.’s (NYSE:IPI) focus on potash production is also reflected in its guidance for the fourth quarter, with expected potash sales volumes of 45,000 to 55,000 tons at an average net realized sales price of $340 to $350 per ton. The company is also working to optimize its production costs, with a goal of reducing its cost of goods sold per ton by 20-30% compared to 2023 levels.
9. ICL Group Ltd. (NYSE:ICL)
Number of Hedge Fund Holders: 11
ICL Group Ltd. (NYSE:ICL) is a multinational specialty minerals and chemicals company with a strong focus on potash, phosphate, and advanced specialty fertilizers. The company is headquartered in Israel and operates 13 sites in over 30 countries.
In the potash segment, ICL Group Ltd. (NYSE:ICL) has been taking a disciplined approach to manage its sales volumes and fetch better pricing. In Q3, the company maintained its production levels but started to limit its total annual potash sales capacity from 4.75 million metric tons to 4.6 million metric tons. This decision is driven by the expectation of improved conditions in 2025, with firm prices and better transportation costs. The company is confident that its strategic approach will yield better returns in the potash season. The company’s potash division has also been benefiting from operational and efficiency efforts, particularly in Spain, where record production levels have been achieved.
ICL Group Ltd. (NYSE:ICL) is exploring opportunities to increase its potash sales in regions such as Brazil, where demand is expected to remain strong. Furthermore, the company is investing in its logistics and transportation infrastructure to improve its ability to supply potash to its customers efficiently and cost-effectively.
8. The Andersons, Inc. (NASDAQ:ANDE)
Number of Hedge Fund Holders: 12
The Andersons, Inc. (NASDAQ:ANDE) operates across the agricultural value chain, with divisions in trade, ethanol, and plant nutrients. The company provides potash-based fertilizers as part of its plant nutrient group, catering to farmers and agribusinesses.
The Andersons, Inc. (NASDAQ:ANDE) offers a range of potash-based fertilizers, including Muriate of Potash (MOP 0-0-60), Potassium Fertilizer (0-0-25), which are professional-grade products designed for growers to improve crop yields, increase plant resistance to disease and pests, and enhance the overall quality of their crops. The company has experienced significant growth in demand for its potassium products in recent years, driven by increasing awareness of the importance of potassium for plant growth and development.
The Andersons, Inc. (NASDAQ:ANDE) has expanded its facility in Waterloo, Indiana, aimed at increasing organic storage capabilities to meet the growing demand for bulk organic nutrients in the Eastern Corn Belt and Midwest. This expansion has enabled The Andersons, Inc. (NASDAQ:ANDE) to become the only organic MOP bulk warehouse in the Midwest, providing convenient access to granular Muriate of Potash (MOP 0-0-60) for growers in the region. The company’s partnership with Intrepid Potash has supported it to ensure a stable supply of high-quality potassium products for its customers.
The Andersons, Inc.’s (NASDAQ:ANDE) potash fertilizers are priced competitively to ensure that customers can access the products they need at an affordable cost. These products are also designed to be easy to use and apply, with a range of formulation options and application rates to suit different crops and growing conditions.
7. Sociedad Quimica y Minera (NYSE:SQM)
Number of Hedge Fund Holders: 12
Sociedad Quimica y Minera (NYSE:SQM) commonly referred to as SQM, is a Chilean chemical and mining company recognized for its role as one of the world’s largest producers of potash and lithium. The company’s potassium-based fertilizers are sold globally, with a significant presence in major agricultural markets, including North America, South America, Europe, and Asia.
To grow its potassium-based business, Sociedad Quimica y Minera (NYSE:SQM) has been focusing on a large-scale mining operation in the Atacama Salt Flats in northern Chile. The Atacama Salt Flats are a unique geological formation and boast an abundance of potassium-rich minerals, including potassium chloride (KCl), potassium sulfate (K2SO4), potassium nitrate (KNO3), and other valuable resources. The company extracts these potassium-rich minerals from the salt flats, which are then processed and refined into high-quality potash products. Sociedad Quimica y Minera (NYSE:SQM) potash products are highly valued for their ability to improve crop yields, quality, and overall plant health.
Sociedad Quimica y Minera (NYSE:SQM) is working on expanding its production capacity and improving its operational efficiency. The company has been investing in various projects, including the “Adapting Pond Iris” project, which involves improving the hazardous substances pond facilities at its Iris plant, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.
6. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 22
BHP Group (NYSE:BHP) is one of the largest mining companies in the world, producing a diverse range of resources, including potash. The company is developing the Jansen Potash Project in Canada, which is expected to become one of the world’s largest potash mines upon completion. BHP Group’s (NYSE:BHP) potash operations focus on meeting the growing demand for fertilizers to support global food security.
BHP Group’s (NYSE:BHP) growth strategy in potash is centered around the Jansen project, which is expected to enter the market at the low end of the global cost curve. The Jansen potash project is a significant investment for the company, with Stage 1 of the project ahead of schedule and expected to commence production in late 2026. The project has the potential to create value for many decades and will position BHP Group (NYSE:BHP) as a major player in the global potash market. The company has already signed non-binding sales agreements for all potash production from its Jansen potash project and plans to convert these agreements into binding contracts within 12–18 months.
BHP Group (NYSE:BHP) also plans to expand the project in future stages, which could potentially lead to significant increases in production and revenue. The company’s focus on potash is driven by the attractive long-term fundamentals of the market, with global demand expected to grow by around 70% by 2050. In addition to the Jansen project, BHP Group (NYSE:BHP) is also exploring other opportunities to grow its potash business. The company’s investment in potash is a key part of its strategy to diversify its portfolio and reduce its reliance on commodities such as iron ore and coal.
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.
4. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 30
Rio Tinto Group (NYSE:RIO) is a global mining leader with a diverse portfolio of projects spanning 18 countries and eight commodities. Rio Tinto Group (NYSE:RIO) has a significant stake in the potash mining industry in Saskatchewan, Canada, through its joint venture company with North Atlantic Potash Inc., a subsidiary of Acron Group. This joint venture company known as CanPacific Potash Inc., is represented by Rio Tinto Potash Management Inc.
CanPacific Potash Inc. holds nine mining leases and one exploration permit for a large mining property covering approximately 1,960 km2 in Saskatchewan, Canada. The area is rich in potash deposits and is considered a long-term investment in the potash resource base. The mining property is divided into two promising clusters, including the Albany project, which comprises six parcels located in the southern part of Saskatchewan, and the Foam Lake project, which consists of four parcels in the northern part of the exploration and mining area in the province.
The Albany project spans an impressive 1,350 square km and boasts an enormous reserve of 793.4 million tonnes of potassium chloride (KCl), with 77.6 million tonnes classified as proven and 715.9 million tonnes as probable, as confirmed by the NI 43-101 report. This vast reserve is sufficient to sustain a steady mining operation for over 200 years, with a potential annual production rate of 3.25 million tonnes. The unique combination of reserve volume, KCl concentration, formation temperature, and strategic location makes the Albany project one of the most promising solution mining opportunities globally, offering a highly attractive and long-term prospect for potash extraction.
3. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 33
Nutrien Ltd. (NYSE:NTR) is one of the world’s largest potash producers and a leading provider of crop inputs and services. The company operates a vast network of potash mines in Canada and caters to farmers globally with high-quality fertilizers. Nutrien Ltd.’s (NYSE:NTR) integrated approach combines potash production with agronomic solutions and tailored advice to maximize crop yields.
To drive growth and expansion, Nutrien Ltd. (NYSE:NTR) is focusing on increasing its production and sales of potash and nitrogen with limited capital expenditures by leveraging its existing assets and infrastructure. The company has set a target to increase upstream sales volumes by 2 to 3 million tons by 2026 compared to 2023 levels and has already made significant progress towards this goal, with a 1.3 million ton increase in sales volumes through the first nine months of 2024.
Additionally, Nutrien Ltd. (NYSE:NTR) is investing in mine automation and debottlenecking projects to further increase efficiency and reduce costs. The company has increased potash production across its six-mine network and lowered its controllable cash cost of production to $52 per tonne. This reduction in costs has been driven by higher production volumes and the benefits of mine automation investments. The company expects to further optimize capital expenditures in 2025, which will strengthen free cash flow. Additionally, Nutrien Ltd. (NYSE:NTR) is investing in growth platforms such as proprietary products, network optimization, and tuck-in acquisitions, which are expected to drive long-term growth and profitability.
2. Archer Daniels Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 34
Archer Daniels Midland Company (NYSE:ADM) is a global leader in agricultural processing and supply chain solutions. The company provides fertilizers, including potash-based products, through its agricultural services segment. Archer Daniels Midland Company (NYSE:ADM) is a major user of potash and has a binding agreement with Western Potash Corp. to purchase 100% of the potash production from the first phase of the Milestone project, located 30 km southeast of Regina, Saskatchewan. The agreement secures 146,000 tonnes of potash per year. Archer Daniels Midland Company’s (NYSE:ADM) extensive operations span more than 200 countries, serving farmers, food manufacturers, and retailers.
Archer Daniels Midland Company (NYSE:ADM) is focusing on enhancing its operational efficiency, particularly in its fertilizer business. The company is investing in automation and digitization initiatives to optimize its production processes, reduce costs, and improve product quality. The company has implemented advanced technologies such as predictive maintenance and process control systems to minimize downtime and increase throughput at its fertilizer manufacturing facilities. By streamlining its operations and reducing waste, the company aims to increase its competitiveness in the global fertilizer market and improve its margins. Additionally, Archer Daniels Midland Company (NYSE:ADM) is exploring opportunities to expand its fertilizer business through strategic acquisitions and partnerships, which will enable the company to tap into new markets and increase its market share.
Furthermore, Archer Daniels Midland Company (NYSE:ADM) is focused on developing new products and solutions that cater to the evolving needs of farmers and agricultural producers. The company’s research and development teams are exploring opportunities to develop more sustainable products, such as organic and bio-based fertilizers, which can help reduce the environmental impact of agricultural production.
1. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 34
The Mosaic Company (NYSE:MOS) is one of the largest integrated producers of potash and phosphate fertilizers, serving agricultural clients in over 40 countries. The company’s products are designed to enhance soil fertility and crop yields to meet the growing global food demand.
The Mosaic Company (NYSE:MOS) is focusing on expanding its potash production capabilities. The company has announced investments in its Esterhazy mine, located in the South East corner of Saskatchewan. The company aims to deploy Hydrofloat technology in this mine, which will increase milling capacity and raise production capacity by 400,000 tons per year by mid-2025. This expansion will enable the company to meet the growing demand for potash, particularly in key markets such as North America and Brazil.
In addition to expanding its production capacity, The Mosaic Company (NYSE:MOS) is also working to optimize its supply chain and logistics to better serve its customers. The company is leveraging its partnership with Canpotex, a leading potash export company, to access new markets and customers. The Mosaic Company (NYSE:MOS) is also investing in digital technologies to improve the efficiency and effectiveness of its supply chain, from mine to market. Furthermore, The Mosaic Company (NYSE:MOS) is also closely monitoring the Indian market, where the government’s subsidy policies are expected to impact demand for phosphates and potash.
While we acknowledge the potential of The Mosaic Company (NYSE:MOS) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MOS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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