The bid by BHP Billiton (LON:BLT) for Potash Corp, the Canadian mining company has made investors aware of what gardeners have known for ages, that Potash fertilizer makes food crops grow. Potash, chemical name potassium carbonate, has wide applications – it improves crop yields and nutrient values as well as disease resistance in food crops. BHP has been motivated to make a bid for a producer as it is a fair bet that the demand for food, which has been rising steadily for the past 10 years, could be set to accelerate as third world populations increase. Potash is mined in many places with North America and Australia major producers. Around 90% of mining production is used to make potash, the balance being used to make a number of products, including soap, glass and water softeners.
The potash market is dominated by large companies. There is, however, a penny share which we think looks an interesting situation. Sirius Exploration (LON:SXX) is a mining company which is focused on potash and salt deposits in North America and Australia. It has a number of drilling permits and has just secured an Exploration Permit to drill an exploratory…
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
