Learn about phosphate stocks that are already producing or are working to advance projects focused on the fertilizer.
Demand for both phosphate and potash fertilizers
is anticipated to continue growing as the world’s population increases and the amount of arable land decreases.
The phosphate market is expected to witness a compound annual growth rate of 4.1 percent between 2022 and 2031 to reach US$35.6 billion. Driving this growth will be increasing pressure on global food supply brought on by rising populations and climate change, as well as inflation and downstream costs. Phosphate is also increasingly becoming a sought-after battery material for the electric vehicle industry.
Thankfully, phosphate-mining production around the globe is expected to increase, with the largest areas of growth being Africa and the Middle East. Project developments in Brazil, Kazakhstan, Mexico, Peru and Russia are all expected to contribute to increased phosphate rock production as well. In fact, global phosphate mine capacity is expected to increase from 243 million metric tons (MT) in 2020 to 264.7 million MT in 2025.
With those numbers in mind, the Investing News Network has put together an overview of phosphate-focused stocks. They are listed in alphabetical order and had market caps over $10 million as of May 2, 2023.
1. Arianne Phosphate (TSXV:DAN)
Market cap: C$75.77 million
Arianne Phosphate is moving forward at its development-stage Lac a Paul phosphate project in Quebec. The company has secured initial offtake and marketing deals, and the project is fully permitted and construction-ready; it is expected to create 1,000 jobs during operation and to contribute C$12 billion to the region’s economy.
In early 2022, Arianne Phosphate launched a research program in collaboration with the Environmental and Biotechnology Research Group of Cegep Riviere-de-Loup with the goal of developing a new breed of fertilizers using organic waste and the company’s phosphate concentrate. In addition to agriculture, Arianne Phosphate is exploring the possibility of supplying high-quality materials to the energy sector, including for use in hydrogen fuel cells and lithium-iron-phosphate (LFP) batteries.
In 2023's first quarter, the company received a detailed report confirming that its high-purity phosphate concentrate can be used in the production of LFP batteries.
2. Avenira (ASX:AEV)
Market cap: AU$17.44 million
Avenira owns the Wonarah phosphate project in Australia’s Northern Territory. The site is considered one of the largest-known phosphate deposits in Australia, with measured resources of 64.9 million MT at 22.4 percent phosphorous pentoxide, indicated resources of 133 million MT at 21.1 percent phosphorous pentoxide and inferred resources of 352 million MT at 21 percent phosphorous pentoxide.
Avenira’s Wonarah project has the potential to supply high-grade phosphorous to the agriculture sector. Offtake negotiations are progressing with regional fertilizer producers. Avenira is another phosphate company looking to supply the material to the LFP battery market in addition to the fertilizer industry. In early March, the company released a scoping study for an LFP cathode manufacturing project.
3. Centrex Metals (ASX:CXM)
Market cap: AU$98.2 million
Centrex Metals holds the Ardmore phosphate rock project in Queensland, which it says is one of the world’s few remaining undeveloped high-grade phosphate rock deposits.
Ardmore has a JORC-compliant mineral reserve of 10.1 million MT at 30.2 percent phosphorous pentoxide that is contained within an existing mineral resource of 16.2 million MT. So far in the first half of 2023, Centrex has inked a number of important offtake and partnership agreements, including binding offtake deals with Ameropa Australia and Ballance Agri-Nutrients for the purchase of phosphate from Ardmore. It also set up a memorandum of understanding between Agriflex, its wholly owned subsidiary, and Neutrog Australia; together they will develop new organic and biological fertilizer products.