Tickers

  • Loading...
  • No tickers found for this search query.

Articles

  • No results found
INVESTMENT OPPORTUNITY

Sage Potash: Investing in the Growing Demand for Food

Materials

Sage Potash Corp. | Listed on: TSXV:SAGE.VN

Sage Potash (TSX.V: SAGE) presents an attractive opportunity for investors looking to take advantage of the growing global demand for food and a rising need for fertilizers to improve agricultural yields. A naturally occurring mineral, potash contains high levels of potassium, a vital nutrient in helping plants grow, which makes it a great fertilizer.

Why consider investing?

  • Large Scale and High-Grade, US-Based Potash Resource

    Sage Potash owns vast, high-quality potash resource, ideal for boosting agricultural yield and value.

  • Potential to Satisfy a Significant Portion of US Potash Demands

    Sage Potash is ideally suited to address US potash needs, ensuring food security and reducing dependency on imports, which currently account for 95% of American consumption.

  • Low Environmental Impact

    Solution mining for reduced environmental impact, lower start costs, and smaller surface footprint.

  • Experienced Management Team

    Backed by industry veterans highly experienced in all aspects of solution mining, surface processing, operations, and fertilizer distribution.

  • Positive Market Conditions Tied to Global Megatrends

    Global trends drive demand for food and sustainable agriculture. The US must develop a domestic potash supply for food security in this post-Covid and inflationary era.

About Sage Potash

American potash exploration company Sage Potash Corp (TSX.V: SAGE) is exploring and developing its Sage Plain Potash Property within the Paradox Basin of Southeast Utah. This region is known to host extensive world-class potash resources (approximately 2 billion tons, according to the US Geological Survey), which are yet to be developed.

The management team and directors have a proven track record of experience in commodities mining, resource development, and technology. They understand the complexities of the industry, including the geological, technical, and financial aspects of running a successful business. Therefore, shareholders have confidence in their ability to successfully execute this potash mining project and deliver value.

A Rich Landscape and Sustainable Project

.

Approximately 95% of the US potash supply comes from imports. Therefore, securing domestic supply is critical for food security and enhancing competitive pricing within the country. Sage Potash could be a part of the solution with a potential Tier 1 deposit, which could meet a significant portion of US potash demand.

Sage has assembled a portfolio totaling over 83,000 acres of State and Private Mineral leases and Bureau of Land Management (BLM) Prospecting Permit Applications. Bordering acreage is key to forming mining units, and Sage’s land portfolio has thousands of adjacent private and state mineral lease blocks for cavern development. Better still, the geological conditions are prime for optimal extraction. Thick, flat beds of sedimentary rock simplify the mining process, increasing efficiency.

Here at the Sage Plain Potash Property, the Company has discovered an inferred high-grade potash resource of 280 million metric tons. Indeed, this could be the largest potash deposit in the US with the lowest lead time to production.

.

High-Quality Grades, Low Environmental Impact

.

Sage’s CEO, Peter Hogendoorn, was one of the original project founders and brokered a joint venture (JV) that financed the original project in 2012. This included successfully drilling the Johnson 1 well core, which not only intercepted high-quality grades but determined that the temperature at that depth is optimal for a type of mining called solution mining.

High-grade potash is increasingly valuable because its higher concentration of potassium can improve mining economics and lower the cost to market. Meanwhile, solution mining offers benefits such as reduced environmental impact, lower start-up costs, faster time to production, less waste and lower impact on the overall landscape compared to traditional underground mining techniques. This could translate into higher profitability, enhanced operational efficiency and potentially lower regulatory risks, which further enhances the investment case.

Sage’s engineering and geoscience partner is RESPEC, a highly regarded mining engineering company with over 50 years of experience working on potash and salt deposits globally. RESPEC has also worked on major developments such as K+S Potash’s Bethune solution mine, the BHP Jansen project, as well as Sage’s original Johnson 1 well.

.

Investment Case: A Risk-Reduced Project

A severe commodity downturn in 2015 led this project to be dropped by the JV operator. With the combination of sanctions against Russia/Belarus (40% of the global potash supply) and the post-Covid era of broken supply chains and the need for National Food Security, Hogendoorn and his original partners re-acquired the State Mineral Leases on which the Johnson well was located and formed Sage to re-finance and assemble a strong management team to restart the project.

Sage’s Preliminary Economic Assessment (PEA) and project engineering plan focus on incremental production. This means initial mining operations will aim to extract a small amount of potash at a rational cost to ensure revenue and cash flow early on, which can be used to finance debt to expand production capacity.

The Sage plan will utilize proven technologies and engineering but will approach development quite differently from traditional potash projects. Typically, these projects are engineered and financed as very large undertakings, often requiring upwards of billions of dollars, in the case of underground potash mines, or $750M-2B for solution mines and take 5-10 years before they are in production. The risk profile of these projects is heavily back-end loaded since the risk cannot be fully mitigated until 2-3 years after production begins, primarily because potash pricing and project costs cannot determine the financial metrics indicating profitability and the viability of the project until then.

Sage is focusing its PEA around incremental production designs whereby modular processing units each become stand-alone economic units, initially based on modest tonnage targets. As each unit is sold-out, the company can expand production out of cash flow in current markets and expand on realized demand.

To begin this strategy, the company plans to drill 2 new well locations that will provide additional core samples and geological data and potentially be used to develop a single cavern. This pilot cavern will quickly generate both updated resource estimates and accurate economic inputs around cavern costs and production metrics. 

This strategy potentially protects the project from any future commodity price slumps, preventing wasted investment if future studies show the project is no longer viable. It also lowers commissioning risks and project overruns.

Economic potash deposits are the result of ancient evaporative sea beds that can be remarkably consistent in the right geological conditions.

In practice, potash production is more comparable to oil & gas production than precious or base metals. With oil & gas, the exploration well becomes the production well if the resource is there. In contrast, metal mining requires drilling hundreds of holes in tight spacings before any resource can be proven. Many of the potash mines in Saskatchewan (the largest potash producer in the world) started production with just one well and grew as they gathered more engineering and geological data from ongoing operations. 

Sage’s scalable approach to potash production in the US is an environmentally friendly and capital-efficient solution that may provide a much quicker path to production than traditional mining methods.

With the geopolitical unrest triggered by Russia’s aggression towards Ukraine and the resulting sanctions impacting 40% of the world’s potash sources from Russia and Belarus, it is imperative to establish a self-sufficient supply in the United States. Relying on imports is no longer an option.

Invest Responsibly: Support Sustainable Agriculture & Food Supply with Sage Potash

Seize Sage Potash’s investment opportunity, fueling sustainable agriculture and food security with their large-scale, high-grade resources.

IMPORTANT NOTICE AND DISCLAIMER

PAID ADVERTISEMENT

This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Castle Rising Media on behalf of Sage Potash Corp. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of fifteen thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.

CHANGES IN SHARE TRADING AND PRICE

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.

NO OFFER TO SELL OR BUY SECURITIES

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.

INFORMATION

Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.

This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.

NO FINANCIAL ADVICE

The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.

FORWARD LOOKING STATEMENTS

This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.

INDEMNIFICATION/RELEASE OF LIABILITY

By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.

TERMS OF USE AND DISCLAIMER

By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY

All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.

AUTHORS: VALUETHEMARKETS

valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.