NTR: Takeaways from potash mine tour and management meeting

Research evidence excerpt

NTR: Takeaways from potash mine tour and management meeting

pany also utilizes remote sensing and automation in the potash mills to optimize production,

improve recoveries, reduce reagent use, and better deploy capital for maintenance. Through these initiatives, Nutrien has been

able to maintain potash cash costs at ~$60/tonne despite most of the mining sector experiencing higher costs over the past several

years.

Fertilizer market outlook constructive, although nitrogen and phosphate volatile near-term: Nitrogen markets remain volatile,

with recent price weakness due to seasonal softness and very low volumes. Nutrien continues to see nitrogen supply risk through

2026 and into 2027 even as Strait re-opens as plants in the Middle East will take time to re-start and natural gas infrastructure

in the region has been impacted long-term. Potash markets remain steady, with demand growth supported by still favourable

affordability and healthy inventory levels. Nutrien reports market response to the recent US Summer fill program was “reasonably

good”. Phosphate continues to see demand destruction due to high prices as producers try to offset recent increases in sulphur

and ammonia, and the situation post Strait re-open may take time to resolve. Nutrien sees the reduction in phosphate applications

as a potential risk to crop yields over the next 12-18 months.

Strategic review of non-core assets could see some decisions by late-2026: Nutrien continues a strategic review of non-core

assets, namely phosphate, Trinidad nitrogen, and Brazil. In phosphate, the company has solicited interest in the three main assets

– Aurora, White Springs, feed/industrials upgrade capacity – with strong interest given the potential domestic US focus on critical

minerals including phosphate.