Nutrien increases its production

Article Excerpt

NUTRIEN LTD. $79 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 569.1 million; Market cap: $45.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.9%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 25 million tonnes annually. Rising crop prices are prompting farmers to use more fertilizer to boost their yields. As a result, the company now plans to increase its potash production by 500,000 tonnes in the second half of 2021. To put that in context, it previously expected to sell between 12.5 million tonnes and 13.0 million tonnes of potash for all of 2021. Meantime, Nutrien is reportedly in talks to form a joint venture with BHP Group (New York symbol BHP) to develop BHP’s proposed Jansen potash mine in Saskatchewan. (Note—BHP Group is a recommendation of Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks.) Investing in Jansen would give Nutrien greater control over the mine’s…