Mosaic to Divest New Mexico Potash Operations in $30M Deal

The Mosaic Company MOS has announced an agreement to sell its Mosaic Potash Carlsbad, Inc., including operations, related assets and liabilities of the potash mine located in Carlsbad, New Mexico, to International Minerals Carlsbad, LLC, in a deal valued at $30 million.  

Under the terms of the definitive agreement, Mosaic will receive an initial cash purchase price of $20 million at closing, subject to customary purchase price adjustments, and an additional $10 million in deferred cash consideration, which will be paid in three equal annual installments beginning in 2029.  

International Minerals Carlsbad will take on the asset retirement obligations associated with the Carlsbad operations. The transaction also includes the transfer of Mosaic’s potash and water operations in New Mexico, along with associated intellectual property, notably the well-established K-Mag and Dynamate brands, to the acquiring entity. 

Mosaic stated that the transaction is expected to close in the first half of 2026, subject to customary regulatory approvals and closing conditions. The company also expects to recognize a non-cash impairment charge in the fourth quarter of 2025 related to the divestiture. 

Management emphasized that the sale aligns with Mosaic’s broader strategy to streamline its asset base and concentrate its potash production on higher-return operations in Saskatchewan, Canada, which will become the company’s sole potash production region following the exit from Carlsbad. 

Shares of MOS are down 31.6% in the past six months compared with the industry’s 11.5% decline. 

MOS Zacks Rank & Key Picks

MOS currently carries a Zacks Rank of #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are American Resources Corporation AREC, First Majestic Silver Corp. AG and BHP Group Limited BHP. AREC, AG and BHP carry a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank here.

The Zacks Consensus Estimate for AREC’s current fiscal-year loss is pegged at 34 cents per share, indicating a 35% year-over-year increase. Shares of AREC have jumped 185.8% over the past six months. 

The Zacks Consensus Estimate for AG’s current fiscal-year earnings stands at 25 cents per share, implying a 279% year-over-year increase. Shares of AG have gained 117.4% over the past six months. 

The Zacks Consensus Estimate for BHP’s current fiscal-year earnings is pegged at $4.59 per share, indicating a 26.1% year-over-year increase. Shares of BHP have soared 28.5% over the past six months. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research