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Millennial Potash Positions To Exploit Value From Banio Potash Project, Microcap Prices Present Compelling Proposition ($MLPNF)

Millennial Potash Positions To Exploit Value From Banio Potash Project, Microcap Prices Present Compelling Proposition ($MLPNF)

Artificial Intelligence stocks aren't the only ones earning abundant investors' attention. Fertilizer and potash stocks are getting similar interest. The difference is that the latter isn't getting the headlines deserved. All things considered, that's not necessarily bad news, especially for investors wanting to position into fertilizer and potash companies at bargain prices. Trading at microcap prices, Millennial Potash Corp. (OTCQB: MLPNF) (TSXV: MLP) presents that opportunity. 

And it's not one going unnoticed. MLPNF shares surged by over 42% on Monday, reaching $0.40 at press time. The better news is that momentum is at the stock's back, evidenced by increasing volume since June and strong consolidation at the $0.28 level, supportive of a potentially more significant move ahead that can be fueled by MLPNF's thinly-traded float. (* share price on 7/10/23, Yahoo! Finance, 11:26 AM EST)

Here's something else to consider. Volume reached its highest mark ever in June, and referring to the adage that "volume precedes price," MLPNF reclaiming its July highs and even breaching its 52-week levels, 20% higher than current, could happen sooner than later. The more excellent news- the steepening trend line indicates the stock may not stop there.

Providing Relief to a Fertilizer Market Stranglehold 

For the right reasons. Foremost is that Millennial Potash is completing the groundwork necessary to become a potash market leader. That's different from targeting only natural fertilizer sales opportunities. For those unfamiliar, potash is the common name given to a group of minerals and chemicals containing potassium (K), a primary nutrient for plants and an important ingredient in fertilizer. Most potash is produced as potassium chloride (KCl). However, its also measured and referred to in terms of potassium oxide (K2O) equivalence for consistency because deposits can have different percentages of potassium. Those are the technicals. 

From an investor's perspective, more interest is likely given to what a company can do with it. In that perspective, MLPNF is earning its spotlight from its focus and timeliness to a potash market opportunity that puts an estimated $30 billion revenue-generating opportunity in its crosshairs. In addition to targeting potential from a red-hot market, MLPNF addresses a growing back story: the global need to break free from Russia and China's stranglehold on the fertilizer and potash markets.  

That's less of an option; it's a must-do initiative to maintain global food security. And it must happen quickly. The grip of those two countries has tightened further due to the ongoing Russia-Ukraine conflict, which has caused severe disruptions in the worldwide fertilizer market, leading to alarming instability in food supply chains. Disturbingly, the United Nations has pinpointed 48 nations across Africa, Asia, and Europe as exceptionally vulnerable to the fertilizer supply imbalance arising from this very conflict.

 

Coverage Of The Crisis Is Growing

The headlines that do make the front page have likened the fertilizer and potash shortage to the semiconductor chip shortage crisis that wreaked havoc on supply chains and manufacturing operations in 2022. While the chip scarcity received substantial media coverage, it's essential to acknowledge that the stakes are considerably higher regarding food security. Remember, fertilizers are pivotal in ensuring an abundant food supply, making the current race to secure and stabilize fertilizer sources a priority for leaders worldwide. The United States is no exception and is urgently acting to address the critical issue. 

Reports indicate the State Department has intensified its focus on fertilizers, with the topic reaching political leaders who now prominently include the developing crisis in their discussions at various political events. The message isn't good; it highlights that many countries lack control over their food and fertilizer supply. The potential ramifications of that fact can be dire. 

That's especially true, considering Russia and its allies hold a substantial share of nearly 25% of global crop nutrient exports. Moreover, while agricultural products, including specific fertilizers, are technically exempt from sanctions, take that with a grain of salt. When countries find themselves under politically-induced pressure, they seldom respond favorably. In fact, Russia and its sympathetic counterparts have significantly reduced their fertilizer exports, exacerbating the trade disruption. Consequently, this disturbance in trade dynamics has caused price spikes and prompted stockpiling, resulting in an inflationary impact on global food prices.

Amidst these challenging circumstances, some companies are actively working to transform the dynamics and bring about positive changes. On the large-cap side, there's CF Industries (NYSE: CF), Nutrien (NYSE: NTR), and Scotts Miracle-Grow (NYSE: SMG). They are catching investors' attention. But not exclusively. As noted, microcap, Millennial Potash Corp., is as well, and for excellent reasons. 

MLPNF Targets Massive Market Opportunities

Foremost is MLPNF's strengthening position to capitalize on a substantial revenue-generating opportunity by supporting the global fertilizer supply chain, addressing food security concerns, and reducing overreliance on a limited number of dominant suppliers. What's truly exciting is that MLPNF, despite its microcap size, already has the necessary assets and resources to make a meaningful contribution to the global supply chain.

That results from MLPNF leveraging the value from a portfolio of potash assets that offer both short and long-term potential for generating substantial revenue. Of particular significance is MLPNF's ability to tap into the value inherent in its Banio Potash Project situated in Gabon, which is renowned for its abundant reserves of potassium salts. Notably, this region is estimated to hold over 2 billion tons of untapped potassium salts, positioning it as one of the largest potash basins worldwide. 

What's even more encouraging is MLNPF's proven commitment to expedite the development of the Banio Potash Project. Their published updates provided valuable insights into historical drilling activities and outlined plans to expand the project further. The excellent news is that progress is accruing quickly by MLPNF leveraging existing infrastructure systems, which provide unimpeded access and enhanced operational efficiency. That advantage is expected to provide a tailwind for MLNPF to swiftly advance the project's development pace.

Timely To Its Opportunity With Banio Project

Indeed, the work being completed by Millennial Potash comes at a crucial time, noting the global fertilizer industry is intensely focused on seeking alternative sources of supply. This can benefit MLPNF in two ways. First, it serves the demand of those needing MLPNF's offerings. But also important, that focus helps expose potentially massive opportunities, which will do more than make MLPNF bigger faster; it could facilitate investors' sharing in on the rewards of being early to an investment proposition supported by favorable market conditions and extraordinary fertilizer demand.

In this case, size doesn't matter; location does. And by developing Banio, MLPNF checks that box, which history shows also ushers in the potential to unearth potash to serve enormous demand and, as importantly, monetize the asset. Achieving this objective only requires MLPNF to stay on its current course. That includes continuing to expedite exploration initiatives and maximize the value of their mining assets in some of the world's most mining-friendly jurisdictions. That's precisely what they're doing at their flagship Banio Potash Project in Gabon. Remember, MLPNF isn't exploring with blind ambition. The area is an established potash-bearing basin and, as essential to monetize, is near major potash markets.

Here's the better news. MLPNF has nurtured the Banio Potash Project to an advanced exploration stage, made possible by the supporting infrastructure, including a well-established exploration camp, drill rigs, and on-site drill cores. That does more than help propel this project forward; it puts MLPNF on the precipice of unlocking its value. 

That can happen faster than many think. MLPNF has made a significant stride by enlisting the expertise of global industry leader Ercosplan to undertake the completion of a NI 43-101 compliant technical report on the project. This strategic move adds momentum to its mission and underscores MLPNF's dedication to transparency and adherence to industry compliance standards. Moreover, by partnering with such reputable entities and investing in comprehensive technical assessments, MLPNF shows its commitment to thoroughly evaluating the project's potential before spending capital to exploit it. 

Management with A History Of Success

That's not a coincidence. The decision-making process within MLPNF is guided by an experienced team of industry professionals who bring strategic expertise to the company. The group boasts a remarkable track record of successfully building, exploring, and monetizing assets, highlighting their proficiency in recognizing and maximizing the value of underground resources. It's worth noting that MLPNF can derive financial rewards from these assets without necessarily bringing them to market. Proven assets, even those underground, serve as balance sheet multipliers and often attract partnerships that can provide the necessary investment capital to bring mined assets to market.

Still, MLPNF doesn't need to rely on a deal to create shareholder value. They have the intrinsic strength and capability to pursue their objectives independently. The company's management, led by Farhad Abasov as the Chairman and Director and Graham Harris as the Senior VP of Capital Markets and Director, brings a wealth of experience and strategic vision to the table, as demonstrated by their previous accomplishments with Millennial Lithium.

In fact, Farhad Abasov is widely respected for his successful track record in business, including notable ventures with Allana Potash Corp. and Millennial Lithium, both of which were acquired for substantial sums. On the financial front, Graham Harris has consistently proven his ability to raise capital as needed and effectively align it with defined strategic goals to maximize assets and seize opportunities. In short, precedent shows that the MLPNF team can execute its mission independently.

And the results can be impressive. Under their guidance, Millennial Lithium stock experienced an incredible surge from $0.06 to $4.70, representing a gain of over 7,733%. That success ultimately led to the acquisition of the Millennial Lithium project by a significant player in the lithium market. Noting similar factors, including the strategic location of company assets, strong product demand, and the inherent appreciation of value at the Banio Potash project, history can repeat. 

Path Of Least Resistance Higher In 2H/2023

All tolled, MLPNF is exploiting an enviable position of opportunity. As a result, its share price also presents a compelling value proposition. But it's fair to suggest that the window of opportunity may not last long. MLPNF shares have historically exhibited rapid upward movement when the valuation disconnect gets too wide, an argument easily supported at current levels.  

But know this. More than bullish sentiment can drive the MLPNF share price higher. Value accrues from the work MLPNF has done and continues to do to create sustainable shareholder value. That includes work completed and what's in the queue to reduce dependence on a few key suppliers, diversify the fertilizer supply chain, and mitigate the risks associated with the current state of the global fertilizer and potash markets. 

Those value drivers are more than initiatives; they're a recipe for success. And they combine to make the path of least resistance for MLPNF's growth and share price, in a single word, higher.

 

 

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to five-thousand-dollars cash via wire transfer by a third party to produce and syndicate content for Millennial Potash Corp. Corp.. for a period of one week ending on 07/16/23. STM llc. was compensated previously for providing similar work that ended on 07/01/23. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

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