Mosaic (NYSE:MOS) -6.1% post-market after Q4 adjusted earnings and revenues come in shy of analyst expectations, as sales volumes fell sharply for both potash and phosphates from a year earlier.
Q4 potash sales volumes fell to 2.1M metric tons from 2.7M tons in the year-ago quarter, and phosphate sales volumes fell to 1.8M tons from 2.3M tons, but average MOP selling prices for potash jumped to $414/ton from $177/ton a year earlier and average DAP selling prices for phosphates climbed to $676/ton from $363/ton.
The company expects upward pricing momentum to continue, with ~85% of Q1 sales committed and priced; it guides for Q1 phosphate sales volumes of 1.6M-1.8M metric tons at FOB realized prices more than $60/ton above prices realized in Q4 2021, and potash sales volumes of 1.8M-2M tons at prices more than $125/ton above Q4 levels.
Mosaic said it remains on track to complete the ramp up of K3 by the end of Q1, with an expected annualized run rate of 5.5M tons and cash production costs in the $50’s per ton and trending lower on a through-cycle basis, while Colonsay, which was restarted in H2 2021, is now operating at its targeted 1M tons/year run rate.
Mosaic’s board also approved a regular dividend target increase to $0.60/share annually from $0.45, beginning with the Q2 payment, and established a new $1B stock buyback authorization.
Mosaic shares recently traded at multiyear highs after surging 62% over the past year and 14% YTD.
