Mosaic's BMO Ag Conference Presentation Summary (MOS)

Fertilizer maker, The Mosaic Company (NYSE: MOS), outlined its strategy for the coming months at the BMO Capital Markets 2009 Agricultural, Protein & Fertilizer Conference today.  We decided to prepare a quick-hit look at the highlights of Mosaic’s presentation to get a better post-earnings season feel for what to expect this summer from at least one of the top potash players for agriculture:

* Potash sales volumes will decline significantly in 2009 due to weak demand…. Long-term demand for potash will increase. (More to follow)

* People need to eat, and more people causes demand for food and feed to increase. Given this basic principle, Mosaic is confident in its long-term prospects.

* The company’s vertical integration enables it to keep its cost structure among the lowest in the industry.

* Mosaic will continue to focus on growth through expansion, both in North America mining properties and overseas finished product markets.

* The company plans to maintain and even improve its operating cash flow.

* Potash will become more prominent in the company’s product mix, rising to 60% of sales beginning “soon.”

* The phosphate business has slowed this year, but will recover as grain and oilseed stocks decline and more fertilizer is needed to grow more food.

* Biofuel mandates will help bolster prices for fertilizer.

* Phosphate future trends depend on overall global demand, especially demand from India and Chinese export trends.

* Future potash sales and pricing depend on the demand from India and the contract price set with China.

Mosaic is lucky considering the cautious tone throughout the presentation.  Shares are trading up about 0.5% in early trading this morning, at $46.59. The stock’s 52-week range is $21.94-$163.25.

Paul Ausick
May 14, 2009