Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Potash Exploration Co. Hits Major Milestone

View Important Disclosures for this Article
Share on Stocktwits


Sage Potash has received final approvals for two exploration wells in Utah as the potash market looks set to grow in 2024. Read on to see why analysts are looking at this stock in the New Year.

Sage Potash Corp. (SAGE:TSX; SGPTF:OTC) announced in a press release on January 8, 2024, that it has received approval for two wells on its Sage Plain project in Utah's prolific Paradox Basin. The company reports that the approvals were issued by the State of Utah's Division of Oil, Gas, and Mining and the Division of Water Quality, which authorized the company for surface and underground exploration.

The approval for the wells represents an important milestone for the company since they are a step forward toward Phase 1 of the Sage Plains project development effort. The exploration wells will allow for the determination of injection capacity and potash formations on the property. Sage Potash also reported that the company is partnering with Respec LLC, a global engineering firm that has been contracted to assist with the development of a pilot-scale potash solution operation expected to bring in 50,000 tonnes per year.

Peter Hogendoorn, the CEO and Executive Chairman of Sage Potash, stated, "Sage's successful drilling permit applications represent a pivotal milestone on the company's path to achieving pilot-scale potash mining and processing activities. The approved exploration wells will not only allow us to increase our understanding of the Sage Plain mineral resource . . .  but these same wells will, in future, be transitioned to injection production and disposal wells."

Potash Ready to Grow in 2024

Russ Quinn with Progressive Farmer projected a positive outlook for potash on December 14, 2023. In previous years, potash consumption was hindered by an affordability crisis among farmers, but since prices have lightened up, demand is expected to rise again, reported Quinn.

However, supply is still being affected by the Russia-Ukraine war and the conflict in the Middle East, as well as by low water levels on the Mississippi River, where the river acts as a major transportation hub for fertilizer, according to Quinn.

KBV Research published a report in August of 2023 on the potash market, where it estimated that the market will grow by 5.4% to US$82.6 billion by the year 2030, with the highest demand coming from North America.

KBV cited changes in food culture, where food demand has outpaced population growth, as a major reason for an increase in demand for fertilizer.

Sage Potash Set to Advance

Technical Analyst Clive Maund provided an update on the company's stock patterns on July 10, 2023. Maund reviewed the company positively and stated that he believes Sage Potash could move higher.

Maund commented, "The pattern remains favorable, and on Friday, having dropped back to support, it put in another bull hammer indicating that it is probably starting higher, and in fact, while this is being risen, the pattern has started to advance."

The company's investor presentation reports several catalysts, including the expected completion of the permitting and engineering for the company's potash plant in Q2 of 2024, the beginning of production on pilot operations in Q2 of 2024, and the expansion of the feasibility study expected to end in Q2 of 2025.

streetwise book logoStreetwise Ownership Overview*

Sage Potash Corp. (SAGE:TSX; SGPTF:OTC)

*Share Structure as of 1/9/2024

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders owned approximately 6.71% of the company.

According Reuters, CEO Peter Hogendoorn owns 3.69% of the company with 2.00 million shares, Director David Robert Reid owns 1.11% of the company with 0.60 million shares, Director William Grossholz owns 1.02% of the company with 0.55 million shares, Director Matthew Wyatt Lechtzier owns 0.52% of the company with 0.28 million shares, and Director Melody Yiu owns 0.37% of the company with 0.20 million shares.

Reuters reports no institutional investors.

According to Reuters, there are 54.14 million shares outstanding with 50.51 million free float traded shares, while the company has a market cap of CA$5.68 million and trades in the 52-week period between CA$0.12 and CA$0.80.

Want to be the first to know about interesting Agriculture investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1.  [Sage Potash Corp.] has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of [Sage Potash Corp.].
  3. [Amanda Duvall] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Want to read more about Agriculture investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe