The Mosaic Company MOS announced that its Brazil-based business, Mosaic Fertilizantes, has resumed operations in the Catalao mine at full capacity.
The company stated that the mine was idled for two months, while it was working to align its mine tailings dam in compliance with the new Brazilian regulation. Additionally, the first of two dams at the Tapira mine obtained a certificate of safety. The second dam is likely to get the certificate of safety during the third quarter, when it returns to full production.
Shares of Mosaic have lost 23% in the past year compared with the industry’s 14.8% decline.
The company delivered adjusted earnings per share (EPS) of 25 cents in the first quarter, up 20% year over year. The figure topped the Zacks Consensus Estimate of 21 cents.
Mosaic lowered adjusted EBITDA and adjusted earnings guidance for 2019, considering higher costs related to the impact of new tailings dam regulations in Brazil, the impact of production curtailments, higher Canadian resource taxes and delayed recovery in phosphate margins.
For 2019, it expects adjusted EBITDA in the band of $2-$2.3 billion compared with previous view of $2.2-$2.4 billion. It also expects adjusted EPS to be $1.50-$2.00 compared with the prior guidance of $2.10-$2.50.
Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are Materion Corporation MTRN, Fortescue Metals Group Ltd. FSUGY and AngloGold Ashanti Limited AU, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Materion has an expected earnings growth rate of 27.1% for 2019. The company’s shares have gained 16.9% in the past year.
Fortescue Metals has an impressive projected earnings growth rate of 99.3% for the current year. The company’s shares have surged 64.6% in a year’s time.
AngloGold has an estimated earnings growth rate of 85.9% for the current year. Its shares have rallied 35.3% in the past year.
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