MOS Wraps Up Share Purchase and Subscription Deal with Ma'aden

Transaction Details - The Mosaic Company (MOS) completed a transaction with Saudi Arabian Mining Company (Ma'aden), receiving 111,012,433 shares of Ma'aden valued at approximately $1.5 billion in exchange for its 25$0.5 billion in Q4 2024 based on the share price at closing [1] Strategic Impact - The transaction provides MOS with a transparent valuation of its investment in Ma'aden and greater capital flexibility [2] - Ma'aden is expected to benefit from the transaction, strengthening its phosphate business [2] - MOS' CEO expressed intentions to continue the partnership with Ma'aden under the new structure [2] Financial Performance - MOS stock has declined 33.5% over the past year, compared to an 18.8% decline in the industry [2] - Potash sales volumes for October and November 2024 were 1,228,000 tons, down from 1,638,000 tons in the same period last year [3] - Potash revenues decreased 41% year-over-year to $299 million from$506 million [3] - Phosphate sales volumes for October and November 2024 were 946,000 tons, down 7% from 1,019,000 tons in the prior year [4] - Despite the volume decline, phosphate revenues increased to $680 million from$677 million in the comparable period last year [4] Industry Comparison - MOS currently holds a Zacks Rank 3 (Hold) [5] - Better-ranked stocks in the Basic Materials sector include Gold Royalty Corp (GROY) and MAG Silver Corp (MAG), both with a Zacks Rank 1 (Strong Buy), and Balchem Corporation (BCPC) with a Zacks Rank 2 (Buy) [5] - Gold Royalty Corp (GROY) has an expected earnings growth of 66.7% for the current year and has surpassed earnings estimates in three of the last four quarters with an average surprise of 125% [6] - MAG Silver Corp (MAG) has a current-year earnings estimate of 75 cents per share, surpassing estimates in all four trailing quarters with an average surprise of 17.1%, and its stock has gained 32.2% over the past year [7] - Balchem Corporation (BCPC) has a current-year earnings estimate of $4.01, indicating a 19.7% year-over-year rise, and its stock has gained 11.5% over the past year [8]