All posts by mickeybarb@charter.net

Scotts Upgrades Sales and Earnings Guidance; More Capital Allocated for Growth, M&A

Earnings, News, Specialty

The Scotts Miracle-Gro Co., Marysville, Ohio, announced on April 8 that it now expects its U.S. Consumer segment to report sales growth in a range of 4 to 6 percent for fiscal 2021, up from a previous range of flat to minus 5 percent. It expects the Hawthorne segment to perform on the high-end of its sales growth guidance range of 20 to 30 percent. As a result, company-wide sales growth is now expected in a range of 8 to 12 percent, an increase from its previous range of 1 to 6 percent.

During its virtual Investor and Analyst Day event, the company also said consumer purchases of its core lawn and garden products at its largest retail partners were up more than 20 percent year-over-year entering April.

The company now expects adjusted non-GAAP earnings per share – which excludes impairment, restructuring, and other one-time items – in a range of $8.60-$9.00 per share, compared with a previous range of $8.00-$8.40 per share. Free cash flow – defined as operating cash flow minus capital expenditures – is now expected to be approximately $250 million, compared with a previous estimate of $325 million. The decline is due primarily to an expected increase in capital expenditures for the year ending Sept. 30, which is needed due to the accelerated pace of growth over the past several years.

“By the end of this year, we expect the U.S. Consumer segment will have grown more than 35 percent over the past three years. We never envisioned that,” Chairman and CEO Jim Hagedorn said during the event. “At Hawthorne, our organic growth over this same period has more than doubled the size of that business. This level of growth requires us to look harder at what’s required to meet the future needs of the enterprise.”

As a result, Hagedorn said the company expects to double the amount of capital expenditures this year to a range of $125-$150 million, adding that it is possible a similar investment may be required in fiscal 2022 as well.

Hagedorn said he believes sustainable double-digit growth in the Hawthorne segment remains achievable, and that the U.S. Consumer segment can continue to grow in a range of 2 to 4 percent in a post-COVID environment.

“I believe ScottsMiracle-Gro is better positioned than it’s been in at least a decade for growth to be the primary driver of shareholder value,” Hagedorn said. “We see demographic and other societal trends as a friend of the core lawn and garden category for years to come. At Hawthorne, the potential for sustainable double-digit growth in the coming years is real. So is the opportunity for continued long-term value creation.

“In terms of overall use of capital, in addition to ramping up our capital spend in the near-term, we will allocate more dollars toward acquisitions for both the U.S. Consumer and Hawthorne segments,” he continued. “But even if we execute against everything in the current pipeline, we still have plenty of financial capacity.”

Organimax Closes on Financing

Lithium, News, News Briefs, Specialty, Sulfate of Potash, Vancouver, Zinc

Junior miner Organimax Nutrient Corp., Vancouver, B.C., formerly known as Alset Minerals Corp, (GM Aug. 31, 2018), recently received approval from the TSX Venture Exchange to close private placement financing for gross proceeds of $1.1 million.

The company will now issue 5.5 million units, with each unit being comprised of one common share in the capital of the company and one half of a common share purchase warrant, each full warrant entitling the holder to purchase an additional common share of the company at a price of $0.30 per share at any time within two years of the date of issuance. 

The company said the private placement was effected with an insider of the company subscribing for $160,000, or 800,000 units.

Net proceeds of this private placement are for general working capital purposes, due diligence, and future development of the Government Gulch project, a silver, zinc, and lead project in Idaho; brownfields exploration; and to maintain its lithium-sulfate of potash (Li-SOP) project in Mexico.

FuelPositive Buys Green NH3 Technology

Ammonia, Canada, News, News Briefs

FuelPositive Corp., Toronto, said on March 29 it has entered into an intellectual property purchase agreement, dated March 26, 2021, with Dr. Ibrahim Dincer and his team for a first-of-its-kind technology to produce ammonia in a zero-emission manner, by utilizing only water, air and electricity. In the near future, FuelPositive said it will be announcing the details of the commercial scale prototype build of its next-generation carbon-free NH3 systems.

“The addition of this technology into our intellectual property portfolio will expand our sustainable energy mandate and mission,” said Ian Clifford, FuelPositive CEO. “This technology has the potential to significantly decrease carbon emissions and make Canada and our company a leader in CO2 reduction. As work continues on our foundational Composition Modified Barium Titanate (CMBT) technology with a group associated with NASA, we will be building on the Dincer team’s carbon-free NH3 intellectual property for the development of commercial-scale solutions.”

“My team and I are delighted about entering into this agreement with FuelPositive,” said Dr. Ibrahim Dincer. “The timing is ideal for the commercial development of our carbon-free NH3 system and associated technologies, and the FuelPositive team and their consultants are well positioned to bring our commercial solutions to market. The coming months and years are going to be exciting for all of us and we look forward to making a consequential positive change in reducing global CO2 emissions.”

In consideration for the acquisition of all rights to the technology, the FuelPositive has agreed to issue 50,000,000 common shares to Dr. Dincer and his team, of which 35,000,000 will be issuable upon completion of the acquisition and the balance will be issued after twelve months. 

Completion of the acquisition remains subject to the approval of the TSX Venture Exchange and cannot be completed until such approval is received.  In connection with completion of the acquisition, the company does not expect to assume any material liabilities other than in connection with issuance of common shares to Dr. Dincer and his team.   

Arianne Reports Design Advancements

Canada, News, News Briefs, Phosphate

Arianne Phosphate, Saguenay, Quebec,a development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, said on April 8 it has made significant advancements in the design of its future tailings facility.

Arianne partnered with the Quebec Center of Geomatics (CGQ), a group within the College of Chicoutimi in the Province of Quebec, to advance research and development on a new method for the design and future monitoring of the company’s tailings operations. This work will use geomatic and remote sensing tools combined with artificial intelligence that should greatly improve the safety aspects of Arianne’s operations.

“The Lac à Paul mine is projected to be one of the most environmentally friendly phosphate mines in the world,” said Jean-Sébastien David, Arianne COO. “From the project’s onset, Arianne’s design process had the goal of constructing a mine using best environmental practices and, the integration of technology was vital in this regard. Further, our reliance on renewable hydro-electricity will allow us to greatly diminish our production of greenhouse gases (GHG) with the goal of ultimately being GHG neutral. Our most recent endeavors have also added to the safety and structural integrity of our tailings facility.”

Arianne said during the construction process sensors will be built in throughout the tailings dam that will measure, in real-time, data points such as moisture and pressure, and make adjustments as necessary to allow for smooth and safe operations, allowing for greater safety.

This research project was funded by the Natural Sciences and Engineering Research Council of Canada (NSERC) through its Partnership Engage Grants.

Nutrien to Cut Emissions 30 Percent

News, News Briefs, Saskatchewan

Nutrien Ltd., Saskatoon, aims to cut greenhouse gas emissions by 30 percent from two parts of its operations by 2030. The company released its 2021 Environmental, Social, and Governance (ESG) report on April 8, which announced its goal targeting a 30 percent emissions reduction per metric ton of its nitrogen fertilizer production, as well as from electricity generated off-site. The decrease would be compared with 2018 levels and does not include sprawling so-called Scope 3 emissions, which includes the impact of the entire supply chain and customers’ use of products.

“Nutrien is focused on meeting the United Nations’ Zero Hunger Sustainable Development Goal in the coming decade by helping growers increase food production in a sustainable manner,” said Chuck Magro, Nutrien President and CEO. “Our 2030 commitments and ESG performance targets are ambitious, but necessary, which is why we are dedicated to working across our value chain on initiatives like our comprehensive Carbon Program to build a pathway forward that will help lead the next wave of agriculture’s evolution. This effort drives at the core of our strategy to feed more people, using less resources and with fewer emissions.”

Five additional Nutrien ESG commitments include: enabling growers to adopt sustainable and productive agricultural products and practices on 75 million acres globally; launching and scaling a comprehensive Carbon Program, empowering growers and the agriculture industry to accelerate climate-smart agriculture and soil carbon sequestration while rewarding growers for their efforts; investingin new technologies and pursuing the transition to low-carbon fertilizers, including blue and green ammonia; leveraging farm-focused technology partnerships and investments to drive positive impact in industry and grower innovation and inclusion; and creating new financial solutions for growers to strengthen social, economic, and environmental outcomes in agriculture.

Ravenna Cooperative Opens New Facility

News, News Briefs, Western Cornbelt

The Farmers Cooperative Association of Ravenna, Neb., held a grand opening of its new dry fertilizer facility on March 25. The $2.8 million, 2,800 st fertilizer plant has the capacity to move 200 st of fertilizer per hour, according to the Kearney Hub.

Work on the new wooden structure began in May 2020 on the existing 12 acre site. The 124-foot by 124-foot, 30-foot-tall facility is fully automated. An older 800 st dry storage facility will continue to be used for storage.

The cooperative was chartered in 1932 and specializes in agronomy, seed, fertilizer, chemical, ag technology, bulk fuel, propane, and tires. It serves central Nebraska, with locations in Ravenna and Pleasanton.

No Injuries after Ammonia Truck Fire

Ammonia, News, News Briefs, Western Cornbelt

There were no injuries after a truck pulling an anhydrous ammonia tanker caught fire Sunday, April 4, south of Iowa Fertilizer Co.’s (IFCo) Wever plant, according to The Hawk Eye. Although the truck cab was fully engulfed when fire officials arrived at the scene, they were able to protect the tank and there was no leakage.

There was no evacuation, however, the route was temporarily shut to traffic.

The product came from the IFCo plant, and the company provided water for fire department tankers.

SOPerior Reports Cease Trade Order

Canada, News, News Briefs, Specialty, Sulfate of Potash

Junior sulfate of potash producer SOPerior Fertilizer Corp., Mississauga, Ont., reported on April 8 that the Ontario Securities Commission has issued a Failure to File Cease Trade Order against the company and its securities.

The order ceases all trading in the securities of the company in all provinces where the company is a reporting issuer and in which Multilateral Instrument 11-103 – Failure-to-File Cease Trade Orders in Multiple Jurisdictions applies.

SOPerior said, however, that holders of securities who are not participating in the control of the company or who are not insiders of the company may trade in the securities provided the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation and through an “foreign organized regulated market,” as defined in Section 1.1 of the Universal Market Integrity Rules of the Investment Industry Regulatory Organization of Canada (IIROC). The order will remain in effect until the company files its annual financial materials.

While the company is currently a registered issuer on the NEX Board of the Toronto Venture Exchange, it was listed on the Toronto Stock Exchange on Dec. 31, 2020. The company failed to file its annual financial statements for the year ended Dec. 31, 2020, the related management discussion and analysis annual information form, and the certifications of annual filings by March 31, 2021, as is required for a Toronto Stock Exchange issuer.

SOPerior said it continues to work closely with its auditor and expects to file the 2020 Annual Financial Statements and other annual filings as soon as possible. Once the 2020 annual filings are finalized, the company will seek to have the Cease Trade Order revoked.

Gowan to Take Control of Isagro with Purchase of Piemme

Europe, News, News Briefs, Southwest, Specialty

Gowan Co., Yuma, Ariz., said last month it has entered into a binding agreement to purchase all shares of Piemme Srl from Giorgio Basile and the other shareholders, which will give Gowan control of Milan-based Isagro SpA, a provider of active ingredients for the crop protection and biopesticide industries. Piemme Srl is the controlling shareholder of Isagro. The transaction is Gowan’s first step in the integration of Isagro within Gowan and delisting Isagro.

“As a partner since 2013, Isagro has repeatedly impressed us,” said Gowan Group CEO Juli Jessen. “We look forward to expanding commercial opportunities and especially to integrating the manufacturing and the science depth at Isagro Group’s facilities. These additional competencies are instrumental in positioning Gowan as global agricultural practices evolve.”

“The complimentarity between Gowan and Isagro ensures the continuity of Isagro’s mission in the agro-pharmaceutical sector,” said Basile, Isagro Chairman. “Gowan is a historic partner of our group and I am sure it represents a great chance also for the several and qualified human resources within our group.”

Isagro, which was founded by Basile in 1993, is listed on the Italian Stock Exchange. It employs 350 and has a research center and four plants in Italy. It directly distributes to Italy, Brazil, Colombia, Spain, and the U.S., and its products are sold in over 70 countries. Consolidated revenues for 2019 were over €105 million.

Founded in 1962, the family-owned Gowan operates globally in the agricultural solutions business and is specialized in developing, marketing, and processing agricultural inputs such as crop protection products, seeds, and fertilizers.