EarthRenew (ERTH.C) announced that they have formed a partnership with Fertoz (FTZ.A), an Australian miner of sedimentary soft rock phosphate.
The agreement aims to see Fertoz supply Replenish Nutrients, a subsidiary of EarthRenew whom they acquired in May, with 10,000 mt of pulverized rock phosphate 0-20-0, with 500-1000 mt being provided per month beginning this July. Pulverized rock phosphate is a favourite of farmers because they say it provides just the right amount of nutrients to make plants strong and healthy.
The announcement did not include a price figure for their order. Fertoz sells the 0-20-0 pulverized rock phosphate for ~$1.30 a pound on their website, however EarthRenew will likely receive a discount for buying in bulk.
“We are pleased to announce this long-term supply relationship with Fertoz for high quality rock phosphate, a cornerstone ingredient in our fleet of regenerative soil health products. Including rock phosphate in our products ensures that soils benefit from a natural source of minerals that are highly plant available and act as a necessary building block in the soil. Our customers have come to depend on our flagship products, Sustain and Rebuilder, to turn back the clock on years of nutritional crop depletion” stated Keith Driver, CEO of EarthRenew.
Fertoz provides certified organic products throughout Australia and North America, with a focus is on the increasing demand for direct application phosphate rock that they see as crucial to food growth. They mine sedimentary soft rock phosphate by excavating selective seams, which allows them to produce sustainable, natural and organic products.
Replenish Nutrients produce sustainable fertilizers by taking by-products, such as sulphur, phosphorus, and organic resources, and then repurposing them, turning them into a valuable resource. Phosphate is an important part of that process, and so having a high quality supplier for organic phosphate will help them develop effective and sustainable fertilizer.
By partnering up with EarthRenew, Fertoz increases their penetration into the Canadian market. Back in 2019, their Executive Chairman Pat Avery said their strategy in the North American market was to expand “person by person, distributer by distributer, company by company”.
“It has long been Fertoz’s strategy to open and use Canadian mines to supply Canada and focus on Montana and Mexico mines for the U.S. market. These volumes will allow opening and long-term mining of our leases in the Fernie area,” added Fertoz’s VP of sales Sean Gatin.
Since the announcement, shares of EarthRenew are up 1 cent and are currently trading at $0.29.
Full disclosure: EarthRenew is an Equity Guru marketing client.
