After last week's pullback, shares in Yorkshire potash producer
KEYTRADE intends to market up to 1.75m tonnes of polyhalite a year from the York Potash Project once it's up and running in 2016, which will account for roughly one-third of the first phase production target. Polyhalite is a compound that can be processed to make potash.
Melih Keyman, chief executive of KEYTRADE, believes "that there is big potential to market polyhalite globally" particularly given the material's "unique multi-nutrient characteristics", which make it an attractive option for fertiliser producers - the potential benefits and versatility of polyhalite as an input in fertiliser production have only recently been fully recognised by the industry.
The details of the KEYTRADE agreement are somewhat sketchy, so it's tempting to think the announcement may have been rushed out to counter lingering negative sentiment over last week's news that Sirius had pushed back the publication of the Definitive Feasibility Study for York Potash. Nevertheless, the indirect involvement of CF Industries is certainly significant, given it's one of the world's 10 biggest fertiliser producers. The shares remain a buy at 24.5p.