HOUSTON (ICIS)--Verde Potash stock has risen by 47% on the Toronto stock exchange but the Brazilian fertilizer developer said on Friday it could not explain why there has been such a surge in the company’s shares.
Verde is currently developing the Cerrado Verde project located in the western state of Minas Gerais in Brazil. The site is anticipated to be a very extensive potash deposit and will be used to produce ThermoPotash and potassium chloride (KCI) using strip mining techniques.
In a statement, the company acknowledges the situation but declined to provide further details of the stock activity in question. As of Friday afternoon the company’s shares had increased by 14 Canadian cents to be listed at 44 cents per share.
“Verde Potash would like to respond to a request from the Investment Industry Regulatory Organization of Canada on behalf of the Toronto Stock Exchange following recent trading. Verde is not aware of any corporate developments to account for this activity. Verde’s policy is not to comment on rumours or speculation, and accordingly, does not to intend to comment further,” said Verde.
Overall stocks in potash companies have been on a downward trend since a trading venture between Russia’s Uralkali and the Belarus-owned Belaruskali broke apart in July. The decision sent the potash market into turmoil and sent stocks of the various producers of the crop nutrient into a steep decline. It has also sapped demand and weighed heavily on pricing.
The impacts have seemed to hit the major producers the most. Case in point is PotashCorp, which announced earlier this week it is slashing 18% of its workforce. The North American producer also said on Friday it shares have definitely felt the repercussions of the potash turmoil as they have declined by 35% from its 52 week high price.