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Millennial Potash Shares Rally as Investors Seize on a Valuation Disconnect Ahead of Expected Monetization of Banio Potash Project ($MLPNF)

Shares of Millennial Potash Corp. (OTCQB: MLPNF) (TSXV: MLP) have shifted into rally mode, jumping over 42% since Monday. Those following Mlpnf will argue the surge higher isn’t surprising; it’s deserved. In fact, updates indicate that MLPNF is better positioned than ever to capitalize on a red-hot fertilizer and potash market opportunity, fueled by demand far outstripping supply as the Russia-Ukraine conflict continues to take its toll on global fertilizer and potash inventories and trade channel efficiencies. And it’s a problem that may not get better anytime soon. (*share price change from 7/10/23 – 7/12/23, Yahoo! Finance,$0.28- $0.40)

But it’s not all doom and gloom. Companies are stepping up to correct the sector imbalances, including MLPNF, which is nearing monetizing its flagship Banio Potash Project in Gabon, Africa. Their contribution could come online this year, and if it does, its current $0.40, and anything close to it, could become the launchpad to significantly higher prices. Noting that MLPNF clocked its highest volume ever in June, that mission may be starting. And know this.

The recent jump isn’t the product of a momentum play; it results from investors recognizing that MLPNF is in the right sector at the right time with the right assets to create potentially extraordinary shareholder value. And as crucial as having assets to exploit, the demand for them is at a fever pitch. That makes MLPNF more than attractive from an intrinsic perspective; it exposes the value in play from its inherent potential, which could be enormous in this case, considering the fertilizer and potash sector climate.

Capitalizing On A Global Potash Sales Opportunity

Being positioned to be a market leader in potash delivery is no accident. It results from Millennial Potash setting itself apart by targeting not only natural fertilizer sales but also embracing the broader potential of the potash industry. Potash, a vital ingredient in fertilizer, comprises minerals and chemicals containing potassium (K), a primary nutrient for plants. While most potash is produced as potassium chloride (KCl), it’s also measured and referred to in terms of potassium oxide (K2O) equivalence to ensure consistency across deposits with varying potassium percentages. These technical details lay the foundation for understanding what MLPNF targets.

From an investor’s perspective, the interest more likely lies in what MLPNF can accomplish to create ascending shareholder value. In this case, a lot. And that’s no coincidence. It results from MLPNF positioning itself to seize a timely opportunity in the potash market, which at last estimate proposes a $30 billion global revenue-generating opportunity. But, in broader terms, MLPNF is more than timely to boost its and investors’ interests. They may also contribute to mitigating a pressing concern: the need to break free from Russia and China’s stranglehold on the global fertilizer and potash markets.

Escaping this stranglehold is not just an option; it’s imperative for maintaining global food security. That problem has been exasperated by the ongoing Russia-Ukraine conflict, which has further tightened the grip of these two countries on the worldwide fertilizer market, creating alarming instability in food supply chains. It’s a big problem that’s getting worse. In fact, the United Nations has identified 48 nations across Africa, Asia, and Europe as exceptionally vulnerable to the fertilizer supply imbalance caused by this conflict.

Governments Are Responding To A Global Threat

The increasing coverage of this crisis reflects its significance. Headline analogies explain the situation by comparing the fertilizer and potash shortage to the semiconductor chip scarcity that disrupted supply chains and manufacturing operations in 2022. Of course, there’s a critical difference. The stakes are much higher, even life and death, when it comes to food security. And that food supply doesn’t grow on its own. It needs what MLPNF is selling to ensure an abundant food supply, making the current race to secure and stabilize fertilizer and potash sources a top priority for global leaders. The United States’ mission of doing so is in-progress.

According to reports, the State Department has intensified its focus on fertilizers, with political leaders prominently discussing the developing crisis at various political events. Their message is clear: more countries than ever lack control over their food and fertilizer supply. Noting the supply sources, it’s easy to understand why.

Russia and its allies are estimated to hold a substantial share of nearly 25% of global crop nutrient exports. Although agricultural products, including specific fertilizers, are technically exempt from sanctions, one must take that exemption with caution. When countries face political pressure, their responses are rarely favorable. In fact, recourse or other, Russia and its sympathetic counterparts have significantly reduced fertilizer exports, exacerbating already imbalanced supplies. Consequently, as it goes with supply and demand, it’s led to price spikes, stockpiling, and an inflationary impact on global food prices.

Plenty Of Sales Space And Opportunities For Millennial Potash

Amidst these challenging circumstances, some companies are actively working to transform the dynamics and bring about positive change and market stability. Large-cap companies like CF Industries NYSE: CF), Nutrien (NYSE: NTR), and Scotts Miracle-Grow (NYSE: SMG) are doing all they can. But they don’t have market exclusivity. Many sales opportunities are also in play for Millennial Potash Corp., which despite its nanocap size, is showing it can play in the big-league potash markets by accessing big-time assets.

Those assets help position MLPNF ideally to capitalize on substantial revenue opportunities by contributing to the global fertilizer supply chain, addressing food security concerns, and reducing overreliance on a limited number of dominant suppliers. What makes MLPNF truly exciting and exposes the value proposition is that despite its small size, they already possess the assets and resources to make a meaningful contribution that can tilt the balance of power in the supply chain.

The Banio Potash Project in Gabon, Africa, is of particular significance, known for its abundant reserves of potassium salts. This region of the country is estimated to hold over 2 billion tons of untapped potassium salts, positioning it as one of the largest potash basins globally. It’s more than significant; it’s a potentially massive value driver.

And MLPNF is wasting no time tapping into that potential by showing a strong commitment to expediting the development of the property. That’s evidenced by published updates that have provided valuable insights into historical drilling activities and outlined plans for project expansion. A more significant tell is that by leveraging existing infrastructure, MLPNF is making faster progress toward monetization, which has been expedited by unimpeded access and enhanced operational efficiency.

Exploiting The Value Of Its Banio Potash Project

That’s excellent news, considering that Millennial Potash’s timing matches that of the global fertilizer and potash industry’s actively seeking alternative sources of supply. MLPNF is positioned to benefit in two ways: by meeting the demands of agriculture clients and earning potentially massive revenues from that. But investors in MLPNF can win as well. They can benefit from being early to an MLPNF investment proposition supported by favorable market conditions and extraordinary fertilizer demand. Those revenues lead to industry multiples, which could make its current share price a springboard in the back half of 2023.

Here’s something important to know. When appraising the MLPNF value proposition, company size is not the determining factor for success; location is. And most certainly, MLPNF is in the right place at the right time. In fact, by developing the Banio Potash Project, MLPNF is drilling into precedent. And by no small measures.

Banio is indicated to hold vast potash reserves, which MLPNF intends to monetize. That’s achievable from MLPNF continuing to do what they’re doing- expedite exploration initiatives and maximize the value of their mining assets in mining-friendly jurisdictions. That mission can be more profitable than peers’, noting that by mining in Gabon, MLPNF benefits from knowing it’s developing in an established potash-bearing basin and strategically situated near major potash markets. That helps mitigate risk for the company and investors.

Another risk mitigator is that MLPNF has nurtured the Banio Potash Project to an advanced exploration stage, efficiently facilitated by supporting infrastructure such as an established exploration camp, drill rigs, and on-site drill cores. Checking these boxes does more than accelerate project development; it puts MLPNF a giant step closer to unlocking its value.

Realizing that value may be closer than expected, resulting from MLPNF engaging global industry leader Ercosplan to complete a NI 43-101 compliant technical report on the project. This report creates momentum for its mission and underscores MLPNF’s commitment to transparency and industry compliance. Most valuable, partnering with reputable entities and investing in comprehensive technical assessments demonstrates MLPNF’s dedication to thoroughly evaluating the project’s potential before committing capital for exploitation. In the mining sector, development capital is a treasured asset.

Management Can Unlock Intrinsic And Inherent Value

It should come as no surprise that MLPNF is ideally positioned and capable of expanding its interests. They are, after all, led by an experienced team of industry professionals with a track record of successfully building, exploring and monetizing assets. Their proficiency in recognizing and maximizing the value of its resources is evident. Keep in mind that assets above and underground are balance sheet assets. In other words, if MLPNF scores another report indicating expected reserves, its share price trajectory would likely steepen- significantly.

Furthermore, it could attract partners to defray the multi-million dollar costs of excavating. That’s assuming MLPNF wants a partner. Its team is proven to be capable of delivering value on its own. Led by Chairman and Director Farhad Abasov and Senior VP of Capital Markets and Director Graham Harris, MLPNF’s management brings a wealth of experience and strategic vision to the table, as evidenced by their successful track records with companies like Allana Potash Corp. and Millennial Lithium, both of which were acquired for substantial sums. Graham Harris, in particular, has consistently demonstrated his ability to raise capital as needed and effectively align it with defined strategic goals to maximize assets and seize opportunities. They have leveraged those strengths to deliver impressive value to investors.

Under their guidance, Millennial Lithium stock experienced an incredible surge from $0.06 to $4.70, representing a gain of over 7,733%. This success ultimately led to the acquisition of the Millennial Lithium project by a significant player in the lithium market. Given similar factors such as strategic asset location, strong product demand, and the inherent appreciation of value at the Banio Potash project, it’s quite likely that the recipe is in place to make history repeat.

Share Price Spike A Likely Precursor To More

With that potential a reachable target, the sum of MLPNF’s parts total to present a compelling investment proposition. However, trading over the past few sessions indicate that MLPNF is making its way onto investor radars, proven by the stock jumping over 42% since the week’s start. Such a move isn’t surprising to those that know MLPNF. With its thinly-traded nature, shares have a tendency to burst higher when investor interest makes an appearance.

But even at its current $0.40 price, shares are lower than its 52-week best of $0.48. Ironically, that’s despite MLPNF being better positioned today to capitalize on and maximize opportunities than at any time in its history. Still, valuation disconnects expose opportunities. In this case, the gap between MLPNF assets, project potential, and share price may be too wide to ignore.

Indeed, recent trading sessions show investors aren’t swiping left on the Millennial Potash story. Instead, they are taking advantage of an apparent ground-floor opportunity to get exposure to a booming sector through a company that has the potential to become significantly larger during the coming quarters. And with updates expected and the market sector red-hot, their positioning ahead of updates may be wise. In fact, with interest in MLPNF increasing, it’s more likely than not that the 28% jump on Tuesday is the precursor to better gains ahead.

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to five-thousand-dollars cash via wire transfer by a third party to produce and syndicate content for Millennial Potash Corp. Corp.. for a period of one week ending on 07/16/23. STM llc. was compensated previously for providing similar work that ended on 07/01/23. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. 

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Millennial Potash Shares Rally as Investors Seize on a Valuation Disconnect Ahead of Expected Monetization of Banio Potash Project ($MLPNF)

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