Compass Minerals International Inc. (CMP) shares soared 17.43% in after-hours on Tuesday, July 13, 2021, and closed at $71.00. Earlier in the morning session, CMP’s stock lost 1.14% to close Tuesday’s session at $60.46. CMP shares have risen 21.53% over the last 12 months, and they have moved up 2.04% in the past week. Over the past three months, the stock has lost 5.84%, while over the past six months, it has shed 4.67%.
Identification of new Sustainable Lithium Resource
On July 13, 2021, Compass Minerals identified a lithium brine resource of approximately 2.4 million metric tons lithium carbonate equivalent (LCE) at its active Ogden, Utah, solar evaporation site, including an indicated lithium resource within the ambient brine of the Great Salt Lake.
South America specialty plant nutrition business sale completed
On July 01, 2021, Compass Minerals completed the sale of the company’s South America specialty plant nutrition business to a subsidiary of ICL Group. The successful transaction represents a significant step in Compass Minerals’ prioritization of core assets and, by strengthening its balance sheet, enhances the company’s ability to pursue potential strategic growth opportunities.
The deal will provide gross sale proceeds of R$2.16 billion or approximately $432 million based on current exchange rates. CMP will also receive an additional payment of up to approximately R$88 million in 2022.
Dividend declaration
On June 14, 2021, the board of Compass Minerals International, declared a dividend of US$0.72 per share payable on the 18th of June. Based on this payment, the dividend yield on the company’s stock will be 4.2%, which is an attractive boost to shareholder returns.
Recent financial results announcement
On May 4, 2021, Compass Minerals announced its financial results for the first quarter of 2021 which ended on March 31, 2021.
Q1 2021 financial highlights
- Compass Minerals earned a revenue of $426.0 million in Q1 2021.
- Selling, general and administrative expenses were $32.4 million in Q1 2021 compared to 29.8 million in Q1 2020.
- Cash flow from continuing operations for the first quarter of 2021 totalled $196.8 million compared to $230.3 for the same period in 2020.
- It reported a net income of $32.9 million in Q1 2021 compared to $33.9 million in Q1 2020.
- Basic net earnings from continuing operations per common share were $0.96 in Q1 2021 compared to $0.99 in Q1 2020.
- Adjusted EBITDA was $97.3 million in Q1 2021 compared to $75.1 million in Q1 2020.
Koch Agronomic Services completed the acquisition of Compass Minerals’ North American micronutrient assets
On May 4, 2021, Koch Agronomic Services, LLC (Koch) completed its acquisition of Compass Minerals (NYSE: CMP) North American micronutrient assets, the global intellectual property rights, with trademarks and patents, and certain other assets associated with Wolf Trax, Rocket Seeds, and Hydro Bullet™ product platforms.
Conclusion
The CMP stock turnaround in the after-hours after the company announced new lithium brine resource which is a big development for the company. We can expect CMP to surge more in the coming days.
