The ABR (ASX:ABR) share price edges higher in early morning trade

American Pacific Borates Ltd (ASX: ABR) shares have edged higher in early morning trade after providing an update in regards to its Fort Cady Borate Mine.

| More on:
Female miner uses mobile phone at mine site

Image source: Getty Images

American Pacific Borates Ltd (ASX: ABR) share price has edged higher in early morning trade. This comes after the company announced an update in respect to its Fort Cady Borate Mine.

It’s also worth noting that, the ABR share price is within a whisker of breaking its all-time high record. At the time of writing, the fertiliser producer’s shares are sitting at $2.44, up 3.39%.

What did ABR announce?

ABR shares are on the move today after the company revealed its progressing negotiations with Compass Minerals America Inc.

A subsidiary of NYSE-listed Compass Minerals International, Inc. (NYSE: CMP), Compass Minerals is a leading producer of minerals in North America. The company specialises in making salt, plant nutrients and magnesium chloride for industrial, agricultural, commercial and consumer markets.

According to ABR’s release, the company advised it has signed a letter of intent (LOI) with Compass Minerals to sell sulphate of potash (SOP) from its Fort Cady Borate Mine.

Under the agreement, both parties will work together on creating a framework in which Compass Minerals will look after the sales and marketing for the SOP production. In addition, the companies will work on progressing crop trials and agronomy studies for boron rich fertilisers.

ABR stated that it expects formal agreements to be executed over the coming months.

ABR executive director, Anthony Hall commented:

There is a strong alignment between ABR and Compass Minerals relative to our ambitions to supply SOP to the growing North American agricultural market. Compass Minerals has well established customer markets and supply chain, so we think the collaboration on SOP sales is a sensible one.

The partnership will allow ABR to focus on its rare Borate business, while also leveraging the combined expertise on the potential to develop new boron enriched specialty fertilisers.

ABR share price review

In the month of April, ABR shares have been flying higher to register an all-time high of $2.54 last Thursday. Its year-to-date performance stands at a gain of close to 60% for ABR shareholders.

Today’s announcement thus far hasn’t quite pushed the ABR share price into new record territory.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Materials Shares