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Potential Fertilizer Sale Could Provide Ignition For Incitec Pivot's Shares To Rise

(Shares are traded in Australia under the ticker IPL.ASX and over the counter in the US under the ticker ICPVY. Be aware that over the counter shares have limited trading volume.)

Executive Summary

  • Incitec Pivot has industry leading positions in each segment.
  • Management has been wisely focusing their investment dollars on the higher margin and strategic explosives market in the US and Asia through their Dyno Nobel subsidiary.
  • Sale of fertilizer unit could act as a catalyst in unlocking value over the short to medium term.
  • Sum of the parts valuation indicates the fertilizer operations could be worth ~$2.1 billion and the explosives operations would be worth $5.1 billion.
    A few recent unintended plant production problems and lower fertilizer prices...
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