Fertiliser prices moving higher off the back of Ukraine/Russia

Overnight we saw reports from the Guardian and CNBC highlighting the impact the Russia/Ukraine conflict is having on the prices for the raw materials that are used in the supply chain for fertiliser markets.

The three types of fertilisers are:

• Nitrogen fertiliser (Ammonia based) - Prices are up almost 400% from 2020 levels, MNB are working on this.
• Phosphorus fertiliser - Prices are up almost 300% from 2020 levels, MNB are working on this.
• Potassium fertiliser -

The standout for us was the impact the conflicts in Ukraine/Russia is having on nitrogen fertiliser prices which is an ammonia based fertiliser. With almost all of the ammonia used in nitrogen fertilisers being produced using natural gas, the recent increases in the price of gas (mostly because of supply chain scares out of Russia) has put some serious tailwinds behind the price of nitrogen fertilisers.

This is a key reason for our investment in MNB. MNB’s phosphate fertiliser project is nearing development and this is complemented by plans to build a hydro-powered ammonia plant to produce zero carbon ammonia (used to produce nitrogen fertiliser) in Angola (which has the second cheapest source of of energy because of an abundance of underutilised hydropower).

MNB is in the final stages of developing its project at just the right time, with the potential to supply competitive, zero carbon fertiliser products to both Africa and the rest of the world.

To see all of the reasons why we invested in MNB, and what we want the company to achieve in 2022, check out our 2022 Investment Memo here.