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.

Female miner uses mobile phone at mine site

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Materials Shares

Mineral Resources shares sink on Onslow Iron blow

This miner is having a tough session. Let's find out why.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Materials Shares

MAC Copper shares in trading halt as miner flags 'potential control transaction'

MAC Copper shares are frozen while Sandfire Resources shares are the fastest risers of the ASX 200 today.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Materials Shares

Bell Potter says this ASX lithium stock could rise ~50%

The broker has just put a buy rating on this lithium stock.

Read more »

A woman stands next to a large green battery smiling and eating an apple with a lifting green arrow line in the background, indicating rising stock prices.
Share Market News

Are Liontown Resources shares a buy, hold or sell according to Macquarie?

Here’s what the broker has to say about this Lithium miner. 

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Rio Tinto share price tumbles on CEO bombshell news

The mining giant is now looking for a new leader.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

What's going on with the Fortescue share price today?

This mining giant is making changes to its leadership.

Read more »

Happy construction worker at a building site with a group of workers at the background.
Materials Shares

After its result, does Macquarie rate James Hardie shares a buy, hold or sell?

The company announced its FY25 earnings on Wednesday.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Fortescue shares fall on Iron Bridge blow

Iron Bridge is taking longer to ramp up than planned.

Read more »