In April 2024, Mosaic exchanged its 25% ownership in Ma'aden Wa'ad al Shamal Phosphate Company for 111,012,433 shares of Ma'aden, valued at approximately $1.5 billion, resulting in a pre-tax gain of approximately $0.5 billion. This transaction reflects a strategic shift in equity investments.

The company repurchased 7,944,507 shares of Common Stock in the open market for approximately $235.4 million at an average price of $29.63 in 2024. This consistent capital return to shareholders indicates management's belief in the company's intrinsic value and future cash flow generation.

The Mosaic Biosciences platform, launched in 2023 to focus on biological fertilizer complements, expanded its market coverage to 9 million acres in key markets in 2024, which is double the prior year's coverage. This demonstrates successful organic growth initiatives in a new product area.

In Q3 2024, the company completed the implementation of a new enterprise resource planning (ERP) system, leading to modifications and implementations of annual internal controls over financial reporting. Management concluded that internal control over financial reporting was effective as of December 31, 2024, with no other material changes.

Potash production volume increased by 7% to 8.8 million tonnes in 2024, leading to an improved operating rate of 76% compared to 73% in 2023. This improvement is attributed to less maintenance downtime at Canadian mines, indicating better operational planning and execution.

Despite a 22% decrease in net sales for Mosaic Fertilizantes, its gross margin increased by 92% to $406.6 million in 2024. This was primarily due to management's strategic decision to prioritize sales to lower credit-risk customers and focus on obtaining improved gross margin over sales volumes, alongside lower product and raw material costs.

The U.S. imposed a 25% tariff on Canadian potash imports in February 2025, which, if reinstated after a temporary pause, could significantly increase import costs and negatively impact demand. Additionally, the ongoing conflict between Russia and Ukraine contributes to global market instability and volatile raw material pricing, creating substantial uncertainty.

Key inputs like sulfur and ammonia remain subject to volatile pricing and availability, impacting production costs. In 2024, the Phosphates segment experienced production and distribution impacts from Hurricanes Francine, Helene, and Milton, alongside supply chain delays from a port strike in Vancouver, highlighting ongoing operational vulnerabilities.

Asset Retirement Obligations (AROs) for gypstack closure and reclamation increased to $2.6 billion in 2024 from $2.2 billion in 2023. The company faces risks from increasingly stringent environmental regulations, potential permit denials or delays, and ongoing legal proceedings related to environmental compliance, which could lead to material expenditures.

Mosaic leverages its extensive North American and international production and distribution system, spanning approximately 40 countries, to achieve economies of scale, transportation efficiencies, and superior market intelligence. This integrated approach helps maintain a competitive edge in the global crop nutrient market.

As the world's second largest producer of concentrated phosphate and second largest miner of phosphate rock, Mosaic benefits from scale that reduces production costs per unit. The patented MicroEssentials® product further differentiates its offering, providing a competitive advantage in product quality and innovation in North and South America.

The company states its potash cost structure is competitive and is expected to improve further as it continues to complete potash expansion projects, such as the Esterhazy K3 mine ramp-up. This indicates a forward-looking strategy to enhance cost leadership in the potash segment.

Lower raw material costs, particularly sulfur, favorably impacted the Phosphates segment's gross margin by approximately $150 million in 2024. Similarly, the Mosaic Fertilizantes segment saw a $1.13 billion favorable impact on gross margin due to decreased product costs for distribution and lower sulfur and ammonia costs in production.

Potash production volume increased by 7% to 8.8 million tonnes in 2024, with the operating rate improving to 76% from 73% in 2023. This improvement is primarily attributed to less maintenance downtime at the Canadian mines, indicating enhanced operational uptime and efficiency.

The Phosphates segment's sales volumes of finished products decreased by 8% to 6.4 million tonnes in 2024, from 7.0 million tonnes in 2023. This decline was unfavorably impacted by planned maintenance, turnaround activity, and disruptions from hurricanes, necessitating increased purchases to offset lost production.

The Mosaic Biosciences platform, launched in 2023 to deliver biological fertilizer complements, doubled its market coverage to 9 million acres in key markets in 2024. This indicates successful organic growth and adoption of new technologies aimed at improving nutrient use efficiency and plant growth.

The MicroEssentials® product, a value-added ammoniated phosphate, is enhanced through a patented process that creates thin platelets of sulfur and other micronutrients. This proprietary technology provides a competitive advantage by offering season-long nutrient availability to crops.

Mosaic utilizes advanced techniques like solution mining for potash (Belle Plaine) and employs 3D seismic surveys for geological information in its mining operations. An integrated operations center remotely controls Florida phosphate mines, showcasing technological adoption for efficiency and planning.

In 2024, Mosaic repurchased 7,944,507 shares of Common Stock for approximately $235.4 million at an average price of $29.63 per share. This substantial share repurchase program demonstrates management's commitment to returning value to shareholders and confidence in the company's valuation.

The exchange of 25% ownership in Ma'aden Wa'ad al Shamal Phosphate Company for Ma'aden shares, valued at approximately $1.5 billion, resulted in a pre-tax gain of about $0.5 billion in 2024. This transaction reflects a strategic optimization of the investment portfolio and improved financial flexibility.

Net cash used in investing activities was $1.261 billion in 2024, primarily driven by $1.25 billion in capital expenditures. The company anticipates approximately $1.3 billion in capital expenditures for 2025, indicating continued investment in sustaining assets and pursuing strategic growth opportunities.

Mosaic has publicly announced its goal to achieve net-zero greenhouse gas emissions companywide by 2040. This long-term commitment highlights the company's focus on environmental stewardship and aligns with broader sustainability trends.

The company maintains a comprehensive Environmental, Health, and Safety (EHS) management program, which includes identifying and managing EHS risks, ensuring legal compliance, and continuous improvement of procedures. This structured approach aims for sustainable and verifiable EHS performance across all operations.

Mosaic invested over $12 million in community initiatives in 2024, focusing on food, water, and local community development. Furthermore, annual pay equity evaluations in 2024 revealed only 0.4% outliers, which are slated for correction in 2025, demonstrating a commitment to social responsibility and fair employee treatment.

The company's operating results remain highly sensitive to fluctuations in global commodity prices for crop nutrients, which are influenced by supply and demand imbalances. This volatility can lead to significant swings in sales prices and volumes, as evidenced by the overall decline in net sales and gross margin in 2024.

Unfavorable macroeconomic conditions, including inflation, high interest rates, and foreign exchange volatility, have contributed to increased production costs due to higher raw material prices (e.g., purchased nitrogen, sulfur, ammonia) and elevated transportation expenses, adversely affecting operating results.

The U.S. imposition of a 25% tariff on Canadian potash imports in February 2025, despite a temporary pause, poses a significant risk of increased costs and reduced demand if reinstated. The ongoing Russia-Ukraine conflict also contributes to global market instability, potentially disrupting supply chains and increasing raw material costs.