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3 Must-See Quotes From Mosaic Company's CEO

Mos Sga
Mos Sga

Image source: Mosaic's presentation at Bernstein Strategic Decisions Conference, June 2016.

Given the increased uncertainty in potash markets, it's imperative for Mosaic to keep production costs as low as possible while finding ways to cut even further. Investors shouldn't miss the company's plans on this front in its second-quarter earnings call.

Big news could be on its way for Mosaic investors

[W]e're actively looking for opportunities to grow our company over the long term. And we believe this part of the cycle may be opening up opportunities for value that might not exist in other parts of the cycle.

This, by far, is O'Rourke's most important quote from the call. Mosaic is actively hunting for growth opportunities (read: acquisitions) in a down cycle -- a strategy that should work to its advantage in the long run. According to Reuters, Mosaic is eyeing Vale SA 's(NYSE: VALE) fertilizer business in a bid to expand its footprint in the high-potential Latin American market. In fact, rumors of PotashCorp getting acquired are also doing the rounds, with Mosaic being touted as one of the contenders.

With prices at rock bottom, most fertilizer stocks have been crushed in the past year or so. For global giants like Mosaic and PotashCorp, this presents a great opportunity to scoop up rival assets while they're still cheap. With a comfortable interest coverage ratio of nine times and a debt-to-equity ratio of less than 40%, Mosaic has enough leeway to borrow to fund acquisitions, if required, without jeopardizing its interest or dividend payments.

Mosaic is smartly using a two-pronged strategy of controlling costs and expanding its footprint as it waits for the business cycle to turn. That should position the company for strong growth in the years to come.

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Neha Chamaria has no position in any stocks mentioned. The Motley Fool owns shares of Companhia Vale. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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