Is Brazil Potash (GRO) One of the Best New Penny Stocks to Invest In?

Brazil Potash Corp. (NYSEAMERICAN:GRO) is one of the 10 Best New Penny Stocks to Invest In. On December 16, Cantor Fitzgerald initiated coverage of Brazil Potash Corp. (NYSEAMERICAN:GRO), assigning the stock a Speculative Buy rating and setting the price target at $2.75.

Cantor Fitzgerald’s analyst told investors in a research note that the company is making progress on its 100%-owned Autazes potash mining project. The firm noted that Brazil Potash Corp. (NYSEAMERICAN:GRO) is targeting initial production in 2030 or later. Cantor Fitzgerald pointed out that this project will supply potash to Brazil, which is the biggest importer of the nutrient in the world. Potash is essential for improving agricultural productivity.

Also on December 16, Brazil Potash Corp. (NYSEAMERICAN:GRO) reported that Potássio do Brasil Ltda., its wholly owned Brazilian subsidiary, has received official registration from SUFRAMA, the federal authority that is responsible for managing tax incentive programs under the Manaus Free Trade Zone (ZFM) framework in the Western Amazonas Region. With this registration, Brazil Potash Corp. (NYSEAMERICAN:GRO) becomes eligible to operate under SUFRAMA-administered tax incentive procedures, subject to rules, approvals and project-specific authorizations that apply.

The company believes that access to these federal tax incentive regimes could lead to approximately $94 million in estimated tax savings during the construction phase, assuming all requirements and approvals that apply are met. Brazil Potash Corp. (NYSEAMERICAN:GRO) noted that this milestone supports key financial assumptions in the project’s economic model and reflects continued support from Brazilian federal authorities.

Brazil Potash Corp. (NYSEAMERICAN:GRO) is a fertilizer company focused on developing the Autazes Project to supply sustainable fertilizers to Brazil, one of the world’s largest agricultural exporters.

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Disclosure: None. This article is originally published at Insider Monkey.