- Compass Minerals' salt business relies primarily on the Goderich mine -the world's largest underground salt mine - 1,800 feet under Lake Huron.
- Goderich boasts a long mine life, low-cost production, and is ideally located to serve the demand for deicing salt in the Great Lakes region.
- Compass Minerals has diversified away from salt, with investments in fertilizers in North and South America. These investments have for the most part underperformed, diluting the company's economic moat.
- Compass Minerals' share price has stagnated in recent years, but the company has maintained a generous - though not entirely safe - dividend, currently yielding 4.7%.
- There are a few reasons for optimism, including the potential sale of the Plant Nutrition South America business.
For further details see:
Unique Assets: Compass Minerals' Diversification Remains A Drag