Verde AgriTech Ltd (TSX: “NPK”)
(“
Verde” or the “
Company”) is
pleased to announce its financial results for the first quarter
ended March 31, 2023 (“
Q1 2023”).
Q1 2023 Financials
- Sales of Verde's multinutrient potassium products, BAKS® and K
Forte® sold internationally as Super Greensand® (the
“Product”) by volume were 108,000 tonnes, compared
to 112,000 tonnes in Q1 2022 and 16,558 tonnes in Q1 2021.
- Revenue in Q1 2023 was $11.1 million, compared to $11.3 million
in Q1 2022 and $0.8 million in Q1 2021.
- Cash and other receivables held by the Company in Q1 2023 were
$34.3 million, compared to $22.3 million in Q1 2022 and $4.8
million in Q1 2021.
- EBITDA before non-cash events in Q1 2023 was $2.0 million,
compared to $3.7 million in Q1 2022 and a $0.8 million loss in Q1
2021.
- Total non-current assets in Q1 2023 were $68.3 million,
compared to $30.1 million in Q1 2022 and $21.4 million in Q1
2021.
- Net loss in Q1 2023 was $0.1 million, compared to a $3.0
million profit in Q1 2022 and a $1.0 million loss in Q1 2021.
- In Q1 2023, 8,559 million tonnes of chloride have been
prevented from being applied into soils by farmers who used the
Product in lieu of potassium chloride (“KCl”) fertilizers.1 A total
of 121,201 tonnes of chloride has been prevented from being applied
into soils by Verde’s customers since the Company started
production.2
“In Q1 2022, our sales grew by an impressive 574%, and our
revenue increased by an astonishing 1,260% compared to Q1 2021.
Achieving virtually the same volume as last year in markets that
experience the strongest downturns of the last few years in the
fertilizer industry is a remarkable accomplishment. The price of
soybeans, which represents a major portion of Verde's sales, has
declined by 33% in the past 12 months, with a substantial 21% drop
in the last three months alone.3 Additionally, potash prices
have seen a significant decrease of 67% over the past year, with a
sharp decline of 22% in the last three months.4 Despite these
challenging market conditions, Verde's performance in Q1 2023,
delivering results comparable to those achieved in Q1 2022,
demonstrates the unwavering commitment and strategic approach of
our team, and underscores our ability to thrive in an exceptionally
difficult market landscape,” stated Cristiano Veloso, Founder,
President & CEO of Verde.
Selected Annual Financial Information
The table below summarizes Q1 2023 financial results compared to
Q1 2022:
| All amounts in CAD
$’000 |
Q1 2023 |
Q1 2022 |
|
Tonnes sold ‘000 |
108 |
|
112 |
|
|
Average revenue per tonne sold $ |
103 |
|
101 |
|
|
Average production cost per tonne sold $ |
(25 |
) |
(24 |
) |
|
Average gross profit per tonne sold $ |
78 |
|
77 |
|
|
Average gross margin |
76 |
% |
77 |
% |
|
|
|
|
|
Revenue |
11,125 |
|
11,304 |
|
|
Production costs (1) |
(2,710 |
) |
(2,654 |
) |
| Gross
Profit |
8,415 |
|
8,650 |
|
| Gross
Margin |
76 |
% |
77 |
% |
|
Sales and marketing expenses |
(1,207 |
) |
(958 |
) |
|
Product delivery freight expenses |
(3,867 |
) |
(2,973 |
) |
|
General and administrative expenses |
(1,372 |
) |
(1,041 |
) |
| EBITDA
(2) |
1,969 |
|
3,678 |
|
|
Share Based, Equity and Bonus Payments (Non-Cash Event) (3) |
(28 |
) |
(64 |
) |
|
Depreciation and Amortisation (3) |
(911 |
) |
(26 |
) |
| Operating Profit after
non-cash events |
1,030 |
|
3,588 |
|
|
Interest Income/Expense (4) |
(1,042 |
) |
(185 |
) |
| Net (Loss) / Profit
before tax |
(12 |
) |
3,403 |
|
| Income tax (5) |
(96 |
) |
(370 |
) |
| Net
Profit |
(108 |
) |
3,033 |
|
(1) – C$864,000 of depreciation related to the investments made
in Plant 1, Plant 2 and access routes improvement in the last 12
months that are included in production costs in the financial
statements have been reclassified to a non-cash event in the
MD&A. (2) – Non GAAP measure(3) – Included in General and
Administrative expenses in financial statements (4) – Please see
Summary of Interest-Bearing Loans and Borrowings notes (5) – Please
see Income Tax notes in Q1 2023 Management’s Discussion and
AnalysisExternal Factors
Revenue and costs are affected by external factors including
changes in the exchange rates between the C$ and R$ along with
fluctuations in potassium chloride spot CFR Brazil.5 The table
below summarizes these changes:
| |
% Δ |
Q1 2023 |
Q1 2022 |
|
Canadian Dollar (C$) Average Exchange Rate |
-7 |
% |
R$3.84 |
R$4.12 |
|
Potassium Chloride CFR Brazil Lowest Price |
-39 |
% |
US$455 |
US$750 |
|
Potassium Chloride CFR Brazil Highest Price |
-57 |
% |
US$520 |
US$1,200 |
Q1 2023 compared with Q1
2022
EBITDA and EPS The Company had an EBITDA of
$1,969,000 in Q1 2023, compared to $3,678,000 in Q1 2022. This
decrease can be mainly attributed to two factors:
- Higher average freight cost: In Q1 2023, the average freight
cost per tonne of Product sold on a CIF (Cost, Insurance, and
Freight) basis increased from $44 to $53. This increase was driven
by a higher percentage of sales being made to the northern region
of Mato Grosso state, which is located farther away from Verde's
production facilities. As a result, the weighted average distance
of Product delivered increased by 12% in the quarter compared to
the previous year, with a $600,000 impact in Q1 2023.
- Reduction in potassium chloride (KCl) CFR Brazil price compared
to the previous year: The drop in KCl prices resulted in a 16%
decrease in revenue per tonne excluding freight expenses (FOB
price) in Brazilian Reais, from R$308 per tonne in Q1 2022 to R$259
per tonne in Q1 2023. As a result, this had a $435,000 impact on
the Company's quarterly results.
Basic loss per share was $0.002 for Q1 2023, compared to
earnings of $0.06 for Q1 2022.
Product Sales
Sales by volume decreased by 4% in Q1 2023, to 108,000 tonnes
sold, compared to 112,000 tonnes sold in Q1 2022, due to the
circumstances summarized below.
At the onset of the Ukrainian war in February 2022, concerns
arose regarding potential geopolitical sanctions against Russia and
their potential impact on the availability of potash fertilizers.
This led to a surge in customer orders during the first and second
quarters as they sought to stockpile fertilizers for the upcoming
crop season.
However, these concerns proved unfounded as the market actually
experienced an oversupply of potash due to increased availability.
Coupled with a 15% decrease in potash consumption in Brazil
throughout 2022, this resulted in a 23% increase in year-end potash
stock in Brazil, highlighting the lower overall demand for the
product during the year.6
As a consequence, potash prices have significantly declined,
witnessing a 67% decrease over the past year, with a sharp 22%
decline in the first three months of 2023.7 This has prompted
farmers to delay their agricultural input purchases as they
anticipate further price drops, thereby reducing the demand for
fertilizers in Q1 of 2023.
Furthermore, the price of soybeans, which represents the major
portion of Verde's sales, has declined by 33% over the past 12
months, with a significant drop of 21% in the last three
months.8
Despite the exceptional market circumstances witnessed in Q1
2021 and Q1 2022, Verde delivered in Q1 2023 results comparable to
those achieved in the previous year.
Revenue
Revenue from sales decreased by 2% in Q1 2023, to $11,125,000
from the sale of 108,000 tonnes of Product, at average $103 per
tonne sold; compared to $11,304,000 in Q1 2022 from the sale of
112,000 tonnes of Product, at average $101 per tonne sold.
The increase in average revenue per tonne was mainly due to the
higher percentage of CIF sales in the quarter, with 68% in Q1 2023,
compared to 60% in Q1 2022.
Average revenue per tonne excluding freight expenses (FOB price)
decreased by 10% in Q1 2023, to $67 compared to $75 in Q1 2022
mainly due to the decrease in Potassium Chloride CFR Brazil, from
US$750-US$1200 per tonne in Q1 2022 to US$455-US$520 per tonne in
Q1 20239. This reduction was partially offset by the 7%
appreciation of the Brazilian Real against the Canadian
Dollar. Production costsProduction costs include
all direct costs from mining, processing, and the addition of other
nutrients to the Product, such as Sulphur and Boron. It also
includes the logistics costs from the mine to the plant and related
salaries.
Verde’s production costs and sales price are based on the
following assumptions:
- Micronutrients added to BAKS® increase its production
cost, rendering K Forte® less expensive to produce.
- Production costs vary based on packaging type, with bulk
packaging being less expensive than Big Bags.
- Plant 1 produces K Forten® Bulk, K Forte® Big Bag, BAKS® Bulk,
and BAKS® Big Bag, while Plant 2 exclusively produces K Forte®
Bulk. Therefore, Plant 2's production costs are lower than Plant
1's costs, which produces two types of Products and offers two
types of packaging options each.
The table below shows a breakdown of full year 2023 Verde’s
production costs projection for BAKS® and K Forte®, and what
percentage of those costs is not controllable by management:
|
|
(+) |
(+) |
(=) |
|
| Cost per tonne of
product projected for 202310 (C$) |
Cash cost |
Assets depreciation |
Total cost expected for 202311 |
Non-controllable costs (% of total costs) |
|
K Forte® Bulk (Plant 1) |
20.2 |
3.8 |
24.0 |
61% |
| K Forte® Bulk (Plant 2) |
10.2 |
2.8 |
13.0 |
58% |
| K Forte® Big Bag (Plant
1) |
30.4 |
2.8 |
33.2 |
71% |
| BAKS® (2%S 0.2%B)12 Bulk
(Plant 1) |
42.1 |
3.8 |
45.9 |
81% |
| BAKS® (2%S 0.2%B) Big Bag
(Plant 1) |
51.3 |
3.8 |
55.0 |
85% |
Verde calculates its total production costs as a weighted
average of the production costs for BAKS® and K Forte®, taking into
account the production site and packaging type for each product.
Therefore, comparing the Company's production costs on a
quarter-over-quarter basis may not be meaningful due to the varying
proportions of the cost factors that impact each quarter.Production
costs increased by 2% in Q1 2023, to $2,710,000 compared to
$2,654,000 in Q1 2022. Average cost per tonne increased by 6% in Q1
2023, to $25 compared to $24 in Q1 2022.
Despite a 4% decrease in sales volume, from 112,000 tonnes in Q1
2022 to 108,000 tonnes in Q1 2023, Verde was able to reduce the
average production cost in Brazilian Reais. In Q1 2023, the average
production cost was R$96.47, compared to R$98.03 in Q1 2022. This
cost reduction can be attributed primarily to a shift in the sales
mix of packaging types, with a decrease in the percentage of Big
Bag sales from 39% in Q1 2022 to 24% in Q1 2023.
Sales Expenses
| CAD
$’000 |
Q1 2023 |
Q1 2022 |
|
Sales and marketing expenses |
(1,070 |
) |
(822 |
) |
|
Fees paid to independent sales agents |
(137 |
) |
(136 |
) |
|
Product delivery freight expenses |
(3,867 |
) |
(2,973 |
) |
|
Total |
(5,074 |
) |
(3,931 |
) |
Sales and marketing expenses
Sales and marketing expenses include employees’ salaries, car
rentals, travel within Brazil, hotel expenses, and the promotion of
the Product in marketing events.
This increase can be primarily attributed to the implementation
of a field sales team, which resulted in expenses related to car
rentals and travel. Additionally, the Company made additional
investments in media and third-party marketing agencies as part of
a strategic initiative to attract new customers.
Fees paid to independent sales agentsAs part of
Verde's marketing and sales strategy, the Company pays out
commissions to its independent sales agents. Fees paid to
independent sales agents increased by 1% in Q1 2023, to $137,000
compared to $136,000 in Q1 2022, in line with Q1 2023 sales.
Product delivery freight expensesProduct
delivery freight expenses increased by 30% in Q1 2023, to
$3,867,000 compared to $2,973,000 in Q1 2022, as the Company has
significantly increased the volume sold as CIF (Cost Insurance and
Freight), up from 60% of total sales in Q1 2022 to 68% in Q1
2023.
Sales made to states that are situated at a greater distance
from Verde’s production facilities had a notable effect on the
logistics costs. In Q1 2023, the average freight cost per tonne of
Product sold on a CIF (Cost, Insurance, and Freight) basis
increased from $44 to $53, compared to the previous year. This
increase was driven by a higher percentage of sales being made to
the northern region of Mato Grosso state, which is located farther
away from Verde’s production facilities. As a result, the weighted
average distance of Product delivered increased by 12% in Q1 2023
compared to Q1 2022, with a $600,000 impact in the quarter.General
and Administrative Expenses
| CAD
$’000 |
Q1 2023 |
Q1 2022 |
|
General administrative expenses |
(920 |
) |
(410 |
) |
|
Legal, professional, consultancy and audit costs |
(317 |
) |
(411 |
) |
|
IT/Software expenses |
(112 |
) |
(204 |
) |
|
Taxes and licenses fees |
(23 |
) |
(16 |
) |
|
Total |
(1,372 |
) |
(1041 |
) |
General administrative expenses These costs
include general office expenses, rent, bank fees, insurance,
foreign exchange variances and remuneration of executive and
administrative staff in Brazil. General administrative expenses
increased by 125% in Q1 2023, to $920,000 compared to $410,000 in
Q1 2022. Prior to Q4 2022, administrative employees working at the
offices situated within Verde's production facilities were
accounted for as part of the personnel production costs. However,
in Q1 2022, an adjustment was implemented to ensure alignment with
accounting standards. This adjustment involved shifting the cost
centre for expenses associated with 33 employees who met that
criterion. As a result, a total of $222,000 was reallocated from
production costs to general administrative expenses in the
quarter.Furthermore, additional rental expenses were incurred in
Plant 2, which involved the rental of water trucks and metallic
structures to support operations.Additionally, the Company made the
decision to outsource cleaning and maintenance services for Plant
1, Plant 2, and Verde's administrative office in São Gotardo.
Previously, these services were handled by employees of the
Company. Legal, professional, consultancy and audit
costsLegal and professional fees include legal,
professional, consultancy fees along with accountancy, audit and
regulatory costs. Consultancy fees are consultants employed in
Brazil, such as accounting services, patent process, lawyer’s fees
and regulatory consultants. Expenses decreased by 23% in Q1 2023,
to $317,000 compared to $411,000 in Q1 2022. The decrease was
mainly due to 2022 costs relating to the re-domiciliation of the
Company to Singapore.
IT/Software expensesIT/Software expenses
include software licenses such as Microsoft Office, Customer
Relationship Management (CRM) software and enterprise resource
planning (ERP). Expenses decreased by 45% in Q1 2023, to $112,000
compared to $204,000 in Q1 2022. Q1 2022 was higher as the Company
was implementing the change in its accounts from ERP to SAP
Business One. This has now been concluded.Taxes and
licencesTaxes and licence expenses include general taxes,
product branding and licence costs. Expenses increased in Q1 2023,
to $23,000 compared to $16,000 in Q1 2022 and increase of $7,000.
Share Based, Equity and Bonus Payments (Non-Cash
Events) These costs represent the expense associated with
stock options granted to employees and directors along with equity
compensation and non-cash bonuses paid to key management.Share
Based, equity and bonus payments costs decreased by 56% in Q1 2023,
to $28,000 compared to $64,000 in Q1 2022. The decrease is a result
of a reduction on share based payments in the quarter.Liquidity and
Cash Flows For additional details see the consolidated statements
of cash flows for the quarters ended March 31, 2023 and March 31,
2022 in the quarterly financial statements.
| Cash received from /
(used for):CAD
$’000 |
3 months endedMar 31, 2023 |
3 months endedMar 31, 2022 |
|
Operating activities |
(450 |
) |
3,284 |
|
|
Investing activities |
(1,889 |
) |
(3,382 |
) |
|
Financing activities |
5,336 |
|
2,805 |
|
On March 31, 2023, the Company held cash of $4,289,000, a
decrease of $4,684,000 on the same period in 2022.
Trade and other receivables increased by 70% in Q1 2023, to
$29,996,000 compared to $17,618,000 in Q1 2022. Trade and other
payables decreased by 6% in Q1 2023 to $9,494,000 compared to
$10,071,000 in Q1 2022.
Q1 2023 Results Conference Call
The Company will host a conference call on Wednesday, May 24,
2023, at 10:00 am Eastern Time, to discuss Q1 2023 results and
provide an update. Subscribe using the link below and receive the
conference details by email.
|
Date: |
Wednesday, May 24, 2023 |
|
Time: |
10:00 am Eastern Time |
|
Subscription link: |
https://bit.ly/Q1_2023_ResultsPresentation |
The questions can be submitted in advance through the following
link up to 48 hours before the conference call:
https://bit.ly/Q1_2023_ResultsPresentation_Questions.
The Company’s first quarter financial statements and related
notes for the period ended March 31, 2023 are available to the
public on SEDAR at www.sedar.com and the Company’s website at
www.investor.verde.ag/.
About Verde AgriTech
Verde is an agricultural technology Company that
produces potash fertilizers. Our purpose is to improve the health
of all people and the planet. Rooting our solutions in nature, we
make agriculture healthier, more productive, and profitable.
Verde is a fully integrated Company: it mines
and processes its main feedstock from its 100% owned mineral
properties, then sells and distributes the Product.
Verde’s focus on research and development has
resulted in one patent and eight patents pending. Among its
proprietary technologies are Cambridge Tech, 3D Alliance, MicroS
Technology, N Keeper, and Bio Revolution.13 Currently, the Company
is fully licensed to produce up to 2.8 million tonnes per year of
its multinutrient potassium fertilizers K Forte® and BAKS®, sold
internationally as Super Greensand®. In 2022, it became Brazil's
largest potash producer by capacity.14 Verde has a combined
measured and indicated mineral resource of 1.47 billion tonnes at
9.28% K2O and an inferred mineral resource of 1.85 billion tonnes
at 8.60% K2O (using a 7.5% K2O cut-off grade).15 This amounts to
295.70 million tonnes of potash in K2O. For context, in 2021
Brazil’s total consumption of potash in K2O was 6.57 million16.
Brazil ranks second in global potash demand and
is its single largest importer, currently depending on external
sources for over 97% of its potash needs. In 2022, potash accounted
for approximately 3% of all Brazilian imports by dollar
value.17
Corporate Presentation
For further information on the Company, please view
shareholders’ deck:
https://verde.docsend.com/view/hx6998vbxy6vy49x
Investors Newsletter
Subscribe to receive the Company’s updates at:
http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at:
https://bit.ly/InvestorsNL-April2023
Cautionary Language and Forward-Looking Statements
All Mineral Reserve and Mineral Resources
estimates reported by the Company were estimated in accordance with
the Canadian National Instrument 43-101 and the Canadian Institute
of Mining, Metallurgy, and Petroleum Definition Standards (May 10,
2014). These standards differ significantly from the requirements
of the U.S. Securities and Exchange Commission. Mineral Resources
which are not Mineral Reserves do not have demonstrated economic
viability.
This document contains "forward-looking
information" within the meaning of Canadian securities legislation
and "forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995. This
information and these statements, referred to herein as
"forward-looking statements" are made as of the date of this
document. Forward-looking statements relate to future events or
future performance and reflect current estimates, predictions,
expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to:
(i) the estimated
amount and grade of Mineral Resources and Mineral Reserves;
(ii) the PFS
representing a viable development option for the Project;
(iii) estimates of
the capital costs of constructing mine facilities and bringing a
mine into production, of sustaining capital and the duration of
financing payback periods;
(iv) the estimated
amount of future production, both produced and sold;
(v) timing of
disclosure for the PFS and recommendations from the Special
Committee;
(vi) the Company’s
competitive position in Brazil and demand for potash; and,
(vii) estimates of
operating costs and total costs, net cash flow, net present value
and economic returns from an operating mine.
Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives or future events or performance
(often, but not always, using words or phrases such as "expects",
"anticipates", "plans", "projects", "estimates", "envisages",
"assumes", "intends", "strategy", "goals", "objectives" or
variations thereof or stating that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be
forward-looking statements.
All forward-looking statements are based on
Verde's or its consultants' current beliefs as well as various
assumptions made by them and information currently available to
them. The most significant assumptions are set forth above, but
generally these assumptions include, but are not limited to:
(i) the presence of
and continuity of resources and reserves at the Project at
estimated grades;
(ii) the geotechnical
and metallurgical characteristics of rock conforming to sampled
results; including the quantities of water and the quality of the
water that must be diverted or treated during mining
operations;
(iii) the capacities
and durability of various machinery and equipment;
(iv) the availability
of personnel, machinery and equipment at estimated prices and
within the estimated delivery times;
(v) currency exchange
rates;
(vi) Super Greensand®
and K Forte® sales prices, market size and exchange rate
assumed;
(vii) appropriate
discount rates applied to the cash flows in the economic
analysis;
(viii) tax rates and
royalty rates applicable to the proposed mining operation;
(ix) the availability
of acceptable financing under assumed structure and costs;
(x) anticipated
mining losses and dilution;
(xi) reasonable
contingency requirements;
(xii) success in
realizing proposed operations;
(xiii) receipt of
permits and other regulatory approvals on acceptable terms; and
(xiv) the fulfilment
of environmental assessment commitments and arrangements with local
communities.
Although management considers these assumptions
to be reasonable based on information currently available to it,
they may prove to be incorrect. Many forward-looking statements are
made assuming the correctness of other forward looking statements,
such as statements of net present value and internal rates of
return, which are based on most of the other forward-looking
statements and assumptions herein. The cost information is also
prepared using current values, but the time for incurring the costs
will be in the future and it is assumed costs will remain stable
over the relevant period.
By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, and risks exist that estimates, forecasts, projections
and other forward-looking statements will not be achieved or that
assumptions do not reflect future experience. We caution readers
not to place undue reliance on these forward-looking statements as
a number of important factors could cause the actual outcomes to
differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates assumptions and intentions
expressed in such forward-looking statements. These risk factors
may be generally stated as the risk that the assumptions and
estimates expressed above do not occur as forecast, but
specifically include, without limitation: risks relating to
variations in the mineral content within the material identified as
Mineral Resources and Mineral Reserves from that predicted;
variations in rates of recovery and extraction; the geotechnical
characteristics of the rock mined or through which infrastructure
is built differing from that predicted, the quantity of water that
will need to be diverted or treated during mining operations being
different from what is expected to be encountered during mining
operations or post closure, or the rate of flow of the water being
different; developments in world metals markets; risks relating to
fluctuations in the Brazilian Real relative to the Canadian dollar;
increases in the estimated capital and operating costs or
unanticipated costs; difficulties attracting the necessary work
force; increases in financing costs or adverse changes to the terms
of available financing, if any; tax rates or royalties being
greater than assumed; changes in development or mining plans due to
changes in logistical, technical or other factors; changes in
project parameters as plans continue to be refined; risks relating
to receipt of regulatory approvals; delays in stakeholder
negotiations; changes in regulations applying to the development,
operation, and closure of mining operations from what currently
exists; the effects of competition in the markets in which Verde
operates; operational and infrastructure risks and the additional
risks described in Verde's Annual Information Form filed with SEDAR
in Canada (available at www.sedar.com) for the year ended December
31, 2021. Verde cautions that the foregoing list of factors that
may affect future results is not exhaustive.
When relying on our forward-looking statements
to make decisions with respect to Verde, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Verde does not undertake to
update any forward-looking statement, whether written or oral, that
may be made from time to time by Verde or on our behalf, except as
required by law.
For additional information please
contact:
Cristiano Veloso, Founder,
Chairman & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email:
investor@verde.ag
www.investor.verde.ag | www.supergreensand.com |
www.verde.ag
1 Verde’s Product is a salinity and chloride-free replacement
for KCl fertilizers. Potassium chloride is composed of
approximately 46% of chloride, which can have biocidal effects when
excessively applied to soils. According to Heide Hermary (Effects
of some synthetic fertilizers on the soil ecosystem, 2007),
applying 1 pound of potassium chloride to the soil is equivalent to
applying 1 gallon of Clorox bleach, with regard to killing soil
microorganisms. Soil microorganisms play a crucial role in
agriculture by capturing and storing carbon in the soil, making a
significant contribution to the global fight against climate
change.
2 1 tonne of Product (10% K2O) has 0.1 tonnes of K2O, which is
equivalent to 0.17 tonnes of potassium chloride (60% K2O),
containing 0.08 tonnes of chloride.
3 Soybeans (Paranaguá) price went from US$40.36 in April 2022 to
US$26.93 in April 2023, and from US$34.21 in February 2023 to
US$26.93 in April 2023. Source: Economic Research Center of the
ESALQ/University of São Paulo. Available at:
https://www.cepea.esalq.usp.br/br/indicador/soja.aspx
4 Potassium Chloride CFR Brazil price went from US$1200 in April
2022 to US$400 in April 2023, and from US$515 in February 2023 to
US$400 in April 2023. Source: Acerto Limited Report.
5 Source: Acerto Limited Report.
6 Source: Brazilian Fertilizer Mixers Association (from
"Associação Misturadores de Adubo do Brasil", in Portuguese).
7 Potassium Chloride CFR Brazil price went from US$1200 in April
2022 to US$400 in April 2023, and from US$515 in February 2023 to
US$400 in April 2023. Source: Acerto Limited Report.
8 Soybeans (Paranaguá) price went from US$40.36 in April 2022 to
US$26.93 in April 2023, and from US$34.21 in February 2023 to
US$26.93 in April 2023. Source: Economic Research Center of the
ESALQ/University of São Paulo. Available at:
https://www.cepea.esalq.usp.br/br/indicador/soja.aspx
9 Source: Acerto Limited Report.
10 The costs were estimated based on the
following assumptions: Costs in line with Verde’s 2023 budget.
Sales volume of 1.0Mt per year. Crude Oil WTI (NYM U$/bbl) =
US$80.00. Diesel price = U$$1.26. Currency exchange rate: US$1.00 =
R$5.25; C$1.00 = R$4.20. Total cost per tonne includes all costs
directly related to production and feedstock extraction in addition
to assets depreciation.
11 Total cost per tonne includes labor mining,
mining, crushing, processing, maintenance of support facilities,
product transportation from mine pits to production plants,
laboratory expenses, G&A, and environmental compensation
expenses.
12 BAKS® can be customized according to the
crop’s needs, so it can have several compositions. The 2%S 0.2%B
composition is responsible for most of Verde’s sales.
13 Learn more about our technologies:
https://verde.docsend.com/view/yvthnpuv8jx6g4r9
14 See the release at:
https://investor.verde.ag/verde-starts-ramp-up-of-plant-2s-second-stage-to-reach-production-of-2-4mtpy/
15 As per the National Instrument 43-101 Standards of Disclosure
for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR
in 2017. See the Pre-Feasibility Study at:
https://investor.verde.ag/wp-content/uploads/2021/01/NI-43-101-Pre-Feasibility-Technical-Report-Cerrado-Verde-Project.pdf
16 Source: Brazilian Fertilizer Mixers Association (from
"Associação Misturadores de Adubo do Brasil", in Portuguese).
17 Source: Brazilian Comex Stat, available at:
http://comexstat.mdic.gov.br/en/geral
Verde Agritech (TSX:NPK)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Verde Agritech (TSX:NPK)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
