Potash is now 221% more expensive than 2021.*
In April 2022, it reached the price average of US$1,200/t. The largest price rise since 2009.
Source: Acerto Limited Report / Agribusiness Intelligence for Latin America
Geopolitical risks impacted a market controlled only by 3 countries:
Russia, Belarus and Canada.
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Belarus protests against its dictator, Alexander Lukashenko, and Russia protests against Putin’s decision to invade Ukraine.
Each year, an additional 80 million people need to be fed, while arable land per capita declines, requiring more potash.
Population Growth - Estimates (1950-2020) and Medium Variant (2021-2050)
Source: United Nations Population Division
Brazil is the second largest consumer of potash in the world.
More than 95% of the potassium consumed in Brazil is imported, which also makes the country the world’s largest potash importer.
In 2021 Brazilian Farmers spent around US$12 billion in potash purchases.
Verde is an agricultural technology company that develops and produces potash fertilizers.
Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable for farmers. We work to improve the health of all people and the planet.
Our shares are listed on the Toronto Stock Exchange under the trading symbol NPK.
Our potash mine in Brazil has 1.30 billion tonnes in reserves and 1.47 billion tonnes in resources, sufficient to last generations supplying most of the Brazilian market.
Source: See pages 27 and 28 from 2022 NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, Minas Gerais, Brazil.
We’ve been experiencing an expressive growth since we started production in 2017.
Verde’s revenue per year (R$ ‘000)
1 – EBTIDA before non-cash events for 2020 = R$6.11M
2 – EBTIDA before non-cash events for 2021 = R$27.8M
3 – Targeted revenue based on FY 2022 guidance, updated on May 03, 2022. Average currency exchange rate: C$1.00 = R$4.40. See press release: https://investor.verde.ag/verdes-2022-guidance-and-two-year-outlook-revised-upwards/
2 – EBTIDA before non-cash events for 2021 = R$27.8M
3 – Targeted revenue based on FY 2022 guidance, updated on May 03, 2022. Average currency exchange rate: C$1.00 = R$4.40. See press release: https://investor.verde.ag/verdes-2022-guidance-and-two-year-outlook-revised-upwards/
Verde has 138% compound annual growth rate since production started in 2017, with 74% of gross margin achieved in 2021.
Our net present value
per share is C$345.32*
* Based on C$17.47 billion NPV after tax divided by 50,581,619 shares outstanding as of March 21, 2022.
Estimated Net Present Value after tax of US$13.54 billion, with 8% discount rate and Internal Rate of Return of 227.08%, based on the NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project elaborated by the Verde in 2022, assuming a potash price at less than a third of current Potassium Chloride. NPV and IRR were calculated considering the 50Mtpy production Scenario, with the K2O + S + Micronutrients Product composition.
For further information, see press release issued by the Company on May 16, 2022: https://investor.verde.ag/wp-content/uploads/2022/05/Verde-AgriTech-Press-Release-Pre-Feasibility-Results-May-16-2022.pdf
Currency exchange rate: US$1.00 = C$1.29.
For further information, see press release issued by the Company on May 16, 2022: https://investor.verde.ag/wp-content/uploads/2022/05/Verde-AgriTech-Press-Release-Pre-Feasibility-Results-May-16-2022.pdf
Currency exchange rate: US$1.00 = C$1.29.
Project economics are outstanding because our delivered cost is the lowest among all producers.
Delivered cost to the Cerrado region, Brazil (March, 2021)
1 – Delivered cost of 600kg of K2O, equivalent to 1 tonne of KCl or 6 tonnes of K Forte.
2 – Freight from Taquari-Vassouras mine, in Rosário do Catete (SE), to Minas Gerais. Currency exchange rate: US$1.00 = R$5.30
3 – Ben’s Fert Playbook, Global Fertilizers. Scotibank, March 2021, page 25.
4 – Operating costs for meeting the market demand of 16.84M tonnes of K Forte. See NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, MG, Brazil, page 198.
5 – Weighted average freight for meeting the market demand of 16.84M tonnes of K Forte. See NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, MG, Brazil, page 175.
6 – Acerto Limited Report, Agribusiness Intelligence for Latin America. Port costs, Demurrage and Freight to the Farm calculated from Santos (SP) Port to Uberaba (MG), as of August 19, 2021.
7 – Average margin considered as 10% of the sale price.
We supply salinity and chloride free potassium specialty fertilizers directly to farmers for the same cost as imported conventional fertilizers.
Sources: Malavolta, E.; Usherwood, N.R. Adubos e adubação potássica. 5. ed. Instituto da Potassa, 1984. 56p. / Sci, J. E., C. Change, M. Ma, D. Oh, and E. Ng. 2019. Import of Potash Fertilizer in Egypt by Using Glauconite Deposits as an Indigenous Alternative Source of Potassium. 10(2):2–5. / Dr. Felipe Santinato and Dr. Fernando Dini Andreote research – Verde.ag. Blog October 28, 2020. / Stomaite, K., Zagorskis, A. (2014). Research Into Efficiency of Ammonia Removal from Polluted Air Using na Adsorber with Glauconite Packing Material. In Enviromental Engineering. Proceedings of the Internacional Conference on Environmental. Engineering. ICEE (Vol. 9, p. 1). Vilnius Gediminas Technical University, Department of Construction Economics & Property. / TEDROW JOHN. Greensand and Greensand Soils of New Jersey: A Review. Rutgers NJAES Cooperative Extension, 2003. / SILVA, Rodrigo Vieira et al. Effects of silicon on the penetration and reproduction events of Meloidogyne exigua on coffee roots. Bragantia, Campinas , v. 74, n. 2, p. 196-199, June 2015. / Role of silcon in plant resistance to water stress. Journal of Elementology. 14. 619-630. 10.5601/jelem.2009.14.3.20.
Our strong board of directors counts with UN World Food Prize winner Alysson Paolinelli, who was also a contender for the 2021 Nobel Peace Prize.
Alysson Paolinelli
We have a scalable project being developed in a non-dilutive way to shareholders, through accumulated cash flow and debt.
Verde raised over C$60 million over the years, cautiously invested in exploration, project development, production and expansions.
This strategy has been validated by the Company’s profitable and constant growth so far.