Verde raises prices againHello fellow Verde shareholders,
Have a look at the Verde local web page for online ordering here
Products - Green Online (verde.ag)
There have just been across the board increases in the current price ranging from 5.7% on the basic KForte product up to almost 10% on the top end BAKS offerring.
These increases continue the upward trend we have seen from the beginning of the 2nd quarter, and most recently confirmed in the Q2 report which disclosed the average price per tonne sold in the 2nd quarter had hit $55.86 compared with $35.01 in Q2 2020. That is a 60% realized average price increase over 2020. Awesome!
With the further increases in spot pricing in the last 2 months, and recognizing that some customers will have sensibly locked in prices with confirmed orders before the recent increases, we can still expect to see a strong average realized selling price per tonne in Q3, and likely on a larger volume of product sold (remember Q3 is the highest sales month, and recent Q2 2021 sold 96,223 tonnes versus 71,183 in 2020 - a 35% growth in sales volume).
Q3 sales in 2020 were 105,769 at an average selling price of $37.40. While I do not think we will likely hit the current capacity limit of 150,000 tonnes per quarter, my model with a 30% growth to 137,500 tonnes and at an average realized selling price of $66.50 will deliver a Q3 sales figure equal to the entire sales for all of 2020 - around $9.2 million.
That would be a huge boost for the share price and would, in my opinion, lay the basis for a sustained run up to and above $2 per share by year end.
Don't you just love all the tailwinds filling the good ship Verde's sails?