GOOD NEWS ! POTASH PRICE INCREASE BOOSTS VERDE PROFITABILITYPOTASH BRAZIL CFR PRICE IS ON TRACK TO REACH $305/TON. THIS WILL ADD ALMOST $10/T (FROM $24 TO $33) STRAIGHT TO VERDE'S BOTTOM LINE FOR 2018. IT IS AN INCREASE OF 22% FROM THE PFS WHICH USED A $250 CFR PRICE.
THIS ALSO ENABLES VERDE TO OFFER PRICE DISCOUNTS OF, SAY, 10% TO BUYERS OF SIGNIFICANT QUANTITIES OR FOR OFFTAKE AGREEMENTS AND, IMPORTANTLY, STILL IMPROVE ON THE OUTCOME OF THE PFS.
ALTERNATIVELY, EVEN THOUGH SUPER GREENSAND IS A SUPERIOR PRODUCT, VERDE COULD CHOOSE TO REFRAIN FROM ANY PRICE INCREASE FOR THIS YEAR ONLY IN ORDER TO INCENTIVIZE FARMERS AND ACHIEVE FASTER MARKET PENETRATION.
VERDE WOULD ALSO BE ABLE TO GAIN SIGNIFICANT GOODWILL FROM BRAZILIAN FARMERS IN THE PROCESS.
EITHER WAY IT GREATLY INCREASES THE SAFETY CUSHION AND COMFORT LEVEL FOR THE PRESENT MARKET VALUATION.
