RE:Presentation and Q&A comments? This was a neutral presentation. It went on too long and the silence both on this board and the market sums up the situation:-
-Verde still has much to prove. Three years down the line we are nowhere near the 600,000 tonnes per annum promised in Year 1 of the PFS back in 2017, and there is no evidence yet that the very large farms in Brazil have become significant buyers of K Forte
-Minas Gerais has been slow to grant permits
-Furthermore the Board appears to be happy to take on debt at 12% per annum, a price well above the 8% cost of capital in the PFS, and arguably more than it needs to pay
-Yet there ARE grounds for optimism...
-Agriculture in Brazil is booming and it needs fertiliser to sustain it
-Long term, it MUST make sense to have at least one significant domestic producer. Verde has the resources, even though their product has only a fraction of the potassium present in KCL
-Q2 tonnage was better than expected (yet there was no upgrade of the R32m sales target promised for 2020...maybe because of the current uncertainty about the outlook for Potash prices)
-We are promised technological advances in Verde products (and if Verde can break free from being bound by the KCL price then that has to be good news long term)
So long term shareholders need to be patient and wait for the Technology presentation and Q3 results...we need to see stronger sales, greater positive cash flow and more visibility on the outlook for the business than we have today
Good Luck!