Verde announces 2021 Sales TargetsThe Company's November 16 news release updated the 2020 sales and production targets and announced the equivalent figures for 2021, as follows:
Updated 2020 targets:
Sales volume (in tonnes)
Original 222,000
Revised 251,428 Increase of 29,420 13.25%
Sales Revenue (in Brazil Reals)
Original R$32 million
Revised R$35.2 million Increase of R$3.2 million 10%
Initial 2021 Targets:
Sales Volume (in tonnes) 357,000 Increase of 105,572 42%
Sales Revenue (in Brazil Reals) $50.0 million Increase of $14.8 million 42%
This assumes the current realized gross selling price of B$140.00 per tonne is sustained through 2021. If production costs continue at their current level of B$46.60 per tonne, this will see a gross margin of B$33,368,000 or 66.7%.
I find these numbers encouraging, although I should point out that this is still only represent 1,000 per day production (using a 365 days/year schedule) - so essentially the plant operating at half its current capacity. Thisa also begs the question as to what we are going to do with a new plant being constructed in the second half of 2021 which will add another 1,200,000 tonnes per year of production capacity, while our 2021 production target only use half of te capacity of our existing plant.
The forecast for sales volume in 2022 must look pretty amazing, IMHO.