Verde AgriTech Ltd. T.NPK

Verde Q3

[Cottonwool]

Thank you all very much for your informative posts.

just a few comments...

The number which no one has commented on yet is the receivables of C$3.415m, which I find very high but which is more than enough to pay off the high interest debt they have. Why is it so high? We're most of the sales made towards the end of the period?

Verde jealously guards the number of shares it issues, except to its executives, so my next question is how they are going to fund their increasing working capital and capex requirements as the business grows? Much as I like the idea of them issuing royalty shares, it could end up as the most expensive way of financing the business available and, of course, canny shareholders would probably grab the royalty shares and sell the ordinary shares! Do bear in mind they have $369m to spend to get the mine into 25m tons a year production...

Severe currency and KCL price headwinds have helped disappoint certain investors who were hoping for better numbers. I agree it could have been better but Q3 results still show the business is going in the right direction.

Particularly pleasing is the progress being made on getting the necessary permits!

Those who are looking at the other expenses...please don't forget the significant number of new employees and the new office in Belo Horizonte!

What I am mot interested to hear about is how much progress they have made in 2020 in selling to the large farms in Brazil...and how many of these are likely to repeat order?

Roll on November 24 and December 12!

[15Stanmore]

Hello Cottonwool, Thank you for the great post. You are bang on regarding the Trade Receivables at quarter end. At $3,415,000 this is a significant increase over the same time last year, especially as it is all denominated in local currency. Looking at receivables on a Brazilian Real measurement here are the numbers: September 30, 2019               R$5

[Cottonwool]

Or it could be they had logistical or production problems early in Q3?

[15Stanmore]

I know they took the production line down in July to replace the hammer mill (still lots of outstanding and unanswered questions about the reason for that decision) so that perhaps that impacted the timing of sales? Of course an experienced production manager would have built up finished product inventories well ahead of a planned line shutdown in order to insulate customers from any delivery

[Sugoioi]

I would be surprised if they didn't have down time due to the new electrical cable, commissioning, etc