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Verde AgriTech Ltd. VNPKF


Primary Symbol: T.NPK

Verde AgriTech Ltd is an agricultural technology company that produces potash fertilizers. The principal activity of the Company is the production and sale of a multi-nutrient potassium fertilizer marketed in Brazil under the brands K Forte and BAKS, Silicio Forte, and internationally as Super Greensand (the Product). K Forte is a potash fertilizer that is a source of potassium, silicon, and magnesium and micronutrients. BAKS is a combination of K Forte plus three other nutrients that can be chosen by customers according to their crops’ needs. It mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product. Its Cerrado Verde Project is in Minas Gerais state, Brazil, which is a potassium-rich deposit, from which it is producing solutions for crop nutrition, crop protection, soil improvement, and increased sustainability. Its technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.


TSX:NPK - Post by User

Post by nozzpackon Aug 07, 2023 5:20pm
174 Views
Post# 35576610

Brazils Massive Reforestation Program

Brazils Massive Reforestation Program

See the link below .
So here is a huge market for the glauconite rock that NPK mines and now sell for for food production in Brazil.
We already know that NPK has gone outside this commercial model in order to acquire cleared deforested land , distributed its Greensand's fertilizer over that deforested area to reforest with over 30,000 trees todate.

So, logically, one might expect that NPK will use this certified pilot reforestation project to plant its mined rock directly on deforested areas of Brazil as per the Objectives of the Brazil Reforestation Program.

Dual CO2 credits would accrue ....mainly from permanent sequestration of CO2 in situ,.... but also life cycle wise accruing the net emission / consumption gains of the emergent forest.

It would be a very nice revenue model for NPK might also receive tax credits from Brazil for such Reforestation iniatives .

So, the revenue streams might be five  fold...

1..from sale of Greensands directly to farmers for growing food for Brazil export and domestic condumption

2.,,,sale of permanent sequestered Carbon credits upon farmers planting their crops

3...sale of permanent sequestered Carbon credits from participation in Brazils Reforestation Program

4..annual Carbon credit dividend in the form of time dependent Reforestation of tree biomass gains

5...Tax credits for its Brazil reforestation program

I would perceive gross margin gains  from #2 and #3 while #4 would increase free cash flows and net margins.

Always of course, just speculation...
 


https://www.climatepolicyinitiative.org/publication/large-scale-reforestation-starting-with-public-lands-in-the-brazilian-amazon/

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