RE:RE:RE:RE:RE:RE:Verde Common shares trade down to $0.98The PFS or should it be FS is dependent on cash flow to determine NPV.
The largest unknown is sales of the product. They have flexibility to scale up plant 2 by running additional lines. Sales projections are the biggest unknown, I don't see how you could come up with an accurate NPV unless one has a good handle on sales. This is why CV is touting flexibility in production capacity, he'll be reactive to demand.
As noted in the presentation phase 2 and 3 had no real timelines. Putting off the PFS to year end buys time for a more realistic estimate of adoption rates for their potash substitute. IMHO Verde will be flying by the seat of their pants regardless of the PFS. The PFS could be done in months, it's a paper exercise as they are not drilling to further delineate the deposit.
There is nothing wrong with this strategy where Verde will be able to fund and scale up production with internally generated cash flow. The concern I have is how cash flow will be put back into the company or to shareholders rather than bonuses to the single largest shareholder.
There is a reason why the share price is currently 2% of the NPV determined From the 2017 PFS. We are far away from meeting those production targets nor is there a solid plan to get from one stage to the next.
With better corporate governance it's all fixable, but having questionable management to begin with is a handicap.