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Verde Agritech Ltd T.NPK

Alternate Symbol(s):  VNPKF

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

Comment by 15Stanmoreon Aug 19, 2021 10:13am
163 Views
Post# 33729847

RE:Currency loss Q2

RE:Currency loss Q2
ICT1111 wrote: Stan, I've just been taking a closer look at the Q2 numbers. I note that we have a currency loss on conversion to C$, hasn't that trend reversed? Is it possible that the loss of ~1.8m on currency is actually a profit? If this is the case that is a C$3.5m swing........ please put me in my place if I am wrong!


Hello ICT1111. Your conclusion is the same as mine - the Brazil Rias appreciated against the Canadian dollar during Q2, so the translation adjustment reported as a $1,760,000 loss should have fact been a $1,760,000 gain. 

This means the Q2 2021 Comprehensive Loss of $1,681,000 reported by the Company on page 3 of the statements is incorrect, and should instead be reporting a Comprehensive Profit of $1,839,000, which I believe is the first ever quarter where the Company has achieved a Comprehensive Profit.

You can confirm this by adding the results from Q1 and Q2 together to reconcile with the results for the 6 months ending June 30, 2021. The Q1 exchange translation was indeed a loss of $1,522,000. If you add a loss of $1,760,000 as reported in Q2, you get a 6 month loss of $3,302,000. The Company instead reports the 6 month number as a gain of $238,000, which is the total you get (allowing for rounding) from combining a Q1 loss of $1,522,000 with a Q2 gain of $1,760,000.

I shared this with the Company on Monday so I am expecting to see a news release soon identifying the mistake and issuing corrected statements, especially as it is a $3.5 million misstatement as you correctly identified.

S.
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