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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 Ciaoon Aug 25, 2021 7:41pm
199 Views
Post# 33765600

RE:Today’s presentation

RE:Today’s presentation I felt his handling of certain questions disturbing and unbecoming of a CEO. Beyond the questions on options, there was a question(s) on some large capital expenditures which he dismissed as he felt it as trivial in relation to the overall big picture for the company.

On serveral occaisions he suggested that shareholders can look elsewhere to invest their capital which some are likely to heed his advice.

Looking at the big picture, IMHO it goes back to the first PFS that gave a NAV of $50 USD / share. There are potash price assumptions and tonnage targets for different phases of production ramp up. There will be favourable inupts to raise the NAV of Verde with the higher current price of potash giving the greatest impact.  However, I don't get a sense that they are targeting the rate of exponential growth as initially outlined in their PFS.

It's my opinion that they will react to market acceptance of their product and increase tonnage to meet demand. That strategy will work as cash flow will be able to fund production ramp ups. One key risk is market acceptance and it appears farmers were more than incentivised to purchase product in Q2 with a big push from the sales (thus the bonus they received). 

Another risk is management: is there trust and integrity, do the Q&A sessions enhance that?



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