Recurring Verde QuestionSorry to keep raising this question, but it still seems relevant today as it was after Q1 and Q2 results.
The CHEAPEST retail pricing on a Verde product is a 35 tonne bulk delivery of K-Forte granular currently (and all through Q3) at R$522 per tonne or Cdn $127. With other products selling at prices up to 2 times this level, one would expect, all other things being equal, to see Verde report an average price per tonne sold during the quarter at $127 or higher.
We were told that some of the sales are made to wholesale distributors who are given a 30% discount to the full retail price, which would have the impact of reducing the average sales price per tonne realized.
In Q3, the average price per tonne realized was $69.31. If the average retial sale was at $127 and the average wholesale was at a 30% discount ($88.90), even if everything was sold at wholesale this would still give an average price above $88.00.
It would appear from these calculations that Verde's sales are being made at significant further discounts to the prices that have been shared with us.