Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 PedroPistacioon Jan 03, 2022 4:41am
293 Views
Post# 34278550

RE:New to this Board

RE:New to this Board

Hi Stu. I have been a fellow time traveller, along with most of the others on this board. 

I think your summary is a good one. I would however be cautious about making PE calcs and future projections based on prices achieved in Q3 which by all accounts were sensational and very likely unsustainable on account of the supply issues out of Belarus and the energy price spike. So, to your question on future pricing, who knows, but the average over the next 5 years is likely to be a lot lower than now, but that's ok. My take is that it is mass production that can drive Verde revenues from hereon, however the price spike is great timing right now, given the company's need for additional cash to fund the expansion. 

So these mining licences are vital, but hopefully forthcoming. We know from experience that the wheels turn pretty slowly in those mining departments, but the CEO seemed confident in his last few shareholder meetings, which you should try and attend BTW as he is open to answering plenty of questions, except for some of Stan's for some reason (!). 

As to your question about whether there is enough demand, well we never know, but sales growth has been very good so far and so we hope so. And the CEO has the capacity to drop prices if he wants to undercut traditional potash fertilisers to win market share but has not needed to do so as yet which is encouraging. 

Which leads on to another of your Qs on costs per tonne. Stan reckons in his post below that this is between $12 - $16. Plant 2 should be a bit lower cost (as I recall from a previous question to the CEO, but I cannot say I am right on this for certain). However as sales increase, so the transport costs also seem to increase due to the distance to new customers increasing. We haven't quite got to the bottom of this, but I believe that Verde subsidies a lot of the cost of transport which becomes a significant amount, not helped by farmers needing 6 times as much Verde product as they do mainstream fertiliser to do the same job due to the lower concentrations, albeit hopefully with less leaching with the Verde product. 

I am not the most knowledgeable of the contributors here, and I hope others will be able to tidy up anything I have said and make additions. The prospects still look very interesting in my humble opinion, with the planets starting to align, including the ESG angle. We will also be able to draw further thoughts from an upcoming feasibility report due out in Q1, albeit already delayed, which will endeavour to put an NPV on the company based on expansion up to an eventual 25m tonnes per annum. One thing at a time I suppose!

<< Previous
Bullboard Posts
Next >>