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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

Post by PedroPistacioon Feb 28, 2022 8:41am
368 Views
Post# 34466979

Can Verde sell at $250 per tonne for Potash?

Can Verde sell at $250 per tonne for Potash?I watched the latest YouTube video, and one thing that stuck out was the interviewer's question about transport costs, which readers of this BB will know is something many of us have been wondering too. CV said the cost to produce is $10 per tonne, but transport costs are up to $30 per tonne. So whilst potash prices are at $850, which translates as $140 per tonne of Verde product, the profit per tonne is clearly sensational. However, from memory, in the original PFS the average potash priced used was $250, which translates into just $40 per tonne of Verde product. Does this not mean that transport cost inflation means that Verde is not profitable if potash prices fall to $250? I suspect the answer lies in the fact that perhaps I am not looking at like for like, in as much as transport costs will have to also be added to the alternative potash products. The transport cost per tonne within Brazil for Verde's big potash competitors will presumably be a sixth oftgecost to Verde, although in Verde's favour, these competitors have to ship to Brazil in the first place. Even so, a return to $250 will make for somewhat paltry pickings for Verde. Or is there a flaw in my figures and thinking? 
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