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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 GeneralAladeenon Nov 06, 2022 10:06am
499 Views
Post# 35077109

RE:RE:RE:RE:Chart

RE:RE:RE:RE:Chart

$9-10 by end of 2023 - not sure where you get those numbers from. Let's make some assumption to arrive at a realistic valuation. 

Assume they sell 2.4m tons with a net margin of $50 per ton (currently around $100) 

that give us a forward P/ FCF of around 3.60. In mining a good C/FCF ratio is anything under 15x. 

So provided the above assumption are correct, we are undervalued by around 4x. So 2023 SP should be $31.20 per share. That is without a growth multiple. 


It gets real interesting if they make $100 per ton and more interesting if they do 3m tons. REAL fun when phase 3 expansion of 10m tons. Good luck and hold onto your shares:-) 

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