RE:RE:RE:Ther board is very bullishMy apologies for that error.
I read that number..10,000..0ff the new Presentation with the 2024 year with 10,000 tpa at the top.
Having gone back to the PFS, the outlook and generative financial metrics are outstanding and the capex quite modest .
They mention international buyers who like Shell want millions of tons of permanent CO2 sequestration to offset their Billions in CO2 emissions , so the putative CO2 contract is unlikely to be modest , probably will be multi yesr , and the 10,000 ton expansion could proceed , as the price of fertilizer will not enter into the arrangement .
The latter statement should not be surprising as all that is needed is fallow land in which the tons of NPK Forte can be ploughed in so that rock weathering can proceed.
We all know there are millions of acres of destroyed mangroves in Brazil in which this special fertilizer can be used both to sequester CO 2 directly by accelerated rock weathering , with added sequestration topside by reforestation of planted mangroves .
I consider their stated 300,000 tons to be the first step in an accelerated program of catering to the International oil industry which has a near hopeless task of offsetting their current CO2 emissions .
Verde operates Plant 1 with a capacity of 0.6 million tonnes per year (“Mtpy”), Plant 2 is on track for commissioning in Q3 2022 with an additional capacity of 2.4Mtpy, and Plant 3 is expected to add 10Mtpy with construction planned for 2023.
Plant 3’s capex is estimated by the PFS at US$52.77 million. Plant 3’s post-tax net present value (“NPV”) is projected at US$2.91 billion (8% discount rate) with an internal rate of return (“IRR”) of 427.17%, assuming a potash price at less than a third of current Potassium Chloride (“KCl”) prices and those adopted by Verde.
The capex for Plant 3 is expected to be covered by accumulated cashflow generated by sales up to Q2 2023, without need for equity or debt financing.