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Bullboard - Stock Discussion Forum 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... see more

TSX:NPK - Post Discussion

Verde Agritech Ltd > Today’s presentation
View:
Post by PedroPistacio on Aug 25, 2021 3:05pm

Today’s presentation

I missed the first 20 minutes unfortunately but caught the next hour and a half or so. Overall I was reasonably reassured by what was said. I know CV "passed" on many of the options and inventory specific questions that were raised, but I suppose there were a lot of questions to get through and he wanted stay big picture. I don't feel too left in the dark. However I was made to feel a bit mean for being underwhelmed by Q2 sales when he explained the context of the drought conditions besetting Brazilian farmers. A fair cop. I also liked the energy and confidence exuded for the rest of '21 and forward into 2022.


Two things that I did find a little odd though were a. his response to the question as to whether he is speaking to private equity. He said no he was not speaking to PE about taking the company private, but he said it in a way that sounded like he might be speaking to PE about something else. And b. I thought it odd about the company using cash on the balance sheet to buy back shares, when we all know that the company needs all of its cash to self finance its growth, hence no dividends for the foreseeable future (correctly IMO).

Thoughts welcome.

Comment by Ciao on Aug 25, 2021 7:41pm
I felt his handling of certain questions disturbing and unbecoming of a CEO. Beyond the questions on options, there was a question(s) on some large capital expenditures which he dismissed as he felt it as trivial in relation to the overall big picture for the company. On serveral occaisions he suggested that shareholders can look elsewhere to invest their capital which some are likely to heed his ...more  
Comment by PedroPistacio on Aug 26, 2021 3:48am
I agree that the handling of these questions could be done better, but I would not say that this has affected my thoughts on CV's integrity. To be honest, out of the hundreds of company presentations I have sat in on over the years I can't recall questions of this specificity. However I am not an analyst and so I suppose those in-depth questions get asked at specialist analyst meetings ...more  
Comment by Ciao on Aug 26, 2021 9:12am
Pedro, The updated PFS and NAV will depend on what future cash flows will be and dependent on some things they may be able to control: ie.  production volumes (which depends on what they want to produce based on market acceptance of their product). CV alluded during the call to what we haven't seen, some survey / %age of sales from new and existing customers (perhaps some answers on why ...more  
Comment by PedroPistacio on Aug 26, 2021 1:59pm
I think what you say makes a lot of sense. However it is worth mentioning that, due to power of compounding, that 35% annual volume growth would turn 350,000 tonnes of demand into 25million tonnes in 13-14 years. At 40% it would be 12-13 years. I could live with that time horizon if that means Verde being a $2bn+ market value. In fact I think the market value would actually be higher than that if ...more  
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