Verde Agritech Ltd T.NPK

Average Pricing

[15Stanmore]

Hello fellow Verde shareholder,

Based on the current web pricing, the lowest cost is the basic K-Forte product at R$17,045 for a 35 tonne bulk shipment, so R$487 per tonne. At a $0.24 exchange rate, this is a lowest price of Cdn $116.88 per tonne.

Interestingly in my 2021 adjusted revenue model, which works towards the recent forecast of total sales in 2021 at R$90,000,000, the projected Q4 2021 sales of about 77,000 tonnes need to be sold at an average of Cdn $61.50 to hit this new total.

I will be looking to understand why the financial statements seem to be reporting a gross selling price that is about 50% of the lowest listed price on the Company's website. This has been an ongoing issue that the CFO needs to properly address in his presentation in November.

Cheers,

S.

[HDP18]

Coult it be due to pricing product in USD vs local currency or would these be pre arranged fixed price contracts??

[15Stanmore]

Hello HDP18. We assume there will be a number of contracts signed for deferred dilivery dates with favourable prices locked in. That being said, these will gradually be filled and replaced with new contracts that must reflect the higher prices. With monthly limited production capacity, there is little to be gained in these high price high demand times by locking in contracts at large discounts

[Dougisgood]

Longtime reader. Finally decided to give stockhouse my info to join in. They could also be doing what many companies do with an internet sales presence. The web price is used as a sales feature. Keep the product in your "cart" long enough and you start getting discount coupons, consumer gets a discount they like and purchase.  Verde is a David vs Goliath story in competing against

[15Stanmore]

Hello Doug, Welcome aboard! Great to have another reader/contributor - all welcome and teh more the merrier. You noted in your last post: "They'll need purchasers for 1.8 million tonnes next year. " Current production capacity of Plant 1 is 600,000 tonnes. Construction of Plant 2 is just getting underway and will eventually comprise 4 parallel processing lines, each one having a