Verde AgriTech Ltd. T.NPK

All in line

[PedroPistacio]

This all seems bang in line as far as I can see. With no new news announced, perhaps the market is a bit disappointed, given CV's news flow flurry earlier in the year. However as I see it the big kicker comes in Q3 when plant 2 has hopefully kicked in. Sounds like we should get some confirmation on its commissioning sometime soon, and given that no negative news was released today on that score then my read is that it is on schedule.

[MuttleyKnows]

Agreed. Everything looks in line with forecast. Slight miss on EPS due to increased fuel costs. They can't control that but the impact was not significant. Most importantly, the company confirmed full year guidance so they expect they can make up the difference in the second half. This indicates to me that everything is a go for the second plant in august. 

[Abruzz0]

This is a brilliant Q2 for Verde. In light of market turbelances, it is even more impressive.  The demand for Verde's potash is clear, the question is how swiftly can it shoot a constant burst of ever larger volumes. Let's hope all goes well with the productoin of its Mine 2. That will be a watershed moment, in one direction or another. 

[BCdude]

I bought a little more today, too. The one question I have is how will a decline in potash prices to historical levels affect profitability. They've added plenty of expenses to supercharge growth, so I'm assuming some of those expenses would be scaled back if potash prices fall too far. As well, I'm assuming higher volumes will help to mitigate some of that pressure.

[PedroPistacio]

Much higher volumes should reduce costs, as will lower diesel. A higher % sale of blended versions should help the margin too. Good questions to out to CV in the presentation/Q&A next Tuesday though. It's the transportation volume ramp up that I want to understand. 

[goldwatch69]

I guarantee you there will be no decline to historical lows. It's just not possible to produce data profit at ridiculously low prices The market will be lucky to see Kaiser's forecast of around $500 for KCl

[PedroPistacio]

Has there been a recent Kaiser update? Please post a link if so, thanks.

[kanerfalk]

https://youtu.be/1PZVvZ7AyCU

[Benedictus]

  never say never. But importantly the company is slated to generate enough revenue this year to build plant 3 with with exceptional unit economics. Along with a high margin add on like Bio- Rev, and farmer loyalty growth, this should enable Verde to more readily shoulder a possible potash supply glut in 2025. If such a scenario were to occur I could see a full moth balling of plant 1 with