Verde Agritech Ltd (TSX: “NPK”) (OTCMKTS: “VNPKF”)
("
Verde” or the “
Company”)
announces its financial results for the period ended September 30,
2024 (“
Q2 2024”).
Despite a slight reduction in delivered volumes,
financial results for the third quarter of 2024 have shown an
improvement compared to Q3 2023. The Company sold 100,986 tons in
Q3 2024, down from 108,000 tons in Q3 2023. Nevertheless, Verde
achieved a 33% reduction in net loss.
In recent months, the Brazilian agricultural
sector has continued to experience the compounded effects of higher
input costs and subsequent decline in commodity prices. Which was
further pressured by elevated interest rates in Brazil, which has
created significant challenges for farmers and led to record levels
of insolvency rates across the sector and impacted both
agricultural producers and its supply chain. Additionally,
tightened credit conditions have made financing increasingly
difficult for farmers, thus reducing their purchasing capacity.
“As we continue to navigate a challenging
market, we remain focused on strategic milestones that will shape
our future,” said Cristiano Veloso, Founder and CEO of Verde
Agritech. “In the coming days, we anticipate sharing significant
updates, including the debt renegotiation status, progress on the
reassey of historical drilling and an independent mineral resource
calculation for our Man of War rare earths project. Additionally,
we expect to initiate the spin-off process for our rare earths
asset.”
Recent developments and subsequent
events
Loan Renegotiation
On October 02, 2024, Verde announced that it had
successfully renegotiated with banks holding 73% of its outstanding
loans. Following this action, the Company expected the remaining
five creditor banks to accept the same terms or face a 75% debt
reduction through a court order, as per applicable Brazilian
legislation. Under the renegotiated agreement, the repayment term
is extended to 120 months, with principal repayments suspended for
18 months. Crucially, 90% of the principal will be repaid on a
staged schedule, starting after 55 months. The deal is anticipated
to yield cash savings of R$115 million over the next 24 months.
Additionally, all interest payments are suspended for 18 months,
followed by an average nominal interest payment based on Brazil’s
CDI (Certificado de Depósito Interbancário) plus 2.08%1.
Rare Earths
On October 07, 2024, the Company announced that
4,708 hectares of its mineral concessions are prospective for
Magnetic Rare Earths mineralization, following a review of
historical drill holes. MREs, including Praseodymium, Neodymium,
Dysprosium, and Terbium, are in high demand due to their crucial
role in the energy transition and these elements are also essential
components in the production of high-performance magnets used in
electric vehicles, wind turbines, and other green technologies.
Results from 15 additional drill holes revealed a 65-meter
mineralized zone with grades of up to 4,209 ppm TREO and 975 ppm
MREO.2
On October 29, 2024, Verde announced significant
assay results from over 1,500 meters of exploration, identifying
rare earth elements with concentrations reaching up to 12,487 ppm
TREO and 3,357 ppm MREO. Results from 13 additional drill holes
revealed an 89-meter mineralized zone with grades of up to 3,706
ppm TREO and 839 ppm MREO.3
Second Quarter 2024
Highlights
Operational and Financial Highlights
- Sales in
Q3 2024 were 100,986 tons, compared to 108,000 tons in Q3
2023.
- Revenue
in Q3 2024 was $7.1 million, compared to $9.4 million in Q3
2023.
- Cash and
other receivables held by the Company in Q3 2024 were $14.7
million, compared to $25.4 million in Q3 2023.
- EBITDA before non-cash events was
-$0.03 million in Q3 2024, compared to -$0.62 million in Q3
2023.
- Net loss
in Q3 2024 was -$2.33 million, compared to -$3.46 million net loss
in Q3 2023.
Other Highlights
- Product
sold in Q3 2024 has the potential to capture up to 12,111 tons of
carbon dioxide (“CO2”) from the atmosphere via Enhanced Rock
Weathering (“ERW”).4 The potential net amount of carbon captured,
represented by carbon dioxide removal (“CDR”), is estimated at
8,126 tons of CO2.5 In addition to the carbon removal potential,
Verde’s Q3 2024 sales avoided the emissions of 4,659 tons of CO2e,
by substituting potassium chloride (“KCl”) fertilizers6.
- Combining
the potential carbon removal and carbon emissions avoided by the
use our Product since the start of production in 2018, Verde’s
total impact stands at 292,613 tons of CO2.7
- 8,004
tons of chloride have been prevented from being applied into soil
Q3 2024, by farmers who used the Product in lieu of KCl
fertilizers.8 A total of 168,039 tons of chloride have been
prevented from being applied into soils by Verde’s customers since
the Company started the production.9
Guidance Update
In recent months, Brazil’s agricultural sector
has continued to feel reel from the effects of past challenges,
when farmers took on significant debt during a period of high input
prices followed by a steep commodity price drop. Now, with higher
interest rates, farmers are experiencing heightened financial
strain, and insolvency filings have reached record levels across
the sector, impacting both farmers and distributors of agricultural
inputs. This environment has also triggered a credit crunch, making
financing increasingly difficult for agricultural producers. To
mitigate risks associated with this tightening credit market, Verde
has adopted conservative sales practices, limiting exposure to
credit risk. Consequently, in light of these conditions, investors
are advised not to rely on the financial guidance for fiscal year
2024.
Q3 2024 in Review
Agricultural Market
The price of potassium chloride (KCl) decreased
by approximately 8% during the quarter and by 13% compared to the
same period last year10, intensifying competitive pressure from
lower-priced imports. This downward pricing trend, along with a
more conservative purchasing approach adopted by farmers11, is
driven by macroeconomic uncertainties such as elevated interest
rates12, that led to significant delays in fertilizer purchases
across the agricultural sector, causing a postponement in
fertilizer demand13. Typically, the Brazilian market sees an uptick
in fertilizer purchases by mid-year; however, this quarter
experienced a notable decline as farmers deferred investments,
anticipating improvements in both economic and climatic
conditions14.
In addition, adverse weather conditions,
including prolonged drought periods followed by delayed rains15,
further impacted the Company’s operations in the third quarter of
2024. The extended dry spells disrupted agricultural cycles,
slowing down demand for fertilizers and affecting crop readiness
across key regions. These challenging conditions added another
layer of complexity to an already cautious market, dampening
overall sales performance for the period.
In Q3 2024, the Brazilian potash fertilizer
market was under pressure due to ongoing macroeconomic and
environmental challenges16. Potassium chloride (KCl) average prices
were US$297 per ton17, marking a 13.57% decrease from Q3 2023,
continuing the downward trend observed since the peak in 2022. This
decline was primarily driven by an oversupply in global markets and
weaker demand in key emerging economies, including Brazil18.
Despite the lower potash prices, farmers were cautious in making
purchases due to persistent economic uncertainties, high-interest
rates, and limited access to credit19.
Global market competition
In 2024, Brazil continues to face elevated
interest rates, impacting the financing conditions for both
companies and farmers. The current SELIC interest rate is 11.25%.
The Central Bank of Brazil projects the SELIC rate to be 11.75% by
the end of 2024, 11.50% by the end of 2025, and 9.75% by the end of
2026.20 Annual inflation forecasts stand at 4.5% for 2024 and 4.0%
for 2025.21
Brazilian farmers have continued to struggle
with limited working capital amid challenging market conditions in
2024. They have increasingly sought input suppliers offering the
most favorable payment terms and interest rates, allowing them to
defer payment until after the harvest, typically between 9 to 12
months later. However, Verde’s ability to provide financing with
longer tenors remains considerably lower compared to international
players22, making its terms less competitive for its customers.
Unlike its competitors, Verde does not have the option to incur
most of its cost of debt in US dollar-denominated liabilities.
Verde’s average cost of debt is 15.0% per annum.
To incentivize sales, the Company offers its customers a credit
line that charges a spread to its finance costs to comprise
operational costs, provisions, and expected credit losses, leading
to an average lending cost of 17.5% for credit-based purchases.
While this approach is necessary in the agricultural sector, it
increases the risk of non-payment for suppliers such as fertilizer
companies, reflecting the heightened financial pressures within the
sector.
Currency exchange rate
The Canadian dollar valuated by 3.5% versus
Brazilian Real in Q2 2024 compared to the same period from last
year.23
Q3 2024 Results Conference Call
The Company will host a conference call on
Tuesday, November 12, 2024, at 09:00 am Eastern Time, to discuss Q3
2024 results and provide an update. Subscribe using the link below
and receive the conference details by email.
|
Date: |
Tuesday, November 12, 2024 |
|
Time: |
09:00 am Eastern Time |
|
Subscription link: |
https://bit.ly/Q3-2024-Results-Presentation |
The questions must be submitted in advance
through the following link up to 48 hours before the conference
call: https://bit.ly/Q3-2024-Results-Presentation-Questions
The Company’s first second financial statements
and related notes for the period ended September 30, 2024 are
available to the public on SEDAR at www.sedar.com and the Company’s
website at www.investor.verde.ag/.
Results of Operations
The following table provides information about
the three and nine months ended September 30, 2024 as compared to
the three and nine months ended September 30, 2023. All amounts in
CAD $'000.
|
All amounts in CAD $’000 |
3 months endedSep 30, 2024 |
|
3 months endedSep, 2023 |
|
9 monthsendedSep 30, 2024 |
|
9 monthsendedSep 30, 2023 |
|
|
Tons sold ‘000 |
101 |
|
108 |
|
271 |
|
323 |
|
|
Average Revenue per ton sold
$$ |
71 |
|
87 |
|
69 |
|
95 |
|
|
Average Production cost per ton sold $ |
(18 |
) |
(28 |
) |
(20 |
) |
(24 |
) |
|
Average Gross Profit per ton sold
$ s |
53 |
|
59 |
|
49 |
|
71 |
|
|
Gross Margin |
75 |
% |
67 |
% |
71 |
% |
75 |
% |
|
|
|
|
|
|
|
Revenue |
7,161 |
|
9,375 |
|
18,709 |
|
30,805 |
|
|
Production
costs(1) |
(1,830 |
) |
(3,056 |
) |
(5,316 |
) |
(7,680 |
) |
|
Gross Profit |
5,331 |
|
6,319 |
|
13,393 |
|
23,125 |
|
|
Gross Margin |
74 |
% |
67 |
% |
72 |
% |
75 |
% |
|
Sales and marketing expenses |
(895 |
) |
(695 |
) |
(2,844 |
) |
(3,026 |
) |
|
Product delivery freight expenses |
(2,630 |
) |
(3,919 |
) |
(6,767 |
) |
(11,509 |
) |
|
General and administrative expenses |
(1,839 |
) |
(2,328 |
) |
(4,485 |
) |
(5,142 |
) |
|
EBITDA
(2) |
(33 |
) |
(623 |
) |
(703 |
) |
3,448 |
|
|
Share Based and Bonus Payments (Non-Cash
Event)(3) |
(104 |
) |
(261 |
) |
(2,146 |
) |
(145 |
) |
|
Depreciation, Amortisation and P/L on disposal of
plant and equipment
(3) |
(758 |
) |
(973 |
) |
(2,479 |
) |
(2,852 |
) |
|
Operating Profit after non-cash events |
(895 |
) |
(1,857 |
) |
(5,328 |
) |
451 |
|
|
Interest Income/Expense (4) |
(1,431 |
) |
(1,593 |
) |
(4,372 |
) |
(3,586 |
) |
|
Net Profit before tax |
(2,326 |
) |
(3,450 |
) |
(9,700 |
) |
(3,135 |
) |
|
Income tax (5) |
(10 |
) |
(14 |
) |
(27 |
) |
(196 |
) |
|
Net Profit |
(2,336 |
) |
(3,464 |
) |
(9,727 |
) |
(3,331 |
) |
(1) – Non GAAP measure(2) – Included in General and
Administrative expenses in financial statements (3) – Included in
General and Administrative expenses and Cost of Sales in financial
statements (4) – Please see Summary of Interest-Bearing Loans and
Borrowings notes(5) – Please see Income Tax notes
External Factors
Revenue and costs are affected by external
factors including changes in the exchange rates between the C$ and
R$ along with fluctuations in potassium chloride spot CFR Brazil,
agricultural commodities prices, interest rates, among other
factors. For further details, please refer to the Q3 2024 Review
section:
Financial and operating results
In Q3 2024, revenue from sales decreased by 24%,
alongside an 18% reduction in the average revenue per ton compared
to the same period in 2023. When excluding freight expenses (FOB
price), the average revenue per ton declined by 11% year-over-year,
primarily driven by a reduction in KCl prices. This decrease was
partially offset by improvements in the product mix, reflecting a
higher proportion of premium products compared to Q3 2023.
Sales declined by 6% in Q3 2024 compared to Q3
2023, due to the conditions outlined in the Q3 2024 Review
section.
As a consequence of the points mentioned above,
the Company's EBITDA before non-cash events was -$0.03 million in
Q3 2024 compared to -$0.62 million in Q3 2023.
The Company generated a net loss of -$2.3
million in Q3 2024, compared to a net loss of -$3.5 million in Q3
2023.
Basic loss per share was $0.044 for Q3 2024,
compared to earnings of $0.066 for Q3 2023.
Production Costs
In Q3 2024, production costs per ton decreased
by 36% compared to Q3 2023, primarily due to an optimized sales mix
and increased production from Plant 2, which contributed 25% of
total sales.
Sales, General and Administrative
Expenses:
SG&A represents a non-operating segment that
includes corporate and administrative functions, essential for
supporting the Company's operating segments.
Sales Expenses
|
CAD $’000 |
3 months ended |
|
3 months ended |
|
9 months ended |
|
9 months ended |
|
|
Sep 30, 2024 |
|
Sep 30, 2023 |
|
Sep 30, 2024 |
|
Sep 30, 2023 |
|
| Sales and marketing
expenses |
(825 |
) |
(890 |
) |
(2.558 |
) |
(2,990 |
) |
| Fees paid to independent sales
agents |
(70 |
) |
195 |
|
(286 |
) |
(36 |
) |
|
Total |
(895 |
) |
(695 |
) |
(2.844 |
) |
(3,026 |
) |
Sales and marketing expenses cover salaries for
employees, car rentals, domestic travel in Brazil, hotel
accommodations, and Product promotion at marketing events.
As part of its marketing and sales strategy,
Verde compensates independent sales agents through commission-based
remuneration. In Q3 2023, commission expenses showed a credit
balance of $195,000 following a $249,000 provision reversal, which
contributed significantly to the credit balance that quarter.
Excluding this one-time adjustment, commission expenses in 2024
have remained consistent with prior levels, reflecting Verde’s
stable approach to sales compensation.
Product delivery freight expenses
Expenses decreased by 33% in the third quarter
of 2024 compared to the same period last year. The volume sold as
CIF (Cost Insurance and Freight) in Q3 2024 represented 72% of
total sales, compared to 78% in Q3 2023.
General and Administrative Expenses
|
CAD $’000 |
3 months endedSep 30, 2024 |
|
3 months endedSep 30, 2023 |
|
9 months endedSep 30, 2024 |
|
9 months endedSep 30, 2023 |
|
|
General administrative expenses |
(682 |
) |
(1,203 |
) |
(2.083 |
) |
(2,983 |
) |
|
Allowance for expected credit losses |
(785 |
) |
(563 |
) |
(1.018 |
) |
(592 |
) |
|
Legal, professional, consultancy and audit costs |
(262 |
) |
(332 |
) |
(905 |
) |
(939 |
) |
|
IT/Software expenses |
(99 |
) |
(190 |
) |
(427 |
) |
(532 |
) |
|
Taxes and licenses fees |
(11 |
) |
(40 |
) |
(52 |
) |
(96 |
) |
|
Total |
(1.839 |
) |
(2,328 |
) |
(4.485 |
) |
(5,142 |
) |
General administrative expenses include general
office expenses, rent, bank fees, insurance, foreign exchange
variances and remuneration of executives, directors of the Board
and administrative staff. General administrative decreased by 43%
compared to the same period last year, due to a reduction in
leasing expenses, such as water trucks and metallic structures to
support operations.
In the third quarter of 2023, we experienced a
significant reduction in the number of employees, which led to an
increase in severance payments. Consequently, expenses in Q3 2024
were lower than Q3 2023.
According to Verde's sales policy, any customer
payments that are overdue for more than 12 months must be
provisioned for. The increase in the allowance for expected credit
losses in Q3 2024 compared to Q3 2023 is attributed to the
financial constraints faced by farmers, which are a result of low
prices for agricultural commodities, among other factors, as
outlined in the Q3 2024 Review section.
Legal, professional, and audit costs comprise
fees for accounting, audit, and regulatory services. Consultancy
fees include expenses related to external consultants in Brazil,
covering accounting services, patent processing, legal fees, and
regulatory consulting. In 2024, these expenses were reduced as a
result of the internalization of accounting functions and a
decrease in audit costs.
IT/Software expenses include software licenses
such as Microsoft Office, Customer Relationship Management (“CRM”)
software and Enterprise Resource Planning (ERP). Expenses decreased
by 48% in Q3 2024 compared to the same period last year due to a
decrease in costs associated with the Company’s CRM software.
Share Based, Equity and Bonus Payments (Non-Cash
Event)
Share Based, Equity and Bonus Payments (Non-Cash
Events) encompass expenses associated with stock options granted to
employees and directors, as well as equity compensation and
non-cash bonuses awarded to key management personnel. In Q3 2024,
the costs associated with share-based payments were -$0.1 million
compared to -$0.2 million for the same period last year. This
variance was primarily due to new options issuance.
Liquidity and Cash Flows
For additional details see the consolidated
statements of cash flows for the quarters ended September 30, 2024,
and September 30, 2023 in the quarterly financial statements.
|
Cash received from / (used for): CAD
$’000 |
|
3 months endedSep 30, 2024 |
|
3 months endedSep 30, 2023 |
|
9 months endedSep 30, 2024 |
|
9 months endedSep, 2023 |
|
|
Operating activities |
|
1,500 |
|
(9,216 |
) |
(1,671 |
) |
(16,090 |
) |
|
Investing activities |
|
(377 |
) |
504 |
|
950 |
|
(1,985 |
) |
|
Financing activities |
|
(556 |
) |
11,883 |
|
(3,291 |
) |
25,823 |
|
On September 30, 2024, the Company held cash of
$3.4 million, a decrease of $5.8 million on the same period in
2023.
Operating activities
In agricultural sales, credit transactions are
common due to the cyclical nature of farming income, which sees
fluctuations with seasonal highs during harvests and lows during
planting. This cycle necessitates that farmers have access to
essential inputs like seeds, fertilizers, and pesticides ahead of
their selling season. To accommodate this, credit terms are
offered, allowing farmers to procure these inputs in advance and
align their payments with their revenue cycle.
The Company’s credit terms vary according to the
needs of its clients, tailored to the specific requirements of each
farmer. This includes considerations such as the crop cycle,
creditworthiness, and other relevant factors, with terms extending
up to 360 days upon shipment depending on the period of year. This
strategy ensures farmers have the necessary resources for each
planting season, while Verde secures its financial interests
through aligned payment schedules.
In Q3 2024, net cash utilized in operating
activities increased to $11.0 million, compared to -$9.21 million
utilized in Q3 2023.
Trade and other receivables decreased by 30% in
Q3 2024, to $11.3 million compared to $16.1 million in Q3 2023.
This is expected as the Company had lower revenues from sales in
the quarter.
Investing activities
Cash utilized in investing activities decreased
to -$0.9 million in Q3 2024, compared to $0.5 million in Q3 2023.
This reduction was primarily due to investments made in the
Company’s ongoing projects.
Financing activities
Cash utilized in financing activities decreased
to -$12.4 million in Q3 2024, compared to $11.9 million in Q3 2023.
This shift was primarily due to additional loans acquired during
2023, which increased financing inflows in that period.
Financial condition
The Company’s current assets decreased to $11.7
million in Q3 2024, compared to $28.2 million in Q3 2023. Current
liabilities increased to $19.0 million in Q3 2024, compared to
$10.9 million in Q3 2023; providing a working capital deficit of
$13.3 million in Q3 2024, compared to the working capital surplus
of $17.1 million in Q3 2023.
About Verde Agritech
Verde Agritech is dedicated to advancing
sustainable agriculture through the innovation of specialty
multi-nutrient potassium fertilizers. Our mission is to increase
agricultural productivity, enhance soil health, and significantly
contribute to environmental sustainability. Utilizing our unique
position in Brazil, we harness proprietary technologies to develop
solutions that not only meet the immediate needs of farmers but
also address global challenges such as food security and climate
change. Our commitment to carbon capture and the production of
eco-friendly fertilizers underscores our vision for a future where
agriculture contributes positively to the health of our planet.
For more information on how we are leading the
way towards sustainable agriculture and climate change mitigation
in Brazil, visit our website at https://verde.ag/en/home/.
Corporate Presentation
For further information on the Company, please
view shareholders’ deck:
https://investor.verde.ag/wp-content/uploads/2024/09/Corporate-presentation-Verde-AgriTech-September-2024.pdf
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Subscribe here:
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Cautionary Language and Forward-Looking
Statements
All Mineral Reserve and Mineral Resources
estimates reported by the Company were estimated in accordance with
the Canadian National Instrument 43-101 and the Canadian Institute
of Mining, Metallurgy, and Petroleum Definition Standards (May 10,
2014). These standards differ significantly from the requirements
of the U.S. Securities and Exchange Commission. Mineral Resources
which are not Mineral Reserves do not have demonstrated economic
viability.
This document contains "forward-looking
information" within the meaning of Canadian securities legislation
and "forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995. This
information and these statements, referred to herein as
"forward-looking statements" are made as of the date of this
document. Forward-looking statements relate to future events or
future performance and reflect current estimates, predictions,
expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to:
| |
(i) |
|
the estimated amount and grade of Mineral Resources and Mineral
Reserves; |
| |
(ii) |
|
the estimated amount of CO2
removal per ton of rock; |
| |
(iii) |
|
the PFS representing a viable
development option for the Project; |
| |
(iv) |
|
estimates of the capital costs of
constructing mine facilities and bringing a mine into production,
of sustaining capital and the duration of financing payback
periods; |
| |
(v) |
|
the estimated amount of future
production, both produced and sold; |
| |
(vi) |
|
timing of disclosure for the PFS
and recommendations from the Special Committee; |
| |
(vii) |
|
the Company’s competitive
position in Brazil and demand for potash; and, |
| |
(viii) |
|
estimates of operating costs and
total costs, net cash flow, net present value and economic returns
from an operating mine. |
| |
|
|
|
Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives or future events or performance
(often, but not always, using words or phrases such as "expects",
"anticipates", "plans", "projects", "estimates", "envisages",
"assumes", "intends", "strategy", "goals", "objectives" or
variations thereof or stating that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be
forward-looking statements.
All forward-looking statements are based on
Verde's or its consultants' current beliefs as well as various
assumptions made by them and information currently available to
them. The most significant assumptions are set forth above, but
generally these assumptions include, but are not limited to:
| |
(i) |
|
the presence of and continuity of resources and reserves at the
Project at estimated grades; |
| |
(ii) |
|
the estimation of CO2 removal
based on the chemical and mineralogical composition of assumed
resources and reserves; |
| |
(iii) |
|
the geotechnical and
metallurgical characteristics of rock conforming to sampled
results; including the quantities of water and the quality of the
water that must be diverted or treated during mining
operations; |
| |
(iv) |
|
the capacities and durability of
various machinery and equipment; |
| |
(v) |
|
the availability of personnel,
machinery and equipment at estimated prices and within the
estimated delivery times; |
| |
(vi) |
|
currency exchange rates; |
| |
(vii) |
|
Super Greensand® and K Forte®
sales prices, market size and exchange rate assumed; |
| |
(viii) |
|
appropriate discount rates
applied to the cash flows in the economic analysis; |
| |
(ix) |
|
tax rates and royalty rates
applicable to the proposed mining operation; |
| |
(x) |
|
the availability of acceptable
financing under assumed structure and costs; |
| |
(xi) |
|
anticipated mining losses and
dilution; |
| |
(xii) |
|
reasonable contingency
requirements; |
| |
(xiii) |
|
success in realizing proposed
operations; |
| |
(xiv) |
|
receipt of permits and other
regulatory approvals on acceptable terms; and |
| |
(xv) |
|
the fulfilment of environmental
assessment commitments and arrangements with local
communities. |
Although management considers these assumptions
to be reasonable based on information currently available to it,
they may prove to be incorrect. Many forward-looking statements are
made assuming the correctness of other forward looking statements,
such as statements of net present value and internal rates of
return, which are based on most of the other forward-looking
statements and assumptions herein. The cost information is also
prepared using current values, but the time for incurring the costs
will be in the future and it is assumed costs will remain stable
over the relevant period.
By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, and risks exist that estimates, forecasts, projections
and other forward-looking statements will not be achieved or that
assumptions do not reflect future experience. We caution readers
not to place undue reliance on these forward-looking statements as
a number of important factors could cause the actual outcomes to
differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates assumptions and intentions
expressed in such forward-looking statements. These risk factors
may be generally stated as the risk that the assumptions and
estimates expressed above do not occur as forecast, but
specifically include, without limitation: risks relating to
variations in the mineral content within the material identified as
Mineral Resources and Mineral Reserves from that predicted;
variations in rates of recovery and extraction; the geotechnical
characteristics of the rock mined or through which infrastructure
is built differing from that predicted, the quantity of water that
will need to be diverted or treated during mining operations being
different from what is expected to be encountered during mining
operations or post closure, or the rate of flow of the water being
different; developments in world metals markets; risks relating to
fluctuations in the Brazilian Real relative to the Canadian dollar;
increases in the estimated capital and operating costs or
unanticipated costs; difficulties attracting the necessary work
force; increases in financing costs or adverse changes to the terms
of available financing, if any; tax rates or royalties being
greater than assumed; changes in development or mining plans due to
changes in logistical, technical or other factors; changes in
project parameters as plans continue to be refined; risks relating
to receipt of regulatory approvals; delays in stakeholder
negotiations; changes in regulations applying to the development,
operation, and closure of mining operations from what currently
exists; the effects of competition in the markets in which Verde
operates; operational and infrastructure risks and the additional
risks described in Verde's Annual Information Form filed with SEDAR
in Canada (available at www.sedar.com) for the year ended December
31, 2021. Verde cautions that the foregoing list of factors that
may affect future results is not exhaustive.
When relying on our forward-looking statements
to make decisions with respect to Verde, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Verde does not undertake to
update any forward-looking statement, whether written or oral, that
may be made from time to time by Verde or on our behalf, except as
required by law.
For additional information please contact:
Cristiano Veloso, Chief
Executive Officer and Founder
Tel: +55 (31) 3245 0205; Email:
investor@verde.ag
www.verde.ag | www.investor.verde.ag
1 Learn more at: Verde Successfully Renegotiates
Loans with Its Two Largest Creditors.
2 Learn more at: High grade ionic absorption
clay magnetic rare earths mineralization found in Verde’s
historical drill holes.
3 Learn more at: Verde’s assays of over 1,500m
of drilling find rare earths up to 12,487 ppm TREO and 3,357 ppm
MREO.
4 Out of the total sales in Q3 2024, 100,925
tons were sold in compliance with our Monitoring, Verification, and
Report (“MRV”) Protocol, qualifying them as potential carbon
credits. The carbon capture potential of Verde's products, through
Enhanced Rock Weathering (ERW), is 120 kg CO2e per ton of K Forte®.
For further information, see “Verde’s Products Remove Carbon
Dioxide From the Air”.
5 Net Carbon Dioxide Removal (CDR): volume of 1
ton of Long-Term CO2 Removal, equivalent to 1 carbon credit.
6 K Forte® is a fertilizer produced in Brazil
using national raw materials. Its production process has low energy
consumption from renewable sources and, consequently, a low
environmental and GHG emissions footprint. Whereas the high carbon
footprint of KCl results from a complex production process,
involving extraction, concentration, and granulation of KCl in
addition to the long transportation distances to Brazil, given that
95% of the KCl consumed in the country is imported. 12Mt of K
Forte® is equivalent to 2Mt of KCl in K2O content. Emissions
avoided are calculated as the difference between the weighted
average emissions for KCl suppliers to produce, deliver, and apply
their product in each customer's city and the emissions determined
according to K Forte®'s Life Cycle Assessment for its production,
delivery, and application in each customer's city.
7 From 2018 to Q3 2024, the Company has sold
1.94 million tons of Product, which can remove up to 229,294 tons
of CO2. Additionally, this amount of Product could potentially
prevent up to 63,316 tons of CO2 emissions.
8 Verde’s Product is a salinity and
chloride-free replacement for KCl fertilizers. Potassium chloride
is composed of approximately 46% of chloride, which can have
biocidal effects when excessively applied to soils. According to
Heide Hermary (Effects of some synthetic fertilizers on the soil
ecosystem, 2007), applying 1 pound of potassium chloride to the
soil is equivalent to applying 1 gallon of Clorox bleach, with
regard to killing soil microorganisms. Soil microorganisms play a
crucial role in agriculture by capturing and storing carbon in the
soil, making a significant contribution to the global fight against
climate change.
9 1 ton of Product (10% K2O) has 0.1 tons of
K2O, which is equivalent to 0.17 tons of potassium chloride (60%
K2O), containing 0.08 tons of chloride.
10 Source: Acerto Limited Report.
11 Source: Verde Announces Q2 2024 results.
12 As of September 30, 2024. Source: Brazilian
Central Bank
13 Source: The planting of the 2024/25 season
has begun, but the scenario still shows delays in fertilizer
deliveries.
14 Source: The planting of the 2024/25 season
has begun, but the scenario still shows delays in fertilizer
deliveries.
15 Source: New crop soybean sowing in Brazil to
be delayed due to lack of consistent rain: analysts.
16 Source: AMA Report.
17 Source:.Acerto Limited Report.
18 Source: AMA Report.
19 As of September 30, 2024. Source: Verde
Announces Q2 2024 results
20 As of September 30, 2024. Source: Brazilian Central Bank
21 As of September 30, Source: Brazilian Central
Bank.
22 Verde’s normal credit term is 30 to 120 days upon shipment,
depending on the period of the year, while competitors can provide
180-360 days to collect its payments.
23 Source: Brazilian Central Bank.
Grafico Azioni Verde Agritech (TSX:NPK)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Verde Agritech (TSX:NPK)
Storico
Da Dic 2023 a Dic 2024
