(All figures are in Canadian dollars, unless otherwise expressed. Exchange rate in Q1 2020: 1.00 CAD = 3.31 BRL)
BELO HORIZONTE, Brazil, May 19, 2020 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to announce its financial results for the first quarter ended March 31, 2020 (“Q1 2020”).
Q1 2020 Financial Highlights
- Revenue increased by 230% to $509,532, compared to $154,279 in Q1 2019.
- Production increased by 32% with a total of 6,375 tonnes, compared to 4,825 tonnes in Q1 2019.
- Sales increased by 830% with a total of 10,170 tonnes compared to 1,093 in Q1 2019.
- Net loss reduced by 9% to $792,195, compared to 872,506 in Q1 2019.
“We are encouraged by our continued exponential growth. The first quarter of a calendar year is naturally its weakest for fertilizer demand because of the climate seasonality in the agricultural cycle. Most of our sales are expected to take place between June and September, period which therefore has a greater impact on Q2 and Q3 financial results. Despite the COVID-19 pandemic, we are on track to reach our 2020 growth target of 76%”, said Cristiano Veloso, Verde’s founder, President and CEO.
In Q1 2020 the Company sold 10,170 tonnes of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (the “Product”), an increase of 830% in comparison to 1,093 tonnes for the first quarter of 2019 (“Q1 2019”). The revenue for Q1 2020 increased by 230% with a total of $509,532, compared to $154,279 in Q1 2019. The gross margin for Q1 2020 was 35% and the operating loss before non-cash events was $663,958.
The sales target for 2020 is set at R$32 million (C$9.6 million) as stated on the press release published by the Company on 14 November, 2019.
Selected Annual Financial Information
The table below summarizes Q1 2020 financial results compared to Q1 2019:
| All amounts in CAD $’000 |
Q1 2020 |
Q1 2019 |
| Tonnes sold |
10,170 |
1,093 |
| Revenue per tonne sold $ (see comment below) |
50 |
141 |
| Production cost per tonne sold $ (see comment below) |
(33) |
(45) |
| Gross Profit per tonne sold $ |
18 |
97 |
| Gross Margin |
35% |
68% |
|
|
|
| Revenue |
510 |
154 |
| Production costs |
(331) |
(49) |
| Gross Profit |
178 |
105 |
| Gross Margin |
35% |
68% |
| Selling and General Administrative expenses (see comment below) |
(842) |
(561) |
| Operating Profit/(Loss) before non-cash events |
(664) |
(456) |
| Share Based Payments (Non-Cash Event) * |
(40) |
(384) |
| Depreciation and Amortisation |
(12) |
(12) |
| Operating Profit/(Loss) after non-cash events |
(716) |
(852) |
| Corporation tax |
(18) |
(8) |
| Interest Income/Expense |
(58) |
(13) |
| Net Profit / (Loss) |
(792) |
(873) |
* – Included under administrative expenses in the financial statements.
Revenue Per Tonne
Revenue from sales for Q1 2020 was $509,532, from sale of 10,170 tonnes ($50,10 per tonne sold). Average revenue per tonne was lower than Q1 2019 ($141,15 per tonne) because most of Q1 2019 sales were exported to international markets, where the product achieves higher sales price compared to the domestic market. In Q1 2020 most sales were to the domestic market. Overall export volume grew from 148 tonnes in Q1 2019 to 331 tonnes in Q1 2020, but proportionally the share of exports on total sales has reduced from 14% to 3% because of substantial increase in domestic sales from 945 tonnes in Q1 2019 to 9,839 in Q1 2020.
Production Cost Per Tonne
Production costs include all costs directly from mining, processing, transportation from the mine to the factory and supply chain salaries. Costs per tonne for the quarter was $32,57 compared to $44,63 for the same period in 2019. This reduction was due to the devaluation of the Brazilian Real by 15% in face of the Canadian Dollar and dilution of the plant’s fixed cost.
Sales & General Administrative Expenses
Sales & General Administrative Expenses
CAD $’000 |
Q1 2020 |
Q1 2019 |
| Sales and marketing expenses |
(260) |
(115) |
| General administrative expenses |
(219) |
(241) |
| Distribution expenses |
(157) |
(25) |
| Legal, professional, consultancy and audit costs |
(169) |
(162) |
| IT/Software expenses |
(22) |
(5) |
| Taxes and licenses fees |
(15) |
(13) |
| Total S&GA |
(842) |
(561) |
Sales and marketing expenses
Sales and marketing expenses include sales and marketing salaries, the promotion of the Product such as fees paid sales agents, marketing events, car rentals, travels within Brazil, hotel expenses and Customer Relationship Management (CRM) Software licenses. Expenses increased compared to the same period last year because of an additional 23 full time staff being hired in Brazil to achieve the Company’s 2020 goals.
General administrative expenses
These costs include general office expenses, rent, banks fees, insurance, foreign exchange variances and remuneration of the executives and administrative staff in Brazil. Expenses in the quarter were lower than the same period last year as $78,300 of production costs were expensed in 2019 to general expenses as there were no sales in January and February 2019.
Distribution expenses
Distribution expenses were higher in Q1 2020 compared to the same quarter last year as the Company started to sell CIF (Cost Insurance and Freight) and exports sales volume increased by 124% (from 148 tonnes in Q1 2019 to 331 tonnes in Q1 2020), mainly to China.
Project Update [1]
- 25,000,000 tonnes per year (“tpy”) Feasibility Study for Mine Pit 2 was approved by the National Mining Agency in March 2020.
- 2,500,000 tpy Preliminary and Installation Environmental License Application for Mine Pit 2 was filed in March 2020.
- 2,500,000 tpy Mining Concession Application for Mine Pit 3 was filed in March 2020.
- The Company is fully permitted to produce a total 199,800 tpy and has applications pending for an additional 2,733,000 tpy.
COVID-19 Impacts
The Brazilian Ministry of Agriculture, Livestock and Supply declared Fertilizer Production as an essential activity in the food and beverage production chain, essential to guarantee the supply and food security of the Brazilian population.
Commodities prices such as coffee, corn and soybeans have risen in recent months, especially soybeans. In the accumulated result for the year, the national shipments of the oilseed already reach 35,76 million tonnes from January to April, registering another record number, as has been all the data for the commodity for 2020, according to Secex (Brazilian Secretariat of Foreign Trade).
The Company has been operating under its own COVID-19 Action Plan, which is currently allowing it to move forward with its 2020 plans intact. The Company has and will continue to adapt to the day-to-day changes that the overall pandemic is demanding of the communities and operations.
Since beginning of March all administrative employees are working under home office regime. At the Plant, the Company continues to observe and increase all protocols wherever necessary, and it is ensuring that all government health and safety protections and the Company’s COVID-19 Action Plans are implemented across all its operations.
Verde is committed to sustainability while implementing increased health and safety initiatives with all stakeholders, including the protection of employees and their employment.
Conference Call Details
The Company will hold a conference call on Wednesday, May 27, 2020 at 11:30 am Eastern Time (4:30 pm Greenwich Time) to discuss these results and provide an update. Subscribe at the following link and receive the conference details by email.
| Date: |
Wednesday, May 27, 2020 |
| Time: |
11:30 am Eastern Time (4:30 pm Greenwich Time) |
| Subscription link: |
|
The Company’s first quarter financial statements and related notes for the period ended 31 March, 2020 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.
Investors Newsletter
Verde has a newsletter for investors, with monthly updates about the Company. The first edition can be accessed at .
Click at the following link to become a subscriber: http://cloud.marketing.verde.ag/InvestorsSubscription
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verde.aq
www.investor.verde.ag|www.supergreensand.com | www.verde.ag
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:
</table class=”responsive”> 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: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, 2019. 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.1 See Glossary of Technical Terms on page 3 of Q1 2020 Management’s Discussion and Analysis.
| (i) |
|
the estimated amount and grade of Mineral Resources and Mineral Reserves; |
| (ii) |
|
the PFS representing a viable development option for the Project; |
| (iii) |
|
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; |
| (iv) |
|
the estimated amount of future production, both produced and sold; and, |
| (v) |
|
estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine. |
| (i) |
|
the presence of and continuity of resources and reserves at the Project at estimated grades; |
| (ii) |
|
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; |
| (iii) |
|
the capacities and durability of various machinery and equipment; |
| (iv) |
|
the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times; |
| (v) |
|
currency exchange rates; |
| (vi) |
|
Super Greensand® and K Forte® sales prices, market size and exchange rate assumed; |
| (vii) |
|
appropriate discount rates applied to the cash flows in the economic analysis; |
| (viii) |
|
tax rates and royalty rates applicable to the proposed mining operation; |
| (ix) |
|
the availability of acceptable financing under assumed structure and costs; |
| (x) |
|
anticipated mining losses and dilution; |
| (xi) |
|
reasonable contingency requirements; |
| (xii) |
|
success in realizing proposed operations; |
| (xiii) |
|
receipt of permits and other regulatory approvals on acceptable terms; and |
| (xiv) |
|
the fulfilment of environmental assessment commitments and arrangements with local communities. |
BELO HORIZONTE, Brazil, March 31, 2020 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) announces financial results for the fourth quarter (“Q4 2019”) and year (“FY 2019”) ended December 31, 2019. All figures are in Canadian dollars, unless otherwise expressed.
The Company is pleased to announce that its revenues in 2019 were 13.8% greater than its most recently announced target for that year.
The Company’s revenues in 2019 were $6.029 million, against a previously stated target of $5.3 million. The gross margin was 48% and the operating profit before non-cash events was $0.025 million. In 2018 the Company’s revenues were $1.358 million, the gross margin was 21% and the operating loss before non-cash events was $1.444 million.
“As we announced in September 2019, our sales target for 2020 is set at R$32 million (C$10.6 million). If successful, we will deliver a 76% growth year-on-year and expect to generate our maiden net profit. We are working hard to deliver this result and are confident that every lesson learned in 2019 is being deployed to achieve another year of significant growth”, said Cristiano Veloso, Verde Agritech’s Founder, President and CEO.
During FY 2019 the Company sold 119,809 tonnes of its multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and internationally as Super Greensand® (“the Product”). In 2018, the Company sold 29,648 tonnes of the Product.
Q4 2019 Financial Highlights
- Revenue increased 115% with a total of $1,491,000, compared to $692,000 in Q4 2018.
- Gross profit was $531,000 and the gross margin was 36%, compared to $26,000 gross profit and 4% gross margin in Q4 2018.
- Production increased 65% at 33,811 tonnes, compared to 20,549 tonnes in Q4 2018.
- The Company sold 32,221 tonnes of Product, compared to 20,641 in 2018.
- Revenue per tonne was $47 and production costs were $30, compared to revenue per tonne of $33 and production costs of $32 in Q4 2018.
- The Company recorded an operating profit before share-based payments, depreciation and amortisation of $38,000 and net profit of $79,000 after taxes.
FY 2019 Financial Highlights
- Revenue increased 344% with a total of $6,029,000, compared to $1,358,000 in 2018.
- Gross profit was $2,864,000 and the gross margin was 48%, compared to $291,000 gross profit and 21% gross margin in 2018.
- Production increased 310% at 122,035 tonnes, compared to 29,764 tonnes in 2018.
- The Company sold 119,809 tonnes of Product, compared to 29,648 in 2018.
- Revenue per tonne was $50 and production costs were $26, compared to revenue per tonne of $45 and production costs of $36 in 2018.
- The Company recorded an operating profit before share-based payments, depreciation and amortisation of $25,000 and net loss of $1,107,000 after taxes.
In total, the Company is currently fully permitted to produce 199,800 tonnes per annum and has applications pending for an additional 283,000 tonnes per annum.
Verde’s operating results for the Q4 2019 and FY 2019 are summarized as follows:
Selected Annual Financial Information
| All amounts in CAD $’000 |
3 months ended
December 31, 2019 |
3 months ended
December 30, 2018 |
12 months ended
December 31, 2019 |
12 months ended
December 31, 2018 |
| Tonnes sold ‘000 |
32 |
20 |
120 |
29 |
| Revenue per tonne sold $ |
47 |
33 |
50 |
45 |
| Production cost per tonne sold $ |
(30) |
(32) |
(26) |
(36) |
| Gross Profit per tonne sold $ |
17 |
1 |
24 |
10 |
| Gross Margin |
36% |
4% |
48% |
21% |
| Revenue |
1,491 |
692 |
6,029 |
1,358 |
|
| Production costs |
(960) |
(666) |
(3,165) |
(1,067) |
| Gross Profit |
531 |
26 |
2,864 |
291 |
| Gross Margin |
36% |
4% |
48% |
21% |
| Distribution expenses |
(146) |
(59) |
(371) |
(59) |
| Sales and marketing expenses |
(133) |
(89) |
(539) |
(346) |
| Administrative expenses |
(214) |
(364) |
(1,928) |
(1,330) |
| Operating Profit/(Loss) before non-cash events |
38 |
(486) |
25 |
(1,444) |
Share Based (Credit) Payments
(Non-Cash Event) * |
113 |
(48) |
(787) |
(181) |
| Depreciation and Amortisation non-cash |
(2) |
(2) |
(22) |
(14) |
Operating Profit/(Loss)
after non–cash events |
149 |
(536) |
(784) |
(1,639) |
| Corporation tax |
(41) |
(45) |
(186) |
(45) |
| Interest Income/Expense |
(29) |
(55) |
(137) |
(64) |
| Net Profit / (Loss) |
79 |
(636) |
(1,107) |
(1,748) |
* – Included in administrative expenses in Financial statements.
Conference Call Details
The Company will hold a conference call on Wednesday April 8, 2020 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results and provide an update. Subscribe at the following link and receive the conference details by email.
| Date: |
Wednesday, April 8, 2020 |
| Time: |
11:30 am Eastern Time (8:30 am Pacific time) |
| Subscription link: |
bit.ly/Q42019Results |
The Company’s audited annual consolidated annual financial statements and related notes for the year ended December 31, 2019 will be available to the public on SEDAR at www.sedar.com and will also be posted on the Company’s website at https://investor.verde.ag/ on March 31, 2020.
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verdeagritech.com
www.investor.verde.ag|www.supergreensand.com | www.verde.ag
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:
- the estimated amount and grade of Mineral Resources and Mineral Reserves;
- the PFS representing a viable development option for the Project;
- 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;
- the estimated amount of future production, both produced and sold; and,
- 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:
- the presence of and continuity of resources and reserves at the Project at estimated grades;
- 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;
- the capacities and durability of various machinery and equipment;
- the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
- currency exchange rates;
- uper Greensand® sales prices, market size and exchange rate assumed;
- appropriate discount rates applied to the cash flows in the economic analysis;
- tax rates and royalty rates applicable to the proposed mining operation;
- the availability of acceptable financing under assumed structure and costs;
- anticipated mining losses and dilution;
- reasonable contingency requirements;
- success in realizing proposed operations;
- receipt of permits and other regulatory approvals on acceptable terms; and
- 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, 2016. 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.
BELO HORIZONTE, Brazil, Nov. 14, 2019 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) announces that it sold 87,500 tonnes of its multinutrient potassium fertilizer, marketed and sold in Brazil under the brand K Forte® and internationally as Super Greensand® (“the Product”), until Q3 2019 and provides its third quarter results.
The Company informs that it will not achieve the stated sales target of 200 thousand tonnes for 2019. The Company estimates a total of 110 thousand tonnes will be sold in 2019, totaling revenues of R$16.3 Million (C$5.3 Million). For 2020 the company’s sales target is revised lower to R$32 Million (C$10.6 Million).
Q3 2019 Highlights
- Verde has produced 52,111 tonnes of product and has sold 62,855 tonnes during Q3. The Group had produced 33,760 tonnes and sold 23,625 tonnes in Q2.
- The Group recognized revenues of $3,055,000 in Q3 and made a gross profit of $1,559,000 from the sale of the Product.
- The Group recorded in Q3 a profit before tax of $97,000 and net profit of $1,000 after taxes.
- In July, mining permits for Mine Pit 1 and 3 were granted.
- In August, the Company was granted an environmental license for a new plant, to be built on a site adjacent to Mine Pit 2 with annual production of 890 thousand tonnes per annum of product.
- In September, the Company applied for an operational license (“Licença de Operação” – “LO”) that will authorize the start of operation in Mine Pit 1.
- In September, Verde ended the contract with Mr. Daniel Sabbag, Vice President Sales.
In total, the Group is currently fully permitted to produce 149,800 tonnes per annum and has applications pending for an additional 333 thousand tonnes per annum.
Subsequent event
- Plant 1 expansion was concluded in October increasing Plant 1’s production capacity to 500 thousand tonnes per year.
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verdeagritech.com
www.investor.verde.ag | www.supergreensand.com | www.verde.ag
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 PFS representing a viable development option for the Project;
(iii) 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;
(iv) the estimated amount of future production, both produced and sold; and,
(v) 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:
(i) the presence of and continuity of resources and reserves at the Project at estimated grades;
(ii) 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;
(iii) the capacities and durability of various machinery and equipment;
(iv) the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
(v) currency exchange rates;
(vi) Super Greensand® sales prices, market size and exchange rate assumed;
(vii) appropriate discount rates applied to the cash flows in the economic analysis;
(viii) tax rates and royalty rates applicable to the proposed mining operation;
(ix) the availability of acceptable financing under assumed structure and costs;
(x) anticipated mining losses and dilution;
(xi) reasonable contingency requirements;
(xii) success in realizing proposed operations;
(xiii) receipt of permits and other regulatory approvals on acceptable terms; and
(xiv) 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, 2016. 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.
BELO HORIZONTE, Brazil, Aug. 14, 2019 (GLOBE NEWSWIRE) — In a release issued earlier today by Verde AgriTech (TSX: “NPK”) (OTCQB: “AMHPF”), under the headline “Verde sells 38,585 tonnes of Super Greensand® during First Half 2019,” please note that the amount in the headline should be 24,670 tonnes of Super Greensand®, not 38,585 tonnes.
Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to provide an update on the construction of its new plant and present its second quarter results for 2019.
As announced on October 17, 2018, Verde is expanding its production capacity. The current processing facility’s capacity is 200 thousand tonnes and total production capacity will increase to 500 thousand tonnes per annum of product. Construction of the expanded plant started in July and will be finalized in Q3 2019. The Company is investing approximately C$1 Million in this expansion.
In addition, the company has applied for an environmental license to build a new facility with a total capacity for 900 thousand tonnes per annum of product.
Q2 2019 Highlights
- Verde has produced 33,760 tonnes of Super Greensand®, of which 23,625 tonnes were sold during Q2. In Q1, the Group produced 4,825 tonnes and sold 1,045 tonnes, totaling 38,585 tonnes produced and 24,670 tonnes sold throughout the six months ended June 30.
- The orders delivered in Q2 2019 generated revenue of C$1,329,000 and a gross profit of C$669,000 from the sale of Super Greensand®. Total revenue for the six months ended June 30 of C$1,483,000.
- For Q2 2019, the Group recorded a net loss before tax of $175,000.
- In April 2019, Verde appointed Mr. Daniel Sabbag as Vice President of Sales. Mr. Sabbag devoted 14 years to the fertilizer business while working at Heringer, which he was instrumental in turning the company into one of Brazil’s three largest fertilizer companies.
Subsequent events
- On July 16, 2019, Verde obtained a mining permit to produce an additional 49,8 thousand tonnes per year at Mine Pit 3.
- On July 19, 2019, the Company obtained a mining permit for an annual production of 233 thousand tonnes per year at Mine Pit 1. The required environmental license application will be filed on August 2019.
- On July 23, 2019, Verde was selected by Endeavor to participate in the Endeavor 2019 Scale-Up Acceleration Program. Endeavor is a non-profit organization supported by some of the world’s most successful entrepreneurs and companies. The organization is leading the global high-impact entrepreneurship movement to drive long-term economic growth and build strong entrepreneurship ecosystems.
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verdeagritech.com
www.verdeagritech.com | www.supergreensand.com
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:
- the estimated amount and grade of Mineral Resources and Mineral Reserves;
- the PFS representing a viable development option for the Project;
- 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;
- the estimated amount of future production, both produced and sold; and,
- 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:
- the presence of and continuity of resources and reserves at the Project at estimated grades;
- 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;
- the capacities and durability of various machinery and equipment;
- the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
- currency exchange rates;
- Super Greensand® sales prices, market size and exchange rate assumed;
- appropriate discount rates applied to the cash flows in the economic analysis;
- tax rates and royalty rates applicable to the proposed mining operation;
- the availability of acceptable financing under assumed structure and costs;
- anticipated mining losses and dilution;
- reasonable contingency requirements;
- success in realizing proposed operations;
- receipt of permits and other regulatory approvals on acceptable terms; and
- 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, 2016. 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.
BELO HORIZONTE, Brazil, March 29, 2019 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: NPK) (“Verde” or the “Company”) is pleased to announce the financial results for the fourth quarter (“Q4 2018”) and twelve months (“FY 2018”) ended December 31, 2018.
(All figures are in Canadian dollars)
- Total volume sold in 2018: 29,648 tonnes, six times more than in 2017.
- Verde received nearly 50,000 tonnes of orders in 2018.
- Total revenues of $1.358 million at a production cost of $1.067 million, generating a gross profit of $291 thousand (21.4%).
- Net loss of $1.703 million.
- Cash at end of period of $836 thousand, 30% higher than prior year.
- Loss per share of $0.041.
“2018 was the first year of commercial production at Verde. The Company’s plant started operations in July 2018. Considering the usual ramp-up challenges, and a single salesman working full time to have achieved 29,648 tonnes of sales and delivery of over 21% gross margin profit was an outstanding result,” said CFO Felipe Paolucci.
Selected Annual Financial Information
| All amounts in $’000 |
Year to
Dec 31, 2018 |
Year to
Dec 31, 2017 |
Year to
Dec 31, 2016 |
| Super Greensand® sales (tonnes) |
29,648 |
|
– |
|
– |
|
| Revenue |
1,358 |
|
– |
|
– |
|
| Production costs |
1,067 |
|
– |
|
– |
|
| Gross Profit |
29 |
|
|
|
| Selling and distribution expenses |
59 |
|
– |
|
– |
|
| Administrative expenses |
1,871 |
|
1,576 |
|
1,204 |
|
| Impairment of intangible asset |
– |
|
663 |
|
– |
|
| Net loss |
(1,703) |
|
(2,204) |
|
(1,172) |
|
| Cash Flow utilised in operating activities |
(502) |
|
(1,119) |
|
(1,007) |
|
| Cash Flow utilised in investing activities |
(187) |
|
(1,791) |
|
(989) |
|
| Cash Flow from financing activities |
933 |
|
1,809 |
|
– |
|
| Net increase (decrease) in cash |
244 |
|
(1,101) |
|
(1,996) |
|
| Cash and cash equivalents at end of period |
836 |
|
645 |
|
1,763 |
|
| Total Assets |
31,610 |
|
26,012 |
|
27,169 |
|
| Total Liabilities |
7,785 |
|
465 |
|
188 |
|
| Working Capital |
780 |
|
1,930 |
|
1,802 |
|
| Weighted average number of shares outstanding (‘000) |
41,020 |
|
38,523 |
|
37,617 |
|
| Loss per share (basic and diluted) ($) |
(0.041) |
|
(0.057) |
|
(0.031) |
|
Highlights of the Fourth Quarter
In October 2018, the Group announced it had sold out of Super Greensand®. It also announced its expansion for 2019, which include continuing to use the existing processing plant to produce 200 thousand tonnes per year and, in parallel, start construction of a new processing facility capable of producing an added 600 thousand tonnes per annum. The total 800 thousand tonnes per annum capacity is expected to be reached by early 2020. Financing is expected to be a mix of accumulated cashflow and debt from BNDES bank.
Subsequent events
On February 26, 2019 the group announced a non-brokered private placement to raise up to C$1 million (the “Placement”) through the issuance of up to 1,666,666 units of securities (“Units”) at a price of $ 0.60 per Unit. Each Unit was comprised of one ordinary share of the Company (an “Ordinary Share”) and one-half of one Ordinary Share purchase warrant (a “Warrant”). Each whole Warrant will be exercisable to purchase an Ordinary Share at an exercise price of $1.00 until the second anniversary of the closing of the Placement. The Warrants are unlisted.
The placement closed on March 13, 2019, raising $1.7 million by issuing 2,820,114 units of securities. It included inside investments from president & CEO Cristiano Veloso, who purchased 912,416 Units; CFO Felipe Paolucci, who purchased 166,667 Units; and Director Michael St Aldwyn, who purchased 83,333 Units.
On March 4, 2019 the group was pleased to welcome Felipe Paolucci as the CFO. Mr. Paolucci is an executive with over 15 years of experience in finance in multinational companies and over 9 years of experience in the agricultural business. Mr. Paolucci will be based in Belo Horizonte, Brazil, and will replace Mr. Tim Slater, who has acted as the Company’s interim CFO for the past few years.
About Verde AgriTech
Verde promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which Verde intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verdeagritech.com
www.verdeagritech.com
www.supergreensand.com
Cautionary Language and Forward Looking Statements
Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. This press release contains certain “forward looking statements”, which include but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, and statements regarding use of proceeds. Forward looking statements can generally be identified by the use of words such as “plans”, “expects”, or “does not expect” or “is expected”, “anticipates” or “does not anticipate”, or “believes”, “intends”, “forecasts”, “budget”, “scheduled”, “estimates” or variations of such words or phrases or state that certain actions, event, or results “may”, “could”, “would”, “might”, or “will be taken”, “occur” or “be achieved”. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by said statements. There can be no assurances that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in said statements. Accordingly, readers should not place undue reliance on forward-looking statements.
For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company’s most recent Annual Information Form and Management’s Discussion and Analysis, as well as other public disclosure documents that can be accessed under the issuer profile of “Verde AgriTech plc” on SEDAR at www.sedar.com. The forward-looking information set forth herein reflects the Company’s reasonable expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
BELO HORIZONTE, Brazil, Nov. 14, 2018 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or the “Company”) is pleased to declare commercial production at its first processing plant in Brazil and announces its third quarter 2018 results.
The Company inaugurated its plant in August this year and has since been ramping up its production towards operational capacity. Verde was sold out for this season, having had to cancel some of the orders that totaled over 50,000 tonnes of Super Greensand®, an amount that exceeded its production capacity to year-end, of around 40,000 tonnes of Super Greensand®. Even after sales were closed for the season, there was significant purchase enquiries from farmers.
At the date of this release Verde has a solid cash position of C$ 656,130 in addition to receipts of C$821,104 due from customers. For 2019 Verde plans to sell 200,000 tonnes of products and start construction of a new processing facility capable of a further 600,000 tonnes per year. The Company’s pre-feasibility study shows a post-tax net present value discounted at 8% of US$1.98 billion and internal rate of return of 290% (see PR November 27, 2017).
Q3 2018 Highlights
- At the date of this release Verde has accepted binding orders for nearly 40 thousand tonnes of Super Greensand®, of which 9,000 tonnes were delivered during Q3. The orders delivered in Q3 2018 generated revenue of C$666,000 and a gross profit of C$265,000.
- Net losses were C$308,000 ($0.007 per share) during the quarter compared to C$457,000 (C$0.011 per share) in Q2’18 and C$414,000 (C$0.011 per share) in Q3’17.
- In July 2018, the Group announced it was accepted as a member of Bonsucro, an international non-profit multi-stakeholder organization that promotes sustainable sugar cane production. In Brazil alone, Bonsucro certified mills have the potential to consume about 1 million tons of Super Greensand® as they migrate from conventional potash salt source to Verde’s sustainable product.
- In August 2018, Verde announced it had successfully commissioned and started up commercial production at its processing plant. The Company has been operating its plant 24 hours a day and 7 days a week in order to fulfill existing orders for Super Greensand® for the 2018 planting season.
Subsequent Event:
- In October 2018, Verde announced its expansion plans to start the construction of a new processing facility capable of producing an added 600 thousand tonnes per annum. The Company will continue the use of its existing plant to produce 200 thousand tonnes per annum in parallel of the construction. The total of 800 thousand tonnes per annum capacity is expected to be reached in early 2020.
- In October 2018, Verde also announced it had received orders that surpassed its total production capacity for 2018 and it had therefore to turn down clients for this season.
- In November 2018, Verde announced a new business unit called Verde Marketplace. The Marketplace is business-to-business (“B2B”) platform in which farmers can offer, on a large scale, nutrient-rich and sustainably-produced food directly to interested corporate buyers who serve a growing portion of the population and are looking for these types of food.
Verde’s President & CEO, Cristiano Veloso commented: “As previously mentioned, the first 50,000 tonnes of sales would be the hardest. We are overcoming that landmark. The market has rewarded our efforts by eagerly adopting Verde’s products and spreading the word about its positive farming results. Here onwards our sales will only grow and become even more profitable on a per tonne basis. Above all, Verde is poised to expand relying mostly on growing sales and without the need to issue new equity”.
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil’s largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verdeagritech.com
www.verdeagritech.com | www.supergreensand.com
Visit and subscribe to our YouTube Channel
www.youtube.com/verdeagritech
Learn more about Verde Marketplace
www.verde.ag
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:
- the estimated amount and grade of Mineral Resources and Mineral Reserves;
- the PFS representing a viable development option for the Project;
- 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;
- the estimated amount of future production, both produced and sold; and,
- 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:
- the presence of and continuity of resources and reserves at the Project at estimated grades;
- 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;
- the capacities and durability of various machinery and equipment;
- the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
- currency exchange rates;
- Super Greensand® sales prices, market size and exchange rate assumed;
- appropriate discount rates applied to the cash flows in the economic analysis;
- tax rates and royalty rates applicable to the proposed mining operation;
- the availability of acceptable financing under assumed structure and costs;
- anticipated mining losses and dilution;
- reasonable contingency requirements;
- success in realizing proposed operations;
- receipt of permits and other regulatory approvals on acceptable terms; and
- 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, 2016. 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.
