The replacement of KCl fertilizers with K Forte® could annually avoid the emission of up to 300 thousand tons of CO2, generating annual Brazilian Decarbonization Certificates equivalent to C$8.5 million
Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce that its potassium multinutrient specialty fertilizer, K Forte® (the “Product”), has a significantly lower carbon footprint than traditional potassium chloride (“KCl”) fertilizer, according to the calculation tool developed by the Brazilian government, RenovaCalc. The emission factor in Renovacalc applied to Potassium Chloride, with 60% K2O mass content, is set at 0.455 tons of carbon dioxide equivalent per ton of K2O (“t CO2e/t K2O”), sourced from the Ecoinvent database.[1] Following Renovacalc’s criteria and based on K Forte®’s Life Cycle Assessment (“LCA”), the emission factor of the Product is set at 0.0655 t CO2e/t K2O.[2],[3] Therefore, the substitution of KCl fertilizer with Verde’s Product results in a reduction in emissions of 0.39 t CO2e/t K2O, which represents an 85.6% reduction of the carbon footprint for K2O within sugarcane and corn ethanol production in Brazil.
Brazil has approximately 3.3 million hectares of sugarcane crops and 1.1 million hectares of corn dedicated to biofuels.[4] It takes 20 kg of the Product per ton of sugarcane and 10 kg of the Product per ton of corn, to replace KCl in K2O supply.
“Brazil’s dependence on potash imports, primarily from Canada, Russia, and Belarus, which account for over 95% of its total consumption, has significant environmental impacts. Given that agriculture contributes about 10-12% of the world’s greenhouse gas emissions, the need for mitigation initiatives within corporate value chains is critical.[5] Our Product not only provides a high-quality source of potash and other nutrients but also enhances soil biodiversity due to its salinity and chloride-free properties. In addition, the replacement of KCl with K Forte® in biofuel agricultural production could significantly contribute to a more environmentally responsible supply chain”, stated Cristiano Veloso, Verde’s Founder and CEO.
The substitution of KCl fertilizer with Verde’s Product results in immediate carbon reductions and thus bolsters Verde’s sales value proposition, potentially strengthening Product sales among farmers who track their emissions to meet decarbonization goals.
Brazilian National Biofuels Policy and Renovacalc Parameters
The Brazilian National Biofuels Policy (“RenovaBio”) is a federal government initiative formally established by Law 13.576/2017.[6] RenovaBio aims to support Brazil’s commitments under the Paris Agreement within the United Nations Framework Convention on Climate Change. The program focuses on enhancing energy efficiency and reducing greenhouse gas emissions across the production, marketing, and use of biofuels through lifecycle assessment mechanisms. Additionally, it seeks to promote the expansion of biofuel production and use within Brazil’s energy matrix, ensuring a consistent fuel supply.
RenovaBio’s guiding principle for achieving its objectives is to incentivize fuels that have a lesser impact on global warming, specifically those that result in lower lifecycle greenhouse gas (“GHG”) emissions, such as biofuels.
The policy operates through the following steps:[7]
- Establishing of long-term national goals (over 10 years) for reducing GHG emissions in the Brazilian fuel matrix,
- Breaking down of these national targets into individual mandatory targets for fuel producers,
- Assessing the performance of fuel producers through RenovaCalc. The tool employs an attributional approach for the lifecycle assessment (LCA) of biofuels, encapsulating the “well-to-wheel” scope which assesses the environmental impact from fuel extraction to its end use in vehicle propulsion. The tool utilizes inventory data from the Ecoinvent v.3.1 database for upstream agricultural processes, prioritizing inventories specific to Brazil (BR), global averages (GLO), and, when unavailable, data from the ‘Rest of the World’ (RoW), which is an exact copy of the GLO dataset with adjusted uncertainty. For biofuel distribution and usage, RenovaCalc relies on official and sectoral statistics and a tool for estimating greenhouse gases for intersectoral sources. With these inputs, RenovaCalc calculates the carbon intensity (CI) of produced biofuels using standardized lifecycle emission factors.
- Translating biofuels’s carbon intensity into an Environmental Efficiency Score (“EES”).
- Certifying fuel production based on each producer’s EES, leading to the generation of Biofuel Decarbonization Credit Certificates (“CBIOs” from the Portuguese “Créditos de Descarbonização de Biocombustíveis”), awarded to producers of renewable biofuels based on the volume of production and the sustainability of their processes. CBIOs are digital financial securities held by financial institutions authorized by the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (“ANP”), representing the reduction of one ton of carbon dioxide emissions, verified by RenovaCalc through each fuel’s lifecycle analysis.
- These certificates can then be sold in the financial market, primarily to fossil fuel distributors who are mandated under Brazilian law to offset a portion of their carbon emissions by purchasing CBIOs.[8] This certification is conducted by auditors accredited by the ANP.
Based on Brazil’s potash consumption for sugarcane and corn for ethanol production, the use of K Forte® as a potash source could potentially avoid the emission of up to 300,429 tons of CO2 per year,[9] due to the reduction in emissions associated with KCl production from 350,912 tons of CO2 to 50,483 tons associated with K Forte® production. Given the average price of CBIOs in the last 6 months, at C$28.20,[10] this substitution could generate the equivalent to C$8.5 million in CBIOs annually.[11]
Replacing KCl with the Product in a standard biofuel production plant[12] would result in an approximate 0.8% increase in the Environmental Efficiency Score of the production chain.
“The potential annual avoidance of CO2 emissions is equivalent to taking approximately 65,000 cars off the road for an entire year,[13] or the amount of CO2 absorbed by approximately 5 million tree seedlings grown over ten years. This represents a tremendous impact,” commented Mr Veloso.
Brazilian Agribusiness Decarbonization
Decarbonization in agriculture is becoming an ever more relevant topic. Brazil is advancing its agenda for reducing GHG from agriculture through the “Adaptation and Low Carbon Emission Plan in Agriculture – ABC+” (2020-2030). This initiative is designed to support Brazil’s commitment to the Paris Agreement by facilitating climate change adaptation and promoting sustainable landscape management.[14]
Energy agriculture presents a pivotal opportunity to transform Brazilian agribusiness as global economic growth fuels increased energy demand. Ethanol and biodiesel, as alternatives to fossil fuel energy, are gaining traction. Produced from renewable resources such as sugarcane and forest biomass, these biofuels are a step towards sustainability. Sugarcane ethanol, noted for its exceptionally low carbon footprint, contributes significantly to Brazil’s renewable energy matrix—accounting for 15.4% of the national energy matrix or 32% of all domestically offered renewable energy. This places Brazil (47.4%) well above the global average (14.1%) and the OECD developed countries (11.5%) in the adoption of clean and renewable energy. The sugarcane energy chain alone generates over US$100 billion in gross value, contributing roughly US$40 billion to Brazil’s GDP, equivalent to about 2% of the national GDP.[15]
In Brazil, a 27% ethanol blend in gasoline has been legally mandated since 2015, making the country the world’s second-largest ethanol producer. Ethanol, derived from both sugarcane and corn, can be used either in its hydrated form or mixed with gasoline (anhydrous ethanol), significantly aiding environmental preservation and air quality improvement by reducing GHG emissions by up to 90% compared to gasoline.[16]
RenovaBio sets annual decarbonization targets for the fuel sector to boost biofuel production and use in the nation’s transport energy matrix. By 2030, RenovaBio aims to achieve more than a 10% reduction in GHG emissions within the Brazilian transport sector, significantly contributing to the national commitment of a 43% total GHG emission reduction.[17]
Internationally, similar initiatives to RenovaBio, such as the Low Carbon Fuel Standard (LCFS) of the California government and the Renewable Energy Directive (RED) of the European Union, have demonstrated success and longevity, with over a decade of implementation.
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/.
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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:
- the estimated amount and grade of Mineral Resources and Mineral Reserves;
- the estimated amount of CO2 removal per ton of rock;
- 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;
- timing of disclosure for the PFS and recommendations from the Special Committee;
- the Company’s competitive position in Brazil and demand for potash; 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, but are not limited to:
- the presence of and continuity of resources and reserves at the Project at estimated grades;
- the estimation of CO2 removal based on the chemical and mineralogical composition of assumed resources and reserves;
- 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® and K Forte® 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
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] Please see the “RenovaCalc” section for further information on the calculation assumptions.
[2] Considers K Forte®’s “cradle-to-gate” emissions, in accordance with RenovaCalc’s parameters. RenovaCalc’s standardized lifecycle emission factors encompass all emissions from the extraction of raw materials through to the completion of production, not including shipping emissions. For biofuel distribution and usage, RenovaCalc relies on official and sectoral statistics and a tool for estimating greenhouse gases for intersectoral sources. With these inputs, RenovaCalc calculates the Environmental Efficiency Score (“EES”) of produced biofuels. Please see the “RenovaCalc” section for further information on the calculation assumptions.
[3] For K Forte®, containing 10% K2O, a tenfold increase in application is considered to match the mass equivalent of K2O used in KCl, achieving equivalence to 1 kg of K2O.
[4] Assumptions: 31.193 million liters of ethanol produced per year (Source: Sugarcane and Bioenergy Observatory – UNICAdata). Dosages of 100 and 200 kg of K2O per hectare, respectively, for corn and sugarcane. Assuming the average yield of 4,025 liters per hectare for corn and 8,100 liters per hectare for sugarcane. K Forte (10% K2O) and KCl (60% K2O).
[5] BRENTRUP, F.; HOXHA, A.; CHRISTENSEN, B. Carbon footprint analysis of mineral fertilizer production in Europe and other world regions. [s.l: s.n.].
[6] To meet the obligations assumed by Brazil at the United Nations Conference on Climate Change 2015 (COP 21), the Brazilian National Biofuels Policy (RenovaBio) was implemented in 2017 by Law No. 13,576/2017, with additional regulations established by Decree No. 9,888/2019 and Ordinance No. 56 of December 21, 2022 issued by the Brazilian Ministry of Mines and Energy. For further information, please see: https://www.gov.br/mme/pt-br/assuntos/secretarias/petroleo-gas-natural-e-biocombustiveis/renovabio-1/renovabio-ingles
[7] Sources: a) ANP (2018). RenovaBio – Strategic Guidelines – Proposal submitted for public consultation.
- b) ANP (2018). RenovaBio – Next Steps in Regulation. 40th Ordinary Meeting of the Sugar and Alcohol Production Chain Sectoral Chamber.
- c) Official Gazette of the Union, National Energy Policy Council – Resolutions No. 5, June 5, 2018 and Resolution No. 758, November 23, 2018.
- d) Embrapa (2018). Technical Note – RenovaCalcMD: Method and Tool for Accounting the Carbon Intensity of Biofuels in the RenovaBio Program.
[8] Although there is no restriction on the type of buyer eligible to purchase CBIOs, it should be noted that, according to Brazilian Law No. 13,576, it is mandatory for fossil fuel distribution companies to buy CBIOs to meet their decarbonization targets.
[9] Assumptions: 31.193 million liters of ethanol produced per year (Source: Data from the Sugarcane and Bioenergy Observatory – UNICAdata – which provides historical data on ethanol production by raw materials, sugarcane and corn for the 2022/2023 harvest). Dosages of 100 and 200 kg of K2O per hectare, respectively, for corn and sugarcane. Assuming the average yield of 4,025 liters per hectare for corn and 8,100 liters per hectare for sugarcane. Demand for 7.71 million tons for K Forte (10% K2O) and 1.28 million tons for KCl (60% K2O).
[10] CBIOs average price from December 01, 2023 to May 31, 2024 was 102.92 Brazilian Reais (“R$”). Source: B3. Currency Exchange Rate: C$1.00 = R$3.65.
[11] R$30.9 million. Currrency Exchange Rate: C$1.00 = R$3.65.
[12] Standard profile for biofuel production: an option in RenovaCalc for biofuel producers or importers, which includes the technical parameters related to the production of energy biomass, pre-filled with data that reflects the average production profile in Brazil, with added penalties. Source: Official Gazette of the Union, ANP – Resolution No. 758, November 23, 2018.
[13] Based on the average car emitting about 4.6 tons of CO2 annually.
[14] Sources: https://www.gov.br/agricultura/pt-br/assuntos/sustentabilidade/planoabc-abcmais and https://www.gov.br/agricultura/pt-br/assuntos/sustentabilidade/planoabc-abcmais/abc/programas-e-estrategias
[15] Source: https://unicadata.com.br/listagem.php?idMn=158
[16] Source: Data report on the sugar energy sector in Brazil and its economic, environmental and social impacts (from Portuguese “Fotografia do setor açúcar energético no Brasil e os benefícios econômicos, ambientais e sociais gerados”), Brazilian Sugarcane Industry and Bioenergy Association (Unica).
[17] Source: Brazilian Sugarcane Industry and Bioenergy Association (Unica)
Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce that it is in advanced negotiations to sell carbon credits to major international corporations that are established purchasers of permanent carbon offset. Currently, carbon credits for permanent carbon offset similar to Verde’s are being sold at prices up to US$500 per tonne.[1] The Company is able to generate up to 300,000 tonnes of carbon credit annually via its existing production facilities.
Verde’s silicate rock is rich in the mineral glauconite (the “Rock”), which once processed and applied to the soil removes carbon dioxide (“CO2“) from the air through a process called Enhanced Rock Weathering (“ERW”).[2] ERW permanently locks CO2 into the new mineral structure.[3] In 2022 the carbon credit markets totalled US$ 909 billion in transactions.[4]
The Company is fully permitted and equipped to mine and process up to 2.8 million tonnes per year of Rock. To build its mines, Verde acquired farmland that had previously been deforested to open area for pastureland, as its mining progresses Verde fully recovers the land back to original native forests. To date, the Company has planted over 30,000 native and endangered trees.
Verde expects to close its first sales of carbon credit in Q3 2023.
About Verde AgriTech
Verde is an agricultural technology Company that produces potash fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.
Verde is a fully integrated Company: it mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product.
Verde’s focus on research and development has resulted in one patent and eight patents pending. Among its proprietary technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.[5] Currently, the Company is fully licensed to produce up to 2.8 million tonnes per year of its multinutrient potassium fertilizers K Forte® and BAKS®, sold internationally as Super Greensand®. In 2022, it became Brazil’s largest potash producer by capacity.[6] Verde has a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).[7] This amounts to 295.70 million tonnes of potash in K2O. For context, in 2021 Brazil’s total consumption of potash in K2O was 6.57 million[8].
Brazil ranks second in global potash demand and is its single largest importer, currently depending on external sources for over 97% of its potash needs. In 2022, potash accounted for approximately 3% of all Brazilian imports by dollar value.[9]
Corporate Presentation
For further information on the Company, please view shareholders’ deck:
https://verde.docsend.com/view/3tv6fma5vq3wsxmn
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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:
- 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;
- timing of disclosure for the PFS and recommendations from the Special Committee;
- the Company’s competitive position in Brazil and demand for potash; 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, but are not limited to:
- 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® and K Forte® 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
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, Founder, Chairman & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.verde.ag | www.investor.verde.ag
[1] https://www.qcintel.com/carbon/article/enhanced-rock-weathering-credits-offered-at-up-to-536-t-14332.html
[2] See “Verde’s Products Remove Carbon Dioxide From the Air”, Verde AgriTech. Available at: https://investor.verde.ag/verdes-products-remove-carbon-dioxide-from-the-air/
[3] See e.g. Criteria for High-Quality Carbon Dioxide Removal (microsoft.com), page 36.
[4] “Global carbon markets value hit record $909 bln last year”, VERMA, S.; CHESTNEY, N. Reuters, 2023. Available at: https://www.reuters.com/business/sustainable-business/global-carbon-markets-value-hit-record-909-bln-last-year-2023-02-07/
[5] Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9
[6] See the release at: https://investor.verde.ag/verde-starts-ramp-up-of-plant-2s-second-stage-to-reach-production-of-2-4mtpy/
[7] As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR in 2017. See the Pre-Feasibility Study at: https://investor.verde.ag/wp-content/uploads/2021/01/NI-43-101-Pre-Feasibility-Technical-Report-Cerrado-Verde-Project.pdf
[8] Source: Brazilian Fertilizer Mixers Association (from “Associação Misturadores de Adubo do Brasil“, in Portuguese).
[9] Source: Brazilian Comex Stat, available at: http://comexstat.mdic.gov.br/en/geral
Independent research shows potential carbon capture of 120kg per tonne of Verde’s Products
Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce the carbon capture properties of its K Forte® and Super Greensand® (“Products”), as detailed by an independent study conducted at Newcastle University under the leadership of Prof. David Manning, PhD, a renowned soil scientist (the “Study”). The carbon dioxide (“CO2”) capture is inherent to the Products and is estimated at 120kg per tonne. The CO2 removal does not require any change to the Products’ production and farmland application methods, nor does it change the nutritional benefits to plants. As a result, in the production scenario of 50 million tonnes per year (“Mtpy”),[1] Verde would be one of the world’s largest carbon capture projects with a total of 6 million tonnes of CO2 permanently subtracted from the atmosphere every year.
The Science on Enhanced Rock Weathering and the Study Findings
Enhanced Rock Weathering (“ERW”) is a naturally occurring process whereby CO2 is removed from the atmosphere when it reacts with silicate minerals present within certain types of rocks. In other words, through weathering, certain types of minerals naturally absorb CO2 from the air and store it permanently as part of the new mineral structure.
Over many years, Verde’s prospecting led to the identification of a silicate mineral that is rich in glauconite (the “Rock”). It is distinctive in its faster weathering rate compared to other minerals used in ERW schemes, such as basalt, which allows the Rock to capture CO2 more rapidly. In a parallel benefit, the Rock is a source of several plant nutrients including potassium (represented on the periodic table as “K“), which is a crucial element for plant growth, and is a proven substitute for Potassium Chloride (“KCl”).
To evaluate Verde’s Products, the Company engaged Professor David Manning Ph.D., who is a leading expert in ERW. Dr. Manning has been a member of the Institution of Geologists since 1979, was the president of the Geological Society of London from 2014-2016, member of Council of the European Federation of Geologists (“EFG”) and chaired the EFG’s Panel of Experts on Soil Protection. He has extensive publications on the topic of soil and its role in combating climate change.[2],[3]
Analyses performed on Verde’s Products at Newcastle University have confirmed its efficiency to extract CO2 from the atmosphere at a ratio of 120kg of CO2 per 1 tonne of Product, based on a well-established scientific calculation formula.[4] In conclusion, Verde’s Rock undergoes ERW to permanently capture atmospheric CO2 while releasing K and other plant nutrients.
Previously, following extensive geological research of the Rock, including over 40,000 meters of drilling and chemical analyses, Verde had commissioned an independent mineral resource and reserve study under the Canadian National Instrument 43-101, which has established a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).[5] This amounts to 295.70 million tonnes of potash equivalent in K2O. For context, in 2021 Brazil’s total consumption of potash in K2O was 6.57 million.[6]
Professor David Manning commented on the findings: “For over 40 years I have devoted the bulk of my research to how we can exploit soil processes to mitigate the effects of anthropogenic greenhouse gas emissions. More specifically, I use my research-based understanding of how soils and their constituent minerals interact with the biosphere in the context of carbon capture and plant nutrient supply. It was therefore no surprise when our research demonstrated the potential of Verde’s Products to absorb CO2. More impressive is Verde’s total mineral resources’ potential to remove around 398 million tonnes of CO2 from the atmosphere,[7] in what will be a significant contribution to global efforts to reduce atmospheric CO2 levels.”
Verde’s ERW Carbon Capture Potential
Scalable and cost-effective ERW carbon capture projects depend on farmers’ willingness to apply minerals on a large scale over their farmland. In that sense, Verde’s has multiple advantages in ERW:
- The Products have fast dissolution rate, as evidenced by agronomic trials and potassium release.
- The Products are sources of essential macronutrients for plants, which creates significant motivation for farmers to adopt them in place of traditional chemical fertilizers;
- The Products have certified mineral reserves proving reliably consistency in their mineralogy, carbon capture effectiveness and absence of deleterious elements;
- The Products are certified organic by several governmental and non-governmental organizations, including some of the most stringent global standards such as the Washington State Fertilizer Registration and the California Department of Food & Agriculture;
- The Products undergo meticulous particle size control when of its manufacturing process, guaranteeing a consistent particle size distribution. This is advantageous because particle size is essential for optimal carbon capture and its calculation.
Few carbon capture projects based on ERW showcase all, if any, of the above advantages which are consistently delivered by Verde.
Cristiano Veloso, Verde’s Founder and CEO, commented: “This is a disruptive moment for agriculture in general and Verde in particular because it marks the point when plant nutrition can be directly and quantifiably linked to permanent carbon capture. As a company and team, at Verde we have always been committed to sustainable and environmentally friendly solutions for agriculture. We are now devoting significant energy and resources to the Life Cycle Analysis, which will determine our products’ carbon footprint – if there is any and how best to pursue monetization from potential carbon credits. Verde is uniquely positioned to help feed the world and reduce greenhouse gases in our atmosphere.”
Next Step: Life Cycle Analysis and Carbon Credits Studies
Verde has commissioned a leading Canadian consultancy firm to conduct a comprehensive Life Cycle Analysis (LCA) of its Products. The LCA will provide a more complete understanding of the overall carbon footprint of Verde AgriTech’s products, from mining through processing and delivery, thereby allowing for an exact calculation of CO2 captured. The fact that 100% of the electricity used by the Company comes from renewable zero emission hydropower will contribute to ensure a negative carbon footprint.
The Company will also determine how its Products can meet the requirements necessary to generate carbon credits. In 2022 the global market for carbon credits totalled US$ 909 billion.[8]
KCl Compared to Verde’s Product
Potassium chloride (KCl) is the conventional source of potassium, produced mostly in Canada, Russia, and Belarus. Brazil is highly dependent on imported KCl, accounting for over 96% of the total potassium used in the country’s crops. Despite its effectiveness as a potassium fertilizer, the production and use of KCl have resulted in significant environmental and social costs. The manufacturing process of KCl, has been linked to devastating effects, including human fatalities, large-scale water pollution due to chloride contamination, and the formation of sinkholes leading to the destruction of an entire city.
Contrary to KCl, Verde’s Product is economically more viable and sustainable because it does not contain chlorine, has gradual release, does not leach out with rain or irrigation water, and does not cause soil salinization. Verde’s Products have a much smaller carbon footprint compared to KCl because it does not need to be transported over transcontinental distances, being produced close to its finally point of application, rely on electricity produced from renewable sources, and once applied to soils it captures carbon.
In Q1 2023, 8,559 tonnes of chloride have been prevented from being applied into soils by farmers who used the Product in lieu of potassium chloride fertilizers.[9],[10] A total of 121,201 tonnes of chloride has been prevented from being applied into soils by Verde’s customers since the Company started production. Once it achieves the production capacity of 50 million tonnes per year, the Company aims to mitigate the application of approximately 94.5 billion tonnes of chloride into soils over time[11] in collaboration with its customers.
Furthermore, Verde’s Products are produced close to its finally point of application, rely on electricity produced from renewable sources, and once applied to soils they capture carbon.
Finally, KCl is not approved for organic farming due to its harmful impacts on the environment. Its extensive use has been associated with damaging effects on soil health and microbiome balance, as well as contributing to chloride leaching into water systems. Whereas Verde’s products are certified organic.
Verde plans to use carbon credits to reduce the price of the Product to farmers while increasing overall profitability, therefore further incentivizing the substitution of KCl.
Select Historic Overview of Verde’s Environmental Initiatives
Verde has an extensive history of commitments towards sustainable and productive agriculture. Below are some of the highlights of recent years that help ensure that the carbon capture initiative of the Company is buttressed by best-in-class environmental practices.
In September 2019, the Company was awarded the “Good Environmental Practices Award”, promoted by the State System of Environment and Water Resources (SISEMA, in Portuguese) in the category “Best Practice of Mineral Solid Waste Management”. The Company has presented its sustainable mining project that is intended to improve the health of people and of the planet.
In June 2021, the Company launched N Keeper, a proprietary processing technology for the Rock that alters its physical-chemical properties to enable ammonia retention for use as a calibrated additive in Nitrogen fertilizers. N Keeper leads to the reduction of Nitrogen volatilization loss, which provides the efficiency of crop fertilization increase, mitigation of environmental impacts, and reduction of climate changes.[12]
In April 2022, Bio Revolution, Verde’s technology that enables the incorporation of microorganisms to mineral fertilizers, was launched by the Company. K Forte® is the first fertilizer in the world to use Bio Revolution technology. Bacillus aryabhattai, a bacterial strain widely renowned in agriculture for its multiple benefits, is the first microorganism to be incorporated into Verde’s Product.[13]
In February 2022, the Company’s Brazilian subsidiaries, Verde Fertilizantes LTDA and FVS Mineração LTDA, earned ISO 9001 and ISO 14001 certifications.
ISO 9001 is the international standard that specifies requirements for a Quality Management System, demonstrating good management practices throughout the Company’s processes. This certification reflects Verde’s commitment to meeting the highest standards of environmental protection and adopting a responsible approach to environmental issues in our operational activities.
ISO 14001 is an international standard that sets out the requirements for an environmental management system. It helps Verde to improve our environmental performance through more efficient use of resources and reduction of waste.
Through the implementation of the Environmental Management System in accordance with ISO 14000, Verde has established and maintains specific policies and procedures for identifying, monitoring, and controlling the environmental aspects of our operations, with the aim of minimizing negative impacts on the environment, preventing pollution, and promoting sustainability.
Moreover, we continue to actively seek opportunities to improve our environmental performance, through training and awareness programs developed for our employees, as well as the pursuit of technological innovations and more sustainable practices in our operations.
ISO 14001 certification shows Verde’s commitment to protecting the environment and operating transparently and responsibly regarding environmental issues.
Furthermore, Verde’s mining and processing do not require tailings dams. Its mined area is mainly composed of degraded pasturelands that, once mined, Verde transforms into tropical forest. To that end, the Company planted 4,300 trees in 2019, 5,000 in 2020, 9,888 in 2021 and 10,341 in 2022, totaling over 29,500 trees planted. All planted species are native to the region located around the Company’s production area.
Over the past few years, the company has contributed resources to expand production. Since last year, with the start of operation of the second plant, Verde AgriTech has become the company with the largest potash production capacity in Brazil. At 3Mtpy production, which can be achieved at its existing production facilities with issued permits and licenses, Verde can capture 360,000 tonnes of CO2.
In June 2023, Verde’s shareholders voted overwhelmingly to approve the Company’s proposal to ban sales to Amazon Rainforest regions in a commitment to combat deforestation.[14]
About Verde AgriTech
Verde is an agricultural technology Company that produces potash fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.
Verde is a fully integrated Company: it mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product.
Verde’s focus on research and development has resulted in one patent and eight patents pending. Among its proprietary technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.[15] Currently, the Company is fully licensed to produce up to 2.8 million tonnes per year of its multinutrient potassium fertilizers K Forte® and BAKS®, sold internationally as Super Greensand®. In 2022, it became Brazil’s largest potash producer by capacity.[16] Verde has a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).[17] This amounts to 295.70 million tonnes of potash in K2O. For context, in 2021 Brazil’s total consumption of potash in K2O was 6.57 million[18].
Brazil ranks second in global potash demand and is its single largest importer, currently depending on external sources for over 97% of its potash needs. In 2022, potash accounted for approximately 3% of all Brazilian imports by dollar value.[19]
Corporate Presentation
For further information on the Company, please view shareholders’ deck:
https://verde.docsend.com/view/49z9mmp6zfq8dgak
Investors Newsletter
Subscribe to receive the Company’s updates at:
http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at:
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;
- timing of disclosure for the PFS and recommendations from the Special Committee;
- the Company’s competitive position in Brazil and demand for potash; 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, but are not limited to:
- 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® and K Forte® 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
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, Founder, Chairman & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.verde.ag | www.investor.verde.ag
[1] For further information on Verde’s NI 43-101 Pre-Feasibility Technical Report, see the press release at: https://investor.verde.ag/wp-content/uploads/2022/05/Verde-AgriTech-Press-Release-Pre-Feasibility-Results-May-16-2022.pdf
[2] See, generally: https://www.scopus.com/authid/detail.uri?authorId=7201460937
[3] Source: Times Higher Education (THE). “Impact Rankings 2023”. Available at: https://www.timeshighereducation.com/impactrankings
[4] RENFORTH, P. “The negative emission potential of alkaline materials”. Nature Communications,
10:1401, 2019. Available at: https://www.nature.com/articles/s41467-019-09475-5.
[5] As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR in 2022. See the Pre-Feasibility Study at: https://investor.verde.ag/wp-content/uploads/2022/05/NI-43-101-Pre-Feasibility-Technical-Report-for-the-Cerrado-Verde-Project.pdf
[6] Source: Brazilian Fertilizer Mixers Association (from “Associação Misturadores de Adubo do Brasil“, in Portuguese).
[7] Verde’s mineral resources consist of a combined measured and indicated mineral resource of 1.47 billion tonnes, along with an inferred mineral resource of 1.85 billion tonnes. In total, Verde possesses 3.32 billion tonnes of rock. Notably, the CO2 extraction ratio for this resource is estimated at 120kg of CO2 per tonne, totalling 398 million tonnes of CO2 removal potential.
[8] VERMA, S.; CHESTNEY, N. “Global carbon markets value hit record $909 bln last year”. Reuters, 2023. Available at: https://www.reuters.com/business/sustainable-business/global-carbon-markets-value-hit-record-909-bln-last-year-2023-02-07/
[9] Verde’s Product is a salinity and chloride-free replacement for KCl fertilizers. 1 tonne of Product (10% K2O) has 0.1 tonnes of K2O, which is equivalent to 0.17 tonnes of potassium chloride (60% K2O), containing 0.08 tonnes of chloride.
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, regarding 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.
[10] 1 tonne of Product (10% K2O) has 0.1 tonnes of K2O, which is equivalent to 0.17 tonnes of potassium chloride (60% K2O), containing 0.08 tonnes of chloride.
[11] Based on the 50Mtpy production scenario of the NI 43-101 Pre-Feasibility Technical Report. See the PFS for further information: https://investor.verde.ag/wp-content/uploads/2022/05/NI-43-101-Pre-Feasibility-Technical-Report-for-the-Cerrado-Verde-Project.pdf
[12] See the press release at: https://investor.verde.ag/verdes-n-keeper-technology-to-boost-agricultural-productivity-and-help-fight-climate-change/
[13] See the press release at: https://investor.verde.ag/verde-launches-bio-revolution/
[14] See the press release at: https://investor.verde.ag/verdes-shareholders-to-vote-on-proposal-to-ban-sales-to-amazon-rainforest-regions-in-a-commitment-to-combat-deforestation/
[15] Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9
[16] See the release at: https://investor.verde.ag/verde-starts-ramp-up-of-plant-2s-second-stage-to-reach-production-of-2-4mtpy/
[17] As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR in 2017. See the Pre-Feasibility Study at: https://investor.verde.ag/wp-content/uploads/2021/01/NI-43-101-Pre-Feasibility-Technical-Report-Cerrado-Verde-Project.pdf
[18] Source: Brazilian Fertilizer Mixers Association (from “Associação Misturadores de Adubo do Brasil“, in Portuguese).
[19] Source: Brazilian Comex Stat, available at: http://comexstat.mdic.gov.br/en/geral
Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce the proposal of a resolution to be voted on at the upcoming 2023 General and Special Meeting of Shareholders (the “Meeting”) to stop all sales of Verde’s multinutrient potassium products, BAKS® and K Forte® sold internationally as Super Greensand® (the “Product”), to 218 municipalities, totalling 2.23 million km2, covered predominantly by Amazon rainforest (the “Resolution”).[1] If the resolution is approved, to those municipalities the Company will only sell the Product for reforestation projects that plant native trees.
“The Amazon rainforest is a vital ecosystem to the globe, providing essential functions such as carbon sequestration, biodiversity preservation, and climate regulation. Sadly, the Amazon faces a grave threat from illegal deforestation, which often times is committed for the purposes of replacing it with farmland. This proposed Resolution aligns with Verde’s core values and underscores our unwavering commitment to sustainable practices in Brazilian agriculture, which mostly already abides by high standards of sustainability. Brazilian farmers outside of the Amazon region have demonstrated remarkable technological advancements and achieved record productivity in recent years, showcasing their dedication to efficient and sustainable food production, while preserving huge areas of native vegetation,” comments Cristiano Veloso, Verde AgriTech’s Founder and CEO.
“This Resolution is not expected to impact Verde’s revenue in the medium to long run, but it serves as a powerful testament to our enduring dedication to environmental responsibility and will hopefully help set an example to be followed by other companies,” concluded Mr. Veloso.
Recognizing the paramount importance of safeguarding the Amazon rainforest, Verde’s Board of Directors (the “Board”) has unanimously recommended that shareholders vote in favor of the Resolution proposed by the Company’s executives.
Aligned with the Company’s purpose of improving the health of all the people and the Planet, the Resolution represents a significant step in the ongoing battle against deforestation in one of the world’s most biologically rich regions.
Overall, the initiative will protect a territory encompassing a total of 2.23 million km².[2] To put its magnitude into perspective, this area surpasses the combined size of Japan, Germany, the United Kingdom, France, and Italy, nations that collectively rank among the top ten largest economies worldwide.
If approved at the Meeting, the Resolution shall promptly come into effect, and the Board will conduct annual reviews to ensure its unwavering efficacy in upholding the Company’s commitment to sustainability and the preservation of the Amazon rainforest.
To date, Verde has invested over C$111 million in research and development, construction of Plant 1 and Plant 2, and access improvement. In 2022, the Company became Brazil’s largest potash producer by capacity, being able to produce up to 3 million tonnes of Product per year. The Company is also the world’s largest manufacturer of potash fertilizers approved for organic agriculture.
Enhanced Rock Weathering
Verde has been assessing the carbon capture potential of its Products, through independent studies conducted at Newcastle University. The studies are evaluating a natural process termed Enhanced Rock Weathering (“ERW”), whereby CO2 is permanently removed from the atmosphere by reacting with the decomposition of silicate minerals present within the Product’s raw material.
2023 Annual General and Special Meeting of shareholders
The 2023 Annual General and Special Meeting of shareholders of the Company will be held on June 22, 2023 at 6 p.m. (SGT), at 16 Collyer Quay, #17-00, Singapore, 049318. Shareholders will be able to observe the Meeting virtually utilizing ZOOM and are invited to submit questions in advance, through the following links:
- Join the Meeting:
- Submit questions in advance:
The Meeting’s Management Information Circular are available on SEDAR at www.sedar.com and on the Company’s website at www.investor.verde.ag.
About Verde AgriTech
Verde is an agricultural technology Company that produces potash fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.
Verde is a fully integrated Company: it mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product.
Verde’s focus on research and development has resulted in one patent and eight patents pending. Among its proprietary technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.[3] Currently, the Company is fully licensed to produce up to 2.8 million tonnes per year of its multinutrient potassium fertilizers K Forte® and BAKS®, sold internationally as Super Greensand®. In 2022, it became Brazil’s largest potash producer by capacity.[4] Verde has a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).[5] This amounts to 295.70 million tonnes of potash in K2O. For context, in 2021 Brazil’s total consumption of potash in K2O was 6.57 million[6].
Brazil ranks second in global potash demand and is its single largest importer, currently depending on external sources for over 97% of its potash needs. In 2022, potash accounted for approximately 3% of all Brazilian imports by dollar value.[7]
Corporate Presentation
For further information on the Company, please view shareholders’ deck:
https://verde.docsend.com/view/3i28qwrquwjznrin
Investors Newsletter
Subscribe to receive the Company’s updates at: http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at:
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;
- timing of disclosure for the PFS and recommendations from the Special Committee;
- the Company’s competitive position in Brazil and demand for potash; 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, but are not limited to:
- 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® and K Forte® 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
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, Founder, Chairman & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.investor.verde.ag
[1] The states of Amazonas, Acre, Roraima, and Amapá were entirely considered as Amazon Rainforest. For states that include partial forest areas, municipalities with less than 500 hectares of planted area were considered predominantly Amazon Rainforest.
[2] Source: Brazilian Institute of Geography and Statistics (IBGE), Municipal Digital Mesh of the Brazilian Political-Administrative Division (2022). Available at: https://www.ibge.gov.br/geociencias/organizacao-do-territorio/malhas-territoriais/15774-malhas.html?edicao=36516&t=acesso-ao-produto
[3] Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9
[4] See the release at: https://investor.verde.ag/verde-starts-ramp-up-of-plant-2s-second-stage-to-reach-production-of-2-4mtpy/
[5] As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR in 2017. See the Pre-Feasibility Study at: https://investor.verde.ag/wp-content/uploads/2021/01/NI-43-101-Pre-Feasibility-Technical-Report-Cerrado-Verde-Project.pdf
[6] Source: Brazilian Fertilizer Mixers Association (from “Associação Misturadores de Adubo do Brasil“, in Portuguese).
[7] Source: Brazilian Comex Stat, available at: http://comexstat.mdic.gov.br/en/geral