Verde Announces Q4 and FY 2023 Results

(All figures are in Canadian dollars, unless stated otherwise. Average exchange rate in FY 2023: C$1.00 = R$3.70)

Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) announces its financial results for the full year ended December 31, 2023 (“FY 2023”) and the fourth quarter 2023 (“Q4 2023”), as audited by Ernst & Young (“EY”). The FY 2023 audited results were consistent with the interim results announced by the Company on January 26, 2024:

Metric January 26, 2024 press release FY 2023 Audited results
Sales (tons) 4280,000 428,000
Revenue (C$) 37.5 million – 38.5 million 37.9 million
EBITDA (C$) 1.5 million – 2.5 million 2.0 million
Net loss range (C$) 5.0 million – 6.0 million 6.0 million
CDR potential (tons of CO2) 17,680 17,680

“Unfortunately, as previously anticipated by the Company, 2023 stood as one of the most challenging years for the agricultural and fertilizers sectors in recent history. Verde was caught in the tide of low demand and adverse pricing conditions. Looking ahead to 2024, our focus sharpens on reclaiming market share and elevating our operational and administrative efficiencies to curtail costs. Our team is hard at work to ensure that the 2023 results become an outlier within Verde’s growth trajectory,” declared Verde’s Founder, President & CEO Cristiano Veloso.

 

Fourth Quarter and Full Year 2023 Highlights

Operational and Financial Highlights

  • Verde’s revenue amounted to $37.9 million in FY 2023, a 53% decrease compared to the previous year, when potash prices reached record levels. The reduction in revenue was driven by a 54% drop in average potash prices and a 32% decrease in sales volume, to 428,000 tons of Verde’s multinutrient potassium products, BAKS® and K Forte® sold internationally as Super Greensand® (the “Product”).
  • Cash held by the Company increased by $5.8 million in FY 2023. This improvement was due to new loans secured throughout 2023. The Company is currently in discussions with banks to extend the maturity of its debt.
  • EBITDA before non-cash events was $2.0 million in FY 2023. The decline in EBITDA is primarily attributed to the lower revenues for the year and increased allowance for expected credit losses (“ECLs”) in 2024.
  • The Company reported a net loss of $6.0 million in FY 2023, compared to a net profit of $17.8 million in FY 2022. This shift was primarily driven by reduced revenue, alongside rises in allowance for ECLs, depreciation costs, and interest expenses over the year.

 

Other Highlights

  • The Product sold in FY 2023 has the potential to capture up to 32,198 tons of carbon dioxide (“CO2”) from the atmosphere via Enhanced Rock Weathering (“ERW”).[1] The potential net amount of carbon captured, represented by carbon dioxide removal (“CDR”), is estimated at 17,680 tons of CO2.[2] In addition to the carbon removal potential, Verde’s FY 2023 sales avoided the emissions of 6,483 tons of CO2e, by substituting potassium chloride (“KCl”) fertilizers.[3]
  • Combining the potential carbon removal and carbon emissions avoided by the use our Product since the start of production in 2018, Verde’s total impact stands at 258,894 tons of CO2.[4]
  • 33,920 tons of chloride have been prevented from being applied into soils FY 2023, by farmers who used the Product in lieu of KCl fertilizers.[5] A total of 146,562 tons of chloride has been prevented from being applied into soils by Verde’s customers since the Company started production.[6]

 

2023 Year in Review

Agricultural Market

After the historic high reached in 2022, average KCl CFR price declined by 54% in 2023 compared to the average 2022 price, with a 43% decrease in Q4 2023.[7]

The agricultural commodities market has been experiencing significant fluctuations on a downward trend since H1 2022, impacting the fertilizers’ market worldwide. In response to declining commodity prices in 2023, farmers postponed selling their crops hoping for a market upturn for better returns. The market’s current rates for the main crops in Brazil still sit significantly below those seen in 2022.

Additionally, Brazil faced extreme climate conditions in 2023, with nine episodes of long heat waves throughout the year, reflecting the impacts of the El Niño phenomenon (above-average warming of the Equatorial Pacific Ocean waters). The lack of rainfall also led soybean farmers to postpone planting and, as a result, many opted not to plant the following crop harvest, known as the “safrinha” corn. According to the Brazilian National Confederation of Municipalities (CNM), economic losses from extreme weather events reached 33 billion reais in 2023.[8]

 

Global market competition

In 2022, Brazil experienced its highest interest rates since 2006, a situation that has been showing signs of improvement since H2 2023 but still impacts the Company’s financing conditions.

The current SELIC interest rate is 10.75%.[9] The Central Bank of Brazil projects the SELIC rate to reach 9.00% per annum by the end of 2024, 8.5% in 2025 and 2026.[10] Annual inflation forecast for 2024 and 2025 are 3.8% and 3.5% respectively.[11]

Verde’s average cost of debt is 16.0% per annum. To incentivize sales, the Company offers its customers a credit line that charges a spread to its finance cost to comprise operational costs, provisions, and expected credit losses, leading to an average lending cost of 17.5% for credit-based purchases. The Company’s ability to provide financing with longer tenors is considerably lower compared to international players[12], which translates into less competitive terms for its customers. Unlike its competitors, Verde does not have the option to incur most of its cost of debt in US dollar-denominated liabilities. Overall, the Company is not able to provide financing for more than 20% of its revenue due to constraints related to lines of credit.

Verde’s average cost of debt is 16.0% per annum. To incentivize sales, the Company offers its customers a credit line that charges a spread to its finance cost to comprise operational costs, provisions, and expected credit losses, leading to an average lending cost of 17.5% for credit-based purchases. The Company’s ability to provide financing with longer tenors is considerably lower compared to international players[13], which translates into less competitive terms for its customers. Unlike its competitors, Verde does not have the option to incur most of its cost of debt in US dollar-denominated liabilities. Overall, the Company is not able to provide financing for more than 20% of its revenue due to constraints related to lines of credit.

Brazilian farmers have grappled with tight working capital amid challenging market conditions in 2023. This financial strain coincided with the critical time for buying necessary inputs like fertilizers for the new planting season. To navigate this, farmers have sought for input suppliers offering the most favorable payment terms and interest rates, allowing them to defer payment until after the harvest, typically between 9 to 12 months later. This approach, while necessary in the agricultural sector, increases the risk of non-payment for suppliers such as fertilizer companies, reflecting the heightened financial pressures within the sector.

 

Currency exchange rate

Canadian dollar devaluated by 7% versus Brazilian Real in FY 2023 compared to FY 2022.

 

Q4 and FY 2023 Results Conference Call

The Company will host a conference call on Tuesday, April 02, 2024, at 10:00 am Eastern Time, to discuss Q4 and FY 2023 results and provide an update. Subscribe using the link below and receive the conference details by email.

Date: Tuesday, April 02, 2024
Time: 10:00 am Eastern Time
Subscription link: 

The questions must be submitted in advance through the following link up to 48 hours before the conference call: .

The Company’s full year and fourth quarter financial statements and related notes for the period ended December 31, 2022 are available to the public on SEDAR at www.sedar.com and the Company’s website at www.investor.verde.ag/.

 

Results of Operations

The following table provides information about three and twelve months ended December 31, 2023 as compared to the three and twelve months ended December 31, 2022. All amounts in CAD $’000.

All amounts in CAD $’000 3 months ended
Dec 31, 2023
3 months ended
Dec 31, 2022
12 months ended
Dec 31, 2023
12 months ended
Dec 31, 2022
Tons sold (‘000) 104 125 428 628
Average revenue per ton sold $ 68 135 89 128
Average production cost per ton sold $ (21) (30) (23) (27)
Average gross profit per ton sold $ 47 105 66 101
Average gross margin 68% 78% 74% 79%
 
Revenue 7,058 16,837 37,863 80,271
Production costs (2,230) (3,762) (9,689) (17,181)
Gross Profit 4,828 13,075 28,174 63,090
Gross Margin 68% 78% 74% 79%
Sales and marketing expenses (996) (729) (4,022) (4,623)
Product delivery freight expenses (3,001) (9,163) (14,510) (28,363)
General and administrative expenses (2,527) (1,685) (7,666) (5,351)
EBITDA (1) (1,696) 1,498 1,976 24,753
Share Based, Equity and Bonus Payments (Non-Cash Event) (2) (304) (220) (449) (344)
Depreciation and Amortization (3) (640) (238) (3,716) (1,022)
Operating (Loss) / Profit after non-cash events (2,640) 1,040 (2,189) 23,387
Interest Income/Expense (4) (2,795) (1,812) (6,381) (2,964)
Net (Loss) / Profit before tax (5,435) (772) (8,570) 20,423
Income tax (5) 2,787 (540) 2,591 (2,619)
Net (Loss) / Profit (2,648) (1,312) (5,979) 17,804


(1)
– Non GAAP measure
(2) – Included in General and Administrative expenses in financial statements
(3) – Included in General and Administrative expenses and Cost of Sales in financial statements
(4) – Please see Summary of Interest-Bearing Loans and Borrowings notes
(5) – Please see Income Tax notes

 

External Factors

Revenue and costs are affected by external factors including changes in the exchange rates between the C$ and R$ along with fluctuations in potassium chloride spot CFR Brazil, agricultural commodities prices, interest rates, among other factors. For further details, please refer to the 2023 Review section (page 03).

 

Financial and operating results

In FY 2023, revenue from sales fell by 53%, accompanied by a 31% reduction in the average revenue per ton. Excluding freight expenses (FOB price), the average revenue per ton decreased by 34% in FY 2023. This decline in average revenue per ton was primarily attributed to a decrease in potassium chloride prices, the provision of additional discounts by the Company to strategic customers to increase market adoption, and a shift in the product mix due to farmers’ limited working capital. With many farmers facing restricted cash flows, there has been a noticeable shift towards opting for lower-value-added products. Consequently, the utilization of micronutrients, which do not fall within the essential NPK elements for plants, has witnessed a reduction. BAKS®, which has a higher sales price per ton compared to K Forte®, accounted for 7% of 2023 total sales compared to 11% in 2022. The proportion of products sold in jumbo bags, which command a higher sales price per ton compared to bulk, represented 20% of the Company’s total volume sold, down from 32% in FY 2022. This shift further affected the average revenue per ton in FY 2023.

Sales declined by 32% in FY 2023, due to the conditions outlined in the 2023 Review section (page 03). These included severe climate and market conditions and working capital limitations for Brazilian farmers, due to decreased prices of agricultural commodities. Moreover, Verde’s ability to provide competitive credit terms to farmers was restricted by the Company’s elevated debt costs relative to its larger international competitors.

Besides the reduced revenue in FY 2023, the decline in EBITDA is primarily due to an increased allowance for expected credit losses (ECLs), which raised general expenses in 2023, further affecting the Company’s financial position. In FY 2023, Verde recorded ECLs of $1,754, significantly impacting general expenses and, as a result, EBITDA. The Company is currently in active negotiations with these clients. If the negotiations are successful, the provision will be reversed.

In addition to the lower revenue from sales, depreciation costs had an increase of $2,691 in 2023. Interest expenses increased by $3,417, due to unwinding of transaction costs that were paid to the banks to settle balances with the suppliers for the construction of Plant 2 at the end of 2022. The Company generated a net loss of $5,979 in FY 2023, compared to a net profit of $17,804 in FY 2022.

Basic loss per share was $0.11 for FY 2023, compared to earnings of $0.34 for FY 2022.

 

Production costs

In 2023, total production costs were reduced by 44%, influenced by the decrease in sales volume. The average cost per ton experienced a 17% reduction in FY 2023, due to the commissioning of Plant 2 in 2022. This new plant operates at a lower production cost compared to Plant 1 due to enhanced operational efficiency. In 2022, Plant 1 operated across four work shifts to fulfil market demand. With the inauguration of Plant 2, it became possible to reduce headcounts at Plant 1, with both plants operating just one shift each from 2023. Sales from Plant 2 constituted 68% of the total sales in 2023. Moreover, the decrease in the proportion of sales made with Jumbo Bags to 20% in 2023, down from 32% in 2022, also contributed to the reduction in average production cost.

Production costs include all direct costs from mining, processing, and the addition of other nutrients to the Product, such as Sulfur and Boron. It also includes the logistics costs from the mine to the plant and related salaries.

Verde’s production costs and sales price are based on the following assumptions:

  1. Micronutrients added to BAKS® increase its production cost, rendering K Forte® less expensive to produce.
  2. Production costs vary based on packaging type, with bulk packaging being less expensive than Jumbo Bags.
  3. Plant 1 produces K Forte® Bulk, K Forte® Jumbo Bag, BAKS® Bulk, and BAKS® Jumbo Bag, while Plant 2 exclusively produces K Forte® Bulk. Therefore, Plant 2’s production costs are lower than Plant 1’s costs.

Verde calculates its total production costs as a weighted average of the production costs for BAKS® and K Forte®, taking into account the production site and packaging type for each product. Therefore, comparing the Company’s production costs on a quarter-over-quarter basis may not be meaningful due to the varying proportions of the cost factors that impact each quarter.

 

Sales, General and Administrative Expenses:

SG&A represents a non-operating segment that includes corporate and administrative functions, essential for supporting the Company’s operating segments.

 

Sales Expenses

CAD $’000 3 months ended
Dec 31, 2023
3 months ended
Dec 31, 2022
12 months ended
Dec 31, 2023
12 months ended
Dec 31, 2022
Sales and marketing expenses (923) (533) (3,912) (3,451)
Fees paid to independent sales agents (73) (196) (110) (1,172)
Total (996) (729) (4,022) (4,623)


Sales and marketing expenses cover salaries for employees, car rentals, domestic travel in Brazil, hotel accommodations, and Product promotion at marketing events. The 13% increase in expenses for FY 2023 is attributed to the appointment of new senior executives in Q3 and Q4 2023, anticipated to leverage their expertise for sales growth enhancement. Furthermore, Verde’s commercial team’s shift from inside sales to field sales in Q2 2023 led to additional costs on car rentals and travel.

As part of the Company’s marketing and sales strategy, Verde compensates its independent sales agents through commissions. Fees paid to independent sales agents decreased by 91% in FY 2023, tied to the decrease in annual sales. In Q3 2023, the Company reversed a provision of $249, significantly contributing to the credit balance in the year.

 

Product delivery freight expenses

Expenses decreased by 49% in FY 2023, to $14,510 compared to $28,363 in FY 2022. The volume sold as CIF (Cost Insurance and Freight) in 2023 represented 71% of total sales, the same percentage than FY 2022. However, the Company achieved a reduction in average freight costs per ton for products sold on a CIF basis, to $48 in 2023 from $64 in the comparable period of the previous year. The 25% decrease in freight costs can primarily be attributed to a reduction in the percentage of sales made to regions that are more distant from Verde’s production facilities.

 

General and Administrative Expenses

CAD $’000 3 months ended
Dec 31, 2023
3 months ended
Dec 31, 2022
12 months ended
Dec 31, 2023
12 months ended
Dec 31, 2022
General administrative expenses (701) (1,270) (3,646) (3,166)
Allowance for expected credit losses (1,138) (1,754)
Legal, professional, consultancy and audit costs (521) (188) (1,435) (1,343)
IT/Software expenses (182) (219) (715) (788)
Taxes and licenses fees (21) (8) (116) (54)
Total (2,563) (1,685) (7,666) (5,351)

General administrative expenses include general office expenses, rent, bank fees, insurance, foreign exchange variances and remuneration of executives, directors of the Board and administrative staff. General administrative increased by 15% in FY 2023, driven by the hiring of new executives and by costs associated with Plant 2. These costs encompass salaries for administrative staff and the leasing of water trucks and metallic structures to support operations. Furthermore, the Company incurred severance fees expenses due to staff reductions carried out in 2023. The increase in general administrative expenses in FY 2023 was partially offset by a 48% reduction in Q4, as no management bonuses were accrued in 2023.

In Q2 2023, the Company had to record an allowance for expected credit losses in its accounts for the first time. As per Verde’s sales policy, any outstanding customer payments overdue for more than 12 months must be provisioned. The total ECLs booked in Q4 2023 amounted to $1,754, compared to the absence of any provision in Q4 2022.

Legal, professional and audit costs include fees along with accountancy, audit and regulatory costs. Consultancy fees encompass consultants employed in Brazil, such as accounting services, patent processes, lawyer’s fees and regulatory consultants.

Share Based, Equity and Bonus Payments (Non-Cash Events) encompass expenses associated with stock options granted to employees and directors, as well as equity compensation and non-cash bonuses awarded to key management personnel. In FY 2023, the costs associated with share-based, equity, and bonus payments witnessed a 31% increase. This was primarily due to an increase in share-based payment charges, attributable to the issuance of a larger number of options over the year, particularly in Q4 2023, aligning with the recruitment of senior management officers.

 

Income tax

Brazilian corporations are subject to income taxes (IRPJ and CSLL) using an ‘Actual Profits’ method (i.e. APM – “Lucro Real”, in Portuguese), which is based on taxable income (the tax in this method is approximately 34% of the EBITDA), adjusted by certain additions and exclusions as determined by the legislation.

Subject to certain restrictions (i.e. where gross income does not exceed R$78 million and depending on the activity), Brazilian taxpayers have the option to calculate IRPJ and CSLL using a ‘Assumed Profits’ method (i.e. PPM – “Lucro Presumido”, in Portuguese). Under the PPM, the income is calculated on a quarterly basis on an amount equal to different percentages of gross revenue (the tax in this method is approximately 3.4% of the net revenue) and adjusted as determined by the prevailing legislation.

Up to December 31, 2022, the Brazilian Subsidiary (Verde Fertilizantes Ltda) was under the ‘Assumed Profits’ method, in which is not possible to utilize prior period losses to reduce income tax.

As of January 2023, the Brazilian subsidiary switched from ‘Assumed Profits’ taxation to ‘Real Profits’ taxation. With this transition, the Subsidiary is allowed to offset up to 30% of accumulated losses in subsequent years when profits are generated. Based on the projected taxable income, considering the approved budget and an extended period of up to ten years the recognized deferred tax assets on the Brazilian entities are deemed recoverable, resulting in the recognition of $2,805 of deferred tax assets in such entity. The Company also recognized an allowance for tax losses carry forward for the amount that is not expected to be offset against future taxable income within ten years.

 

Liquidity and Cash Flows

For additional details see the consolidated statements of cash flows for the quarters ended December 31, 2023 and December 31, 2022 in the financial statements.

Cash received from / (used for):

CAD $’000

3 months ended

Dec 31, 2023

3 months ended

Dec 31, 2022

12 months ended

Dec 31, 2023

12 months ended

Dec 31, 2022

Operating activities 20,709 (5,403) 4,619 11,469
Investing activities (2,308)  (12,362) (4,022) (42,021)
Financing activities (20,806) 13,951 5,017 30,030

On December 31, 2023, the Company held cash of $6,975, an increase of $5,812 on the same period in 2022. This was expected due to the additional bank loans taken out in Q4 2023.

 

Operating activities

In agricultural sales, credit transactions are common due to the cyclical nature of farming income, which sees fluctuations with seasonal highs during harvests and lows during planting. This cycle necessitates that farmers have access to essential inputs like seeds, fertilizers, and pesticides ahead of their selling season. To accommodate this, credit terms are offered, allowing farmers to procure these inputs in advance and align their payments with their revenue cycle.

Verde’s approach to credit in the agricultural sector reflects a deep understanding of these operational nuances, resulting in a substantial portfolio of receivables. The Company’s normal credit term is 30 to 120 days upon shipment, depending on the period of the year, tailored to the specific needs of each farmer, considering the crop cycle, creditworthiness, and other key factors. This strategy ensures farmers have the necessary resources for each planting season, while Verde secures its financial interests through aligned payment schedules.

In Q4 2023, net cash generated under operating activities increased to $20,709, compared to $5,403 utilized in Q4 2022. Net cash generated under operating activities decreased to $4,619 in FY 2023, compared to $11,469 in FY 2022. This was mainly due to a decrease in receivables and payables from the last financial year.

Trade and other receivables decreased by 52% in FY 2023, to $13,657 compared to $28,533 in 2022. Trade and other payables decreased by 62% in FY 2023, to $4,005 compared to $10,586 in 2022.

 

Investing activities

Cash utilized from investing activities decreased to $4,022 in FY 2023, compared to $42,021 in 2022. This reduction is attributable to the significant infrastructure investments made in Plant 2 during 2022.

 

Financing activities

Cash generated from financing activities decreased to $5,017 in FY 2023, compared to $30,030 in 2022. This was due to additional $4,996 bank loans secured by the Company in 2023, net of loans repaid during the year.

 

Financial condition

The Company’s current assets decreased to $23,088 in Q4 2023, compared to $32,165 in Q4 2022. Current liabilities increased to $39,956 in Q4 2023, compared to $28,804 in Q4 2022; providing a working capital deficit of $16,868 in 2023, compared to the working capital surplus of $3,361 in 2022.

At the end of the financial year, the entity had three loans and borrowings agreements between Verde Fertilizantes Ltda and Banco do Brasil, which stipulated early settlement clauses in case of covenant breach if the relationship between Net Equity (PL) / Total Asset calculated in 2023 is at least 50%. As of 31 December 2023, Verde Fertilizantes Ltda did not meet such financial covenant, requiring the reclassification of $15,788 of the non-current liabilities to current liabilities, given, as of 31 December 2023, the Company did not have an unconditional right to defer its settlement for at least twelve months after that date.

On 18 March 2024, a waiver letter was issued by the bank not demanding the immediate repayment due to the breach of the financial covenant and restating that the remaining terms of the agreement remain unchanged. As result, at date of issuance of the consolidated financial statements, such loans and borrowings are not deemed due for immediate repayment nor required to be repaid before its maturity date.

 

About Verde AgriTech

Verde AgriTech is dedicated to advancing sustainable agriculture through the innovation of specialty multi-nutrient potassium fertilizers. Our mission is to increase agricultural productivity, enhance soil health, and significantly contribute to environmental sustainability. Utilizing our unique position in Brazil, we harness proprietary technologies to develop solutions that not only meet the immediate needs of farmers but also address global challenges such as food security and climate change. Our commitment to carbon capture and the production of eco-friendly fertilizers underscores our vision for a future where agriculture contributes positively to the health of our planet.

For more information on how we are leading the way towards sustainable agriculture and climate change mitigation in Brazil, visit our website at https://verde.ag/en/home/.

 

Corporate Presentation

For further information on the Company, please view shareholders’ deck:

https://verde.docsend.com/view/ggz6zdd3dk3uxakd

 

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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] Out of the total sales in FY 2023, 268.317 tons were sold in compliance with our Monitoring, Verification, and Report (“MRV”) Protocol, qualifying them as potential carbon credits. The carbon capture potential of Verde’s products, through Enhanced Rock Weathering (ERW), is 120 kg CO2e per ton of K Forte®. For further information, see “Verde’s Products Remove Carbon Dioxide From the Air”.

[2] Net Carbon Dioxide Removal (CDR): volume of 1 ton of Long-Term CO2 Removal, equivalent to 1 carbon credit.

[3] K Forte® is a fertilizer produced in Brazil using national raw materials. Its production process has low energy consumption from renewable sources and, consequently, a low environmental and GHG emissions footprint. Whereas the high carbon footprint of KCl results from a complex production process, involving extraction, concentration, and granulation of KCl, in addition to the long transportation distances to Brazil, given that 95% of the KCl consumed in the country is imported. 12Mt of K Forte® is equivalent to 2Mt of KCl in K2O content. Emissions avoided are calculated as the difference between the weighted average emissions for KCl suppliers to produce, deliver, and apply their product in each customer’s city and the emissions determined according to K Forte®’s Life Cycle Assessment for its production, delivery, and application in each customer’s city.

[4] From 2018 to 2023, the Company has sold 1.85 million tons of Product, which can remove up to 210,936 tons of CO2. Additionally, this amount of Product could potentially prevent up to 47,958 tons of CO2 emissions.

[5] Verde’s Product is a salinity and chloride-free replacement for KCl fertilizers. Potassium chloride is composed of approximately 46% of chloride, which can have biocidal effects when excessively applied to soils. According to Heide Hermary (Effects of some synthetic fertilizers on the soil ecosystem, 2007), applying 1 pound of potassium chloride to the soil is equivalent to applying 1 gallon of Clorox bleach, with regard to killing soil microorganisms. Soil microorganisms play a crucial role in agriculture by capturing and storing carbon in the soil, making a significant contribution to the global fight against climate change.

[6] 1 ton of Product (10% K2O) has 0.1 tons of K2O, which is equivalent to 0.17 tons of potassium chloride (60% K2O), containing 0.08 tons of chloride.

[7] Source: Acerto Limited Report.

[8] Available at: https://www.cnm.org.br/biblioteca

[9] As of March 20, 2024. Source: Brazilian Central Bank.

[10] Source: Brazilian Central Bank.

[11] As of March 20, 2024. Source: Brazilian Central Bank.

[12] Verde’s normal credit term is 30 to 120 days upon shipment, depending on the period of the year, while competitors can provide 180-360 days to collect its payments.

[13] Verde’s normal credit term is 30 to 120 days upon shipment, depending on the period of the year, while competitors can provide 180-360 days to collect its payments.

Verde to participate at the 36th Annual Roth Conference

Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce that it will participate at the 36th Annual Roth Conference (the “Conference”). The Conference will take place in Laguna Niguel, California, from March 17, 2024 to March 19, 2024, and Verde will be represented by its Vice President of Corporate Development, Mr. Lucas Brown. Mr. Brown will be available for one-to-one meetings during the Conference to promote investment opportunities and present the Company’s carbon removal project.

Recently, Verde announced a strategic partnership with WayCarbon, a company that is 80% owned by Banco Santander, to bolster the development and monetization of its carbon removal project.[1] The partnership is based on Verde’s specialty multi-nutrient potassium fertilizer K Forte® (the “Product”) and its potential to permanently remove CO2 from the atmosphere through Enhanced Rock Weathering (“ERW”). Within this partnership, WayCarbon will support Verde with the development, certification, marketing and monetization of its carbon credits. In addition to leveraging Verde’s Product, the partnership extends its scope to encompass Verde’s origination and utilization of other minerals capable of carbon removal through ERW.

As detailed by an independent study conducted at Newcastle University under the leadership of Prof. David Manning, PhD, the carbon dioxide removal potential of K Forte® is estimated at 120kg CO2 per ton of Product.[2] The CO2 removal potential does not require any change to the Product’s farmland application methods, nor does it change the nutritional benefits to plants. Therefore, Verde’s Product not only provides a sustainable source of potassium to plants but is also set to play a key role in reducing the agricultural sector’s carbon footprint.

“I’m looking forward to representing Verde at the 36th Annual Roth Conference. Our carbon removal project is reaching a level of maturity where we are actively looking for investors to support its growth. This Conference is a key opportunity for us to engage directly with potential partners who understand the importance of our work in sustainable agriculture,” stated Mr. Lucas Brown, Vice President of Corporate Development at Verde AgriTech.

The 36th Annual Roth Conference will host over 500 private and public companies, including sectors like Consumer, Technology & Media, Sustainability & Industrial Growth, AgTech, Energy, Metals & Mining, Healthcare, Services, and Insurance.

About Verde AgriTech

Verde AgriTech is a climate-smart agriculture technology company. We are dedicated to driving sustainable and regenerative agriculture in Brazil through the production of specialty multi-nutrient potassium fertilizers, essential in promoting decarbonization in the agricultural sector. Our mission is to increase agricultural productivity, enhance soil health and significantly contribute to environmental sustainability. With our proprietary technologies, we develop solutions that meet farmers’ immediate needs for crop nutrition while simultaneously addressing global challenges such as food security and climate change.

For more information on how we are leading the way towards sustainable agriculture and climate change mitigation in Brazil, visit our website at https://verde.ag/en/home/.

 

Corporate Presentation

For further information on the Company, please view shareholders’ deck:

https://verde.docsend.com/view/cb2w3cnd2jk4sw49

 

Company Updates

Verde invites you to subscribe for updates. By signing up, you’ll receive the latest news about the Company’s projects, achievements, and future plans.

Subscribe here: http://cloud.marketing.verde.ag/InvestorsSubscription

 

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 tonne 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] See “Verde announces partnership with leading carbon developer, WayCarbon, to monetise carbon credits”.

[2] See “Verde’s Products Remove Carbon Dioxide From the Air”.

 

Verde announces partnership with leading carbon developer, WayCarbon, to monetise carbon credits

Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce a strategic partnership with WayCarbon to bolster the development and monetization of its carbon removal project.

WayCarbon is 80% owned by Banco Santander, one of Europe’s largest banks. It is a leading developer of carbon removal projects and a pioneer in climate change mitigation and sustainability solutions. The partnership is based on Verde’s specialty multi-nutrient potassium fertilizer K Forte® (the “Product”) and its potential to permanently capture CO2 through Enhanced Rock Weathering.

“This partnership with WayCarbon marks a new chapter for Verde. It represents a crucial step towards monetization of Verde’s own significant carbon removal potential and allows the Company to collaborate on new projects with Brazil’s most credible carbon developer. WayCarbon has been active in this sector since 2006 making it a veteran with a success record to match. I believe that the combination of our attributes has the potential to spawn one of the world’s largest carbon removal platforms,” celebrated Cristiano Veloso, Verde’s Founder and CEO.

WayCarbon has a history of high-quality carbon projects in Brazil. Within the partnership, WayCarbon will support Verde with the development, certification, marketing and monetization of its carbon credits. In addition to leveraging Verde’s Product, the partnership extends its scope to encompass Verde’s origination and utilization of other minerals capable of carbon capture through Enhanced Rock Weathering.

“We are thrilled about our partnership with Verde AgriTech. At WayCarbon, our mission is to drive the transition to a Net-Zero economy. This transformation is a multi-sectoral endeavour. The distinctive properties of Verde’s products, coupled with Verde’s extensive proven mineral reserves and their strategic proximity to key agricultural regions of the country, present a unique opportunity to advance the decarbonization of the Brazilian agricultural sector,” extolled Breno Rates, WayCarbon’s Founding Partner and head of Carbon Projects.

 

Verde’s Carbon Removal Potential

Located in São Gotardo within the state of Minas Gerais, Brazil, Verde’s operations are underpinned by one of the world’s largest potash resources, at 5.9 billion tons as approved by the Brazilian Mining Agency, of which 3.32 billion tons have been certified under Canadian National Instrument 43-101.[1]  Thereupon, Verde has a total capture potential of 0.7 gigatons of CO2 from the atmosphere,[2] which would establish it as one of the world’s largest carbon capture projects.

As Brazil’s largest potash producer by capacity, Verde has an annual production capacity of 3 million tons.[3] With no further CAPEX investment, the Company is capable of capturing up to 0.36 million tons of CO2 per year based on its existing production facilities.[4]

 

About WayCarbon and Santander

WayCarbon is a global company specializing in solutions aimed at transitioning to a net-zero economy. Founded in 2006, it leverages scientific and business knowledge, enhanced by technology, to support companies and governments in their climate change and sustainability strategies.

WayCarbon boasts a portfolio of over 500 private sector clients, in addition to extensive experience serving multilateral organizations (UNDP, CAF, World Bank, IADB) in areas of mitigation, adaptation, and the structuring of emission reduction and carbon removal projects.

The company’s consultancy services, specialized software, and high-quality carbon projects are designed to support, in an integrated manner, companies and governments on their decarbonization journeys. Its technological solutions are utilized by clients in 40 countries.[5]

In addition to its comprehensive expertise and experience acquired over 18 years in the field of climate change and sustainability, one of WayCarbon’s differentiators is its connection with controlling shareholder, Banco Santander. Headquartered in Spain, Banco Santander is a global financial institution with a significant presence in Brazil. Santander plays an important role in supporting sustainable development and is an active member of the Net Zero Banking Alliance, demonstrating its solid commitment to leading innovation and promoting sustainability.

Santander is already carbon-neutral in its own operations and aspires to achieve net-zero emissions across the entire group by 2050, in support of the Paris Agreement’s goals concerning climate change.[6] With a large and strategic presence in the Brazilian agricultural sector, the Bank aligns itself with the growing demands for responsible and efficient agricultural practices and brings with it vast financial expertise in the sector.

Santander’s proactive approach reflects its commitment to decarbonizing its value chain. This initiative not only reinforces Santander’s position as a leader in sustainability, but also expands the possibilities for companies to collaborate and partner with WayCarbon. As an integral part of this banking ecosystem, WayCarbon is positioned to offer solutions and strategic partnerships that transcend conventional borders. Together, WayCarbon and Santander have the potential to promote a significant transformation of their partners, leading them towards more sustainable, eco-efficient practices, aligned with global decarbonization objectives that boost the growth and competitiveness of their businesses.

 

Enhanced Rock Weathering

Verde has developed partnerships with leading British universities in Soil Science[7] that have proven Verde’s Product has the potential to capture carbon dioxide from the atmosphere through Enhanced Rock Weathering (“ERW”).

ERW refers to a suite of techniques aimed at accelerating natural rock weathering, which involves the breakdown of minerals and the absorption of CO2 from the atmosphere. In nature, the process takes centuries as the rocks’ surface is gradually weathered down and reacts with CO2 to form new stable carbonate minerals or bicarbonate ions, effectively removing CO2 from the atmosphere and storing it for thousands of years.

By crushing and grinding such minerals and spreading it over large areas, ERW significantly accelerates the absorption of CO2. The speed of mineral weathering can be calculated using a ‘shrinking core model’, which assumes that the reaction occurs at the surface of the mineral so that the unreacted core gradually shrinks over time.

As detailed by an independent study conducted at Newcastle University under the leadership of Prof. David Manning, PhD, a renowned soil scientist, the carbon dioxide capture properties of the Products are estimated at 120kg per ton. The potential CO2 removal does not require any change to the Products’ production and farmland application methods, nor does it change the nutritional benefits to plants. Thus, the Products undergo ERW to permanently capture atmospheric CO2 while releasing potassium and other plant nutrients.

In addition, the Product potentially undergoes mineral dissolution in only a matter of months to a year from its application to soils, faster than the most rapid reacting silicate minerals (forsterite), which takes years to decades for a similar dissolution. Mineral dissolution is directly correlated to the capture of carbon dioxide from the atmosphere, the faster the dissolution the faster the absorption of CO2. The conclusion was reached by a commissioned study conducted by Phil Renforth, Ph.D., at Heriot Watt University, based on peer-reviewed publication and commercial data.

 

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.

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] Combined measured and indicated mineral resource of 1.47 billion tons at 9.28% K2O and an inferred mineral resource of 1.85 billion tons at 8.60% K2O (using a 7.5% K2O cut-off grade). As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within Canada (“NI 43 -101”), filed on SEDAR in 2022. For further information, 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 

[2] The carbon capture potential of Verde’s products, through Enhanced Rock Weathering (ERW), is 120 kg CO2e per ton of K Forte®. For further information, see “Verde’s Products Remove Carbon Dioxide From the Air”.

[3] Verde is currently fully licensed to produce up to 2.8 million tons per year of its Products and has submitted mining and environmental applications for an additional 25 million tpy awaiting approval.

[4] One carbon credit is equivalent to one metric ton of carbon dioxide captured.

[5] Learn more at: https://waycarbon.com/sobre-a-waycarbon/

[6] Learn more at: https://www.bancosantander.es/en/santander-sostenible/empresas

[7] See “Verde’s Products Remove Carbon Dioxide From the Air” and “Verde’s Products Remove Carbon Dioxide from Air in Mere Months of Application”.

Verde appoints João Paulo Frez as Chief Revenue Officer

Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce the appointment of João Paulo Frez as Chief Revenue Officer (“CRO”). Mr. Frez has over two decades of sales experience in the agribusiness sector, with the past nine years dedicated to developing the market for specialty fertilizers in Brazil. He succeeds Mr. Gilson Guardiero, who has served as the Company’s CRO since Q3 2023. Until February 2024, Mr. Frez served as the Senior Commercial Director for Brazil at ICL, a leading global specialty minerals company.

In his role as Senior Commercial Director for Brazil at ICL, Mr. Frez managed a robust sales team that included 3 Business Unit Directors, 13 Regional Sales Managers, and 120 Technical Sales Executives. Under his leadership, ICL experienced significant growth in sales and margins, attributed to the successful expansion of the specialty fertilizers segment.

“Mr Frez stands out as one of Brazil’s most accomplished senior executives in specialty fertilizer sales. His journey in the industry began with five years of experience in large-scale farming operations before embarking on a remarkable sales career characterized by significant growth in results. Mr. Frez’s proven track record in devising successful sales strategies and managing robust commercial operations across Brazil will play a crucial role in enhancing Verde’s sales performance and overcoming market challenges to fulfill our goals for 2024 and beyond, sustainably ensuring returns across our entire value chain by delivering high-performance agronomic products that yield good profitability for farmers, distributors, and our shareholders,” commented Cristiano Veloso, Verde’s Founder and CEO.

After playing a key role in setting up commercial operations at Cooasgo – one of Brazil’s most prominent agricultural cooperatives from 2008 to 2012 – Mr. Frez transitioned to a commercial representative position at Consagro Agroquímica – an American multinational agrochemical company – where he focused on optimizing distribution channels and implementing direct sales strategies.

In 2015, he accepted the position of Regional Sales Manager at Fertilaqua, overseeing a team of 10 Technical Sales Executives across four Brazilian states. By 2017, he was promoted to Business Unit Director, a pivotal role overseeing a strategic commercial region in Brazil. His area of operation covered multiple states, including Minas Gerais, Goiás, Bahia, and Tocantins. As Business Unit Director, Mr. Frez led a team of 63 sales executives.

The specialty fertilizers segment’s potential for high margins drew market attention to Fertilaqua, leading to its acquisition by ICL in 2021. After a year serving as Business Unit Director at ICL, Mr. Frez was promoted to the role of Senior Commercial Director. He maintained this position until February 2024, when he transitioned to Verde.

“Verde AgriTech’s dedication and mission to promote sustainable agriculture are truly inspiring. Verde’s portfolio goes beyond just potassium supply. Our products deliver a variety of nutrients that substantially improve crop growth. They are also distinguished by their salinity-free composition, ability to enhance soil microbiota, low carbon footprint, and their capability to sequester atmospheric CO2, contributing to climate change mitigation. From my experience, it’s evident to me that such characteristics establish our product as a notably superior specialty fertilizer, not just another commodity in the conventional potash market. However, our present market positioning does not fully convey these advantages, affecting the Company’s profit margins. Adopting a Blue Ocean Strategy is essential to address this, aiming to stimulate demand and render traditional competition obsolete by focusing on value creation,” stated Mr. Frez.

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.[1] Currently, the Company is fully licensed to produce up to 2.8 million tons 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. Verde has a combined measured and indicated mineral resource of 1.47 billion tons at 9.28% K2O and an inferred mineral resource of 1.85 billion tons at 8.60% K2O (using a 7.5% K2O cut-off grade).[2] This amounts to 295.70 million tons of potash in K2O. For context, in 2021 Brazil’s total consumption of potash in K2O was 6.57 million[3].

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.[4]

Corporate Presentation

For further information on the Company, please view shareholders’ deck:

https://verde.docsend.com/view/cb2w3cnd2jk4sw49

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 tonne 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] Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9

[2] 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

[3] Source: Brazilian Fertilizer Mixers Association (from “Associação Misturadores de Adubo do Brasil“, in Portuguese).

[4] Source: Brazilian Comex Stat, available at: http://comexstat.mdic.gov.br/en/geral

Verde appoints Marcus Ribeiro as Vice President Sales

Singapore. Verde AgriTech Ltd (TSX: “NPK”) (“Verde” or the “Company”) is pleased to announce Marcus Ribeiro as Vice President Sales. Mr. Ribeiro will lead a skilled team of 7 account managers, overseeing 2,468 of Verde’s clients. These clients collectively cultivate over 940,000 hectares and present a potential purchase volume of 1.4 million tons of Product. Mr. Ribeiro’s responsibilities extend to managing Verde’s indirect sales team, with a portfolio that includes 110 independent sales agents and distributors. This segment of sales has played a significant role in the Company’s revenue, contributing 46% of the Company’s sales volume in 2021, 41% in 2022, 37% in 2023. Mr. Ribeiro brings over 20 years of experience in Agribusiness, encompassing roles in commercial, technical, administrative and personnel management.

During his tenure as Sales Manager at Timac Agro,[1] a French multinational part of the Roullier Group known for manufacturing and marketing specialty fertilizers, Mr. Ribeiro garnered significant recognition. In this role, Mr. Ribeiro was acclaimed as one of the top three sale managers in Brazil for two consecutive years due to his outstanding results.

In his capacity as a Partner and Sales Manager at Grupo Casa Bugre,[2] Mr. Ribeiro was responsible for the agricultural bio-inputs and fertilizers for six years. He led the Agrivalle[3] branch, providing national and international markets with transformative and sustainable solutions. His portfolio included a robust range of specialty fertilizers, biological products, adjuvants, inoculants, and additives, with a particular focus on the states of Mato Grosso and Minas Gerais.

“A native of São Gotardo, Minas Gerais – the heart of Verde’s operations – Mr. Ribeiro has built a remarkable career across Brazil’s major agricultural regions. He has a proven record in leading diverse agricultural sectors, particularly in the specialty fertilizers market. His deep understanding of market dynamics, customer trends, along with his expertise in building partnerships, driving sales growth, and enhancing operational efficiency are key to fully capitalize on the potential of our sales channels and amplifying our market presence,” stated Cristiano Veloso, Verde’s Founder and CEO.

In his new role, Mr. Ribeiro will focus on boosting customer retention and development, implementing personalized relationship strategies, and nurturing solid partnerships. His approach, deeply rooted in understanding client needs and creating customized sales and development strategies, aligns with Verde’s mission to meet and exceed client expectations. This strategic appointment is a significant move in Verde’s continuous effort to fortify its position in the agricultural sector and adapt to the changing needs of our clients.

Mr. Ribeiro holds a degree in Agricultural Engineering from the University Center of Patos de Minas (UNIPAM), a degree in Business Administration and Management from the University of São Gotardo (FACIG), and a postgraduate degree in Agronomy, Soils and Plant Nutrition, with a focus on Soil Fertility Management in the Cerrado region.

“I am thrilled to join the Verde AgriTech team,” said Mr. Ribeiro. “The Company’s vision for innovation, growth, and sustainability aligns with my values. I look forward to applying my experience to further develop our relationship management and sales strategies, reinforcing our market position and enhancing our customer-centric approach,” affirmed Mr. Ribeiro.

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.[4] Currently, the Company is fully licensed to produce up to 2.8 million tons 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. Verde has a combined measured and indicated mineral resource of 1.47 billion tons at 9.28% K2O and an inferred mineral resource of 1.85 billion tons at 8.60% K2O (using a 7.5% K2O cut-off grade).[5] This amounts to 295.70 million tons 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/kxdp27m8xprnhy9b

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 tonne 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] For further information, visit TIMAC’s website.

[2] For further information, visit Grupo Casa Bugre’s website.

[3]For further information, visit Agrivalle’s website.

[4] Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9

[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