Verde announces commissioning of its Plant 2
BELO HORIZONTE, Brazil, Aug. 31, 2022 (GLOBE NEWSWIRE) -- Verde AgriTech Ltd (TSX: "NPK") ("OTCMKTS: "VNPKF") ("Verde" or the "Company") is pleased to announce that its second production plant ("Plant 2") has been commissioned and is now ramping up production up to 1.2 million tonnes per year ("Mtpy") of Verde's multinutrient potassium product, K Forte(TM), sold internationally as Super Greensand(TM) (the "Product").
"Four years ago almost to the day, we were commissioning Verde's Plant 1, which has since then ran practically continuously in order to meet the growing demand for Verde's products. It is therefore timely to rev-up our Plant 2 at a moment when Brazilian potash demands peak and our products have established a track record of delivering optimal agricultural results because the combined total capacity of Plants 1 and 2 will establish Verde as Brazil's largest potash producer. I take the opportunity to congratulate Verde's team for its effort in concluding the commissioning of Plant 2", commented Cristiano Veloso, Verde's founder, and CEO.
Verde's Plant 1 operates with a capacity of 0.6Mtpy. With Plant 2's additional capacity of 1.2Mtpy after ramp up, the Company's overall production capacity will be 2,000,000 tpy after. Plant 2 is already undergoing expansion to achieve 2.4Mtpy of capacity later in Q3 2022.
With Plant 2's total capacity of 2.4Mtpy, the Verde's overall production capacity is expected to be 3,000,000 tpy.
Verde's 2022 guidance, as revised upwards on May 03, 2022,1 provides for sales of 1,000,000 tonnes of Verde's Product, with revenue of C$109.09 million, EBITDA of C$49.06 million and net earnings per share ("EPS") of C$0.87. The 2023 guidance provides for sales of 2,000,000 tonnes.
Verde has a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28% K2O and an inferred mineral resource of 1.85 billion tonnes at 8.60% K2O (using a 7.5% K2O cut-off grade).2 This amounts to 295.70 million tonnes of potash equivalent in K2O. In 2021 Brazil's total consumption of potash in K2O was 7.92 million.3 |
