Verde Commissions Second Production Operations
31 Aug 2022...
Verde Agritech Ltd.'s second production plant 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, sold internationally as Super Greensand.
"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 chief executive officer.
Verde's plant 1 operates with a capacity of 600,000 tonnes per year (tpy). With plant 2's additional capacity of 1.2 million tpy after ramp-up, the company's overall production capacity will be two million tpy after. Plant 2 is already undergoing expansion to achieve 2.4 million tpy of capacity later in Q3 2022.
With plant 2's total capacity of 2.4 million tpy, the Verde's overall production capacity is expected to be three million tpy.
Verde's 2022 guidance, as revised upward on May 3, 2022, provides for sales of one million tonnes of Verde's product, with revenue of $109.09-million, EBITDA (earnings before interest, taxes, depreciation and amortization) of $49.06-million and net earnings per share (EPS) of 87 cents. The 2023 guidance provides for sales of two million tonnes.
Verde has a combined measured and indicated mineral resource of 1.47 billion tonnes at 9.28 per cent K2O (potassium oxide) and an inferred mineral resource of 1.85 billion tonnes at 8.60 per cent K2O (using a 7.5-per-cent K2O cut-off grade). 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.