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VER
AGRI
Improving your healt
RDE
ITECH
th and the planet’s health
MINING | VERDE AGRITECH
Brazil is the largest importer of potassium fertiliser in the world, obtaining 95% of its potash needs from abroad for use in the commercial agriculture industry. Agriculture is one of the strongest sectors in the Brazilian economy, accounting for around 25% of its GDP and providing up to a third of all jobs, be they directly or indirectly related to agronomy. As a result of this, Brazil is widely regarded as one of the key breadbaskets of the world, and it is the valuable nutrient potash which plays a vital role in the production of crops for food production. “If there was an issue with potash supply to Brazil, the impact would be far greater than the impact of COVID-19. Not only economically, but most certainly with far greater loss of life,” says Cristiano Veloso – CEO and president of sustainable potash producer Verde AgriTech.
The TSX and OTCQB-listed company’s mission is to feed and nourish a growing global population through the production of innovative products of high agronomic efficiency that foster sustainable, profitable and productive agriculture.
Agricultural experts Verde was founded in 2005 when a team of experienced explorers and professionals from the mining industry assembled a grassroots mineral exploration portfolio with properties in Brazil. After evaluating several mineral projects, the company decided to concentrate its efforts on the production of natural mineral fertilisers in 2006. The Verde team has been focused on developing the Cerrado Verde Project in Minas Gerais state since discovering the potassium-rich deposit in 2008. The current board of directors possess unrivalled experience in mineral exploration, potash production and Brazilian agriculture.
MINING | VERDE AGRITECH
The board is headed up by a dynamic duo comprised of the company’s founder Cristiano Veloso and Dr. Alysson Paolinelli – the former Minister of Agriculture for Brazil and ‘the Pele of agriculture’ according to Veloso. “Alysson has made more for Brazilian farmers than any other person. He has done more for food production on a global basis than anyone else and he was recognised for that with the World Food Prize in 2006. “He adds a lot of credibility to what we are doing. He is a great leader and a very smart person to have on the board,” Veloso adds.
The Cerrado Verde Project Years of exploration and research culminated in the publishing of a pre-feasibility study (PFS) and the start of small-scale production from a pilot plant in 2017. The PFS revealed a huge, long-
life potash deposit, with 772
the project and allows the
transportation expenses,
million tonnes in reserve and
company to provide the lowest
which further highlights the
1.5 billion tonnes in resource
delivered cost to the market
attractiveness of having a
that can be converted into
out of all potassium producers
domestic potash source.
reserve over a 36-year mine
in Brazil and from abroad.
life.
“Most imported mineral Verde’s product – marketed
fertiliser comes from Russia
The project’s net present
in Brazil as K Forte® – is
or Saskatchewan in Canada. It
value (with an 8% discount)
delivered to the consumers
is very expensive to transport
is estimated to be just under
at a price below C$68 per
an industrial mineral like KCl
US$2 billion with an after-
tonne, while the average cost
from these places to Brazil.
tax internal rate of return of
of potassium chloride (KCl)
Brazilian ports are often
approximately 290% and a
in Brazil is around C$408 per
extremely overcrowded, so a
total capex $369.5 million.
tonne – nearly six times more
ship carrying KCl can wait for
These attractive economics
than K Forte®. A significant
up to 60 days after arriving to
reinforce the longevity of
part of KCl‘s cost is due to
dock and unload the material.
MINING | VERDE AGRITECH
“Then you have the added cost
products, Verde’s customers
of transporting the product
will also notice the differences
from the coasts of Brazil to
in quality between the two
the rural agricultural regions
products. K Forte® is a multi-
in the centre of the country,”
nutrient fertiliser that contains
Veloso adds. “With our project
68 minerals and trace elements
located in the heartland of
– including potassium, iron,
Brazil’s largest agricultural
magnesium and manganese
market, our product is much
– that improve chemical,
cheaper as a result.”
physical and biological
A superior alternative
conditions of the soil. In addition, K Forte® does
Aside from the significantly
not add salt or chloride to
lower delivered cost of K
the soil. It is approved for
Forte® compared to KCl
organic production and its
““If there was an issue with potash supply to Brazil, the impact would be far greater than the impact of COVID-19. Not only economically, but most certainly with far greater loss of life” - Cristiano Veloso, Verde AgriTech founder, CEO and president
silicon content increases plant
soil microorganisms, which
resistance against pests and
are very important as much
diseases. These advantages
for crops but also for storing
make Verde’s product a
carbon into the soil. 100 kg of
sustainable KCl alternative for
KCl applied to soil is equivalent
tropical soils.
to adding 800 litres of bleach,” Veloso reveals.
“Chloride is very bad for environment. It burns crop
Rapid annual sales growth
roots and is a problem in terms
The rising popularity of
of seed germination. It brings
Verde’s product in the
solidity to soils, which is bad
Brazilian market is shown in
for future agricultural activity.
its year-on-year (YoY) growth
agriculture and for the
figures. In 2018, the company “And in terms of its damage to
built its own plant and the
the environment, chloride kills
product quickly sold out. Last year, Verde upgraded the
V E R DE A G R I TE C H
AT A G L A N C E
plant’s production capacity to 500,000 tonnes per annum. By increasing its production capacity to meet the increasing amount of K Forte® demand in Brazil, Verde succeeded in increasing YoY revenue by 344% to just over C$6 million for the 2019 financial year,
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US$15.4 million (as of April 17, 2020)
r abj
with a gross margin of 48%. “For this year we are predicting to grow another 80% on last year, when we grew nearly 350%. We are on
MINING | VERDE AGRITECH
VERDE AGRITECH DIRECTORS
MINING | VERDE AGRITECH
Spotlight on
Dr Alysson Paolinelli Alysson began his illustrious career in Brazilian agriculture after graduating with a degree in Agronomy from the Federal University of Lavras. He has previously served as the Brazilian Minister of Agriculture, the president of the National Confederation of Agriculture, and the Secretary of Agriculture for Minas Gerais State. As the Minister of Agriculture, Dr. Paolinelli established the Brazilian Agricultural Research Corporation (EMBRAPA), the world’s leading tropical agriculture research institution. The father of ‘tropical agriculture’ – as he is often known - won the World Food Prize in 2006 and is currently the president of the Brazilian Corn Growers Association.
MINING | VERDE AGRITECH
track to deliver another year
of buying it from Canada or
with significantly higher
of significant growth. We
Russia.”
nutritional value due to the 60+
are a small company, so our
trace elements added to the
sales mainly come from our
While cementing its position
product, thus improving the
customers recommending our
in the Brazilian potash market
health of the food’s recipients.
product to their neighbours.”
in 2019, Verde also developed its international footprint by
With the bulk of its customers
One would be forgiven for
exporting its product to the
in Brazil, which accounts
assuming that the company’s
Canadian and Chinese markets
for around 10% of global
C$10.6 million sales target for
for the first time, adding to
agricultural production and is
2020 would have to be revised
its existing presence in the
one of the largest exporters of
down due to the unforeseen
US – where the product is
foodstuff in the world, Verde’s
outbreak of COVID-19
sold under the name Super
unique product could make a
(coronavirus) around the
Greensand®.
positive difference to people’s
world and its devasting socioeconomic effects.
Up to the challenge
diets all around the world. “We also improve the health
However, Veloso believes that
Verde sees itself playing a big
of the planet by removing
the pandemic will actually
role in providing solutions to
KCl from our customer’s
accelerate Verde’s growth
two of the biggest challenges
soils. Using our product will
trajectory this year, as there is
facing the world in the 21st
preserve soil microorganisms
a need for Brazilian farmers
century: Adequate food
that would otherwise be
to secure domestic sources
supply for the growing global
killed by KCl products. These
of crop fertiliser in case
population and climate change
microorganisms capture
of sustained disruption to
brought about by human
carbon into the soil, so we are
international supply chains.
industrial activity.
helping to fight climate change in this way.”
“Farmers are worried about
These ambitions are
the potential disruption in the
crystallised in the company’s
international supply of potash.
motto: ‘Improving your health
At the moment, they have an
and the planet’s health’.
added incentive to procure
Farmers using Verde’s potash
domestic potassium instead
product will cultivate crops
Published by Anderson Murray Media Ltd
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