Slide 1: Q3 2021 Update
Q3 2021 Update “VERDE
Slide 2: Disclaimer
DISCLAIMER If you are risk averse don’t buy our stock. Don’t rely on anything on this presentation. We are not good enough for you to invest if you: This presentation contains certain forward-looking information, which includes but is not limited to, statements with Are risk averse. respect to Verde
Slide 3: Highlights
Highlights 05 Q3 2021 Financial Statements 06 Operational Summary 06 Key Metrics 08 SG&A Expenses 10 Other Highlights 11 Financial Summary 12 Brazilian Economic Scenario 14 Sales Growth and Guidance 16 Product Pricing 17 Appendix 19
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Slide 5: Summary Highlights
HIGHLIGHTS SUMMAR Y The Company is pleased to announce another increase in its C a sh Ability to generate significant free cash flow in the long term. 2021 guidance. The new target is set at R$110 million of revenue Total loans for CAPEX and working capital in September 2021: $2,8M for 2021, which w
Slide 6: Q3 2021 Financial Statements
Q3 2021 FINANCIAL STATEMENTS All amounts in CAD $’000, except percentages Q3 2021 Q3 2020 YoY 2021 YTD 2020 YTD YoY Revenue 10,651 3,956 169% 16,858 6,957 142% Production costs (2,452) (1,317) 86% (4,440) (2,603) 71% Gross Profit 8,199 2,640 211% 12,418 4,355 185% Gross Margin 77% 67% N/A 74% 63% N/
Slide 7: Operational Summary
OPERATIONAL SUMMARY All amounts in CAD, except percentages Q3 2021 Q3 2020 YoY 2021 YTD 2020 YTD YoY Tonnes sold ‘000 154 106 45% 266 187 42% Revenue per tonne sold $ 69 37 85% 63 37 71% Production cost per tonne sold $ (16) (12) 28% (17) (14) 20% Gross Profit per tonne sold $ 53 25 114% 47 23 101%
Slide 8: Key Metrics Quarterly
KEY METRICS QUARTERLY S a l e s ( To n n e s ) Reve nue ( ‘ 000 CAD) 153,674 10,651 140,000 10,000 133,535 * 8,964 * 120,000 8,000 105,769 100,000 96,233 6,000 80,000 5,376 71,183 62,895 60,000 56,585 3,956 4,000 3,055 40,000 2,492 32,221 2,209 2,000 23,600 20,641 1,491 16,558 1,329 20,000 831 692 1
Slide 9: Key Metrics Yearly
KEY METRICS YEARLY S a l e s ( To n n e s ) Reve nue ( ‘ 000 CAD) 400,000 * 400,000 25,822 * 25,000 350,000 300,000 20,000 250,000 243,707 15,000 200,000 150,000 10,000 9,167 119,809 100,000 6,029 5,000 50,000 29,648 1,358 - - 2018 2019 2020 2021 2018 2019 2020 2021 9 * Targeted numbers, based on FY
Slide 10: Sales, General and Administrative Expenses
SALES, GENERAL AND ADMINISTRATIVE EXPENSES All amounts in CAD $’000, except percentages Q3 2021 Q3 2020 YoY 2021 YTD 2020 YTD YoY Sales Expenses Sales and marketing expenses (601) (294) 105% (1,241) (796) 56% Sales commission paid to independent sales agents (188) (12) 1434% (260) (145) 79% Product
Slide 11: Other Highlights
OTHER HIGHLIGHTS FOB vs CIF (tonnes) General Expenses (C$’000) 160,000 153,674 -50 -26 140,000 -82 120,000 -150 105,769 100,000 90,961 -250 -240 80,000 77,232 76,513 -291 -350 60,000 40,000 -450 -435 20,000 14,808 -512 -550 0 General administrative expenses IT/Software expenses Total General expense
Slide 12: Financial Summary
FINANCIAL SUMMARY Rev e n u e Revenue from sales for Q3 2021 was $10.65M from the sale of 153.67K tonnes of the Company’s multinutrient potassium fertilizer, marketed and sold in Brazil under the K Forte® brand and sold internationally as Super Greensand® (the “Product”) brand, at $69 per tonne sold
Slide 13: Summary of Interest-Bearing Loans and Borrowings
SUMMARY OF INTEREST-BEARING LOANS AND BORROWINGS Grace period Term Loan Value Debt in Sept 21 Total interest Lender Loan start date Purpose Repayable by (months) (months) (C$’000) (C$’000) payable* (Annual) ABC Brazil Sep, 2021 Working Capital 6 6 469 Mar, 2022 13,45% 469 Bradesco Mar, 2021 Vehicle
Slide 14: Brazilian Economic Scenario
USD/BRL Exchange Rate BRAZILIAN ECONOMIC SCENARIO 6.00 5,40 5,28 5,46 5.50 5.28 5,16 5,25 Brazilian Real versus US Dollar 5.00 4.50 4.00 From July to September 2021, the Brazilian Real revalued 3.50 by 3% in relation to US Dollar compared to the same 3.00 period of 2020. 2.50 2.00 As of November 22,
Slide 15: Potassium Chloride Price
CIF MG (USD) 1 POTASSIUM CHLORIDE PRICE 900 800 700 600 Q3 2020 vs Q3 2021 500 400 Potassium Chloride CIF (Minas Gerais) price increased 300 from US$290-US$310 per tonne in Q3 2020 to US$515- 200 790 per tonne in Q3 2021 100 0 Low High FOB Vancouver (USD) 2 900 800 30-year history 700 Comparison bet
Slide 16: Year-on-Year Sales Growth
YEAR–ON-YEAR SALES GROWTH (TONNES) Quarter 2018 2019 YoY Growth 2020 YoY Growth 2021 YoY Growth Q1 N/A 1,093 N/A 10,170 830% 16,558 63% Q2 N/A 23,600 N/A 71,183 202% 96,233 35% Q3 9,007 62,895 598% 105,769 68% 153,674 45% Q4 20,641 32,221 56% 56,585 76% 133,535* 163%* * - Targeted numbers, based on
Slide 17: Product Pricing
PRODUCT PRINCING Our Product’s price is based exclusively on its potassium content, despite of its other nutrients and benefits. K Forte® has 10% K 2O whereas KCl has 60% K 2O. Therefore, the farmer in Brazil pays 6 times less per tonne of K Forte® than it pays per tonne of KCl. R$ 5,000 R$ 4,000 Ta
Slide 18: EBITDA before non-cash events
1 - EBTIDA before non-cash events for 2020 = R$6.11M 2 - Targeted revenue based on FY guidance, revised upwards on November 15, 2021. 3 - See NI 43-101 Pre-Feasibility Technical Report Cerrado Verde Project, MG, Brazil, page 201. PFS currency exchange: US$1.00 = R$3.28 4 - EBTIDA for Phase 2 = R$452
Slide 19: Appendix
APPENDIX “VERDE
Slide 20: Potassium Chloride Replacement
PATASSIUM CHLORIDE REPLACEMENT Potassium salt fertilizers are soil biodiversity’s number 1 enemy. The average farmer applies 200 kg of potassium chloride to the soil per hectare per year. This is equivalent to the applicati on of 1,600 litres of bleach as far as killing soil biodiversity.¹ The world
Slide 21: Permit Status – Last 12 Months
PERMIT STATUS – LAST 12 MONTHS Mine Pit Date Category Status Event 2 December 23, 2020 Environment Granted 2,500,000 tpy Preliminary, Installation and Operation License 2 November 03, 2020 Mining Granted 50,000 tpy Mining Permit 3 August 24, 2020 Environment Applied 2,500,000 tpy Preliminary, Instal
Slide 22: Permit Summary
PERMIT SUMMARY Verde is currently fully permitted to mine 482,800 tpy (since it holds mining Concessions/Permits and Environmental Licenses) and has submitted joint mining and environmental applications for an additional 2,500,000 tpy. Mining (tpy) Environmental (tpy) Mine Pit Fully Permitted to Pro
Slide 23: investor.verde.ag
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