Verde Agritech Ltd · TSX:NPK
Verde Agritech — Investor Presentation (September 2024)
41 slides from Verde Agritech's investor presentation, September 2024
Slide 1: Leading the way towards sustainable agriculture and climate change mitigation in Brazil
September | 2024 Leading the way towards sustainable agriculture and climate change mitigation in Brazil_ TSX: NPK | OTCQX: VNPKF
Slide 2: We are not good enough for you to invest if you
If you are risk averse don’t buy our stock. Don’t rely on anything in 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 respect to Verde AgriTech Ltd’s (the Company
Slide 3: Company highlights
company highlights_ 1 Specialty Fertilizers for Sustainable Agriculture: Offering tailored solutions that support sustainable farming practices. 2 Global Adoption: Products trusted and used by over 9,000 farmers worldwide. 3 Carbon Capture Technology: Utilizing enhanced rock weathering to permanentl
Slide 4: About Verde AgriTech
We drive sustainable and regenerative agriculture through the production of multi-nutrient potassium specialty fertilizers, essential in promoting decarbonization in the agricultural sector. about Our products are well-suited for regenerative agricultural verde agritech_ ecosystems as they are free
Slide 5: Our products
our products_ K Forte® is a comprehensive multi-nutrient potassium specialty fertilizer designed to enhance soil health and plant nutrition. Key benefits include: • Gradual Nutrient Release: Provides long-lasting soil fertility enhancement and efficient nutrient usage. • Resistance to Leaching: Adva
Slide 6: K Forte: a specialty fertilizer compliant with a more sustainable agriculture
K Forte®: a specialty fertilizer compliant with a more sustainable agriculture Conventional (KCl) Year of launch 2017 1861 Nutrients and components K, Si, Mg and Mn K and Cl Nutrients concentration 77% 60% Salinity index per K2O unit 0,017% 1.93% addresses the critical Estimated losses by leaching i
Slide 7: Our products
our products_ BAKS® is a combination of K Forte® plus other nutrients that can be chosen by customers. • Increased nutritional efficiency: it allows farmers to customize nutrient compositions based on the unique requirements of each crop • Increased operational efficiency: reduced number of fertiliz
Slide 8: BAKS
BAKS® The best multinutrient fertilizer solution suited for Brazilian agriculture. Phosphate Boron Benefits of BAKS®’ Technologies = + Nitrogen Zinc Granulated Sulphur Sulphur Copper Micro S Technology is BAKS®’s exclusive elemental Key Benefits from using BAKS® sulphur micronization technology, off
Slide 9: Made with technology
made with technology_ We have developed unique technologies to enable the production of the best solutions for crop nutrition, crop protection, soil improvement and increased sustainability. They are present in the conception of our products. Our focus on research and development has resulted in one
Slide 10: Reserves and resources
reserves and resources_ 5.9 billion tons of total resources approved by the Strategic location Brazilian Mining Agency. Our reserves are situated in São Gotardo, Minas Gerais 3.32 billion tons state, Brazil, adjacent to a of resources certified under major food-producing region. Canadian National In
Slide 11: Up to C$352.19 Net Present Value Per Share
The problem we are fixing is big, Pre-Feasibility Study production scenario for 50Mtpy of Verde’s product, composed of K2O + S + Micronutrients so is our NPV: Proven and probable reserves (Mt) 1,297.66 Up to C$352.19 Net Capex (US$M) Operating cost (US$/t of Product) 553.99 8.06 Present Value Per Ge
Slide 12: Our production facilities
our production facilities_ Verde’s production plants are based in São Gotardo, Minas Gerais State, Brazil. Plant 1 Plant 2 Plant 1, with a production capacity of 0.6 Plant 2, with a production capacity of 2.4 Bioproduction Plant million tonnes per year, leverages a diverse million tonnes per year, i
Slide 13: Our R&D facilities
our R&D facilities_ In addition to our production plants, we also operate three research laboratories, focusing on Microbiology, Mineralogy, and Agronomy. Microbiology Lab Mineralogy Lab Agronomic Testing Labs Over the course of 11 years, we have established The Microbiology Lab plays a pivotal role
Slide 14: Decarbonization solutions
1. Carbon Avoidance: Immediate solution to reduce GHG inventories of companies that that have their own decarbonization commitments and net zero targets. • Customized solutions for farmers and agricultural companies; decarbonization • • Focus on large clients with commitments to decarbonization; Sho
Slide 15: Carbon avoidance
carbon avoidance_ 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 pro
Slide 16: Carbon removal
carbon removal_ Our products’ potential to permanently remove carbon dioxide from the atmosphere through Enhanced Rock Weathering has been validated by renowned international researchers.1 Our products have the potential to Our products undergo mineral our raw material extract CO2 from the atmospher
Slide 17: Carbon market
carbon market_ Acquisition of credits generated through Enhanced Rock Weathering, comparable to Verde's approach. bought bought bought bought $57.1 million $4.35 million $200 million $6.3 million from from from from to remove to remove to remove among others to remove 154,240 tons 5,000 tons 800,000
Slide 18: Life cycle assessment (LCA)
life cycle assessment (LCA)_ • Conducted by leading consulting firm endorsed by Nasdaq/Puro Earth 1 in compliance with ISO 14040/44:2006 standards and the Puro Earth ERW Methodology. 2, 3 • “From cradle-to-grave” assessment shows significantly low production emissions due to, for example, 100% renew
Slide 19: Our impact, so far
From 2018 to 2024 (up to Q2), the Company has sold our impact, 1.87 million tons of Product, which can remove up to 221 thousand tons of CO2.1 so far_ Additionally, this amount of Product could potentially prevent up to 51.2 thousand tons of CO2 emissions. Combining the potential carbon removal The
Slide 20: Current removal potential
current removal potential_ Production Removal Commercial Technologies Facility Capacity Potential Status We are Brazil’s largest potash producer by (product tpy) (CO2 tpy) Production Deployed capacity. Micro S, 3D Alliance, Plant 1 600,000 72,000 Concluded In operation Cambridge Tech, Our installed
Slide 21: Total impact potential
Our total 5.9 billion tons resources approved by the Brazilian Mining Agency, of which 3.32 billion tons have been certified under NI 43-101, have a total capture potential of 0.7 gigatons of CO2 from the atmosphere,1 which would establish it as one of the total impact world's largest carbon capture
Slide 22: Our growth and market validation
our growth and market validation_ 700.0 - 800.0 118% Volume CAGR 628,0 2017-2023A 428,0 400,1 243,7 170.0 119,8 Q2A 29,6 3,9 Q1A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024E KCl Equivalent 0.7 4.9 20 41 67 104 71 117 - 133 (‘000 tonnes1): Sales Volume (‘000 tonnes) 1. K2O equivalent conversion ba
Slide 23: Recap of key points
recap of key points_ 1 Specialty Fertilizers for Sustainable Agriculture. 2 Global Adoption. 3 Carbon Capture Technology. 4 Carbon Avoidance. 5 Strategic Location. 6 Capital Investment Realized. 7 Scalable Project. 24
Slide 24: TSX: NPK | OTCQX: VNPKF
U7 verde AGRITECH TSX: NPK | OTCQX: VNPKF
Slide 25: Appendix
appendix_ verde AGRITECH
Slide 26: Our commitment to ESG
our commitment to ESG_ Lower- Sustainable agriculture, strong 100% Renewable impact governance, supporting the legacy for energy mining operations our surrounding communities With new vision that integrates agriculture and Zero 30,000+ native trees carbon capture solutions, we are leading the Tailin
Slide 27: Environmental
environmental_ Lower-impact operations to foster sustainable agriculture 100% Green Power Lower-impact mining KCl replacement and soil Transition plan for railway Our operations use 100% The area where we extract biodiversity improvement transportation underway hydropower renewable our raw materials
Slide 28: Social
social_ Guided by the definition of "Just Transition", we are committed to promoting the sustainable economic development of the local communities in which we operate. Social initiatives and Environmental Worldwide food chain Investment in infrastructure community engagement education Modern agricul
Slide 29: Governance
governance_ Solid corporate governance foundations and track record Publicly listed Quality control Internationally certified Transparency Singaporean company We hold ISO 9001 and products To maximize transparency We are listed in Toronto 14001 certifications, Our products are certified and corporat
Slide 30: Our team
our team_ Board of Directors Cristiano Veloso – Chairman, CEO and Founder Fernando Prezzotto Mr. Veloso earned a certificate in Sustainable Business Strategy from Mr. Prezzotto is a serial entrepreneur focused on innovative solutions Harvard Business School (USA), he holds a Master’s Degree from the
Slide 31: Our team
our team_ Management Team Douglas Tostes – Director of Market Research and Development Marcus Ribeiro – Chief Revenue Officer Mr. Tostes is an accomplished Agronomic Engineer with extensive expertise in Plant Production. He Mr. Ribeiro was acclaimed as one of the top three sale managers in Brazil fo
Slide 32: Our team
our team_ Management Team Aislann Rosa– Commercial Technical Manager (Northwest Minas Gerais ) Maurício Rocha Junior – Commercial Technical Manager (Paraná and São Paulo) Mr. Rosa has 10 years of technical-commercial experience in Fertilizers and Soils, working for both Mr. Júnior is a Regional Mana
Slide 33: Summary of licenses and permits
summary of licenses and permits_ Under Brazilian law, a pit is fully permitted to mine when the Company holds both a Mining Concession/Permit and Environmental License for that area. The Company has different mine pits, each at different permitting stages and targeted volumes, as summarized below: F
Slide 34: Pre-feasibility study snapshot
pre-feasibility study snapshot_ 50Mtpy Scenario Description Unit Value Proven and probable reserves million tonnes 1,297.66 K2O grade % 9.19 Capex US$ million 553.99 Operating cost US$/tonne of Product 8.06 General and Administrative Expenses US$/tonne of Product 2.01 Sustaining capital US$/tonne of
Slide 35: Q2 2024 financial statements
Q2 2024 financial statements_ TSX: NPK All amounts in CAD $’000 Q2 2024 Q2 2023 %Δ Revenue 6,480 10,305 (37%) Production costs (1,815) (1,914) (5%) Gross Profit 4,665 8,391 (44%) Gross Margin 72% 81% N/A Sales and marketing expenses (979) (1,124) (13%) Product delivery freight expenses (2,541) (3,72
Slide 36: Q2 Results: CAGR in the last 5 years
Q2 Results: CAGR in the last 5 years_ Q2 Total Sales Volume (tonnes) Q2 Total Revenue ('000) 250.000 30.000.000 202.000 24.861.000 25.000.000 200.000 20.000.000 150.000 107.000 15.000.000 96.000 100.000 85.000 10.305.000 71.000 10.000.000 6.480.000 5.376.000 50.000 5.000.000 2.492.000 - - 2020 2021
Slide 37: Outstanding share data
outstanding share Type Amount data_ Ordinary shares Stock options 52,669,724 5,107,770 The following securities are outstanding, as of August 13, 2024: Total 57,777,494 38 38
Slide 38: Verde's market size according to average KCl CFR Ports price
Verde’s market size according to average KCl CFR Ports price_ K Forte® has 10% K2O whereas KCl has 60% K2O. Therefore, a farmer in Brazil pays 6 times less per tonne of K Forte® than it pays per tonne of KCl. Verde delivers K Forte® to the farmers for the same price per tonne of K2O than KCl. Verde’
Slide 39: Verde's margin according to average KCl price
Verde’s margin according to average KCl price_ The table below compares Verde’s and KCl’s prices delivered to the farmer and shows Verde’s potential revenue at each case. (+) (+) (=) K Forte® Brazil’s potential KCl price per K Forte® K Forte® Freight cost to delivered market size to be Verde's KCl C
Slide 40: KCl CFR Ports delivered to the farmer
KCl CFR Ports delivered to the farmer The table below shows a breakdown of KCl CFR Ports price delivered to the farmer in Brazil. (+) (+) (+) (+) (+) (+) (=) Blender/deale KCl's price KCl CFR Brazilian Marine brokerage Demurrage and Freight from the Freight from the Blender/dealer's r's margin delie
Slide 41: TSX: NPK | OTCQX: VNPKF
U7 verde AGRITECH TSX: NPK | OTCQX: VNPKF
Verde AgriTech — Investor Presentation (September 2024) on 6ix