Mr. Cristiano Veloso reports
MAJOR ORDER MADE BY REPEAT CUSTOMER, 15 TIMES LARGER THAN FIRST PURCHASE
A leading Brazilian agricultural producer has purchased from Verde Agritech PLC 3,250 tons of Super Greensand, following a smaller purchase of 198 tons in 2017. In this sale, the price per ton of Super Greens was higher than the reference price adopted in the company's prefeasibility study, announced in Nov. 27, 2017; this reflects the increase in potash prices in global markets.
In 2014, Verde started its relationship with the buyer with an aim to supply the potash needs across its plantations. The buyer was kept abreast of the company's many field tests with Super Greensand.
Commenting, Verde's president and chief executive officer Cristiano Veloso, analyzed: "It is gratifying to see a return customer placing any order. It is even more pleasing to see a significantly enlarged second order. This growth in demand for Super Greensand is what we expect from the market, both from famers that run a trial over a harvest period and from farmers that learn about prior success from neighbouring farms."
The company's prefeasibility study shows a net present value of $1.98-billion (U.S.) and internal rate of return of 290 per cent. The study considers an exponential growth in production: Phase 1 production capacity will be 600,000 tonnes per year; phase 2 production capacity will be five million tonnes per year; phase 3 production capacity will be 25 million tonnes per year. Verde is currently building its own production plant to enter into operations in the second half of 2018. It will have capacity for approximately 300,000 tonnes per year (45 tons per hour) at a cost of around $500,000 (U.S.).
About Verde Agritech PLC
Verde Agritech promotes sustainable and profitable agriculture through the development of its Cerrado Verde project. Cerrado Verde, located in the heart of Brazil's largest agricultural market, is the source of a potassium-rich deposit from which the company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
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