February 4, 2022

Why This AgriTech Stock is Up Over 65% YTD | Verde Agritech $NPK $AMHPF

Midas Letter
Midas Letter
Why This AgriTech Stock is Up Over 65% YTD | Verde Agritech $NPK $AMHPF
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Verde Agritech Plc (TSE:NPK, OTCMKTS:AMHPF) purpose is to make agriculture healthier, more productive, and more profitable for farmers by improving soil biodiversity. They do this by supplying salinity and chloride-free potassium fertilizers directly to farmers for the same cost as conventional fertilizers. But the reason the stock has been flying (up 65% YTD) is because of the company’s growth. The company has had a 186% Compound Annual Growth Rate (CAGR) based on yearly total sales volume in tonnes since 2018.

“We own one of the world’s largest potash mines. Certainly the largest in Brazil. To give you an idea of the size of that market of about $10 billion annually in the Brazilian market alone. We have enough resources and reserves to supply 100% of the market for decades to come.” – Verde Agritech CEO Cristiano Veloso

Brazil is the second-largest consumer of potash in the world and the biggest importer of potash in the world.

Verde recently launched a profit for growth (P4G) strategy aimed at distributing gains to shareholders as a result of the company’s continued accelerated market expansion. Either through share buybacks or dividends. This was made possible from the transformative source of funding Verde just secured. For the first time in the company’s history, Verde was able to receive loans against future sales agreements as the bank has now recognized the value of the company’s products.

“We don’t need more money. Plant 2 which is under construction as we speak is tripling our production capacity for this year, so we’re growing from 600,000 tonnes production capacity last year to 1.8 million production capacity and that money is all taken care of. But as we keep on growing to reduce reliance on import of potash we will now have fantastic access to capital we didn’t have before.” – Verde Agritech CEO Cristiano Veloso

Verde Agritech also announced a very positive 2022 guidance two-year outlook. In 2023, Verde’s sales volume target is 1.4 million tonnes, a potential 100% growth Year-on-Year.

“Next years guidance is to double production from this year and weve been consistantly growing on a triple digit basis, that’s why there has been a renewed interest in what we are doing.” – Verde Agritech CEO Cristiano Veloso

Transcript

00:00 – Verde Agritech $NPK CEO Cristiano Veloso
00:47 – Verde Agritech P4G strategy
03:10 – Commercial Agritech
04:31 – Global potash & agrimineral market
06:42 – Brazilian potash mine
08:23 – Product uptake
10:25 – New capital resources
11:15 – Production profile

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