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Verde Agritech sold 1,093 tonnes of fertilizer in first three months of 2019

No tonnes were sold in the comparative period a year ago, as commercial output had not started
Verde produces a fertlizer product called Super Greensand

Verde Agritech PLC (TSE:NPK)(OTCQB:AMHPF) revealed it has sold 1,093  tonnes of its Super Greensand fertilizer in the three months to end March, leading to revenue of $154,000 as it continues to advance its project in Brazil.

That equates to $141 of revenue per each tonne sold. No tonnes were sold in the comparative period a year ago, as commercial output had not started.

DEEP DIVE: Verde Agritech has cash flow, huge expansion plans, and a high quality product that is being lapped up by Brazilian farmers

For the March period, net loss increased to $873,000 compared to $345,000 a year ago. Verde said continued growth following the start of commercial production in July contributed to the increase.

In 2017, the firm announced a pre-feasibility study, which looked at expanding production.

The study examined producing 25 million tonnes per year (Mtpy) of Super Greensand, ramping up in three phases. A first of 0.6 Mtpy,  a second of 5Mtpy and a third phase of 25Mtpy. Production growth was seen to be financed largely from expected internal cash flow.

Capex (capital expenditure) for Phase 1 was estimated to be US$3.05 million, while capex for all phases was put at US$369.53 million.

Looking ahead, Verde said it will continue market development, engineering studies, construction, finance and environmental licensing efforts to advance Cerrado Verde.

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