Investor Presentaiton
4
HIGHLIGHTS
Cash
Ability to generate significant free cash flow in the long term.
Credit facilities totaling R$ 22M approved by financial institutions in Brazil, to be
used if needed. Average interest rate: 1,1% per month.
Total loans for CAPEX and working capital: R$11,72M.
Cash held by the Company increased by 214%, to $1.91, compared to $ 607K in Q2
2020.
SUMMARY
Verde had another strong second quarter, with a triple-digit
revenue growth in local currency.
The Company announced a second 10% increase in its 2021
guidance, now aiming for a total revenue target of R$60.5
million, which if achieved would represent a 72% growth YoY.
Profitability
Revenue from sales for Q2 2021 was $5.37M from the sale of 96.2K tonnes of the
Product, at $56 per tonne sold. Revenue in Brazilian Real ("R$") increased by 159%,
to R$23.2M compared to R$8.96M in Q2 2020.
Operating profit before non-cash events increased by 109%, to $1.22M compared to
$584K in Q2 2020.
Verde recorded a net profit of $79K, compared to a net profit of $444K in Q2 2020.
Trade and other receivables increased by 259%, to $6.02M compared to $1.67M in
Q2 2020.
Sales by volume increased by 35%, to 96.2K tonnes sold compared to 71.2K tonnes
sold in Q2 2020.
Beyond the next two quarters, the Verde team is also heavily
engaged with the Company's expansion plans to increase our
production capacity for the year of 2022.
Operations
In Q2 2021, the Company invested $515K in infrastructure improvements: the
grounds of Plant 1 were paved to provide greater operational efficiency; access
routes to the mine pits have been enhanced; project developments for Plant 2
were further advanced.
The Company is fully permitted to mine 482,800 tpy and has submitted joint
mining and environmental applications for an additional 2,500,000 tpy.
* All figures are in Canadian dollars, unless stated otherwise
Average exchange rate in Q2 2021: C$1.00 = R$4.32
Average exchange rate in Q2 2020: C$1.00 = R$3,60
VERDE
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