Investor Presentaiton
Verde's market size according to average KCI 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's freight costs increase as it
sells its products further away from its production plants.
The map and chart below show Verde's market size, highlighting the regions of Brazil where the Company can deliver K ForteⓇ for the
same cost or at a lower cost per tonne of K₂O than KCl, according to the average KCI CFR Ports price. 1
Potential market for Verde (million tonnes of K ForteⓇ / KCl price)
KCI CFR Ports price (US$/t)
$100
9.11
|] 9.11Mtpy
$200
$300
L
$400
U
L
9.11
25.01
]34.12Mtpy
9.11
25.01
9.11
25.01
$500
9.11
25.01
21.45
|]55.57Mtpy
21.45
11.42
|| 67.00Mtpy
21.45
11.42
] 69.67Mtpy
2.68
RR
AP
PA
AM
MA
AC
RO
MT
■US$ 100 US$ 200 US$ 300 US$ 400 ■ US$ 500
1 - The analysis is based on the following assumptions: Brazil's market size projected for 2023 = 7.02Mt of K2O, equivalent to 70.20Mt
of K Forte® (10% K2O). 0.8% rate charged for brokerage and 0.17% rate charged for insurance rate, 25% rate charged for sea freight,
US$25 (blender / dealer costs) + 12% (from KCl delivered to the blender) rate charged by blender/dealer, which includes taxes and
profit margin (source Tec-Fértil). Diesel price = US$1.08. Currency exchange rate: US$1.00 = R$5.25. ForteⓇ weighted average freight
cost based on the market size in tonnes of K2O for each region.
K Forte® production cost per tonne (100kg of K2O) = US$10.17 (for 69.67Mtpy, 67.00Mtpy, and 55.57Mtpy markets), US$11.29 (for
34.12Mtpy market) and US$12.95 (for9.11Mtpy market), according to Verde's NI 43-101 Pre-Feasibility Technical Report Cerrado Verde
Project at each production scenario (10Mtpy, 23 Mtpy and 50Mtpy). For further information, please refer to the PFS at:
https://investor.verde.ag/wp-content/uploads/2022/05/NI-43-101-Pre-Feasibility-Technical-Report-for-the-Cerrado-Verde-Project.pdf
Map Label
☐ Non-economic
KCI CFR Brazil Ports Price
US$ 100
US$ 200
US$ 300
US$ 400
US$ 500
Amazon Rainforest
(predominantly) /
non-economic
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