Investor Presentaiton
Contingency Plan
In light of the current market conditions, Verde has been actively implementing cost reduction measures and expense optimization
strategies since March 2023. These initiatives have identified various opportunities for savings and cost avoidance, with an estimated
total impact of over $1.2 million over a 12-month period.
Outlined below are some of the actions undertaken by the company, along with the projected annual savings for each:
Action
Workforce optimization
Description
Reduction of 30 personnel across operations,
maintenance, inbound logistics, and back-office
functions, including directors and managers.
Estimated savings in 12 months
$772,000¹
Machinery optimization
Third-Party contract renegotiation
Renegotiating rental contracts for machinery such as
wheel loaders, mining excavators, and trucks.
$407,000
Reviewing and renegotiating contracts with third-party
vendors.
$62,000
These measures reflect Verde's commitment to optimizing its operations, improving cost efficiencies, and enhancing financial performance
in the current market environment.
1 - Severance fee expenses estimated at $90,000.
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