Verde AgriTech Ltd
Initiating Field Studies for Carbon Capture/Fertilizer Prices Stabilizing
Published: 12/21/2023
Author: Sid Rajeev, B.Tech, CFA, MBA
Sector: Basic Materials | Industry: Agricultural Inputs
Ticker Symbols:NPK.TO - TSX 🔹VNPKF - NASDAQ 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $1.12 |
| Fair Value | CAD $8.26 |
| Risk | 4 |
| 52 Week Range | CAD $1.03-7.17 |
| Shares O/S (M) | 53 |
| Market Cap. (M) | CAD $59 |
| Current Yield (%) | N/A |
| P/E (forward) | N/A |
| P/B | 1.2 |
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Report Highlights
Highlights
- Verde is initiating field studies aimed at assessing the capability of its project in capturing carbon dioxide. A third-party study has indicated that a tonne of Verde’s products can potentially extract 120 kg of carbon dioxide through Enhanced Rock Weathering (ERW). ERW involves artificially accelerating the natural weathering of rocks to remove and sequester carbon dioxide from the atmosphere.
- Verde’s existing facilities can generate up to 300 Kt of carbon credits annually, implying US$15M in potential revenue, assuming a highly conservative estimate of US$50/tonne CO2. Verde is currently engaged in discussions with various parties regarding the sale of its carbon credits
- Q3 revenue was down 66% YoY, and 15% lower than our estimate, due to lower product sales (down 43% YoY), and prices (down 40% YoY). Consequently, both EBITDA, and EPS turned negative. Fertili
