(All figures are in Canadian dollars, unless stated otherwise. Currency exchange rate:
The loan granted by Banco do Brasil received a Sustainability Certificate (the “Certificate”) distinguishing it as a sustainable financial operation. The Certificate is awarded to financing activities included in Banco do Brasil’s1 evaluated against a diverse array of national and international standards and taxonomies. The purpose of BB's Sustainable Business Portfolio is to encourage the expansion of enterprises and initiatives that directly contribute to Brazil’s sustainable development, by offering services and resources aimed at addressing social-environmental issues.
The Certificate awarded to Verde falls under the Environmental category, which encompasses projects like forest restoration, low-carbon agriculture, and the rehabilitation of degraded areas, all of which are undertaken by the Company, which integrates sustainable practices throughout its operational process as a core value.
For a transaction to receive Banco do Brasil's approval within the Sustainable Credit framework, it undergoes a rigorous evaluation encompassing Environmental, Governance, and Social dimensions. This assessment entails:
- Analyzing the sustainability of production processes;
- Ensuring the Company's financial statements undergo third-party auditing;
- Gauging the brand’s reliability and reputation;
- Verifying compliance with national and international quality standards;
- Reviewing the competence of the management squad;
- Checking for any recorded discrepancies with government agencies;
- Assessing transparency in the Company's communications.
“We are encouraged to count on the backing of two of the largest banks in
The Financing transactions were structured as follows:
- Banco do Brasil:
C$10.8 million loan (R$40 million ), with an interest rate of CDI3 + 3.60%. The loan term extended to 36 months, including a grace period of 12 months. Payment was scheduled with three annual instalments of principal and interest, due inAugust 2024 ,August 2025 , andAugust 2026 . - Bradesco:
C$5.4 million loan (R$20 million ), with an interest rate of CDI + 3,61%. The loan term was set at 24 months, featuring a grace period of 6 months. The payment schedule included the first 6 months with monthly interest, followed by 4 semesters payments of principal in March and October for the next two years.
Out of the total Financing secured,
BRAZILIAN INTEREST RATES OUTLOOK:
Projections indicate a steady decline in the SELIC rate over the coming years, with expectations of reaching 11.75% by the close of 2023, followed by a reduction to 9.0% in 2024 and a further decrease to 8.5% in 2025 and 2026.5 These adjustments align with the broader economic indicators with annual inflation easing to 4.86% in 2023.
If the projected reduction in the SELIC interest rate materializes in the coming years, it would result in significant interest expense savings for the Company. These potential savings are estimated to reach
ABOUT BANCO DO BRASIL:
Banco do Brasil is a Brazilian bank, incorporated as a mixed capital company, with the Federal Government of
The bank was established in 1808, is a key player in
BB was recognized by the
The bank is part of several indices including the Dow Jones Sustainability Index (DJSI) since 2012, the Corporate Sustainability Index (ISE) of the São
In 2023,
In
ABOUT BRADESCO:
Banco Bradesco, a leading financial institution in
Bradesco stands out as a leading financial institution, consistently recognized for its solidity, security, and innovative strides in technology.
Among other recognitions, Bradesco BBI received awards in 4 Latin American categories of the Sustainable Finance Awards 2023: Outstanding Leadership in Green Bonds, Outstanding Leadership in Transition/Sustainability Linked Bonds, Outstanding Leadership in Sustainable Infrastructure Finance and Outstanding Leadership in Project Finance (Global Finance).
Bradesco was also featured in the Top Innovations in Finance (Global Finance) award. The bank was chosen by the
Furthermore, Inovabra was recognized as one of the best financial innovation laboratories in the world. Bradesco is also listed among the top-rated companies in the S&P Global Sustainability Yearbook 2023 and is included in Bloomberg’s 2023 Gender-Equality Index.9
ABOUT
Verde is an agricultural technology Company that produces potash fertilizers. Our purpose is to improve the health of all people and the planet. Rooting our solutions in nature, we make agriculture healthier, more productive, and profitable.
Verde is a fully integrated Company: it mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product.
Verde’s focus on research and development has resulted in one patent and eight patents pending. Among its proprietary technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.10 Currently, the Company is fully licensed to produce up to 2.8 million tonnes per year of its multinutrient potassium fertilizers K Forte® and BAKS®, sold internationally as Super Greensand®. In 2022, it became
CORPORATE PRESENTATION
For further information on the Company, please view shareholders’ deck:
https://verde.docsend.com/view/nekrk8xfujzasr9x
INVESTORS NEWSLETTER
Subscribe to receive the Company’s updates at: http://cloud.marketing.verde.ag/InvestorsSubscription
The last edition of the newsletter can be accessed at: https://bit.ly/InvestorNL_August2023
CAUTIONARY LANGUAGE AND FORWARD-LOOKING STATEMENTS
All Mineral Reserve and Mineral Resources estimates reported by the Company were estimated in accordance with the Canadian National Instrument 43-101 and the
This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to:
- the estimated amount and grade of Mineral Resources and Mineral Reserves;
- the estimated amount of CO2 removal per tonne of rock;
- the PFS representing a viable development option for the Project;
- estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods;
- the estimated amount of future production, both produced and sold;
- timing of disclosure for the PFS and recommendations from the Special Committee;
- the Company’s competitive position in
Brazil and demand for potash; and, - estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "envisages", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
All forward-looking statements are based on Verde's or its consultants' current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include, but are not limited to:
- the presence of and continuity of resources and reserves at the Project at estimated grades;
- the estimation of CO2 removal based on the chemical and mineralogical composition of assumed resources and reserves;
- the geotechnical and metallurgical characteristics of rock conforming to sampled results; including the quantities of water and the quality of the water that must be diverted or treated during mining operations;
- the capacities and durability of various machinery and equipment;
- the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times;
- currency exchange rates;
- Super Greensand® and K Forte® sales prices, market size and exchange rate assumed;
- appropriate discount rates applied to the cash flows in the economic analysis;
- tax rates and royalty rates applicable to the proposed mining operation;
- the availability of acceptable financing under assumed structure and costs;
- anticipated mining losses and dilution;
- reasonable contingency requirements;
- success in realizing proposed operations;
- receipt of permits and other regulatory approvals on acceptable terms; and
- the fulfilment of environmental assessment commitments and arrangements with local communities.
Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; variations in rates of recovery and extraction; the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; developments in world metals markets; risks relating to fluctuations in the Brazilian Real relative to the Canadian dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals; delays in stakeholder negotiations; changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; the effects of competition in the markets in which Verde operates; operational and infrastructure risks and the additional risks described in Verde's Annual Information Form filed with SEDAR in
When relying on our forward-looking statements to make decisions with respect to Verde, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Verde does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Verde or on our behalf, except as required by law.
For additional information please contact:
Tel: +55 (31) 3245 0205; Email: investor@verde.ag
www.verde.ag | www.investor.verde.ag
1 For further information, see: https://www.bb.com.br/site/sustainability/how-banco-do-brasil-works/sustainable-credit-portfolio/
2 Source: https://www.investopedia.com/articles/investing/111314/10-biggest-latin-american-banks.asp
3 CDI stands for Certificate of Interbank Deposit (Certificado de Depósito Interbancário, in Portuguese). The CDI rate is an average of interest rates on unsecured interbank short-term funding. Its value is usually very close to the rates of repurchase agreements of securities issued by the federal government. Available at: https://www.bcb.gov.br/content/publicacoes/WorkingPaperSeries/wps168.pdf
4 Source:
5 Source:
6 Source: https://ri.bb.com.br/en/banco-do-brasil/ownership-structure/
7 Source: https://www.bb.com.br/site/sobre-nos/
8 Source: https://banco.bradesco/html/classic/sobre/
9 Source: https://www.bradescori.com.br/en/market-information/acknowledgments/
10 Learn more about our technologies: https://verde.docsend.com/view/yvthnpuv8jx6g4r9
11 See the release at: https://investor.verde.ag/verde-starts-ramp-up-of-plant-2s-second-stage-to-reach-production-of-2-4mtpy/
12 As per the National Instrument 43-101 Standards of Disclosure for Mineral Projects within
13 Source:
14 Source: Brazilian Comex Stat, available at: http://comexstat.mdic.gov.br/en/geral
Source:
2023 GlobeNewswire, Inc., source