TORONTO, July 7, 2015 /PRNewswire/ --
Verde Potash (TSX:
"NPK") ("Verde" or the "Company") is pleased to announce the
results from an independent study aimed at evaluating the economic
benefits to farmers who adopt TK47 as the potassium source in their
nutrient management systems. The assessment was based on agronomic
results achieved from a 10 months field trial on carrot and corn
crops, carried out in Minas Gerais State by an independent
agronomic consultancy company.
Table 1, below, presents a simulation of farmers' incremental
profitability when using TK47 at various price points per ton. The
results show that even at higher TK47 prices, the products'
superior benefits still translate into higher profits for
farmers.
Table 1 - Farmers' Incremental Profitability replacing KCl with
TK47
Farmers' Incremental Profitability per 1,000 hectares
TK47 price per ton (US$) of carrots and corn when using TK47 instead of KCl
180* US$ 1,822,501
280 US$ 1,393,928
380 US$ 965,356
480 US$ 536,783
*Verde's PFS published on April 1,
2014 used US$186 as the
product's sales price.
The economic assessment took into consideration all costs
associated with applying TK47 and KCl, including soil improvement,
fertilization, application and freight costs. Table 2, below,
presents data from the assessment that demonstrates that higher
yields were achieved using half the standardly applied dosage of
K2O from TK47.
Table 2 highlights that higher yields of carrots and corn were
achieved using TK47. Of the total carrot production, TK47's plot
produced 67.01% of Class A carrots, which have a higher market
value, whereas KCl's plot produced 49.76%. Also, less discarded
carrots were produced from TK47's plot than from KCl's, 9.08% vs.
10.91%, respectively.
Table 2 - Partial Data Used to Calculate Economic
Benefits
TK47 KCl
Total Potassium (K2O) used 300kg/ha 600kg/ha
Total number of Potassium applications 1 4
Total carrot production 66.1 t/ha 63.3 t/ha
- Class A carrot production (measuring between 18 cm to 26 cm) 44.3 t/ha 31.5 t/ha
- Class B carrot production (measuring between 14 cm to 18 cm) 15.8 t/ha 24.9 t/ha
- Discarded carrot production (non-commercial carrots with any
type of deformity or size greater than 26 cm or smaller than 14 cm) 6 t/ha 6.9 t/ha
Total corn production 13.3 t/ha 12.5 t/ha
Improved Economics by Reducing Pesticides
There has been a growing global outcry against excessive use of
pesticides. Since 2008, Brazil has ranked first in the
world for pesticide consumption. In 2011, the country spent
approximately $8.5 billion on pesticide related
chemicals. In the last ten years, while the world market in this
sector grew by 93%, the growth in Brazil was 190%. Due to
extensive acreage, the mix of crop cultures and its climatic
conditions being favorable to the proliferation of
pests, Brazil uses an average of two to three times more
pesticides per acre than other global farmers. TK47 enhances
plant's immune system allowing for a reduction in pesticide use
(see press release dated June 2,
2015).
The independent economic study also evaluated the productivity
of carrots after reduction of certain pesticides. Table 3, below,
shows the pesticides that were applied to KCl's plot but not to
TK47's plot. Thus, applying less pesticide translated to potential
additional cost reductions of US$118,000 per 1,000 hectares.
Table 3 - Additional Pesticides Applied to KCl's Plot, and their
Cost to Farmers
Pesticide Company Dosage Price Total cost/ha
Abamex Nufarm 4.0 L/ha US$ 8.32 US$ 33.28
Engeo Pleno Syngenta 0.3 L/ha US$ 33.63 US$ 10.90
Caramba(R) BASF 1.0 L/ha US$ 15.00 US$ 15.00
Comet(R) BASF 0.4 L/ha US$ 37.16 US$ 14.86
Cabrio Top(R) BASF 1.6 kg/ha US$ 13.46 US$ 21.53
Engeo Pleno Syngenta 0.4 L/ha US$ 33.64 US$ 13.46
Imunit(TM) BASF 0.4 L/ha US$ 22.42 US$ 8.97
US$ 118.00
In 2011, the Federal University of Mato Grosso (UFMT) conducted a study in the
city of Lucas do Rio Verde analyzing
the quality of breast milk[1].
Lucas do Rio Verde is the second
largest grain producer of the state of Mato Grosso (MT) and, in 2009, used 5 million
liters of pesticides to harvest soy and corn.
The study analyzed the breast milk of 62 women between weeks
three and eight post delivery. The alarming results showed that all
samples were contaminated with, at least, one substance out of the
ten being analyzed. "The results may come from the occupational,
environmental, food exposure of agricultural productive process
that exposed the population to 114.37 liters of pesticides per
capita in the season of 2009/2010", said the research's author.
In April 2015, the National
Institute of Cancer in Brazil
(INCA) recommended a "progressive and sustainable reduction" of
pesticide use in the
country.[2] Several health
problems affect the life of those directly in contact with
pesticides. The list includes: cramps, diarrhea, breathing
difficulties, convulsions and death. Prolonged exposure is
associated with infertility, impotency, miscarriages, birth defects
and cancer.
President & CEO, Cristiano
Veloso, commented: "The superior agronomic results Verde's
been receiving have allowed the Company to understand and
appreciate the full value of TK47's technology. As a
multi-function, innovative product, TK47 provides benefits not only
in terms of plant nutrition but also for plant protection, soil
improvement and increased sustainable agriculture, allowing Verde
to postion itself as an agri-tech company. The combined benefits of
TK47, as shown in this study, increased the yield of premium
carrots and reduced fertilizer applications, therefore
significantly improving farmers' economics."
Next Steps
The same independent economic study will be conducted on results
achieved for sugarcane and coffee, two of Brazil's most important crops. Results from
this study will be presented in Q3/2015.
About Verde
Potash
Verde Potash is an agri-tech
company promoting sustainable and profitable agriculture through
the development of its Cerrado Verde Project. Cerrado Verde,
located in the heart of Brazil's
largest agriculture market, is the source of a potash-rich deposit
from which the Company intends to produce TK47 and KCl. TK47 is a
multi-function innovative product that combines benefits for plant
nutrition, plant protection, soil improvement and increased
sustainability. Verde's mission is to offer technological and
intelligent solutions that meet the needs of an increasingly
demanding and conscious market. The Company is also developing its
Calcario limestone project, limestone being a key raw material in
Verde's process to produce TK47 and KCl.
About the Cerrado Verde Potash Project
Cerrado Verde is a unique project: 1) its high grade potash rock
outcrops and is amenable to strip mining, allowing fast
construction of a scalable operation; 2) it is located in the midst
of the world's third largest and fastest growing fertilizer market;
3) it connects to Brazil's largest
fertilizer distribution districts via existing and high quality
infrastructure; 4) it has the potential to supply both TK47 and KCl
to Brazil's local agriculture
market from its large potash-rich deposit.
Cautionary Language and Forward Looking Statements
NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE. THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING
STATEMENTS", WHICH INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH
RESPECT TO THE FUTURE FINANCIAL OR OPERATING PERFORMANCE OF THE
COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS, AND STATEMENTS
REGARDING USE OF PROCEEDS. FORWARD LOOKING STATEMENTS CAN GENERALLY
BE IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR
"DOES NOT EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT
ANTICIPATE", OR "BELIEVES", "INTENDS", "FORECASTS", "BUDGET",
"SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR PHRASES OR
STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD",
"WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED".
FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY
DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS
EXPRESSED OR IMPLIED BY SAID
STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-LOOKING
STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE
EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID
STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON
FORWARD-LOOKING STATEMENTS.
Readers are cautioned not to rely solely on the summary of such
information contained in this release and are directed to the
complete set of drill results posted on Verde's website
(http://www.verdepotash.com) and filed on SEDAR
(http://www.sedar.com) and any future amendments to such. Readers
are also directed to the cautionary notices and disclaimers
contained herein.
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[1
]http://www.cartacapital.com.br/politica/agrotoxico-usado-na-agricultura-contamina-leite-materno-no-mt
[2] http://saude.estadao.com.br/noticias/geral,inca-se-posiciona-pela-1-vez-pela-reducao-do-uso-de-agrotoxicos,1665873
Cristiano Veloso, President &
Chief Executive Officer, Tel: +55-(31)-3245-0205, Fax:
+55-(31)-3245-0205,
Email: cv@verdepotash.com, http://www.verdepotash.com;
Iwona Zakrzewski, VP Investor
Relations & Corporate Secretary, Tel: +1(416)-844-7337,
+1(416)-866-2966, Email: iz@verdepotash.com