Verde Agritech Ltd (NPK)

[alvik]

TSX Venture-listed Verde Potash plc was upgraded to buy from neutral at Dundee Securities after the company announced on Sunday that it has effectively operated a rotary kiln pilot plant for the production of potash.

Two tests indicated continuous potassium chloride (KCI) production flow for 30 hours and 20 hours, respectively, prompting Verde to file two additional patents for KCI production.

Dundee Securities analyst Richard Kelertas noted that for than 60 tonnes of ThermoPotash was produced using the same kiln.

“While the production of KCl is not Verde’s primary focus or value driver, we consider the implications positive,” he told clients. “Verde Potash has already demonstrated the viability of producing its new ThermoPotash product with minimal capital (as compared with other brownfield and greenfield potash expansion projects)…”

ThermoPotash is a unique slow-release, non-chloride fertilizer that is ideal for Brazil’s nutrient deficient acidic soil.

Management is targeting first production in 2015 for its flagship project, Cerrado Verde, which is located in Minas Gerais, a state with US$70-billion in agribusiness GDP. This area (including neighboring states) accounts for 60% of Brazil’s fertilizer consumption.


http://business.financialpost.com/2011/12/05/verde-potash-upgraded-after-positive-test-results/