Replies to post #87 on Verde Agritech Ltd (NPK)

[VBgood]

Thanks, Value. I am new to Potash mining. I took a small position today but would like to add on a dips.
Still have questions like how they planning to finance a full construction.. still there is no final date of going into production ... a lots of ifs..

[gharma]

Thanks for posting the link. I was about to do so after market close.

I keyed in on a few KCl production related items in the PR of Nov 30 from the company.

Verde has engaged SRK Consulting (U.S.), Inc. ("SRK") to complete a review of capital and operating costs and should be in a position to reveal results in Q1 2012

and

SRK: Preliminary Economic Assessment with an updated National Instrument 43-101 technical report to be completed by Q1 2012.

which gives a pretty tight time horizon for derisking.

That they have been pursuing this KCl production since 2008 and list a number of known entities enlisted along the way implies that there is a belief in profitability. But, maybe I am reading too much into economic in their statement

Verde has made significant progress in deriving an economic scalable production flow sheet for KCl.

which a couple quoted analysts in Kip Keen's piece seemed to discount.
This part was good:

a simple production flow sheet that relied on long proven production technology as well as abundantly and readily available reagents

which seems to leave energy costs as a wild card. But remember Verde not long back announced work on optimizing energy consumption in the ThermoPotash production process, and that plus other potential synergies will exist in a combined KCl and ThermoPotash production plant.

Finally, one usually does not file for patents unless you believe you are there, short of refinements. The IP if the process is highly economical could be quite significant for Verde.