- Verde AgriTech (NPK) has sustained groundwater issues on roadwork to allow for increased truck accessibility to and from its second plant
- The flooding will delay the road’s operability, and the renewed road will only support Plant 2’s output in Q4 2022
- Plant 2’s delayed output will miss most of the 2022 season’s peak demand, thereby negatively impacting the company’s full-year volume
- Verde AgriTech is down 18.53 per cent, trading at $5.76 a share as of 3:55 pm ET
Verde AgriTech (NPK) has sustained groundwater issues on roadwork to allow for increased truck accessibility to and from its second plant.
The solution is already engineered and being implemented. Over the next four to eight weeks, limited delivery of Plant 2’s production will be possible, which the company admitted will impact its 2022 results.
Plant 2’s delayed output will miss most of the 2022 season’s peak demand, thereby negatively impacting the company’s full year volume.
The company had been working on road infrastructure, including 22 kms of roads, 14 kms of asphalting, and the construction of a new bridge when the groundwater issues struck. The groundwater placed a risk to structural stability and was detected in two critical points of the road.
The preceding geotechnical drilling had not uncovered the risk areas and palliative groundworks proved insufficient to adequately remediate the situation.
The company is licensed to produce up to 2.8 million tonnes per year of its multinutrient potassium fertilizers.
Verde AgriTech is down 18.53 per cent, trading at $5.76 a share as of 3:55 pm ET.