Core Viewpoint - Brazil Potash Corp. has finalized its third commercial offtake agreement with Kimia Solutions, securing a significant portion of its potash production for the next decade, which enhances revenue visibility and demonstrates strong demand for Brazilian potash [1][4]. Offtake Agreement Details - The ten-year agreement allows Kimia to purchase up to 704,000 tons of potash annually from the Autazes Potash Project at market prices [1]. - Kimia is expected to buy approximately 23%-32% of Brazil Potash's annual production on a take-or-pay basis, with obligations starting after production commences and scaling during the ramp-up period [2]. Commercial Strategy - The agreement is anticipated to provide strong revenue visibility and indicates robust demand for domestically produced Brazilian potash [3]. - Remaining output will be allocated for spot sales, enabling the company to take advantage of market price premiums and manage production fluctuations [3]. Management Commentary - The CEO of Brazil Potash highlighted that the completion of all three major take-or-pay agreements secures pre-sales of over two million tons of annual production for up to 17 years, achieving approximately 91% contracted capacity [4]. Recent Deals - In July, Brazil Potash signed a Memorandum of Understanding with Fictor Energia for a $200 million power line project, which is expected to mitigate risks associated with both commercial and infrastructure aspects of the Autazes Project [5]. Market Reaction - Brazil Potash shares experienced a 2.73% increase, reaching $2.63 during premarket trading [6].
EXCLUSIVE: Brazil Potash Seals Final Offtake Deal With Kimia Solutions For 704,000 Tons Annually