Brazil Potash (GRO) Status Update summary

Project progress and strategic vision

• Construction of the Autazes potash project is underway, with major works starting soon and all key permits secured.

• The project aims to produce 2.4 million tons of potash annually, supplying about 17% of Brazil's demand.

• Strong support from government, local communities, and the Mura Indigenous group has been established.

• Recent board additions bring deep industry expertise and global agri-business leadership.

• The project is positioned as a transformative domestic source for Brazil's agricultural sector.

Commercial and financial updates

• Long-term offtake agreements have been signed, including a 15-17 year contract with Amaggi and an MoU with Keytrade.

• Financing strategy includes $1.7 billion in debt, $200 million from power line carve-out, $150 million from royalty, and the rest from equity.

• Discussions are ongoing with international finance institutes, sovereign wealth funds, and infrastructure investors.

• Board and management collectively own about 11% of the company, aligning interests with shareholders.

• Key milestones ahead include binding offtake contracts, power line carve-out, and initiation of due diligence by lenders.

Market outlook and industry context

• Brazil imports 98% of its potash, much from geopolitically sensitive regions, creating supply risk.

• Recent moves by Belarus and Russia to coordinate sales could further concentrate global supply and impact prices.

• Potential US tariffs on Canadian and Russian potash could drive global price volatility and affect supply chains.

• Domestic production will insulate Brazilian farmers from international disruptions and price shocks.