REG - Harvest Minerals Ltd - Interim Results
29/09/2022 07:16
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RNS Number : 1339B Harvest Minerals Limited 29 September 2022
29 September 2022
.
Harvest Minerals Limited
("Harvest" or the "Company")
Interim Results
Harvest Minerals Limited, the AIM listed fertiliser producer, is pleased to
announce its unaudited interim results for the six-month period ended 30 June
2022.
Results
The loss after tax recorded in the Condensed Consolidated Statement of
Comprehensive Income for the half-year ended 30 June 2022 was $883,556 (30
June 2021: $1,067,707). The loss is attributable to non-cash items including
depreciation, amortisation and impairments.
Net cash inflows from operating activities in the Condensed Consolidated
Statement of Cashflows for the half year ended 30 June 2022 was $693,207 (30
June 2021: net cash outflows $1,116,168). Refer to note 5 in the financial
statements for further detail reconciling the net loss to net cash inflows
from operating activities.
Review of Operations
Arapua Fertiliser Project
During the half-year ended 30 June 2022, Harvest sold 35,014 tonnes of its KP
Fértil®, representing a 108.3% increase over the 16,812 tonnes sold in the
same period of 2021, and despite the continuing challenges imposed by the
COVID-19 pandemic. The Company is maintaining its 2022 year-end sales target
of 150,000 tonnes of KP Fértil®.
The Company's team includes 12 associates/agronomists split into two regional
teams, which is supported by its third-party network comprising 20 resales'
centres. The Company continues to build on its marketing campaign to offer
its product for coffee, sugarcane, and other crops, and boosted the Company's
efforts towards the new marketing channels opened since it added the higher
margin 25kg bag option that targets small to medium sized farmers and
resellers. The Company has also started to actively market its KP Fértil® in
other regions beyond its immediate market in Minas Gerais and Sao Paulo.
In terms of market fundamentals, the performance of the Brazilian agriculture
sector continued to be robust over the half-year and several sector
associations forecast double digit growth in most of the crops targeted by
Harvest.
Sergi Potash Project & Mandacaru Phosphate Project
Given the scale of activity currently being undertaken at Arapua, the Company
did not materially advance either of its Sergi Potash Project or its Mandacaru
Phosphate Project during the half-year to 30 June 2022.
Brian McMaster
Executive Chairman
29 September 2022
Competent Person Statement
The technical information in this report is based on complied and reviewed
data by Mr Paulo Brito BSc(geol), MAusIMM, MAIG. Mr Brito is a consulting
geologist for Harvest Minerals Limited and is a Member of AusIMM - The
Minerals Institute, as well as, a Member of Australian Institute of
Geoscientists. Mr Brito has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which is being undertaken to qualify as a Competent Person as defined
in the 2012 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Mr Brito also meets the
requirements of a qualified person under the AIM Note for Mining, Oil and Gas
Companies and consents to the inclusion in this report of the matters based on
his information in the form and context in which it appears. Mr Brito accepts
responsibility for the accuracy of the statements disclosed in this report
Condensed Consolidated Statement of Comprehensive Income
for the half-year ended 30 June 2022
Consolidated
6 months ended 30 June 6 months ended
Notes 2022 30 June
$ 2021
$
Revenue from fertiliser sales 3 2,735,590 790,224
Cost of goods sold 4 (1,153,441) (603,957)
Gross profit 1,582,149 186,267
Interest income 9,857 7,852
Other income 513 506
Gain on sale of motor vehicle 8,185 -
Foreign exchange gain/(loss) (54,401) 91,594
Accounting and audit fees (81,131) (95,372)
Advertising fees (146,877) (127,680)
Consultants' fees (52,383) (184,228)
Directors' fees (390,705) (296,649)
Depreciation (4,685) (15,158)
Legal fees (6,423) (4,377)
Wages & Salaries (427,713) (114,349)
Interest expense (44,808) -
Public company costs (117,474) (108,534)
Rent and outgoings expenses - (750)
Travel expenses (306,748) (164,573)
Impairment exploration expense 9 (491,500) -
Other expenses (359,412) (242,256)
Loss from continuing operations before income tax (883,556) (1,067,707)
Income tax benefit - -
Loss from continuing operations after income tax 5 (883,556) (1,067,707)
Other comprehensive income
Item that may be reclassified subsequently to profit or loss
Foreign currency translation 964,215 777,637
Other comprehensive income for the half-year 964,215 777,637
Total comprehensive income/(loss) for the half-year 80,659 (290,070)
Loss per share
Basic and diluted loss per share (cents per share) (0.48) (0.57)
The accompanying notes form part of this half-year financial report.
Condensed Consolidated Statement of Financial Position
as at 30 June 2022
Consolidated
Notes 30 June 31 December
2022 2021
$ $
Assets
Current Assets
Cash and cash equivalents 5 2,414,039 1,708,001
Trade and other receivables 6 1,691,287 1,909,730
Inventories 350,292 63,129
Total Current Assets 4,455,618 3,680,860
Non-Current Assets
Trade and other receivables 318,201 281,698
Plant and equipment 7 2,024,277 1,111,314
Mine properties 8 4,341,533 3,691,160
Deferred exploration and evaluation expenditure 9 - 454,462
Total Non-Current Assets 6,684,011 5,538,634
Total Assets 11,139,629 9,219,494
Current Liabilities
Trade and other payables 10 649,697 278,696
Borrowings 11 149,086 51,567
Total Current Liabilities 798,783 330,263
Non-Current Liabilities
Provision for rehabilitation 298,279 74,983
Borrowings 11 1,349,628 201,968
Total Non-Current Liabilities 1,647,907 276,951
Total Liabilities 2,446,690 607,214
Net Assets 8,692,939 8,612,280
Equity
Contributed equity 12 43,328,219 43,328,219
Reserves 1,022,961 58,746
Accumulated losses (35,658,241) (34,774,685)
Total Equity 8,692,939 8,612,280
The accompanying notes form part of this half-year financial report.
Condensed Consolidated Statement of Changes in Equity
for the half-year ended 30 June 2022
Notes Contributed equity Accumulated losses Foreign currency translation reserve
Consolidated $ $ $ Option reserve Total
$ $
Balance as at 1 January 2022 12 43,328,219 (34,774,685) (3,482,302) 3,541,048 8,612,280
Total comprehensive gain for the half-year
Loss for the half-year 30 June 2022 - (883,556) - - (883,556)
Other comprehensive income - - 964,215 - 964,215
Total comprehensive income for the half-year - (883,556) 964,215 - 80,659
Balance at 30 June 2022 43,328,219 (35,658,241) (2,518,087) 3,541,048 8,692,939
Balance as at 1 January 2021 43,048,343 (30,606,613) (2,938,622) 3,541,048 13,044,156
Total comprehensive loss for the half-year
Loss for the half-year 30 June 2021 - (1,067,707) - - (1,067,707)
Other comprehensive income - - 777,637 - 777,637
Total comprehensive loss for the half-year - (1,067,707) 777,637 - (290,070)
Balance at 30 June 2021 12 43,048,343 (31,674,320) (2,160,985) 3,541,048 12,754,086
The accompanying notes form part of this half-year financial report.
Condensed Consolidated Statement of Cash Flows
for the half-year ended 30 June 2022
Consolidated
6 months ended 6 months ended
30 June 30 June
2022 2021
$ $
Cash flows from operating activities
Receipts from customers 2,999,821 1,402,588
Payments to suppliers and employees (2,271,663) (2,526,608)
Interest received 9,857 7,852
Interest paid (44,808) -
Net cash inflow / (outflow) from operating activities 5 693,207 (1,116,168)
Cash flows from investing activities
Purchase of plant and equipment (941,621) (57,787)
Payments for mine properties (351,413) (32,066)
Payments for exploration and evaluation expenditure (37,063) -
Proceeds from sale of motor vehicle 8,185 -
Net cash outflow from investing activities (1,321,912) (89,853)
Cash flows from financing activities
Proceeds from borrowings 1,274,816 -
Repayment of borrowings (29,637) -
Net cash inflow from financing activities 1,245,179 -
Net increase / (decrease) in cash and cash equivalents 616,474 (1,206,021)
Cash and cash equivalents at beginning of period 1,708,001 2,992,727
Effect of exchange rate fluctuations on cash held 89,564 450,877
Cash and cash equivalents at the end of the period 5 2,414,039 2,237,583
The accompanying notes form part of this half-year financial report.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Corporate Information
This general purpose half-year financial report of Harvest Minerals Limited
(the "Company") and its subsidiaries (the "Group") for the half-year ended 30
June 2022 was authorised for issue in accordance with a resolution of the
Directors on 29 September 2022.
Harvest Minerals Limited is a company limited by shares incorporated in
Australia whose shares are publicly traded on the AIM market of the London
Stock Exchange.
The nature of the operations and principal activities of the Group are
described in the Directors' Report.
Basis of Preparation
This financial report for the half-year ended 30 June 2022 has been prepared
in accordance with the requirements of the Corporations Act 2001, applicable
accounting standards including AASB 134 Interim Financial Reporting,
Accounting Interpretations and other authoritative pronouncements of the
Australian Accounting Standards Board ("AASB"). Compliance with AASB 134
ensures compliance with IAS 134 "Interim Financial Reporting". The Group is a
for profit entity for financial reporting purposes under Australian Accounting
Standards.
These half-year financial statements do not include all notes of the type
normally included within the annual financial statements and therefore cannot
be expected to provide as full an understanding of the financial performance,
financial position and financing and investing activities of the group as the
full financial statements.
It is recommended that the half-year financial statements be read in
conjunction with the annual report for the year ended 31 December 2021 and
considered together with any public announcements made by Harvest Minerals
Limited during the half-year ended 30 June 2022 in accordance with the
continuous disclosure obligations of the AIM market.
For the purpose of preparing the interim report, the half-year has been
treated as a discrete reporting period. The accounting policies and methods of
computation adopted are consistent with those of the previous financial year
and corresponding interim reporting period. These accounting policies are
consistent with Australian Accounting Standards and with International
Financial Reporting Standards.
New and amending Accounting Standards and Interpretations
In the half-year ended 30 June 2022, the Directors have reviewed all of the
new and revised Standards and Interpretations issued by the AASB that are
relevant to the Group's operations and effective for current reporting periods
beginning on or after 1 January 2022. The Directors have also reviewed all new
Standards and Interpretations that have been issued but are not yet effective
for the half-year ended 30 June 2022. As a result of this review the Directors
have determined that there is no impact, material or otherwise, of the new and
revised Standards and Interpretations on the Group's business and, therefore,
no change is necessary to the Group accounting policies.
New and amended accounting standards and interpretations have been published
but are not mandatory. The Group has decided against early adoptions of these
standards, and has determined the potential impact on the financial statements
from the adoption of these standards and interpretations is not material to
the Group.
Significant Accounting Policies
Deferred Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group
is accumulated separately for each area of interest. Such expenditure
comprises net direct costs and an appropriate portion of related overhead
expenditure but does not include general overheads or administrative
expenditure not having a specific nexus with a particular area of interest.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
Each area of interest is limited to a size related to a known or probable
mineral resource capable of supporting a mining operation. Exploration and
evaluation expenditure for each area of interest is carried forward as an
asset provided that one of the following conditions is met:
· such costs are expected to be recouped through successful
development and exploitation of the area of interest or, alternatively, by its
sale; or
· exploration and evaluation activities in the area of interest
have not yet reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves, and active and
significant operations in relation to the area are continuing.
Expenditure which fails to meet the conditions outlined above is written off.
Furthermore, the directors regularly review the carrying value of exploration
and evaluation expenditure and make write downs if the values are not expected
to be recoverable.
Identifiable exploration assets acquired are recognised as assets at their
cost of acquisition, as determined by the requirements of AASB 6 Exploration
for and Evaluation of Mineral Resources. Exploration assets acquired are
reassessed on a regular basis and these costs are carried forward provided
that at least one of the conditions referred to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to acquisition in
respect of an exploration asset acquired is accounted for in accordance with
the policy outlined above for exploration expenditure incurred by or on behalf
of the entity.
Acquired exploration assets are not written down below acquisition cost until
such time as the acquisition cost is not expected to be recovered. When an
area of interest is abandoned, any expenditure carried forward in respect of
that area is written off. Expenditure is not carried forward in respect of any
area of interest/mineral resource unless the Group's rights of tenure to that
area of interest are current.
Mine Properties
Mine properties represent the accumulation of all exploration, evaluation and
development expenditure incurred in respect of areas of interest in which
mining has commenced or is in the process of commencing. When further
development expenditure is incurred in respect of mine property after the
commencement of production, such expenditure is carried forward as part of the
mine property only when substantial future economic benefits are thereby
established, otherwise such expenditure is classified as part of the cost of
production.
Amortisation is provided on a unit of production basis which results in a
write off of the cost proportional to the depletion of the proven and probable
mineral reserves.
The net carrying value of each area of interest is reviewed regularly and to
the extent to which this value exceeds its recoverable amount, the excess is
either fully provided against or written off in the financial year in which
this is determined.
The Group provides for environmental restoration and rehabilitation at site
which includes any costs to dismantle and remove certain items of plant and
equipment. The cost of an item includes the initial estimate of the costs of
dismantling and removing the item and restoring the site on which it is
located, the obligation for which an entity incurs when an item is acquired or
as a consequence of having used the item during that period. This asset is
depreciated on the basis of the current estimate of the useful life of the
asset. In accordance with AASB 137 Provisions, Contingent Liabilities and
Contingent Assets the Group is also required to recognise as a provision the
best estimate of the present value of expenditure required to settle this
obligation. The present value of estimated future cash flows is measured using
a current market discount rate.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
Stripping costs
Costs associated with material stripping activity, which is the process of
removing mine waste materials to gain access to the mineral deposits
underneath, during the production phase of surface mining are accounted for as
either inventory or a non-current asset (non-current asset is also referred to
as a 'stripping activity asset').
To the extent that the benefit from the stripping activity is realised in the
form of inventory produced, the Group accounts for the costs of that stripping
activity in accordance with the principles of AASB 102 Inventories. To the
extent the benefit is improved access to ore, the Group recognises these costs
as a non-current asset provided that:
· it is probable that the future economic benefit (improved access
to the ore body) associated with the stripping activity will flow to the
Group;
· the Group can identify the component of the ore body for which
access has been improved; and
· the costs relating to the stripping activity associated with that
component can be measured reliably.
Stripping activity assets are initially measured at cost, being the
accumulation of costs directly incurred to perform the stripping activity that
improves access to the identified component of ore plus an allocation of
directly attributable overhead costs. In addition, stripping activity assets
are accounted for as an addition to, or as an enhancement to, an existing
asset.
Accordingly, the nature of the existing asset determines:
· whether the Group classifies the stripping activity asset as
tangible or intangible; and
· the basis on which the stripping activity asset is measured
subsequent to initial recognition
In circumstances where the costs of the stripping activity asset and the
inventory produced are not separately identifiable, the Group allocates the
production stripping costs between the inventory produced and the stripping
activity asset by using an allocation basis that is based on volume of waste
extracted compared with expected volume, for a given volume of ore production.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs
incurred. Borrowings are subsequently measured at amortised cost. Any
difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowing using
the effective interest method. Fees paid on the establishment of loan
facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the extent there is
no evidence that it is probable that some or all of the facility will be drawn
down, the fee is capitalised as a prepayment for liquidity services and
amortised over the period of the facility to which it relates.
Revenue
Revenue arises mainly from the sale of fertiliser. The Group generates revenue
in Brazil. To determine whether to recognise revenue, the Group follows a
5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
The revenue and profits recognised in any period are based on the delivery of
performance obligations and an assessment of when control is transferred to
the customer.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
In determining the amount of revenue and profits to record, and related
statement of financial position items (such as contract fulfilment assets,
capitalisation of costs to obtain a contract, trade receivables, accrued
income and deferred income) to recognise in the period, management is required
to form a number of key judgements and assumptions. This includes an
assessment of the costs the Group incurs to deliver the contractual
commitments and whether such costs should be expensed as incurred or
capitalised.
Revenue is recognised either when the performance obligation in the contract
has been performed, so 'point in time' recognition or 'over time' as control
of the performance obligation is transferred to the customer. For contracts
with multiple components to be delivered such as fertiliser, management
applies judgement to consider whether those promised goods and services are
(i) distinct - to be accounted for as separate performance obligations; (ii)
not distinct - to be combined with other promised goods or services until a
bundle is identified that is distinct or (iii) part of a series of distinct
goods and services that are substantially the same and have the same pattern
of transfer to the customer.
Transaction price
At contract inception the total transaction price is estimated, being the
amount to which the Group expects to be entitled and has rights to under the
present contract. The transaction price does not include estimates of
consideration resulting from change orders for additional goods and services
unless these are agreed. Once the total transaction price is determined, the
Group allocates this to the identified performance obligations in proportion
to their relative stand-alone selling prices and recognises revenue when (or
as) those performance obligations are satisfied.
For each performance obligation, the Group determines if revenue will be
recognised over time or at a point in time. Where the Group recognises revenue
over time for long term contracts, this is in general due to the Group
performing and the customer simultaneously receiving and consuming the
benefits provided over the life of the contract.
For each performance obligation to be recognised over time, the Group applies
a revenue recognition method that faithfully depicts the Group's performance
in transferring control of the goods or services to the customer. This
decision requires assessment of the real nature of the goods or services that
the Group has promised to transfer to the customer. The Group applies the
relevant output or input method consistently to similar performance
obligations in other contracts.
When using the output method the Group recognises revenue on the basis of
direct measurements of the value to the customer of the goods and services
transferred to date relative to the remaining goods and services under the
contract. Where the output method is used, in particular for long term service
contracts where the series guidance is applied, the Group often uses a method
of time elapsed which requires minimal estimation. Certain long term contracts
use output methods based upon estimation of number of users, level of service
activity or fees collected.
If performance obligations in a contract do not meet the over time criteria,
the Group recognises revenue at a point in time. This may be at the point of
physical delivery of goods and acceptance by a customer or when the customer
obtains control of an asset or service in a contract with customer-specified
acceptance criteria.
Disaggregation of revenue
The Group disaggregates revenue from contracts with customers by contract
type, which includes only fertiliser as management believes this best depicts
how the nature, amount, timing and uncertainty of the Group's revenue and cash
flows.
Performance obligations
Performance obligations categorised within this revenue type include the
debtor taking ownership of the fertiliser product.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
Inventories
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and condition
is accounted for as follows:
· Raw materials - purchase cost; and
· Finished goods - cost of direct materials and labour and an
appropriate proportion of variable and fixed overheads based on normal
operating capacity.
Net realisable value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and the estimated costs necessary
to make the sale.
Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation.
Where the Group expects some, or all, of a provision to be reimbursed, for
example under an insurance contract, the reimbursement is recognised as a
separate asset but only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the statement of
comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money, and where
appropriate, the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is recognised as a
finance cost.
NOTE 2: SEGMENT REPORTING
For management purposes, the Group is organised into one main operating
segment, which involves mining exploration processing and sale of fertiliser.
All of the Group's activities are interrelated, and discrete financial
information is reported to the Board (Chief Operating Decision Maker) as a
single segment. No revenue is derived from a single external customer.
Accordingly, all significant operating decisions are based upon analysis of
the Group as one segment. The financial results from this segment are
equivalent to the financial statements of the Group as a whole. Revenue
earned by the Group is generated in Brazil and all of the Group's non-current
assets reside in Brazil.
The following table present revenue and loss information and certain asset and
liability information regarding business segments for the half year ended 30
June 2022.
Continuing operations
Australia Brazil Consolidated
30 June 2022 $ $ $
Segment revenue - 2,735,590 2,735,590
Segment profit/(loss) before income tax expense (656,104) (227,452) (883,556)
30 June 2022
Segment assets 822,413 10,317,216 11,139,629
Segment liabilities 342,633 2,104,057 2,446,690
Additions to non-current assets - 1,330,097 1,330,097
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
NOTE 2: SEGMENT REPORTING (continued)
Continuing operations
Australia Brazil Consolidated
30 June 2021 $ $ $
Segment revenue - 790,224 790,224
Segment loss before income tax expense (503,487) (564,220) (1,067,707)
30 June 2021
Segment assets 2,141,141 10,949,765 13,090,906
Segment liabilities 109,577 227,243 336,820
Additions to non-current assets - 89,853 89,853
NOTE 3: REVENUE FROM CONTRACTS WITH CUSTOMERS
The Group derives its revenue from the sale of goods at a point in time in the
major category of Fertiliser.
Consolidated
6 months to 6 months to
30 June 30 June
2022 2021
$
$
Fertiliser sales 2,735,590 790,224
Total revenue 2,735,590 790,224
NOTE 4: COST OF GOODS SOLD
Consolidated
6 months to 6 months to
30 June 30 June
2022 2021
$
$
Mine operating costs 492,617 414,731
Royalty expense 108,430 36,120
Rehabilitation expense 216,272 31,209
Depreciation 146,931 103,754
Amortisation 189,191 18,143
Total cost of goods sold 1,153,441 603,957
NOTE 5: CASH AND CASH EQUIVALENTS
Consolidated
Reconciliation of Cash and Cash Equivalents 6 months to 6 months to
30 June 30 June
Cash comprises: 2022 2021
$
$
Cash at bank 2,414,039 2,237,583
2,414,039 2,237,583
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
NOTE 5: CASH AND CASH EQUIVALENTS (continued)
Consolidated
Reconciliation of operating loss after tax to the cash flows from operations 6 months to 6 months to
30 June 30 June
2022 2021
$
$
Loss from ordinary activities after tax (883,556) (1,067,707)
Non cash items
Depreciation charge 151,616 118,912
Amortisation charge 189,191 18,143
Rehabilitation charge 216,272 31,209
Impairment of exploration and evaluation expenditure 491,500 -
Gain on disposal of motor vehicle (8,185) -
Foreign exchange gain 54,401 (91,594)
Change in assets and liabilities
(Increase) / Decrease in trade and other receivables 174,834 (23,970)
(Increase) / Decrease in inventories (287,163) (173,442)
Increase / (Decrease) in trade and other payables and provisions 594,297 72,281
Net cash outflow from operating activities 693,207 (1,116,168)
NOTE 6: TRADE AND OTHER RECEIVABLES
Consolidated
30 June 31 December
2022 2021
$
$
Trade Debtors 1,560,846 1,824,564
Prepayments - 40,897
Cash advances 121,555 27,098
GST receivable 6,503 6,430
Other receivables 2,383 10,741
Total trade and other receivables 1,691,287 1,909,730
Trade debtors, other debtors and goods and services tax are receivable on
varying collection terms. Due to the short-term nature of these receivables,
their carrying value is assumed to approximate their fair value. Some debtors
are given industry standard longer payment terms which may cross over more
than one accounting period. These trade terms are widely used in the
agricultural market in Brazil and are considered industry norms.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
NOTE 7: PLANT AND EQUIPMENT
Consolidated
6 months to 12 months to
30 June 31 December
2021
2022
$
$
At beginning of the period 1,111,314 1,037,475
Additions for the period 941,621 332,217
Disposals for the period (8,330) -
Depreciation charge for the period (151,616) (159,038)
Net exchange difference on translation 131,288 (99,340)
Balance at the end of the period 2,024,277 1,111,314
NOTE 8: MINE PROPERTIES
Consolidated
6 months to 12 months to
30 June 31 December
2021
2022
$
$
At beginning of the period 3,691,160 4,188,916
Additions for the period 351,413 187,023
Amortisation charge for the period (189,191) (116,818)
Net exchange difference on translation 488,151 (567,961)
Balance at the end of the period 4,341,533 3,691,160
NOTE 9: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Consolidated
6 months to 12 months to
30 June 31 December
2022 2021
$
$
Exploration and evaluation phase:
At beginning of the period 454,462 3,317,445
Acquisition of Miriri Phosphate Project - 453,986
Exploration expenditure during the period 37,063 2,433
Impairment loss(1) (491,500) (3,317,445)
Net exchange differences on translation (25) (1,957)
Balance at the end of the period - 454,462
The ultimate recoupment of costs carried forward for exploration expenditure
is dependent on the successful development and commercial exploitation or sale
of the respective mining areas.
( )
(1) Post the reporting period, on 4 August 2022, the Company announced to the
AIM Stock Exchange that it had conducted a review of the Miriri Phosphate
Project and determined that its merits were uneconomic. The Company has
elected to write-off the costs of the project at 30 June 2022 and has
subsequently relinquished its interest in the Project.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
NOTE 10: TRADE AND OTHER PAYABLES
Consolidated
30 June 31 December
2022 2021
$
$
Trade payables 346,242 115,298
Accruals 192,046 148,052
Other payables 111,409 15,346
649,697 278,696
Trade creditors, other creditors and goods and services tax are non-interest
bearing and generally payable on 60 day terms. Due to the short term nature of
these payables, their carrying value is assumed to approximate their fair
value.
NOTE 11: BORROWINGS
Consolidated
30 June 31 December 2021
2022
$ $
Current
Secured Loans payable 149,086 51,567
149,086 51,567
Non-current
Secured Loans payable 1,349,628 201,968
1,349,628 201,968
On 28 September 2021, the Group obtained a secured debt facility with Banco
Santander with a five-year term totalling $R3,000,000. The debt is secured
against the solar power facility at the Arapua Fertiliser Project.
Furthermore, on 30 March 2022, the Group executed a loan agreement with Banco
Bradesco with a five-year term totalling $R1,000,000 for expansion works to
the storage warehouse at the Arapua Fertiliser Project.
In April 2022, the Group secured a further $R3,500,000 in loans with Banco
Santander for purchase of equipment and machinery. The loans are repayable
over a two and half year and four-year period. As at 30 June 2022, the Group
recorded $1,498,714 (31 December 2021: $253,535) of secured loans as a
payable.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2022
NOTE 12: CONTRIBUTED EQUITY
30 June 31 December
2022 2021
$ $
Contributed equity
Ordinary shares fully paid 43,328,219 43,328,219
6 months to 12 months year ended
30 June 2022 31 December 2021
No. $ No. $
Movements in ordinary shares on issue
Opening balance 185,835,884 43,328,219 185,835,884 43,048,343
Shares to be issued as part an acquisition(1) - - - 279,876
Closing balance 185,835,884 43,328,219 185,835,884 43,328,219
(1) On 29 November 2021, the Company entered into an agreement to acquire 100%
of the ordinary shares of BF Mineração Ltda for cash and shares. On 6 July
2022, the Company announced to the AIM Stock Exchange the issuance of
3,333,333 related to the agreement to acquire 100% of the ordinary shares of
BF Mineração Ltda for the Miriri Phosphate Project.
NOTE 13: DIVIDENDS
No dividends have been paid or provided for during the half-year (half-year to
30 June 2021: $nil).
NOTE 14: CONTINGENT LIABILITIES AND COMMITMENTS
There has been no material change in contingent liabilities or commitments
since the last annual reporting date.
NOTE 15: FINANCIAL INSTRUMENTS
The Group has a number of financial instruments which are not measured at fair
value in the statement of financial position.
The Directors consider that the carrying amounts of current receivables,
current payables and current borrowings are considered to be a reasonable
approximation of their fair values.
NOTE 16: SUBSEQUENT EVENTS
On 6 July 2022, the Company announced to the AIM Stock Exchange the issuance
of 3,333,333 related to the agreement to acquire 100% of the ordinary shares
of BF Mineração Ltda for the Miriri Phosphate Project. The fair value of
these shares has been recorded in share capital in the financial year ended 31
December 2021. Refer to note 12.
On 4 August 2022, the Company announced to the AIM Stock Exchange that it had
conducted a review of the Miriri Phosphate Project and determined that its
merits were uneconomic. The Company has elected to write-off the costs of the
project at 30 June 2022 and has subsequently relinquished its interest in the
Project. The carrying value of this project has been reduced to $nil as at 30
June 2022.
There have been no other known significant events subsequent to the end of the
period that require disclosure in this report.
**ENDS**
For further information, please visit www.harvestminerals.net
(http://www.harvestminerals.net/) or contact:
Harvest Minerals Limited Brian McMaster (Chairman) Tel: +44 (0) 203 940 6625
Strand Hanson Limited Ritchie Balmer Tel: +44 (0) 20 7409 3494
Nominated & Financial Adviser James Spinney
Tavira Securities Jonathan Evans Tel: +44 (0) 20 3192 1733
Broker
St Brides Partners Ltd Ana Ribeiro Tel: +44 (0) 20 7236 117
Financial PR Isabel de Salis
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