REG - Harvest Minerals Ltd - KP Fértil® Sales and Corporate Update

Harvest MineralsAnnouncement

17/03/2025 07:15

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RNS Number : 9005A  Harvest Minerals Limited  17 March 2025

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

17 March 2025

Harvest Minerals Limited ('Harvest' or the 'Company')

 

KP Fértil® Sales and Corporate Update

 

Harvest Minerals Limited, the AIM listed fertiliser producer, provides the
following sales update of its organic, multi-nutrient, direct application
fertiliser, KP Fértil®, from its 100% owned Arapuá Fertiliser Project in
Brazil ('Arapuá'), together with a wider corporate update.

 

OVERVIEW

 

§ Total delivered volume in 2024 reached 37,186 tonnes, including:

o  35,595 tonnes invoiced and delivered from 2024 orders

o  1,591 tonnes delivered from previous years' orders

§ An additional 3,692 tonnes were invoiced in December 2024 as part of an
anticipation campaign for 2025 deliveries, with 50% of payments already
received in 2024

§ Volume guidance budgeted for 2025 is estimated at 70,000 tonnes

o  As of today, 2,183 tonnes have been ordered, with 1,042 tonnes already
invoiced

§ The 2025 Brazilian agricultural market remains impacted by high input
costs, lower commodity prices, financial strain on farmers, and adverse
weather conditions, which continue to affect fertiliser demand and overall
market liquidity.

§ REE exploration programme in conjunction with PVW Resources Limited being
delineated

§ Harvest has launched a strategic review to explore and evaluate a range of
alternatives, including the potential sale of one or both business divisions,
to maximize shareholder returns.

Brian McMaster, Chairman of Harvest, said: " Market conditions remain
challenging, and while 2024 sales reflected these difficulties, we continue to
focus on maintaining operational stability and supporting our customers.
Looking ahead, we recognize the uncertainties in 2025 and are proactively
assessing all strategic options to ensure we are well-positioned for future
opportunities"

FURTHER INFORMATION

Fertiliser division

In 2024, Harvest delivered 37,186 tonnes of KP Fértil®, with 35,595 tonnes
coming from then current-year orders. As such, 2024 revised guidance was met.
Additionally, the Company launched an anticipation campaign in December,
invoicing 3,692 tonnes for 2025, with 50% of payments already received. The
total orders placed for 2025 stand at 2,183 tonnes, with 1,042 tonnes already
invoiced.

The Company has made progress in credit recovery, securing about R$590,000 (c.
£80,000) through extrajudicial negotiations with three clients, with a
portion already received in February and the remainder scheduled for payment
throughout 2025. Additional recoveries are being pursued through legal
proceedings.

Furthermore, Harvest has successfully renegotiated its R$5.0 million (c.
£675,000) working capital debt, obtaining a 12-month grace period and an
extended 36-month repayment plan, strengthening its financial position.
Harvest's current cash position stands at R$2.6 million (c. £350,000), of
which 50% is collateralized against current debt.

The Brazilian agricultural sector continues to navigate significant
challenges, including high input costs, lower commodity prices, and financial
strain on farmers due to elevated interest rates. Insolvency filings among
farmers and input distributors have reached record levels, impacting overall
market liquidity. Additionally, adverse weather conditions, including
prolonged droughts and delayed rains, have further complicated crop cycles,
leading to lower fertiliser demand. These macroeconomic and environmental
factors continue to influence market dynamics, but Harvest remains focused on
mitigating risks and capitalizing on market recovery opportunities.

At this point, Harvest is budgeting volume guidance at 70,000 tonnes of its of
KP Fértil®for 2025.

REE division

As for Harvest's Technical Cooperation Agreement with PVW Resources Limited
for the evaluation of the Arapuá Rare Earth Elements ("REE") potential,
following the review of Harvest's dataroom information and recognition of the
significant regional REE potential, PVW is now preparing an extensive
exploration program to be conducted in 2025 within Harvest's areas. The
Company looks forward to reporting further information on this programme once
parameters have been finalised.

Divisional strategic review

In view of current market conditions, Harvest has launched a strategic review
to explore and evaluate a range of alternatives, which could ultimately
include the potential sale of one or both business divisions, to maximize
shareholder returns.

 

**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

 

 

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