REG - Harvest Minerals Ltd - Q2 & H1 2023 KP Fértil® Sales Update

Harvest MineralsAnnouncement

30/06/2023 07:00

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RNS Number : 4544E  Harvest Minerals Limited  30 June 2023

 

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

30 June 2023

Harvest Minerals Limited

('Harvest' or the 'Company')

 

Q2 & H1 2023 KP Fértil® Sales Update

 

Harvest Minerals Limited, the AIM listed fertiliser producer, provides the
following update on Q2 and H1 2023 sales of its organic, multi-nutrient,
direct application fertiliser, KP Fértil®, from its 100% owned Arapuá
Fertiliser Project in Brazil ('Arapuá').

 

OVERVIEW

·    News sales orders invoiced and delivered total 27,000 tonnes in H1
2023 versus budget of 60,000 tonnes.

·    Additional 33,000 tonnes invoiced in 2022 but not booked as revenue
to be included in FY 2023 revenue.

·    Fertilizer demand expected to improve, but given the uncertain market
conditions, revised 2023 invoiced sales target from 200,000 tonnes to 120,000
tonnes.

 

Brian McMaster, Chairman of Harvest, said: "2023 is proving to be a somewhat
complex year, with sales of KP Fértil® impacted by farmers reducing spending
on fertilizer in anticipation of further price drops.  While ultimately, we
expect fertilizer demand to improve as the year progresses, given the level of
uncertainty, we have reduced our invoiced sales target from 200,000 tonnes to
120,000 tonnes.  When the market picks up as we envisage, we are positioned
to continue building market share."

 

REVIEW OF OPERATIONS

Sales at Arapuá Fertiliser Project

In Q2 2023, Harvest received new sales orders for 10,245 tonnes of its KP
Fértil® produced at its Arapuá Fertiliser Project in Brazil bringing the
total for H1 2023 to 27,000 tonnes; this is lower than the budget of 60,000
tonnes.  An additional 33,000 tonnes of advanced sales that had been invoiced
in 2022 but did not meet the definition of revenue in the year under
accounting standards will be included in FY 2023 revenue.

 

Following the record high global fertilizer prices seen in 2022 after
sanctions on Russia and Belarus triggered a global supply shortage, stocks
returned to normal levels in 2023 causing the price of fertilizers to drop.
Simultaneously, the price of the soybean, the main crop planted in Brazil,
also dropped, reaching levels below the expectations of the farmers and, in
some cases, close to the cost of production.  Accordingly, farmers have
postponed the sale of grains in 2023 in anticipation of a price increase and
postponed the purchase of fertilizers in anticipation of a price drop.

 

While the Company expects fertilizer demand will improve as the year
progresses, given the uncertain market conditions, it has revised its 2023
invoiced sales target from 200,000 tonnes to 120,000 tonnes. Furthermore,
although Harvest's operational costs have not been impacted by the higher
energy prices as its solar plant supplies the vast majority of its power
needs, the Company is reducing the price of its fertilizer to follow the
market and trigger the farmers to start buying.

 

**ENDS**

 

For further information, please visit www.harvestminerals.net
(http://www.harvestminerals.net/)  or contact:

 

 Harvest Minerals Limited            Brian McMaster (Chairman)   Tel: +44 (0)20 3940 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                 harvest@stbridespartners.co.uk

 Financial PR                        Isabel de Salis

 

 

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