REG - Harvest Minerals Ltd - Q3 2022 KP Fértil® Sales Up

Harvest MineralsAnnouncement

29/09/2022 07:45

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RNS Number : 1358B  Harvest Minerals Limited  29 September 2022

 

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

 

29 September 2022

Harvest Minerals Limited

('Harvest' or the 'Company')

 

Q3 2022 KP Fértil® Sales Up

 

Harvest Minerals Limited, the AIM listed fertiliser producer, is pleased to
provide an update on sales of its organic, multi-nutrient, direct application
fertiliser, KP Fértil®, YTD 2022 from its 100% owned Arapua Fertiliser
Project in Brazil ('Arapua').

 

HIGHLIGHTS

·    2022 full year sales order target of 150,000 tonnes has been exceeded

·    YTD sales orders total 153,074 tonnes (YTD Q3 2021: 74,159 tonnes) a
year-on-year increase of 106%

·    Healthy sales margins of 55%-60%

·    Buoyant fertiliser market conditions continuing

·    Overall, the Company is cashflow positive

 

Brian McMaster, Chairman of Harvest, said: "As we have described previously,
Harvest is having its breakout year.  We have already exceeded our 2022 sales
orders target of 150,00 tonnes of KP Fértil®.  The upsurge in
sales/enquiries has been facilitated by the re-classification of KP Fértil®
from a remineraliser to a fertiliser in March 2022 coupled with the overall
global outlook for fertilisers. The increased demand for fertilisers is
unlikely to abate as the world focuses on feeding its growing population,
projected to top 8 billion later this year, while the war between Russia and
Ukraine, two of the world's biggest exporters of fertiliser, has added further
strain to the market.

 

"We have been adapting to the uptick in sales orders and production
requirements.  As announced previously, we have been increasing storage
capacity in order to maintain higher levels of dry product for production and
sale.  Our operations are continuing smoothly and the Harvest team's response
to the higher production levels bodes well for our future growth.
Financially, the Company is on a very sound footing.  We are cashflow
positive at an overall level and we forecast that to continue.

 

We have today released our 30 June 2022 half-year financial report which
highlights our improving cash position and puts a line under the asset write
down programme instigated last year.

 

Finally, I would like to thank the Harvest team and our shareholders.  2022
has been a tricky year in many respects and the dedication, patience and
support the company receives at all levels is greatly appreciated and starting
to be rewarded."

 

REVIEW OF OPERATIONS

YTD 2022, Harvest has received sales orders for 153,074 tonnes of its KP
Fértil® produced at its Arapua Fertiliser Project in Brazil, representing a
106% year-on-year increase over the same period of 2021, and achieved healthy
sales margins of 55%-60%.  Accordingly, the Company has exceeded its 2022
year-end sales target of 150,000 tonnes of KP Fértil®.

 

During Q3 2022 the Company recorded sales orders totalling 32,676 (Q3 2021:
46,166 tonnes).  This decrease in quarterly orders is viewed simply as a
timing issue.  As previously announced, Q1 and Q2 sales were well in excess
of previous years and similarly we anticipate a robust Q4.

 

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.

 

**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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