REG - Harvest Minerals Ltd - Sales Update

Harvest MineralsAnnouncement

30/06/2022 07:15

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RNS Number : 7323Q  Harvest Minerals Limited  30 June 2022

 

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

 

30 June 2022

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

 

H1 2022 KP Fértil® Sales Show 340% Year-On-Year Increase

 

Harvest Minerals Limited, the AIM listed remineraliser producer, is pleased to
provide an update on sales of its organic, multi-nutrient, direct application
fertiliser, KP Fértil®, during Q2 and H1 2022 from its 100% owned Arapua
Fertiliser Project in Brazil ('Arapua').

 

Highlights:

·    165% increase in Q2 2022 sales year-on-year to 47,339 tonnes (Q2
2021: 17,854 tonnes)

·    340% increase in H1 2022 sales year-on-year to 117,539 (H1 2021:
26,726 tonnes)

·    On track to exceed 2022 sales target of 150,000 tonnes

·    Demand for organic fertilizers like KP Fértil® continues to surge
amid supply squeeze

·    Focus on domestic fertilizer production continues to increase in
primary market, Brazil

 

Brian McMaster, Chairman of Harvest, said: "The first half of 2022 has seen
the growth of our organic fertiliser business accelerate at an astounding
rate, marking one of our most successful periods since operations began, with
accumulated sales reaching 117,539 tonnes, up 340% year-on-year.  Demand for
our organic product KP Fértil® continues to surge, aided by an uplift in
production at Arapua, situated in the heart of the Brazilian agricultural
belt. This phenomenal organic growth was achieved after implementing several
strategic changes including new marketing campaigns and extending our sales
efforts.

 

"Additionally, we have today released our 31 December 2021 audited financial
report wherein we have accounted for the write down of the carrying value of
our non-core assets as a "cleaning of the slate" and a recognition that the
near term for Harvest is focussed on maximising cash generation from Arapua
and other near term cash generative assets.

 

"As we work towards increasing capacity to support the seemingly insatiable
appetite for natural fertilisers and remineralisers, sales of KP Fértil
continue to enjoy a major growth spurt that we anticipate will enable Harvest
to exceed its 150,000 tonne 2022 sales target and deliver significant value to
stakeholders and shareholders."

 

Review of Operations

During the second quarter of 2022, Harvest sold 47,339 tonnes of its KP
Fértil® bringing the total accumulated sales in the first half of the year
to 117,539 tonnes compared to 26,726 tonnes in H1 2021, a 340% increase.  The
strong performance during H1 2022 has reinforced the Company's belief that it
will achieve its targeted 2022 year-end sales target of 150,000 tonnes of KP
Fértil® before the end of the period, which will further strengthen its
already robust cash position.

 

In terms of market fundamentals, fertiliser demand remains buoyant, in
particular, appetite for natural fertilisers and remineralisers like KP
Fértil are enjoying a major growth spurt, a trend that is forecast to
continue thanks to an increasing emphasis on pesticide-free crops and concerns
around soil contamination and over farming. Earlier in the year, the Brazilian
Government pledged to reduce imports of nitrogen, phosphates and potash and
focus on domestic production, which is a major sea change considering circa
90% of fertiliser is currently imported into the agriculture powerhouse. The
recent events in Ukraine have placed further pressure on imported fertiliser
and crop production. In turn, Harvest hopes to play its part in meeting
heightened demand for domestically produced, high quality organic fertiliser.

 

**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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