Harvest Minerals Limited Trading Statement (8348D)
08 Marzo 2022 - 1:00AM
UK Regulatory
TIDMHMI
RNS Number : 8348D
Harvest Minerals Limited
08 March 2022
Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector:
Mining
08 March 2022
Harvest Minerals Limited
('Harvest' or the 'Company')
Harvest to Ramp Up Production Following An Increase of Over
1,000% in Sales Orders
Harvest Minerals Limited, the AIM listed fertiliser producer, is
pleased to provide a trading update for its organic, multi-nutrient
fertiliser, KP Fértil(R), from its 100% owned Arapu á Fertiliser
Project in Brazil ('Arapu á ').
Highlights:
-- CY22 accumulated sales orders as at 28 February 2022 totalled
30,161 tonnes, an increase of over 1,070% compared to internal
forecasts for the same period, and representing:
o 35% of the total 2021 sales orders
o 20% of the sales target for FY 2022 (150,000 tonnes)
-- Company is well advanced on planning stages for an increase of capacity to 200,000 tonnes
-- Increased demand for KP Fértil(R) continuing
Brian McMaster, Chairman of Harvest, said: "2021 was a pivotal
year for Harvest as demand for our product increased and the
Company became profitable. During January and February 2022, we saw
that momentum continue strongly with an upsurge in orders in
February as farmers recognise the benefits of KP Fértil(R), which
has now been certified as a fertiliser. Additionally, anticipated
disruptions in fertiliser deliveries to Brazil leading to expected
product shortages and price rises are causing substantial market
volatility. Consequently, we are benefitting from improved margins
and are advancing plans to accelerate production and storage
capacity to increase our role as a domestic fertiliser
provider.
"Historically, our sales figures tend to grow throughout the
first half of the year to a peak season around mid-year and then
taper further as the wet season approaches. During the second half
of 2021 and, to date in 2022, we have seen that trend flatten
somewhat with substantially increased demand throughout the year.
If this trend continues, our previously published sales target of
150,000 tonnes will be adjusted upward. Harvest is well placed to
continue to grow organically and satisfy the expected increased
demand for its product."
Further Information:
During the two first months of 2022, Harvest experienced a very
strong sales performance, achieving a total volume of 30,161 tonnes
of its KP Fértil(R), representing a 1,070% increase over
management's internal forecasts for the same period. The total
sales orders to date in 2022 accounts for 35% of the total 2021
sales and 20% of 2022 sales guidance of 150,000 tonnes. In
calculating the 2022 target of 150,000 tonnes, Harvest assumed it
would sell 2,574 tonnes during January and February. The total
sales of 30,161 is substantially more than initially forecast (over
a 1,070% increase).
Historically, Harvest has experienced a seasonal sales
performance with relatively modest sales during the start of the
year ramping up to a buying season around mid-year, tapering off to
more modest sales around the wet season at year end. Given the
historic expectation that approximately 80% of sales are seasonally
placed in the second half of the year, the Company is advancing its
plans to meet production of 200,000 tonnes.
Additionally, it has been widely reported that Brazil is
experiencing product shortages and price increases due to a global
supply shortage. Harvest experienced an increased demand and
improved sales value for KP Fértil(R) prior to the current
macro-environment developments. Notwithstanding, current events
appear to be accelerating demand and again improving prices and we
are responding accordingly. Given Harvest's business has a strong
gross profit margin and the relatively fixed nature of OPEX costs,
we expect any increase in sales value will reflect strongly in the
net profit of the business. In addition, the Government of Brazil
is debating the introduction of various legislative and economic
stimulus packages to incentive local production.
**ENDS**
For further information, please visit www.harvestminerals.net or
contact:
Harvest Minerals Limited Brian McMaster Tel: +44 (0) 203
(Chairman) 940 6625
Strand Hanson Limited Ritchie Balmer Tel: +44 (0) 20
Nominated & Financial James Spinney 7409 3494
Adviser
Tavira Securities Jonathan Evans Tel: +44 (0)20 3192
Broker 1733
St Brides Partners Ltd I sabel de Salis Tel: +44 (0) 20 7236
Financial PR Ana Ribeiro 117
O onagh Reidy
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END
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