TIDMHMI
RNS Number : 1953N
Harvest Minerals Limited
21 September 2023
21 September 2023
Harvest Minerals Limited
("Harvest" or the "Company")
Interim Results
Harvest Minerals Limited, the AIM listed fertiliser producer,
announces its interim results for the six months ended 30 June
2023.
RESULTS
The loss after tax recorded in the Condensed Consolidated
Statement of Comprehensive Income for the half-year ended 30 June
2023 was $1,645,945 (Half year to 30 June 2022: $883,556) which is
attributable to lower demand and lower pricing for the Company's
product in the period.
Net cash outflow from operating activities in the Condensed
Consolidated Statement of Cashflows for the half year ended 30 June
2023 was $2,634,226 (Half year to 30 June 2022: net cash inflow
$693,207). Please refer to note 5 in the financial statements for
further detail on reconciling the net loss to net cash inflows from
operating activities.
REVIEW OF OPERATIONS
Arapua Fertiliser Project
During the half-year ended 30 June 2023, Harvest sold 7,280
tonnes of its organic fertiliser, KP Fértil(R), representing a 74%
decrease over the 28,104 tonnes sold in the same period of 2022.
While historically the majority of Harvest's annual sales have been
achieved in the second half of the year, sales to date in 2023 have
remained below internal expectations. This is attributable to a
reduction in volume demand by farmers who are less incentivised to
boost production whilst crop prices are low and energy prices are
high. Accordingly, the Company's 2023 full year invoiced sales
target is now 70,000 tonnes of KP Fértil(R). Furthermore, the
impact on Harvest's financial results has been exacerbated by a
reduction in the price of its product, which it has lowered to
follow the market and try to encourage farmers to recommence
buying.
Short-term visibility remains low for the Company due to
numerous national and international geopolitical and macroeconomic
challenges, which are affecting the Company's business. However,
Harvest remains optimistic about the medium and long-term future,
with megatrends such as a growing world population likely to
accelerate the increased use of fertilisers. Another trend likely
to boost interest in organic products such as KP Fértil(R) is the
increased focus on organic farming initiatives to reverse the loss
of biodiversity and support Brazil's climate change strategies and
objectives.
With its team of 12 associates/agronomists split into two
regional teams, supported by a third-party network comprising of 20
resales centres, Harvest continues to advance its marketing
initiatives to offer its product for coffee, sugarcane, and other
crops, targeting a cross section of producers and resellers. It is
also maintaining its R&D efforts at its development farm next
to the mine where testwork is ongoing to demonstrate the continued
superiority of KP Fértil(R) and expand its client base.
As and when the market improves, the Company is positioned to
support higher sales volumes and rebuild profitability at its low
cost and high margin Arapua operation. In order to reduce the
Company's cash burn rate, the Directors agreed to temporarily pause
drawing their remuneration due from the Company during Q2 2023
until such point as the Company is in a better position to pay.
Sergi Potash Project & Mandacaru Phosphate Project
Given the scale of activity currently being undertaken at
Arapua, the Company did not materially advance either its Sergi
Potash Project or its Mandacaru Phosphate Project during the
half-year to 30 June 2023.
Brian McMaster
Executive Chairman
21 September 2023
Competent Person Statement
The technical information in this report is based on complied
and reviewed data by Mr Paulo Brito BSc(geol), MAusIMM, MAIG. Mr
Brito is a consulting geologist for Harvest Minerals Limited and is
a Member of AusIMM - The Minerals Institute, as well as a Member of
Australian Institute of Geoscientists. Mr Brito has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which is
being undertaken to qualify as a Competent Person as defined in the
2012 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Mr Brito also meets
the requirements of a qualified person under the AIM Note for
Mining, Oil and Gas Companies and consents to the inclusion in this
report of the matters based on his information in the form and
context in which it appears. Mr Brito accepts responsibility for
the accuracy of the statements disclosed in this report.
Condensed Consolidated Statement of Comprehensive Income
for the half-year ended 30 June 2023
Consolidated
6 months ended 6 months ended
30 June
Notes 2023 30 June
$ 2022
$
--------------- ---------------
Revenue from fertiliser sales 3 931,608 2,735,590
Cost of goods sold 4 (707,044) (1,153,441)
--------------- ---------------
Gross profit 224,564 1,582,149
--------------- ---------------
Interest income 18,592 9,857
Other income - 513
Gain on sale of motor vehicle 15,171 8,185
Foreign exchange gain/(loss) (1,919) (54,401)
Accounting fees (91,734) (61,876)
Audit and tax fees (85,942) (19,255)
Advertising fees (196,790) (146,877)
Consultants' fees (76,689) (52,383)
Directors' fees (395,391) (390,705)
Depreciation (38,985) (4,685)
Legal fees (8,036) (6,423)
Wages & Salaries (309,161) (427,713)
Interest expense (80,217) (44,808)
Public company costs (103,082) (117,474)
Travel expenses (126,437) (306,748)
Impairment exploration expense - (491,500)
Other expenses (352,786) (359,412)
--------------- ---------------
Loss from continuing operations before
income tax (1,608,842) (883,556)
Income tax expense (37,103) -
Loss from continuing operations after
income tax 5 (1,645,945) (883,556)
Other comprehensive income
Item that may be reclassified subsequently
to profit or loss
Foreign currency translation 1,040,306 964,215
Other comprehensive income for the
half-year 1,040,306 964,215
---------------
Total comprehensive income/(loss)
for the half-year (605,639) 80,659
---------------
Loss per share
Basic and diluted loss per share (cents
per share) (0.87) (0.48)
Condensed Consolidated Statement of Financial Position
as at 30 June 2023
Consolidated
Notes 30 June 31 December
2023 2022
$ $
------------ -------------
Assets
Current Assets
Cash and cash equivalents 5 423,982 2,723,509
Trade and other receivables 6 710,944 514,724
Inventories 7 1,396,515 195,882
------------ -------------
Total Current Assets 2,531,441 3,434,115
------------ -------------
Non-Current Assets
Trade and other receivables 477,406 320,025
Investments 321,069 -
Plant and equipment 8 3,728,703 2,891,499
Mine properties 9 4,644,548 4,055,486
Deferred exploration and evaluation
expenditure 54,045 48,118
Total Non-Current Assets 9,225,771 7,315,128
------------ -------------
Total Assets 11,757,212 10,749,243
------------ -------------
Current Liabilities
Trade and other payables 10 533,982 513,389
Borrowings 11 511,748 53,270
Total Current Liabilities 1,045,730 566,659
------------ -------------
Non-Current Liabilities
Provision for rehabilitation 308,304 276,435
Borrowings 11 1,295,075 192,407
------------ -------------
Total Non-Current Liabilities 1,603,379 468,842
Total Liabilities 2,649,109 1,035,501
------------ -------------
Net Assets 9,108,103 9,713,742
============ =============
Equity
Contributed equity 12 43,328,219 43,328,219
Reserves 2,002,717 962,411
Accumulated losses (36,222,833) (34,576,888)
------------ -------------
Total Equity 9,108,103 9,713,742
============ =============
Condensed Consolidated Statement of Changes in Equity
for the half-year ended 30 June 2023
Notes Contributed Accumulated Foreign currency
Consolidated equity losses translation Option reserve Total
$ $ reserve $ $
$
Balance as at 1
January 2023 12 43,328,219 (34,576,888) (2,578,637) 3,541,048 9,713,742
-------------- -------------- -------------------- ----------------- ------------
Total comprehensive
gain for the
half-year
Loss for the
half-year 30 June
2023 - (1,645,945) - - (1,645,945)
Other comprehensive
income - - 1,040,306 - 1,040,306
-------------- -------------- -------------------- ----------------- ------------
Total comprehensive
income for the
half-year - (1,645,945) 1,040,306 - (605,639)
-------------- -------------- -------------------- ----------------- ------------
Balance at 30 June
2023 43,328,219 (36,222,833) (1,538,331) 3,541,048 9,108,103
============== ============== ==================== ================= ============
Balance as at 1
January 2022 43,328,219 (34,774,685) (3,482,302) 3,541,048 8,612,280
-------------- -------------- -------------------- ----------------- ------------
Total comprehensive
loss for the
half-year
Loss for the
half-year 30 June
2022 - (883,556) - - (883,556)
Other comprehensive
income - - 964,215 - 964,215
-------------- -------------- -------------------- ----------------- ------------
Total comprehensive
loss for the
half-year - (883,556) 964,215 - 80,659
-------------- -------------- -------------------- ----------------- ------------
Balance at 30 June
2022 12 43,328,219 (35,658,241) (2,518,087) 3,541,048 8,692,939
============== ============== ==================== ================= ============
Condensed Consolidated Statement of Cash Flows
for the half-year ended 30 June 2023
Consolidated
6 months ended 6 months ended
30 June 30 June
2023 2022
$ $
--------------- ---------------
Cash flows from operating activities
Receipts from customers 962,276 2,999,821
Payments to suppliers and employees (3,534,877) (2,271,663)
Interest received 18,592 9,857
Interest paid (80,217) (44,808)
Net cash outflow / inflow from operating
activities 5 (2,634,226) 693,207
--------------- ---------------
Cash flows from investing activities
Purchase of plant and equipment (638,218) (941,621)
Payments for mine properties (204,683) (351,413)
Payments for exploration and evaluation
expenditure - (37,063)
Proceeds from sale of motor vehicle 60,536 8,185
Payments for investments - loan collateral (306,732) -
---------------
Net cash outflow from investing activities (1,089,097) (1,321,912)
--------------- ---------------
Cash flows from financing activities
Proceeds from borrowings 1,436,381 1,274,816
Repayment of borrowings (106,222) (29,637)
Net cash inflow from financing activities 1,330,159 1,245,179
--------------- ---------------
Net (decrease) / increase in cash and
cash equivalents (2,393,164) 616,474
Cash and cash equivalents at beginning
of period 2,723,509 1,708,001
Effect of exchange rate fluctuations
on cash held 93,637 89,564
Cash and cash equivalents at the end
of the period 5 423,982 2,414,039
=============== ===============
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2023
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Corporate Information
This general purpose half-year financial report of Harvest
Minerals Limited (the "Company") and its subsidiaries (the "Group")
for the half-year ended 30 June 2023 was authorised for issue in
accordance with a resolution of the Directors on 21 September
2023.
Harvest Minerals Limited is a company limited by shares
incorporated in Australia whose shares are publicly traded on the
AIM market of the London Stock Exchange.
The nature of the operations and principal activities of the
Group are described in the Directors' Report.
Basis of Preparation
This financial report for the half-year ended 30 June 2023 has
been prepared in accordance with the requirements of the
Corporations Act 2001, applicable accounting standards including
AASB 134 Interim Financial Reporting, Accounting Interpretations,
and other authoritative pronouncements of the Australian Accounting
Standards Board ("AASB"). Compliance with AASB 134 ensures
compliance with IAS 134 "Interim Financial Reporting". The Group is
a for profit entity for financial reporting purposes under
Australian Accounting Standards.
These half-year financial statements do not include all notes of
the type normally included within the annual financial statements
and therefore cannot be expected to provide as full an
understanding of the financial performance, financial position and
financing and investing activities of the group as the full
financial statements.
It is recommended that the half-year financial statements be
read in conjunction with the annual report for the year ended 31
December 2022 and considered together with any public announcements
made by Harvest Minerals Limited during the half-year ended 30 June
2023 in accordance with the continuous disclosure obligations of
the AIM market.
For the purpose of preparing the interim report, the half-year
has been treated as a discrete reporting period. The accounting
policies and methods of computation adopted are consistent with
those of the previous financial year and corresponding interim
reporting period. These accounting policies are consistent with
Australian Accounting Standards and with International Financial
Reporting Standards.
New and amending Accounting Standards and Interpretations
In the half-year ended 30 June 2023, the Directors have reviewed
all of the new and revised Standards and Interpretations issued by
the AASB that are relevant to the Group's operations and effective
for current reporting periods beginning on or after 1 January 2023.
The Directors have also reviewed all new Standards and
Interpretations that have been issued but are not yet effective for
the half-year ended 30 June 2023. As a result of this review the
Directors have determined that there is no impact, material or
otherwise, of the new and revised Standards and Interpretations on
the Group's business and, therefore, no change is necessary to the
Group accounting policies.
New and amended accounting standards and interpretations have
been published but are not mandatory. The Group has decided against
early adoptions of these standards and has determined the potential
impact on the financial statements from the adoption of these
standards and interpretations is not material to the Group.
Going concern
For the half-year ended 30 June 2023 the Group recorded a loss
after tax of $1,645,945 (Half-year to 30 June 2022: $883,556) and
had net cash outflows from operating and investing activities of
$3,723,323 (Half-year to 30 June 2022: $628,705). These conditions
indicate a material uncertainty that may cast doubt about the
Group's ability to continue as a going concern and, therefore, that
it may be unable to realise its assets and discharge its
liabilities in the normal course of business. In the absence of an
improvement in sales volumes and pricing, the ability of the Group
to continue as a going concern will be dependent on securing
additional funding and/or from asset sales in order for the Group
to continue to fund its operational activities in the longer
term.
The half-year financial report has been prepared on the basis
that the Group is a going concern, which contemplates the
continuity of normal business activity, realisation of assets and
settlement of liabilities in the normal course of business for the
following reasons:
-- Management have considered the future capital requirements of
the entity and will consider all funding options as required,
including asset sales;
-- The level of the Group's expenditure can be managed;
-- The Directors agreed to temporarily pause drawing their
remuneration due from the Company during Q2 2023 until such point
as the Company is in a better position to pay;
-- The Group has historically demonstrated its ability to raise
funds to satisfy its immediate cash requirements.
As at the date of this report, the Board and Management believe
there are sufficient funds to meet the Group's working capital
requirements in the near term and that sufficient funds will become
available, through certain of the above actions, if and when
needed, to finance the operations of the Group in the longer term.
Should the Group not be able to continue as a going concern, it may
be required to realise its assets and discharge its liabilities
other than in the ordinary course of business, and at amounts that
differ from those stated in the half-year financial report. The
half-year financial report does not include any adjustments
relating to the recoverability and classification of recorded asset
amounts or liabilities that might be necessary should the Group not
continue as a going concern.
Significant Accounting Policies
Deferred Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred by or on behalf
of the Group is accumulated separately for each area of interest.
Such expenditure comprises net direct costs and an appropriate
portion of related overhead expenditure but does not include
general overheads or administrative expenditure not having a
specific nexus with a particular area of interest.
Each area of interest is limited to a size related to a known or
probable mineral resource capable of supporting a mining operation.
Exploration and evaluation expenditure for each area of interest is
carried forward as an asset provided that one of the following
conditions is met:
-- such costs are expected to be recouped through successful
development and exploitation of the area of interest or,
alternatively, by its sale; or
-- exploration and evaluation activities in the area of interest
have not yet reached a stage which permits a reasonable assessment
of the existence or otherwise of economically recoverable reserves,
and active and significant operations in relation to the area are
continuing.
Expenditure which fails to meet the conditions outlined above is
written off. Furthermore, the directors regularly review the
carrying value of exploration and evaluation expenditure and make
write downs if the values are not expected to be recoverable.
Identifiable exploration assets acquired are recognised as
assets at their cost of acquisition, as determined by the
requirements of AASB 6 Exploration for and Evaluation of Mineral
Resources. Exploration assets acquired are reassessed on a regular
basis and these costs are carried forward provided that at least
one of the conditions referred to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to
acquisition in respect of an exploration asset acquired is
accounted for in accordance with the policy outlined above for
exploration expenditure incurred by or on behalf of the entity.
Acquired exploration assets are not written down below
acquisition cost until such time as the acquisition cost is not
expected to be recovered. When an area of interest is abandoned,
any expenditure carried forward in respect of that area is written
off. Expenditure is not carried forward in respect of any area of
interest/mineral resource unless the Group's rights of tenure to
that area of interest are current.
Mine Properties
Mine properties represent the accumulation of all exploration,
evaluation and development expenditure incurred in respect of areas
of interest in which mining has commenced or is in the process of
commencing. When further development expenditure is incurred in
respect of mine property after the commencement of production, such
expenditure is carried forward as part of the mine property only
when substantial future economic benefits are thereby established,
otherwise such expenditure is classified as part of the cost of
production.
Amortisation is provided on a unit of production basis which
results in a write off of the cost proportional to the depletion of
the proven and probable mineral reserves.
The net carrying value of each area of interest is reviewed
regularly and to the extent to which this value exceeds its
recoverable amount, the excess is either fully provided against or
written off in the financial year in which this is determined.
The Group provides for environmental restoration and
rehabilitation at site which includes any costs to dismantle and
remove certain items of plant and equipment. The cost of an item
includes the initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is located,
the obligation for which an entity incurs when an item is acquired
or as a consequence of having used the item during that period.
This asset is depreciated on the basis of the current estimate of
the useful life of the asset. In accordance with AASB 137
Provisions, Contingent Liabilities and Contingent Assets the Group
is also required to recognise as a provision the best estimate of
the present value of expenditure required to settle this
obligation. The present value of estimated future cash flows is
measured using a current market discount rate.
Stripping costs
Costs associated with material stripping activity, which is the
process of removing mine waste materials to gain access to the
mineral deposits underneath, during the production phase of surface
mining are accounted for as either inventory or a non-current asset
(non-current asset is also referred to as a 'stripping activity
asset').
To the extent that the benefit from the stripping activity is
realised in the form of inventory produced, the Group accounts for
the costs of that stripping activity in accordance with the
principles of AASB 102 Inventories. To the extent the benefit is
improved access to ore, the Group recognises these costs as a
non-current asset provided that:
-- it is probable that the future economic benefit (improved
access to the ore body) associated with the stripping activity will
flow to the Group;
-- the Group can identify the component of the ore body for which access has been improved; and
-- the costs relating to the stripping activity associated with
that component can be measured reliably.
Stripping activity assets are initially measured at cost, being
the accumulation of costs directly incurred to perform the
stripping activity that improves access to the identified component
of ore plus an allocation of directly attributable overhead costs.
In addition, stripping activity assets are accounted for as an
addition to, or as an enhancement to, an existing asset.
Accordingly, the nature of the existing asset determines:
-- whether the Group classifies the stripping activity asset as tangible or intangible; and
-- the basis on which the stripping activity asset is measured
subsequent to initial recognition.
In circumstances where the costs of the stripping activity asset
and the inventory produced are not separately identifiable, the
Group allocates the production stripping costs between the
inventory produced and the stripping activity asset by using an
allocation basis that is based on volume of waste extracted
compared with expected volume, for a given volume of ore
production.
Borrowings
Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised in
profit or loss over the period of the borrowing using the effective
interest method. Fees paid on the establishment of loan facilities
are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down.
In this case, the fee is deferred until the draw down occurs. To
the extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as a
prepayment for liquidity services and amortised over the period of
the facility to which it relates.
Revenue
Revenue arises mainly from the sale of fertiliser. The Group
generates revenue in Brazil. To determine whether to recognise
revenue, the Group follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
The revenue and profits recognised in any period are based on
the delivery of performance obligations and an assessment of when
control is transferred to the customer.
In determining the amount of revenue and profits to record, and
related statement of financial position items (such as contract
fulfilment assets, capitalisation of costs to obtain a contract,
trade receivables, accrued income and deferred income) to recognise
in the period, management is required to form a number of key
judgements and assumptions. This includes an assessment of the
costs the Group incurs to deliver the contractual commitments and
whether such costs should be expensed as incurred or
capitalised.
Revenue is recognised either when the performance obligation in
the contract has been performed, so 'point in time' recognition or
'over time' as control of the performance obligation is transferred
to the customer. For contracts with multiple components to be
delivered such as fertiliser, management applies judgement to
consider whether those promised goods and services are (i) distinct
- to be accounted for as separate performance obligations; (ii) not
distinct - to be combined with other promised goods or services
until a bundle is identified that is distinct or (iii) part of a
series of distinct goods and services that are substantially the
same and have the same pattern of transfer to the customer.
Transaction price
At contract inception the total transaction price is estimated,
being the amount to which the Group expects to be entitled and has
rights to under the present contract. The transaction price does
not include estimates of consideration resulting from change orders
for additional goods and services unless these are agreed. Once the
total transaction price is determined, the Group allocates this to
the identified performance obligations in proportion to their
relative stand-alone selling prices and recognises revenue when (or
as) those performance obligations are satisfied.
For each performance obligation, the Group determines if revenue
will be recognised over time or at a point in time. Where the Group
recognises revenue over time for long term contracts, this is in
general due to the Group performing and the customer simultaneously
receiving and consuming the benefits provided over the life of the
contract.
For each performance obligation to be recognised over time, the
Group applies a revenue recognition method that faithfully depicts
the Group's performance in transferring control of the goods or
services to the customer. This decision requires assessment of the
real nature of the goods or services that the Group has promised to
transfer to the customer. The Group applies the relevant output or
input method consistently to similar performance obligations in
other contracts.
When using the output method the Group recognises revenue on the
basis of direct measurements of the value to the customer of the
goods and services transferred to date relative to the remaining
goods and services under the contract. Where the output method is
used, in particular for long term service contracts where the
series guidance is applied, the Group often uses a method of time
elapsed which requires minimal estimation. Certain long term
contracts use output methods based upon estimation of number of
users, level of service activity or fees collected.
If performance obligations in a contract do not meet the over
time criteria, the Group recognises revenue at a point in time.
This may be at the point of physical delivery of goods and
acceptance by a customer or when the customer obtains control of an
asset or service in a contract with customer-specified acceptance
criteria.
Disaggregation of revenue
The Group disaggregates revenue from contracts with customers by
contract type, which includes only fertiliser as management
believes this best depicts how the nature, amount, timing and
uncertainty of the Group's revenue and cash flows.
Performance obligations
Performance obligations categorised within this revenue type
include the debtor taking ownership of the fertiliser product.
Inventories
Inventories are valued at the lower of cost and net realisable
value.
Costs incurred in bringing each product to its present location
and condition is accounted for as follows:
-- Raw materials - purchase cost; and
-- Finished goods - cost of direct materials and labour and an
appropriate proportion of variable and fixed overheads based on
normal operating capacity.
Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of completion and
the estimated costs necessary to make the sale.
Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Where the Group expects some, or all, of a provision to be
reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any
provision is presented in the statement of comprehensive income net
of any reimbursement.
If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time
value of money, and where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.
NOTE 2: SEGMENT REPORTING
For management purposes, the Group is organised into one main
operating segment, which involves mining exploration, processing
and sale of fertiliser. All of the Group's activities are
interrelated, and discrete financial information is reported to the
Board (Chief Operating Decision Maker) as a single segment. No
revenue is derived from a single external customer.
Accordingly, all significant operating decisions are based upon
analysis of the Group as one segment. The financial results from
this segment are equivalent to the financial statements of the
Group as a whole. Revenue earned by the Group is generated in
Brazil and all of the Group's non-current assets reside in
Brazil.
The following table present revenue and loss information and
certain asset and liability information regarding business segments
for the half year ended 30 June 2023.
Continuing operations
Australia Brazil Consolidated
30 June 2023 $ $ $
Segment revenue - 931,608 931,608
Segment profit/(loss) before income
tax expense (642,854) (965,988) (1,608,842)
30 June 2023
Segment assets 367,324 11,389,888 11,757,212
---------- ----------- -------------
Segment liabilities 220,861 2,428,248 2,649,109
---------- ----------- -------------
Additions to non-current assets - 945,953 945,953
---------- ----------- -------------
Continuing operations
Australia Brazil Consolidated
30 June 2022 $ $ $
Segment revenue - 2,735,590 2,735,590
Segment loss before income tax expense (656,104) (227,452) (883,556)
30 June 2022
Segment assets 822,413 10,317,216 11,139,629
---------- ----------- -------------
Segment liabilities 342,633 2,104,057 2,446,690
---------- ----------- -------------
Additions to non-current assets - 1,330,097 1,330,097
---------- ----------- -------------
NOTE 3: REVENUE FROM CONTRACTS WITH CUSTOMERS
The Group derives its revenue from the sale of goods at a point
in time in the major category of Fertiliser.
Consolidated
6 months
to 6 months to
30 June 30 June
2023 2022
$ $
Fertiliser sales 931,608 2,735,590
Total revenue 931,608 2,735,590
--------- ----------
NOTE 4: COST OF GOODS SOLD
Consolidated
6 months
6 months to to
30 June 30 June
2023 2022
$ $
Mine operating costs 383,059 492,617
Royalty expense 36,546 108,430
Rehabilitation expense 7,911 216,272
Depreciation 152,717 146,931
Amortisation 126,811 189,191
Total cost of goods sold 707,044 1,153,441
---------- -------------
NOTE 5: CASH AND CASH EQUIVALENTS
Consolidated
Reconciliation of Cash and Cash Equivalents 30 June 31 December
2023 2022
Cash comprises: $ $
Cash at bank 423,982 2,723,509
423,982 2,723,509
------------ --------------
Consolidated
Reconciliation of operating loss after tax 6 months 6 months
to the cash flows from operations to to
30 June 30 June
2023 2022
$ $
Loss from ordinary activities after tax (1,645,945) (883,556)
Non cash items
Depreciation charge 191,702 151,616
Amortisation charge 126,811 189,191
Rehabilitation charge 7,911 216,272
Impairment of exploration and evaluation expenditure - 491,500
Gain on disposal of motor vehicle (15,171) (8,185)
Foreign exchange gain 1,919 54,401
Change in assets and liabilities
(Increase) / Decrease in trade and other receivables (121,413) 174,834
(Increase) / Decrease in inventories (1,200,633) (287,163)
Increase / (Decrease) in trade and other payables
and provisions 20,593 594,297
Net cash outflow from operating activities (2,634,226) 693,207
------------ --------------
NOTE 6: TRADE AND OTHER RECEIVABLES
Consolidated
30 June 31 December
2023 2022
$ $
Trade Debtors(1) 1,819,386 1,606,440
Expected credit losses (1,398,945) (1,260,749)
Prepayments 31,925 -
Cash advances 203,366 161,762
GST receivable 7,170 7,271
Other tax receivables 48,042 -
Total trade and other receivables 710,944 514,724
----------- ------------
(i) Classification of trade receivables
Trade debtors, other debtors and goods and services tax are
receivable on varying collection terms. Due to the short-term
nature of these receivables, their carrying value is assumed to
approximate their fair value. Some debtors are given industry
standard longer payment terms which may cross over more than one
accounting period. These trade terms are widely used in the
agricultural market in Brazil and are considered industry
norms.
(ii) Impairment of trade receivables
The group applies the simplified approach to measuring expected
credit losses which uses a lifetime expected loss allowance for all
trade receivables and contract assets. To measure the expected
credit losses, trade receivables have been grouped based on shared
credit risk characteristics and the days past due. The historical
loss rates are adjusted to reflect current and forward information
on macroeconomic factors affecting the ability of the customers to
settle the receivables. Trade receivables are written off where
there is no reasonable expectation of recovery. Indicators that
there is no reasonable expectation of recovery include, amongst
others, the failure of a debtor to engage in a repayment plan with
the group, and a failure to make contractual payments for a period
of greater than 120 days past due.
NOTE 7: INVENTORIES
Consolidated
30 June 31 December
2023 2022
$ $
Raw materials - 9,298
Finished goods 1,396,515 186,584
---------- -----------
1,396,515 195,882
---------- -----------
NOTE 8: PLANT AND EQUIPMENT
Consolidated
12 months
6 months to to
30 June 31 December
2023 2022
$ $
At beginning of the period 2,891,499 1,111,314
Additions for the period 741,270 2,035,861
Disposals for the period (45,365) (10,874)
Depreciation charge for the period (191,702) (418,649)
Net exchange difference on translation 333,001 173,847
Balance at the end of the period 3,728,703 2,891,499
---------- -----------------
NOTE 9: MINE PROPERTIES
Consolidated
12 months
6 months to to
30 June 31 December
2023 2022
$ $
At beginning of the period 4,055,486 3,691,160
Additions for the period 204,683 -
Rehabilitation obligation - 259,928
Amortisation charge for the period (126,811) (354,282)
Net exchange difference on translation 511,190 458,680
Balance at the end of the period 4,644,548 4,055,486
---------- -----------------
NOTE 10: TRADE AND OTHER PAYABLES
Consolidated
30 June 31 December
2023 2022
$ $
Trade payables 220,333 242,706
Accruals 276,391 176,895
Other payables 37,258 93,788
--------------- -----------
533,982 513,389
--------------- -----------
Trade creditors, other creditors and goods and services tax are
non-interest bearing and generally payable on 60 day terms. Due to
the short term nature of these payables, their carrying value is
assumed to approximate their fair value.
NOTE 11: BORROWINGS
Consolidated
30 June 31 December
2023 2022
$ $
Current
Secured Loans payable 511,748 53,270
511,748 53,270
-------- ------------
Non-current
Secured Loans payable 1,295,075 192,407
1,295,075 192,407
---------- --------
In March 2023, the Group secured a further $R5,000,000 loan with
BDMG for purchase of equipment and machinery. The loan is repayable
over a two year period with repayments commencing in April 2024 and
secured against $R1,000,000 in cash as collateral. As at 30 June
2023, the Group recorded $1,806,823 (31 December 2022: $245,677) of
secured loans as a payable.
NOTE 12: CONTRIBUTED EQUITY
30 June 31 December
2023 2022
$ $
Contributed equity
Ordinary shares fully paid 43,328,219 43,328,219
---------- ----------
6 months to 12 months year ended
30 June 2023 31 December 2022
No. $ No. $
Movements in ordinary shares on issue
Opening balance 189,169,217 43,328,219 185,835,884 43,328,219
Shares to be issued as part an acquisition(1) - - 3,333,333 -
Closing balance 189,169,217 43,328,219 189,169,217 43,328,219
----------- ---------- ----------- ----------
(1) On 29 November 2021, the Company entered into an agreement
to acquire 100% of the ordinary shares of BF Mineração Ltda for
cash and shares. On 6 July 2022, the Company announced the issuance
of 3,333,333 shares related to the agreement to acquire 100% of the
ordinary shares of BF Mineração Ltda for the Miriri Phosphate
Project.
NOTE 13: DIVIDENDS
No dividends have been paid or provided for during the half-year
(half-year to 30 June 2022: $nil).
NOTE 14: CONTINGENT LIABILITIES AND COMMITMENTS
There has been no material change in contingent liabilities or
commitments since the last annual reporting date.
NOTE 15: FINANCIAL INSTRUMENTS
The Group has a number of financial instruments which are not
measured at fair value in the statement of financial position.
The Directors consider that the carrying amounts of current
receivables, current payables and current borrowings are considered
to be a reasonable approximation of their fair values.
NOTE 16: SUBSEQUENT EVENTS
As announced to AIM on 14 August 2023, the Group has revised its
2023 sales target from 120,000 tonnes to 70,000 tonnes.
There have been no other known significant events subsequent to
the end of the period that require disclosure in this report.
ENDS
Harvest Minerals Brian McMaster (Chairman) Tel: +44 (0) 203 940
Limited 6625
Strand Hanson Limited Ritchie Balmer Tel: +44 (0) 20 7409
Nominated & Financial James Spinney 3494
Adviser
Tavira Securities Jonathan Evans Tel: +44 (0) 20 3 192
Broker 1733
St Brides Partners Ana Ribeiro harvest@stbridespartners.co.uk
Ltd Isabel de Salis
Financial PR
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END
IR GLGDCRDDDGXB
(END) Dow Jones Newswires
September 21, 2023 02:32 ET (06:32 GMT)
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