TIDMHMI
RNS Number : 3650N
Harvest Minerals Limited
29 September 2021
Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector
Mining
29 September 2021
Harvest Minerals Limited ("Harvest" or the "Company")
Interim Results
Harvest Minerals Limited, the AIM listed remineraliser producer,
is pleased to announce its unaudited interim results for the
six-month period ended 30 June 2021.
HIGHLIGHTS
-- 171% increase in sales of KP Fértil(R) to 26,726 tonnes over the same period of 2020
-- Maintaining, albeit hoping to surpass, 2021 year-end sales
target of 80,000 tonnes of KP Fértil(R)
-- Launched new marketing campaign in May 2021 for coffee, sugarcane, and other crops
-- Boosted efforts towards the new marketing channels opened
since adding the higher margin 25kg bag option that targets small
to medium sized farmers and resellers
-- Started to actively market KP Fértil(R) in other regions
beyond immediate market in Minas Gerais and Sao Paulo
-- Brazilian agriculture sector continued to be robust over the
half-year and several sector associations forecast double digit
growth in most of the crops targeted by Harvest
-- Acquired mineral rights over an area highly prospective for
the exploration of agriculture limestone, a critical soil input
used by regional producers of different crops to neutralise soil
acidity by raising its pH levels
-- Received the London Stock Exchange's Green Economy Mark
REVIEW OF OPERATIONS
Arapua Fertiliser Project
During the half-year ended 30 June 2021, Harvest sold 26,726
tonnes of its KP Fértil(R), representing a 171% increase over the
sales realised in the same period of 2020, and despite the
continuing challenges imposed by the COVID-19 pandemic.
Historically, the period July to December each year is where the
majority of annual sales are achieved. In 2020, 82% of the total
sales were placed in the second half of the year. With this in
mind, the Company is maintaining, albeit hoping to surpass, its
2021 year-end sales target of 80,000 tonnes of KP Fértil(R).
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. In May 2021, a new marketing
campaign was launched 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(R) in other
regions beyond its immediate market in Minas Gerais and Sao
Paulo.
In terms of market fundamentals, notwithstanding the impacts of
the COVID-19 (discussed further below), the performance of the
Brazilian agriculture sector continued to be robust over the
half-year and several sector associations forecast double digit
growth in most of the crops targeted by Harvest.
Sergi Potash Project & Mandacaru Phosphate Project
Given the scale of activity currently being undertaken at Arapua
and the impact of COVID-19, the Company did not materially advance
either of its Sergi Potash Project or its Mandacaru Phosphate
Project during the half-year to 30 June 2021.
Capela Potash Project
On 11 February 2021, the Company relinquished its exploration
license over its 51% interest in the Capela Project in Brazil, to
dedicate its resources and to ensure the continued growth
trajectory at its 100% owned revenue generating Arapua Project.
Capitalised exploration and evaluation costs relating to the Capela
project were fully written-off at 31 December 2020.
Impact of COVID-19
On 31 January 2020, the World Health Organisation ('WHO')
announced a global health emergency because of a new strain of
coronavirus originating in Wuhan, China (COVID-19 outbreak) and the
risks to the international community as the virus spread globally
beyond its point of origin. Because of the rapid increase in
exposure globally, on 11 March 2020, the WHO classified the
COVID-19 outbreak as a pandemic.
The full impact of the COVID-19 outbreak continues to evolve and
at the date of this report, the current Delta variant of COVID-19
has resulted in border travel restrictions, lockdowns, and mask
mandates within Australia. Management is actively monitoring the
global situation and its impact on the Group's financial condition,
liquidity, operations, suppliers, industry, and workforce. Given
the daily evolution of the COVID-19 outbreak and the global
responses to curb its spread, the Group continues to monitor the
situation very closely, with a primary focus on the health,
wellbeing, and safety of all employees. The Group has implemented
extensive business continuity procedures to ensure ongoing
operations with minimal disruptions. To date there has been minimal
impact to the Group.
Notwithstanding, sales for the half-year ended 30 June 2021
exceeded budget, it is expected that a robust performance will be
achieved over the second half of the year, which is seasonally the
strongest period for the business.
Other Developments
In June 2021, Harvest acquired at nominal value the mineral
rights over an area highly prospective for the exploration of
agriculture limestone, a critical soil input used by regional
producers of different crops to neutralise soil acidity by raising
its pH levels. Located in the municipality of Iguatama, Minas
Gerais, the limestone project is approximately 168km from Harvest's
Arapuá Fertiliser Project. The acquisition continues Harvest's
strategy to build its profile in the region with an increased
portfolio of products while leveraging its commercial channels,
facilities and regional market knowledge. Harvest plans to
undertake a preliminary assessment of the geological potential of
the limestone project to establish the best approach for a
cost-effective exploration programme, following the same strategy
used to define and advance the now producing Arapua deposit.
In May 2021, Harvest received the London Stock Exchange's Green
Economy Mark. The Green Economy Mark recognises companies that
derive 50% or more of their total annual revenues from products and
services that contribute to the global green economy. The
underlying methodology incorporates the Green Revenues data model
developed by FTSE Russell, which helps investors understand the
global industrial transition to a green and low carbon economy with
consistent, transparent data and indexes.
Brian McMaster
Executive Chairman
Condensed Consolidated Statement of Comprehensive Income
for the half-year ended 30 June 2021
Consolidated
6 months ended 6 months ended
30 June
Notes 2021 30 June
$ 2020
$
-------------- --------------
Revenue from contracts with customers 3 790,224 299,449
Cost of goods sold 4 (414,113) (185,968)
-------------- --------------
Gross profit 376,111 113,481
-------------- --------------
Interest revenue 7,852 801
Other income 506 567
Foreign exchange gain/(loss) 91,594 (16,113)
Accounting and audit fees (95,372) (60,195)
Advertising fees (127,680) (134,427)
Consultants fees (184,228) (331,923)
Directors fees (296,649) (412,337)
Depreciation (15,158) (7,671)
Legal fees (4,377) (40,281)
Wages & Salaries (114,349) (343,081)
Public company costs (108,534) (123,624)
Rent and outgoings expenses (750) (60,229)
Travel expenses (164,573) (142,296)
Other expenses (432,100) (286,415)
-------------- --------------
Loss before income tax (1,067,707) (1,843,743)
Income tax benefit - -
Loss after income tax (1,067,707) (1,843,743)
Other comprehensive income
Item that may be reclassified subsequently
to profit or loss
Exchange differences on translation
of foreign operations 777,637 (1,962,491)
Other comprehensive income / (loss)
for the half-year 777,637 (1,962,491)
--------------
Total comprehensive loss for the half-year (290,070) (3,806,234)
--------------
Loss per share
Basic and diluted loss per share (cents
per share) (0.57) (0.99)
The accompanying notes form part of this half-year financial
report.
Condensed Consolidated Statement of Financial Position
as at 30 June 2021
Consolidated
Notes 30 June 31 December
2021 2020
$ $
------------ ------------
Assets
Current Assets
Cash and cash equivalents 2,237,583 2,992,727
Trade and other receivables 5 1,632,365 1,651,013
Inventories 294,561 121,119
------------ ------------
Total Current Assets 4,164,509 4,764,859
------------ ------------
Non-Current Assets
Plant and equipment 6 1,049,602 1,037,475
Mine properties 7 4,564,476 4,188,916
Deferred exploration and evaluation
expenditure 8 3,312,319 3,317,445
Total Non-Current Assets 8,926,397 8,543,836
------------ ------------
Total Assets 13,090,906 13,308,695
------------ ------------
Current Liabilities
Trade and other payables 9 265,456 204,584
Total Current Liabilities 265,456 204,584
------------ ------------
NON-CURRENT LIABILITIES
Provision for rehabilitation 71,364 59,955
------------ ------------
TOTAL CURRENT LIABILITIES 71,364 59,955
Total Liabilities 336,820 264,539
------------ ------------
Net Assets 12,754,086 13,044,156
============ ============
Equity
Issued capital 10 43,048,343 43,048,343
Reserves 1,380,063 602,426
Accumulated losses (31,674,320) (30,606,613)
------------ ------------
Total Equity 12,754,086 13,044,156
============ ============
The accompanying notes form part of this half-year financial report.
Condensed Consolidated Statement of Changes in Equity
for the half-year ended 30 June 2021
Notes Issued Capital Accumulated Foreign
Consolidated $ Losses Currency Option Reserve Total
$ Translation $ $
Reserve
$
Balance as at 1
January 2021 43,048,343 (30,606,613) (2,938,622) 3,541,048 13,044,156
---------------- -------------- --------------- ---------------- ------------
Total comprehensive
loss for the
half-year
Loss for the
half-year 30 June
2021 - (1,067,707) - - (1,067,707)
Other comprehensive
loss - - 777,637 - 777,637
---------------- -------------- --------------- ---------------- ------------
Total comprehensive
loss for the
half-year - (1,067,707) 777,637 - (290,070)
---------------- -------------- --------------- ---------------- ------------
Balance at 30 June
2021 43,048,343 (31,674,320) (2,160,985) 3,541,048 12,754,086
================ ============== =============== ================ ============
Balance as at 1
January 2020 43,048,343 (27,286,029) (539,927) 3,541,048 18,763,435
---------------- -------------- --------------- ---------------- ------------
Total comprehensive
loss for the
half-year
Loss for the
half-year 30 June
2020 - (1,843,743) - - (1,843,743)
Other comprehensive
loss - - (1,962,491) - (1,962,491)
---------------- -------------- --------------- ---------------- ------------
Total comprehensive
loss for the
half-year - (1,843,743) (1,962,491) - (3,806,234)
---------------- -------------- --------------- ---------------- ------------
Balance at 30 June
2020 43,048,343 (29,129,772) (2,502,418) 3,541,048 14,957,201
================ ============== =============== ================ ============
The accompanying notes form part of this half-year financial
report.
Condensed Consolidated Statement of Cash Flows
for the half-year ended 30 June 2021
Consolidated
6 months ended 6 months ended
30 June 30 June
2021 2020
$ $
-------------- --------------
Cash flows from operating activities
Receipts from customers 1,402,588 393,720
Payments to suppliers and employees (2,526,608) (1,672,903)
Interest received 7,852 801
Net cash outflow from operating activities (1,116,168) (1,278,382)
-------------- --------------
Cash flows from investing activities
Purchase of plant and equipment (57,787) -
Payments for mine properties (32,066) (1,509,232)
Payments for exploration and evaluation
expenditure - (203,603)
--------------
Net cash outflow from investing activities (89,853) (1,712,835)
-------------- --------------
Cash flows from financing activities
Net cash inflow from financing activities - -
-------------- --------------
Net decrease in cash and cash equivalents (1,260,021) (2,991,217)
Cash and cash equivalents at beginning
of period 2,992,727 8,057,934
Effect of exchange rate fluctuations
on cash held 450,877 (728,042)
Cash and cash equivalents at the end
of the period 2,237,583 4,338,675
============== ==============
The accompanying notes form part of this half-year financial
report.
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2021
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 2021 was authorised for issue in
accordance with a resolution of the Directors on 29 September
2021.
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 2021 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 2020 and considered together with any public announcements
made by Harvest Minerals Limited during the half-year ended 30 June
2021 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 2021, 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 2021.
As a result of this review, no changes were necessary to Group
accounting policies.
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.
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.
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.
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 2021.
Continuing operations
Australia Brazil Consolidated
30 June 2021 $ $ $
Segment revenue - 790,224 790,224
Segment loss before income tax expense (503,487) (564,220) (1,067,707)
30 June 2021
Segment assets 2,141,141 10,949,765 13,090,906
---------- ----------- -------------
Segment liabilities 109,577 227,243 336,820
---------- ----------- -------------
Additions to non-current assets - 89,853 89,853
---------- ----------- -------------
Continuing operations
Australia Brazil Consolidated
30 June 2020 $ $ $
Segment revenue - 299,449 299,449
Segment loss before income tax expense (1,081,764) (761,979) (1,843,743)
30 June 2020
Segment assets 3,905,078 11,444,946 15,350,024
------------ ----------- -------------
Segment liabilities 215,845 176,978 392,823
------------ ----------- -------------
Additions to non-current assets - 1,712,835 1,712,835
------------ ----------- -------------
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
2021 2020
$ $
Fertiliser sales 790,224 299,449
Total revenue 790,224 299,449
--------- ---------
NOTE 4: COST OF GOODS SOLD
Consolidated
6 months
6 months to to
30 June 30 June
2021 2020
$ $
Mine operating costs 256,096 54,843
Net smelter return 15,804 5,751
Royalty expense 20,316 5,840
Depreciation and amortisation 121,897 119,534
Total cost of goods sold 414,113 185,968
--------- -----------
NOTE 5: TRADE AND OTHER RECEIVABLES
Consolidated
30 June 31 December
2021 2020
$ $
Trade Debtors 922,430 924,054
Agrocerrado receivable(1) 653,993 607,127
Prepayments - 36,417
Cash advances 39,003 47,366
Refundable security deposit 3,088 15,636
GST receivable 13,110 8,967
Other receivables 741 11,446
Total trade and other receivables 1,632,365 1,651,013
--------- -----------
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.
(1) In September 2020, the Company instigated legal proceedings
to recover the debt from Agrocerrado Produtos Agricolas
("Agrocerrado"). On 25 September 2020, the Tribunal de Justiça do
Estado de Minas Gerais issued judgment against Agrocerrado for the
full amount of the debt plus costs. The Company took steps to
enforce the judgment. Subsequently, Agrocerrado presented a
preliminary defence and applied to Court to stay the Company from
enforcing the judgment. The Company has filed a response and is
awaiting a decision of the Court in respect to Agrocerrado's
application. The Company considers the amount to be fully
recoverable and as such, no impairment has been made.
NOTE 6: PLANT AND EQUIPMENT
Consolidated
12 months
6 months to to
30 June 31 December
2021 2020
$ $
At beginning of the period 1,037,475 1,048,158
Additions for the period 57,787 449,671
Depreciation charge for the period (118,912) (140,802)
Net exchange difference on translation 73,252 (319,552)
Balance at the end of the period 1,049,602 1,037,475
--------- ----------------
NOTE 7: MINE PROPERTIES
Consolidated
12 months
6 months to to
30 June 31 December
2021 2020
$ $
At beginning of the period 4,188,916 3,774,441
Additions for the period 32,066 1,655,270
Amortisation charge for the period (97,755) (79,612)
Net exchange difference on translation 441,249 (1,161,183)
Balance at the end of the period 4,564,476 4,188,916
--------- ----------------
NOTE 8: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Consolidated
12 months
6 months to to
30 June 31 December
2021 2020
$ $
Exploration and evaluation phase:
At beginning of the period 3,317,445 4,116,578
Acquisition of Sergi Potash Project - 200,000
Exploration expenditure during the period - 3,745
Impairment loss - (956,918)
Net exchange differences on translation (5,126) (45,960)
--------- ---------
Balance at the end of the period 3,312,319 3,317,445
--------- ---------
The ultimate recoupment of costs carried forward for exploration
expenditure is dependent on the successful development and
commercial exploitation or sale of the respective mining areas.
NOTE 9: TRADE AND OTHER PAYABLES
Consolidated
30 June 31 December
2021 2020
$ $
Trade payables 150,620 28,421
Accruals 104,342 154,471
Other payables 10,494 21,692
-------- --------
265,456 204,584
-------- --------
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 10: ISSUED CAPITAL
30 June 31 December
2021 2020
$ $
Issued and paid up capital
Issued and fully paid 43,048,343 43,048,343
---------- ----------
6 months to 12 months year ended
30 June 2021 31 December 2020
No. $ No. $
Movements in ordinary shares on issue
Opening balance 185,835,884 43,048,343 185,835,884 43,048,343
Shares issued to Directors and other - - - -
employees
----------- ---------- ----------- ----------
185,835,884 43,048,343 185,835,884 43,048,343
Share issue costs - - - -
----------- ---------- ----------- ----------
Closing balance 185,835,884 43,048,343 185,835,884 43,048,343
----------- ---------- ----------- ----------
NOTE 11: DIVIDENDS
No dividends have been paid or provided for during the half-year
(half-year to 30 June 2020: $nil).
NOTE 12: CONTINGENT LIABILITIES AND COMMITMENTS
There has been no material change in contingent liabilities or
commitments since the last annual reporting date.
NOTE 13: SUBSEQUENT EVENTS
There have been no other known significant events subsequent to
the end of the period that require disclosure in this report.
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.
**ENDS**
For further information, please visit www.harvestminerals.net or
contact:
Harvest Minerals Limited Brian McMaster (Chairman) Tel: +44 (0)20 3940
6625
Strand Hanson Limited James Spinney Tel: +44 (0)20 7409
Nominated & Financial Ritchie Balmer 3494
Adviser
Shard Capital Partners Damon Heath Tel: +44 (0)20 7186 9900
Broker
St Brides Partners I sabel de Salis E : info@stbridespartners.co.uk
Ltd Oonagh Reidy
Financial PR
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END
IR GIGDCDBDDGBC
(END) Dow Jones Newswires
September 29, 2021 04:16 ET (08:16 GMT)
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