TIDMHMI
RNS Number : 7479D
Harvest Minerals Limited
30 October 2020
Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector
Mining
30 October 2020
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 2020.
REVIEW OF OPERATIONS
Arapua Fertiliser Project
Studies, Test Work and Sales
On 27 February 2020, Harvest announced that the Agência Nacional
de Mineração ('ANM') (the agency which replaced the DNPM) granted a
Concessão de Lavra or full mining permit for the Company's 100%
owned Arapua Fertiliser Project ('Arapua' or 'the Project') in
Brazil. This was the final step in fully permitting Arapua,
granting the Company full permitting tenure over the asset. As set
out in the original sale and purchase agreement, a payment of US$1m
was made by the Company to the original vendors of the asset upon
the granting of the full mining permit.
During the period, the Company also announced that it had
commenced the expansion of the mining and product storage areas.
The expansion work is largely complete and will provide for product
storage capacity to be expanded by 300% to comprise a total of
30,000 tonnes of product within a 6,000m(2) covered storage area
and the mining area to be increased four-fold to 78.8km(2) to
provide greater production flexibility according to demand and
reduce operating costs.
On 23 April 2020, the Company announced the results of the long
term testwork conducted by Santinato & Santinato Cafés Ltda
('Santinato'), a renowned agronomic consulting company in Brazil
specialising in coffee cultivation. Santinato has been conducting
trials since 2017 on the suitability of KPfértil as a source of
potassium ('K') and phosphate ('P') for coffee plants at one of the
Veloso Agropecuária ('Veloso') coffee plantations in Minas Gerais
State, Brazil. The trials consisted of two years of applying a
potassium and phosphate fertiliser and a third final year of
applying no additional source of potassium and phosphate
(fertiliser suppression) to test the effectiveness of different
sources of potassium and phosphate. All the soil fertility
parameters were measured in May each year before the peak nutrient
extraction by the plants for harvest between May and July in
Brazil. All the biometric measurements were made just before the
harvest and the productivity, maturation and income measurements
were post-harvest.
In total, four experiments were conducted using the following
sources of potassium and phosphate:
-- T1 - Control - no additional sources of K and P applied
-- T2 - Conventional sources - muriate of Potash (KCl) and Simple superphosphate (SSP) applied
-- T3 - 100% KP KPfértil - applied to match the K(2) O applied in T2
-- T4 - KP KPfértil and coffee straw (coffee husks from previous
harvests - see figure 1) - applied to match 60% of K(2) O applied
in T2 due to application of 5t/ha of coffee straw annually
The application rate of nutrients during each season was as
follows:
-- Year 1 (2017) - 350 kg / ha (N); 80 kg / ha (P(2) O(5) ) and 200 kg / ha (K(2) O)
-- Year 2 (2018) - 300 kg / ha (N); 80 kg / ha (P(2) O(5) ) and 350 kg / ha (K(2) O)
-- Year 3 (2019) - 300 kg / ha of N
-- In the third year, no additional K or P was applied
The results of the trials confirmed that:
-- KPfértil can be used to replace conventional fertilizers as a
source of potassium and phosphate;
-- Results in coffee are enhanced when used in association with
coffee compost (coffee straw); and
-- KPfértil increases the value of the coffee produced by
increasing the proportion of the largest coffee cherries and
yield.
During the period under review, the Company's operations were
impacted by the effects of the COVID-19 pandemic (see discussion
below), which impacted business confidence and the ability of the
Company and its customers to trade unrestricted. Despite this, the
Company made significant inroads towards developing and expanding
its customer base and finished the period under review with a
credible sales achievement. Although lower sales were achieved
during the period to 30 June 2020 compared to the prior 6-month
period, the Company has since recorded increased sales post balance
date up to 30 September 2020.
Sergi & Capela Potash Projects
Given the scale of activity currently being undertaken at
Arapua, the Company did not materially advance either of its Sergi
or Capela Potash Projects during the half-year period to 30 June
2020.
Mandacaru Phosphate Project
Given the scale of activity currently being undertaken at
Arapua, the Company did not materially advance its Mandacaru
Phosphate Project during the half-year period to 30 June 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 at
the date of this report.
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 is not able to estimate the effects of the COVID-19
outbreak on its results of operations, financial condition, or
liquidity for the 2020 financial year.
Brian McMaster
Executive Chairman
30 October 2020
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 2020
Consolidated
6 months ended 6 months ended
30 June
Notes 2020 31 December
$ 2019
$
-------------- --------------
Revenue from contracts with customers 3 299,449 1,443,281
Cost of goods sold 4 (185,968) (813,254)
-------------- --------------
Gross profit 113,481 630,027
-------------- --------------
Interest revenue 801 649
Other income 567 606
Foreign exchange gain (16,113) 322,732
Accounting and audit fees (60,195) (71,000)
Advertising fees (134,427) (90,623)
Consultants fees (331,923) (356,927)
Directors fees (412,337) (396,831)
Depreciation (7,671) (8,854)
Legal fees (40,281) (14,961)
Wages & Salaries (343,081) (213,269)
Public company costs (123,624) (121,569)
Rent and outgoings expenses (60,229) (77,208)
Travel expenses (142,296) (342,015)
Other expenses (286,415) (170,801)
-------------- --------------
Loss before income tax (1,843,743) (910,044)
Income tax benefit - -
Loss after income tax (1,843,743) (910,044)
Other comprehensive income
Item that may be reclassified subsequently
to profit or loss
Exchange differences on translation
of foreign operations (1,962,491) (267,894)
Other comprehensive income / (loss)
for the half-year (1,962,491) (267,894)
--------------
Total comprehensive loss for the half-year (3,806,234) (1,177,938)
--------------
Loss per share
Basic and diluted loss per share (cents
per share) (0.99) (0.49)
The accompanying notes form part of this half-year financial
report.
Condensed Consolidated Statement of Financial Position
as at 30 June 2020
Consolidated
Notes 30 June 31 December
2020 2019
$ $
------------ ------------
Assets
Current Assets
Cash and cash equivalents 4,338,675 8,057,934
Trade and other receivables 5 1,525,242 1,856,289
Inventories 123,874 126,838
------------ ------------
Total Current Assets 5,987,791 10,041,061
------------ ------------
Non-Current Assets
Plant and equipment 10 673,091 1,048,158
Mine properties 6 4,412,172 3,774,444
Deferred exploration and evaluation
expenditure 7 4,276,970 4,116,578
Total Non-Current Assets 9,362,233 8,939,180
------------ ------------
Total Assets 15,350,024 18,980,241
------------ ------------
Current Liabilities
Trade and other payables 8 338,419 184,758
Total Current Liabilities 338,419 184,758
------------ ------------
NON-CURRENT LIABILITIES
Provision for rehabilitation 54,404 32,048
------------ ------------
TOTAL CURRENT LIABILITIES 54,404 32,048
Total Liabilities 392,823 216,806
------------ ------------
Net Assets 14,957,201 18,763,435
============ ============
Equity
Issued capital 9 43,048,343 43,048,343
Reserves 1,038,630 3,001,121
Accumulated losses (29,129,772) (27,286,029)
------------ ------------
Total Equity 14,957,201 18,763,435
============ ============
Condensed Consolidated Statement of Changes in Equity
for the half-year ended 30 June 2020
Notes Issued Capital Accumulated Foreign Currency Option Reserve Total
$ Losses Translation Reserve $ $
$ $
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 - (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)
---------------- ------------- -------------------- ---------------- ------------
Transactions with
owners in their
capacity as owners
Shares issued to 9 - - - - -
directors and other
employees
Balance at 30 June 2020 43,048,343 (29,129,772) (2,502,418) 3,541,048 14,957,201
================ ============= ==================== ================ ============
Balance as at 1 July 2019 43,048,343 (26,375,985) (272,033) 3,541,048 19,941,373
---------------- ------------- -------------------- ---------------- ------------
Total comprehensive
loss for the 6
months ended
Loss for the 6 months ended 31
December
2019 - (910,044) - - (910,044)
Other comprehensive loss - - (267,894) - (267,894)
---------------- ------------- -------------------- ---------------- ------------
Total comprehensive loss for
the 6
months ended - (910,044) (267,894) - (1,177,938)
---------------- ------------- -------------------- ---------------- ------------
Transactions with
owners in their
capacity as owners
Shares issued as - - - - -
part of placement
Shares issued to 9 - - - - -
Directors and
Employees
Warrants Issued - - - - -
Share issue costs - - - - -
Balance at 31 December 2019 43,048,343 (27,286,029) (539,927) 3,541,048 18,763,435
================ ============= ==================== ================ ============
Condensed Consolidated Statement of Cash Flows
for the half-year ended 30 June 2020
6 months ended 6 months ended
30 June 31 December
2020 2019
$ $
-------------- --------------
Cash flows from operating activities
Receipts from customers 393,720 1,093,580
Payments to suppliers and employees (1,672,903) (2,656,979)
Interest (paid) / received 801 649
Other income - -
--------------
Net cash outflow from operating activities (1,278,382) (1,562,750)
-------------- --------------
Cash flows from investing activities
Purchase of plant and equipment - (1,362)
Payments for mine properties (1,509,232) -
Payments for exploration and evaluation
expenditure (203,603) (101,427)
--------------
Net cash outflow from investing activities (1,712,835) (102,789)
-------------- --------------
Cash flows from financing activities
Proceeds from share issue - -
Proceeds from exercise of options - -
Share issue costs - -
-------------- --------------
Net cash inflow from financing activities - -
-------------- --------------
Net increase / (decrease) in cash and
cash equivalents (2,991,217) (1,665,539)
Cash and cash equivalents at beginning
of period 8,057,934 9,499,814
Effect of exchange rate fluctuations
on cash held (728,042) 223,659
Cash and cash equivalents at the end
of the period 4,338,675 8,057,934
============== ==============
Notes to the Condensed Consolidated Financial Statements
for the half-year ended 30 June 2020
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 2020 was authorised for issue
in accordance with a resolution of the Directors on 30 October 2020
.
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 2020 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 six months year
ended 31 December 2019 and considered together with any public
announcements made by Harvest Minerals Limited during the half-year
ended 30 June 2020 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 (as adopted by the European Union).
In order to ensure the Company's reporting periods coincide with
those of its industry peers, the Company elected to change its
year-end from June 30 to December 31 resulting in the prior
financial year of the Company being the six month period from 1
July 2019 to 31 December 2019. The six month period ended to 31
December 2019 has been used as the comparative for the half-year
ended 30 June 2020.
New and amending Accounting Standards and Interpretations
In the half-year ended 30 June 2020, 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 2020.
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.
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 Makers) 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 2020.
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
------------ ----------- -------------
Continuing operations
Australia Brazil Consolidated
31 December 2019 $ $ $
Segment revenue - 1,443,281 1,443,281
Segment loss before income tax expense (795,171) (114,873) (910,044)
31 December 2019
Segment assets 8,017,479 10,962,762 18,980,241
---------- ----------- -------------
Segment liabilities 114,645 102,161 216,806
---------- ----------- -------------
Additions to non-current assets - 102,789 102,789
---------- ----------- -------------
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.
6 months
to 6 months to
31 December
30 June 2020 2019
$ $
Fertiliser 299,449 1,443,281
Total revenue 299,449 1,443,281
------- ---------
NOTE 4: COST OF GOODS SOLD
6 months
6 months to to 31 December
30 June 2020 2019
$ $
Mine operating costs 54,843 667,587
Net smelter return 5,751 -
Royalty expense 5,840 24,778
Depreciation and amortisation 119,534 120,889
Total cost of goods sold 185,968 813,254
------- -------
NOTE 5: TRADE AND OTHER RECEIVABLES
6 months to
6 months
to 31 December
30 June 2020 2019
$ $
Trade debtors(1) 1,207,174 1,685,515
Prepayments 6,593 46,099
Cash advances 280,801 63,350
Refundable security deposit 18,381 40,146
GST receivable 6,843 7,899
Other receivables 5,450 13,280
Total trade and other receivables 1,525,242 1,856,289
--------- ---------
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) included in the debtors balance as at 30 June 2020 is an
amount receivable of $684,955 from a third party, Agrocerrado
Produtos Agricolas. In September 2020, the Company instigated legal
proceedings to recover the debt. On 25 September 2020, the Tribunal
de Justiça do Estado de Minas Gerais issued judgment against
Agrocerrado Produtos Agricolas for the full amount of the debt plus
costs. The Company is now taking steps to enforce the judgment. The
Company considers the amount to be fully recoverable and as such,
no impairment has been made.
NOTE 6: MINE PROPERTIES
6 months
to
6 months to 31 December
30 June 2020 2019
$ $
At beginning of the period 3,774,444 3,926,179
Additions for the period 1,509,232 -
Amortisation change for the period (10,016) (33,956)
Net exchange difference on translation (861,488) (117,779)
Balance at the end of the period 4,412,172 3,774,444
------------- ------------
NOTE 7: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
6 months
to
6 months to 31 December
30 June 2020 2019
$ $
Exploration and evaluation phase:
At beginning of the period 4,116,578 4,022,593
Acquisition of Sergi Potash Project(1) 200,000 100,000
Exploration expenditure during the period 3,603 1,427
Net exchange differences on translation (43,211) (7,442)
--------- ---------
Balance at the end of the period 4,276,970 4,116,578
--------- ---------
(1) As announced on the AIM on 20 April 2015 Harvest acquired a
100% interest in the Sergi Potash Project in Sergipe State, Brazil.
The portion of consideration for this acquisition recorded during
the period, as per the Sergi Project Mineral Rights Purchase and
Sale Agreement, is a payment of $200,000 cash on 13 February
2020.
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 8: TRADE AND OTHER PAYABLES
30 June
31 December
2020 2019
$ $
Trade payables 123,016 103,623
Accruals 194,753 57,649
Other payables 20,650 23,486
-------- --------
338,419 184,758
-------- --------
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 9: ISSUED CAPITAL
30 June 2020 30 December
2019
$ $
Issued and paid up capital
Issued and fully paid 43,048,343 43,048,343
---------- ----------
6 months to 6 months year ended
30 June 2020 31 December 2019
No. $ No. $
Movements in ordinary shares on issue
Opening balance 185,835,884 43,048,343 185,835,884 43,048,343
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 10: PLANT AND EQUIPMENT
During the period under review, the Company continued with
production to generate sales through its operating mine. The
acquisitions of plant and equipment totalled $nil (6 months to 31
December 2019: $1,362).
NOTE 11: DIVIDENDS
No dividends have been paid or provided for during the half-year
(6 months to 31 December 2019: $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.
**ENDS**
Enquiries:
Harvest Minerals Brian McMaster (Chairman) Tel: +44 (0) 203
Limited 940 6625
Strand Hanson Limited James Spinney Tel: +44 (0) 20
Nominated & Financial Ritchie Balmer 7409 3494
Adviser Jack Botros
Shard Capital Partners Damon Heath Tel: +44 (0) 20
Broker 7186 9900
St Brides Partners Charlotte Page Tel: +44 (0)20 7236
Ltd Beth Melluish 1177
Financial PR
Notes
Harvest Minerals Limited (HMI.L) is an AIM-quoted low-cost and
high margin Brazilian remineraliser producer, located in the heart
of the largest and fastest growing fertiliser market in Brazil.
Our product, KPFértil, is a registered and approved organic
multi-nutrient direct application fertiliser. It contains many of
the essential nutrients and minerals required by plants and, unlike
most fertilisers, it does not require any complex processing or
chemically alteration, instead it can be applied directly to
crops.
KPFértil is produced at the wholly owned Arapua project, that
consists of a fully permitted mine, production and storage
facilities able to produce and deliver KPFértil to customers. Known
mineralisation at the Project is expected to support 100+ years'
production at 450Ktpa.
Our focus now remains on growing our business and we have the
dedicated in-country sales and marketing team with the skills,
experience and contacts to sell KPFértil into the potential
multi-Mtpa market on the doorstep of the Project.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
IR DBLBXBBLXFBL
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October 30, 2020 03:40 ET (07:40 GMT)
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