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

29 September 2022

Harvest Minerals Limited

('Harvest' or the 'Company')

Q3 2022 KP Fértil® Sales Up

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

HIGHLIGHTS

·    2022 full year sales order target of 150,000 tonnes has been exceeded

·    YTD sales orders total 153,074 tonnes (YTD Q3 2021: 74,159 tonnes) a year-on-year increase of 106%

·    Healthy sales margins of 55%-60%

·    Buoyant fertiliser market conditions continuing

·    Overall, the Company is cashflow positive

Brian McMaster, Chairman of Harvest, said: "As we have described previously, Harvest is having its breakout year.  We have already exceeded our 2022 sales orders target of 150,00 tonnes of KP Fértil®.  The upsurge in sales/enquiries has been facilitated by the re-classification of KP Fértil® from a remineraliser to a fertiliser in March 2022 coupled with the overall global outlook for fertilisers. The increased demand for fertilisers is unlikely to abate as the world focuses on feeding its growing population, projected to top 8 billion later this year, while the war between Russia and Ukraine, two of the world's biggest exporters of fertiliser, has added further strain to the market.  

"We have been adapting to the uptick in sales orders and production requirements.  As announced previously, we have been increasing storage capacity in order to maintain higher levels of dry product for production and sale.  Our operations are continuing smoothly and the Harvest team's response to the higher production levels bodes well for our future growth.  Financially, the Company is on a very sound footing.  We are cashflow positive at an overall level and we forecast that to continue. 

We have today released our 30 June 2022 half-year financial report which highlights our improving cash position and puts a line under the asset write down programme instigated last year. 

Finally, I would like to thank the Harvest team and our shareholders.  2022 has been a tricky year in many respects and the dedication, patience and support the company receives at all levels is greatly appreciated and starting to be rewarded."

REVIEW OF OPERATIONS

YTD 2022, Harvest has received sales orders for 153,074 tonnes of its KP Fértil® produced at its Arapua Fertiliser Project in Brazil, representing a 106% year-on-year increase over the same period of 2021, and achieved healthy sales margins of 55%-60%.  Accordingly, the Company has exceeded its 2022 year-end sales target of 150,000 tonnes of KP Fértil®.

During Q3 2022 the Company recorded sales orders totalling 32,676 (Q3 2021: 46,166 tonnes).  This decrease in quarterly orders is viewed simply as a timing issue.  As previously announced, Q1 and Q2 sales were well in excess of previous years and similarly we anticipate a robust Q4.

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.  The Company continues to build on its marketing campaign to offer its product 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® in other regions beyond its immediate market in Minas Gerais and Sao Paulo.

**ENDS**

For further information, please visit www.harvestminerals.net or contact: