(Sharecast News) - Fertiliser producer Harvest Minerals updated the market on trading of its organic multi-nutrient product 'KP Fértil' on Tuesday, reporting much better order progress than expected in the year so far.
The AIM-traded firm said the product, made at its wholly-owned Arapuá project in Brazil, had accumulated sales orders for the two months to 28 February of 30,161 tonnes - 1,070% above its internal forecasts.
That was also equal to 35% of the total sales orders in 2021, and 20% of its sales target set for 2022, of 150,000 tonnes.
The company said it was "well advanced" on planning an increase in capacity to 200,000 tonnes, with increased demand for 'KP Fértil' said to be ongoing.
"2021 was a pivotal year for Harvest as demand for our product increased and the company became profitable," said chairman Brian McMaster.
"During January and February, we saw that momentum continue strongly with an upsurge in orders in February as farmers recognised the benefits of KP Fértil, which has now been certified as a fertiliser.
"Additionally, anticipated disruptions in fertiliser deliveries to Brazil leading to expected product shortages and price rises are causing substantial market volatility."
As a result, Harvest was benefiting from improved margins, McMaster said, as it advanced plans to accelerate production and storage capacity.
"Historically, our sales figures tend to grow throughout the first half of the year to a peak season around mid-year and then taper further as the wet season approaches.
"During the second half of 2021 and, to date in 2022, we have seen that trend flatten somewhat with substantially increased demand throughout the year - if this trend continues, our previously published sales target of 150,000 tonnes will be adjusted upward.
"Harvest is well placed to continue to grow organically and satisfy the expected increased demand for its product."
At 1512 GMT, shares in Harvest Minerals were up 18.86% at 13.61p.
Harvest Mi (di) (HMI)