(Sharecast News) - Fertiliser producer Harvest Minerals updated the market on sales for its KP Fértil product on Monday, reporting that as of the end of September, it had received orders totalling 40,000 tonnes.
The AIM-traded firm said that 22,500 tonnes had already been invoiced for payment, with an additional 17,500 tonnes expected to be invoiced by the end of December.
The company said it anticipated further orders to be placed in the fourth quarter, amounting to 30,000 tonnes.
Harvest Minerals set a target of 70,000 tonnes in full-year orders for 2023, with most orders expected to be invoiced by the end of December.
The firm acknowledged that fertiliser demand was expected to see improvement in 2024 but added that it was cautious due to ongoing uncertain market conditions, which were projected to persist throughout 2023 and potentially into the early stages of 2024.
"2023 continues to be a challenging year for fertiliser companies globally as prices of fertiliser fell," said chairman Brian McMaster.
"Sales of KP Fértil have been impacted by farmers reducing spending on fertiliser in anticipation of further price drops and hopes for improved crop conditions.
"The volatility being experienced by the company is a macroeconomic issue and outside of our control."
McMaster said that while the firm ultimately expected fertiliser demand to improve in 2024, given the level of uncertainty experienced in the year to date, it needed a sensible read on when that turnaround in conditions could occur.
"The company has done all it can in terms of reducing overheard and opex costs, and will keep the market updated on our progress."
At 1110 BST, shares in Harvest Minerals were down 2.12% at 1.1012p.
Reporting by Josh White for Sharecast.com.
Harvest Mi (di) (HMI)