(Alliance News) - Harvest Minerals Ltd on Tuesday praised a local civil court decision in Brazil's municipality Patos de Minas, as it gave a trading update highlighting more cash in 2022.
Harvest Minerals shares rose 18% to 9.47 pence each in London on Tuesday morning.
The fertiliser producer with operations in Brazil said the local court awarded it BRL2.4 million, around USD463,000, regarding a contract with Agrocerrado Produtos Agricolas e Assistencia Tecnica Ltda.
Agrocerrado is required to execute the payment under the court ruling.
Harvest said the amount acquired by Agrocerrado totalled 1,800 tonnes, which was about 10% of the total minimum commitment under the contract. Following this, Harvest had started legal proceedings against Agrocerrado, alleging a breach of contract.
It said recoveries from the process against Agrocerrado are "immediately cash accretive." It added that the successful litigation with the company is fully provided for in Tuesday's release.
Meanwhile, Harvest said at the end of 2022, net cash was AUD2.7 million, up 59% from AUD1.7 million at the end of 2021. Current accounts receivable net climbed 41% to AUD2.6 million from AUD1.8 million, while the net working capital position grew 54% to AUD5.0 million from AUD3.3 million.
By Tom Budszus, Alliance News reporter
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Harvest Mi (di) (HMI)