Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
BRAZIL RAMPS UP FERTILIZER PRODUCTION AMID GROWING AGRICULTURAL DEMAND
https://www.processingmagazine.com/brazil-ramps-up-fertilizer-production-amid-growing-agricultural-demand/
Brazil is one of the world's leading exporters of agricultural production but as much as 70 percent of the fertilizer it uses is imported. In a bid to reduce dependency on imported products, Brazil is set to invest billions of dollars in projects that will increase its domestic output of fertilizers, according to a new report by Brazilian industry association Fiesp.
Investments in the sector are expected to pick up significantly, following the announcement that the Brazilian government is preparing an incentive package for firms that pump capital into this segment of the industry. Thanks to these measures, new nitrogen, phosphorus and potassium (NPK) fertilizer plants are projected to reduce the share of imported products to 59 percent by 2018, the report says.
This is unlikely to set a long-term trend, however, because both domestic and global demand for agricultural products is expected to continue going up, thus forcing Brazil to make up the difference with growing fertilizer imports once again. Fiesp has projected that the share of imported NPK fertilizers will reach 63 percent by 2023.
The industry association has estimated that domestic production of phosphorus will double by 2023, reaching 4.1Mt per year, cutting imports from 57.4 percent to just 22.2 percent. Meanwhile, nitrogen fertilizers will retain their position as most imported product over the forecast period. Currently, 93 percent of nitrogen fertilizer demand is met by imports, AgWeb reported.
whl2 - as per your postings on ADVFN, I'd really urge you not to bite and respond to the spammers - just use filter and concentrate on the serious posters. In the end you just clog up the board as much as they do, which is what they ultimately want.
It could be a day or two or maybe a week or two but fairly soon we'll have BM giving an interview to either Doc, Vox or Proactive with probably another sales order under our belts and we'll then continue the upwards journey regardless of the deliberate spammers on here. Just like MAPA it's not if, it's when.
Podcast with updates appearing soon apparently:
https://twitter.com/dds_docholiday/status/1019129972265451525?s=21
Suggest you take to twitter and have a whinge at the company for their poor investor comms, I have. One missed target for MAPA is bad but two...
I firmly believe it will come and even bought more on Friday but more than a little frustrated by the lack of updates when they’ve given guidelines in an RNS and it’s failed to materialise. Realise it’s out of their control but in its absence an acknowledgement or just an operational update would buy them some more time.
Sooner or later those bureaucrats in the ministry will have to open their drawer, find the rubber stamp and put us out of our misery.
Given they’re suddenly in possession of £9million quid to fund expansion, I’m sure there’s plenty going on in the background that we’ll be made aware of sooner or later. Plus the sales guys will be busy.
One of these days we’ll get an RNS or probably a string of them, which will give us the relate we know this deserves.
You are quite correct JH, I was zipping out the door as I typed. Apologies.
So, market cap = £25mill excluding cash / £ 36 mill including cash.
Average industry P/E = 26.75
Current 100k sales = £4m profit
What might another 100k sales and a whiff of more in the pipeline do, eh...
Our current mkt cap is £36million of which over £9mil is in cash in an industry where the average P/E is 26.
With every 100kt of sales we make £2million profit, which is where we are now without MAPA and without a recent sales update. Imagine the picture with another 100ktpa sales, MAPA and management spending some of that £9 million to increase capacity still further.
I don’t think you have to buy and hope in this situation, just do the maths.
We need MAPA and some chunky sales deals together with some upbeat podcasts/webcasts to get the churn going properly and shift the remaining fund raising flippers.
The story and fundamentals are great, we just need some serious meat from the company to confirm to investors just how welll positioned we are going forward.
They’re signing deals without it so I don’t think it’s the be all and end all but they did say end of H1, which leaves a little over a week to go. Given all the missed deadlines I daresay they allowed a considerable amount of slack with that claim but here we find ourselves with just over a week for that self imposed deadline. I’ve no idea when it’ll arrive, I’m 100% confident it eventually will and I don’t think it’ll make an iota of difference if it doesn’t come for a month or two from a mid term perspective. Reckon it might facilitate one or two deals in the short term though...
Kieran, I'm all for debate on the opposing side of the argument and value counter arguments to allow me to constantly update and evaluate my reasons for investing in a particular company. What I object to are posters, and bulletin boards are full of them, that clearly have an agenda whether that be to ramp a stock or deramp it by stating meaningless hype or conjecture without any rational argument based on facts. Quisad clearly falls into this category and it didn't take me long to figure out his agenda and filter him ages ago. I have also filtered serial rampers and worst of all those who ramp one moment and then deramp the next according to their position - the tell tale sign always being the omission of any facts or any attempt to form a lucid argument for their change of outlook on a particular stock. I've done my research with HM, met the relevant parties and now have a reasonable holding and am incredibly relaxed and bullish about their prospects. I expect the next few months to be transformational as new sales contracts are announced and the market gets to see the true potential of this great little company.
Three weeks today since the MAPA conditional approval RNS: Harvest Minerals Limited, the AIM listed natural fertiliser producer, is pleased to announce that it has been informed by the Ministry of Agriculture ('MAPA') in Brazil that it has conditionally approved the Company's application to register KPf�rtil as a remineraliser, pending the submission of additional materials. This has now been done and Harvest has been advised that the submitted materials will be reviewed expeditiously, with final approval from MAPA expected this quarter. Hopefully they're true to the word and are working 'expeditiously'. Four weeks of the quarter left although I suspect we'll get sales news before then. Just got to be patient...
JohnHenry - I agree, just look at their track record. Outstanding. I only put out something quantitive for fellow investors to hang their hat on given some of the deramping (which I cannot see anymore thanks to the filter function) that occurs on here. I think they are only too aware of the demand out there and just ignoring the fact of whether you think the product is superior to everyone else's, which I think it probably is but that could be subjective, what you can't argue with is the economics - it's far cheaper than the competition and is manufactured where all the customers actually are. Serios coffee growers like Veloso wouldn't be trialling it if they weren't taking KPfertil seriously. Anecdotal evidence from the presentations and interviews you mention suggest that sales are going well and the product is well received. I suspect Mark is just waiting for MAPA to finally drop at which point we'll get a slew of updates, which will give the SP a serious kick up the backside. I mention P/Es vs earnings a couple of posts ago. I think if we get some positive and reasonably substantial sales updates early on, particularly if they come from a serious coffee grower like Veloso who would have completed their due diligence, the market will take note of their successful penetration into such a company and conclude that more orders will rapidly follow and the P/E at this early stage will be closer to 30 given the projected growth and we'll see SP increases that will surprise many on here. Until then patience is required. Given MAPA and an order from Veloso for example and I can't see why we wouldn't head north of 40p if the order was a chunky one. Even an 'initial' order would surely see 35p. Regardless, I'm very relaxed and expect to see a very substantial rise over the next 6-12 months and beyond.