Member Info for Slift

Bopd,

As I've said, I will buy these shares at the right price. Today, the best offer I got was 2.4p for shares. I've already placed a buy limit order, so do go ahead and sell.

You clearly do not believe this company or the product, so why are you here? Are you emotionally attached too??
I see huge potential here and we'll see in the new year when the trading update comes :)

"250 grand last week now a 53 grand just gone through who would put that into a dyeing company"

Lol, there are many companies listed on the public markets.
Many of which are safe and prospering.

So why take the risk here when even the company has provided you with an RNS saying substantial dilution or no value?

Is it hope? Is it because they're deluded? Or is it because they're just dumb?
We'll all find out in the new year.

Merry Christmas.

John4242,

The product is sold at 200 BRL/tonne.
In today's market, that's $50 AUD.

Targa123,

"Following cost saving initiatives, the recurring overall cost of operations is the equivalent of sales of approximately 40,000 tonnes / annum of KPFértil"
This means that cost per tonne @50kt sales is $40AUD.

John4242, it isn't just a shed for storage.

From RNS:
"Work completed to date and currently in progress includes:
· Expansion of the mining area
· Increase of the product storage area
· Addition of manoeuvre area for bigger trucks
· Maintenance of access points
· Improvements at the processing plan
· Infrastructure improvements"

Honestly, you're dwelling on the past.
The $7-8AUD cost per tonne comes at max processing capacity (320kt).
The cost per tonne currently (at expected 50kt sales) is $40AUD/tonne. The product is sold for $50AUD/tonne

Right now KP Fertil has:

- 400kt/pa mining license
- 78.8 km2 area for mining

- Raw materials (ROM) storage in open put (Expect an area to be built for this in the future)
- 320kt/pa processing capacity
- 30kt product storage in 6,000 m2 covered storage area
- big bag handling for easy loading onto trucks (including additional loading bays that were constructed with most recent expansion)

You've also got to be realistic.
320kt/pa processing capacity is less than 1kt/day being processed.
So the company cannot INSTANTLY meet sales orders without a storage facility.
If farmers order product during the "heavy buying period", you need to have product in storage to be able to sell quicker rather than waiting for the plant to process 1kt a day.

Which is why the plant is running at full capacity atm:
"Expansion work concluded and now operating on a 24-hour, three-shift production scale to meet peak demand"

To be able to process the production for delivery and/or store before delivery next year.

John4242,
The processing plant is still limited to 320kt/pa.

They will however expand this also as sales increase beyond the limit.
I think there was also somewhere in the Q&A regarding trucking/loading capabilities that could be expanded if sales do pick up.

john4242,

Yes, it's true that the plant was rated to 320kt.
But do you know what happened later that year (or was it 2019?)?
Harvest couldn't deliver some product due to the weather. They ran out of stored product and wet material isn't easy to process in their plant.
Also due to obtaining the full mining license, the mining area had to be expanded at some point.

Which was why the expansion was completed this year as per RNS dated 3rd Nov:
- Product Storage capacity expanded by 300% or 30,000 tonnes of product over a 6,000m2 total storage covered area
- Mining Area increased four-fold to 78.8km2 to provide greater production flexibility according to demand

john4242,
Forecast for 2019 has always been breakeven.

Try doing some research.

John4242,

They have been pretty consistent.
"2nd Dec 2019:
Aiming to record maiden profit before tax for CY2020
Having launched KPFértil just 12 months ago, we are delighted to report that we will close the year at breakeven at the profit before tax level. Given this progress and as we continue to build confidence in the product and grow our sales run-rate, we aim to see a maiden profit before tax in 2020."

"6th Dec 2019:
Ordinarily, a profitable, dividend-paying company, which Harvest is targeting"

"14th Jan:
We intend to provide the market with a more detailed announcement covering this in due course."

"30th September:
On track to conclude 2020 by reporting a modest maiden profit before tax.
we continue to have strong confidence in the strength of our business and quality of our KPFértil product, with a maiden profit imminent"

To me, they've always stated the following steps.
Step 1: Breakeven (2019)
Step 2: Make a profit (2020)
Step 3: Pay dividends to reward shareholders (??)

I think they will try to cover their OTHER costs (CAPEX) before they pay dividend though.
We'll be lucky to expect a dividend in 2021 (i.e. if expected sales are 75-100kt), but it depends on if Harvest are planning on developing their POTASH projects.

ALL IMO. GLA.

"Now that the business is safe and prospering, with a maiden profit expected, we look forward to a renewed vigour in the share price performance."

Brian has stated that this maiden profit will be before tax for the year.
This means that for this half year, HMI should have generated AT LEAST $1,843,743 AUD in profits in H2 on top of their operating expense in H2.
Normal operating expenses are approx. $1.2m AUD for half year (although this is likely lower due to further cost cutting measures).

So in total, the company needs approx. $3m AUD in revenue for the second half.
This is approx. 60kt worth of product (without the cost savings stated in the 30th September update)
However it is also likely that we will see some revenue achieved from H1 2020 here fall in the 2nd half due to movement in capital/backlog/delivery/etc. (Note: The company only had $299k AUD registered as revenue in H1 2020 for the sales).

ALL IMO. GLA.

DiveCentre,

It should also be noted that part of Halifax was relinquished (presumably 14th November when First Term ended although no RNS to state this).
But it is visible on the updated map on their website.

30th September:
"20. It would be hugely helpful to have an idea of the board's views on the direction of the Company moving forward. Yes, there have been considerable setbacks, some of which have been outside of the Company's control but is there still the enthusiasm within the board to turn the Company's fortunes around? Alternatively, do the board envisage a situation where the Company and/or operations may be put up for sale in a bid to secure a positive return for shareholders?
The Board wholeheartedly believes in the organic fertiliser space and the importance of its role in food production going forward. Additionally, the Board believes that KPFértil is an exceptional product and is the right product to take the Company forward. Consequently, we have strong confidence in the Company and its future growth and value prospects."

"The Board is very proud of the efforts the Harvest team has and continue to make. Our confidence in the future is stronger now than ever. Disappointingly, the share price tells a different story. We are very aware that our shareholders are not being rewarded. Now that the business is safe and prospering, with a maiden profit expected, we look forward to a renewed vigour in the share price performance."

14th Jan:
"29. Question: Can you clarify the dividend policy?
Answer: We intend to provide the market with a more detailed announcement covering this in due course. "

6th Dec 2019:
"Looking at the present and immediate future, the Company has reached a sizeable sales run rate that it expects to improve on next year as it reaches profitability. Ordinarily, a profitable, dividend-paying company, which Harvest is targeting, will be re-rated by the market as it meets the investment criteria of a broader investor base."

"Since the Chairman took a large number of shares at 18p in the placing, presumably expecting to eventually make a profit, why are other executives not buying shares at the current price, when they claim it is undervalued?
We continue to maintain that the Company is severely undervalued. As the Chairman said recently, he believes strongly in the future of Harvest. Until recently, the management team has been in a "black out" period pending the release of the annual accounts. The Company is aware that some junior level executives have purchased stock in recent days following the end of this black out period."

False dream as stock markets are closed for the afternoon on Christmas Eve.

Lol Dickbat,
i'm allowed to provide my opinions here!
Who are you to tell me I can't?!

"but I doubt I will care I would be to busy counting my patient gained whilst you trade in and out for your 10%"

"do you know if I also trade this as well as invest..?"

Are you contradicting yourself now?

But don't you worry about me and you worry about your investment bro.

"Slift go run alone... your inexperience in oil and gas and and utter contempt and bitterness for this company shows through I suggest you write your long winded post on the company’s you have your clever money invested in sorry short term traded on !! instead of making yourself look a bigger fool on here... if it fails which I don’t believe it will you can laugh and gloat as much as you like and if it succeeds I would take great pleasure in reminding you..but I doubt I will care I would be to busy counting my patient gained whilst you trade in and out for your 10%"

I'm happy with my 10%.

Lol.. Trust..

Good luck with trust in investments.

Summer of 2022 or 2023?

Where have all the $65/barrel oil pricer rampers gone?