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Yep. Hoping for total sales figures for q2 which will assure the annual target is met or even exceeded. Maybe an update on expansion. Other project news. Hints at dividends. All good stuff that de-risks the company and is attractive to the big buyers out there. 150KT and this re-rates (again).
The 5 year graph speaks for itself. What an amazing time to be in this share. https://www.indexmundi.com/commodities/?commodity=dap-fertilizer&months=60¤cy=brl
Trading4good… really looking forward to the sales update and the plan moving forwards. It’s been an amazing 12 months and it’s just the start of the story.
My main concern remains the logistic challenges of increased mine output.
Great link thanks Mike,
Brian answered the funding question at the Q&A. All work funded from sales. He said sales, not profit which was questioned later on when he confirmed profit. No need to raise. He further confirmed that at the end of the year there would be more money in the bank than at the start of the year.
That additional rise in sales price will be bringing in more loyal customers who up until now have been nervous about change. It’s fantastic for Harvest. What an amazing year to be a developing fertiliser company.
No need to finance anything. Excuse the pun but the business is set up to grow organically. 150-200KT this year and then the profits complete the infrastructure for a 300KT plant. Next year the profits from 250-300KT are used to upgrade to a 400KT plant. The whole thing is modular and the costs are low. No need to raise or take finance. That’s the beauty of the business
400,000T per annum. Let’s assume they get there. It’s very achievable.
What are the variables?? 1. The time taken to achieve. 2. The price per tonne. 3. The operating costs. 4. The number of shares in play when they get there.
I like the way the board are running things. The biggest risk is number 4…. And that isn’t going to change if they stick to their plan.
It’s now a logistics game John. Sales are no longer the limiting factor. 200kt at a decent profit margin this year. Invest those profits and do 300kt next year. Invest again and 400kt with no planned further expansion means dividends. See my previous post. At 400kt this is one pound a share. So 18months for a 6 bag. No risk.
27p is a magic number for me… I’ll be watching the volume with interest when it hits that. It represents a market cap of £50M. Micro cap funds suddenly are able to invest should they wish. Admittedly not many invest in AIM but it’s not unheard of and the sector is attractive. So what’s it going to take to get to 27p? It’s possible, even probable with Q2 results.
TSAE you asked what medium term is…. This is AIM so anyone holding beyond next week is a medium term investor (but I would say 18months). 18 months is when we’ll all be talking about 400KTpa being guaranteed year on year with price increases and dividends.
John, it’s not vacuous statements… it’s a restriction of releasable information that falls in the narrow space between conforming with AIM and Harvests commercial in confidence policy, which makes the statements on Twitter so vague. If you want information, email the company direct. That paper loss was a huge opportunity that so many of us didn’t take full advantage of. Lesson learned for me.
John,
Other than the obvious issue with Agrocerrado, find me some negative news in those 4 years or a single time the board haven’t met their targets. We both got it wrong 4 years ago…. Not them. The company has transformed since then.