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BBN I can’t read what he has to say as I have him filtered but I’d assume it’s not worth replying to or reading for that matter.
I for one appreciate the threads you come up with so thanks for sharing.
Quite some validation of the product this morning on the tms interview. The next step for me to asses and question management is how much would it cost and how hard logistically to add additional capacity on top of 320kt. Quite clear to me we’re headed in that direction with 175-200kt this year up over 100% on 85kt last year.
“Harvest Minerals Limited, the AIM listed fertilizer producer, is pleased to announce that Brazil's Ministry of Agriculture, Livestock, and Food Supply ("MAPA") has approved the registration of Harvest's organic, multi-nutrient KP Fértil® as a simple mineral fertilizer which under MAPA regulations categorises KP Fértil® as an authorized source of macro- and micro-nutrients that are essential for maintaining soil health and improving production”
MAPA registered it as a fertilizer. No mention of organic in the wording, correct. However kp fertil is clearly organic. Weathered lava, dug, crushed into fine powder, sold. Simple.
John. Correct, tough to produce in rainy season, however that’s the whole reason for the increase in storage capacity. The storage sheds will keep the a certain amount of product dry in the rainy season. This would allow that amount of product in the shed to be able to be crushed.
Done a vast amount of good for himself ? Like bought £770k worth of shares at 18p? Like choosing not to award 1.5million performance shares to management because the share price wasn’t reflecting the business.
It has clearly been in demand. 2020- 50k- 2021 85k -2022- 117k h1 this year most likely 175k for the year. In other words 70% increase, then a 100% increase this year. You can’t see the figures staring you in the face because… it’s all Brian’s fault.
I recognise Brians made a few mistakes for sure, geocile deal agrocerado deal which he’s actually admitted to in interviews. We all make mistakes, part of life. He’s also done a vast amount of good. Built a mine with relatively low capex. Turned a brand new product into a sought after accredited fertilizer which is in high demand right now, and most likely a £4m + profit number this year.
If you had these beliefs about things being too good to be true surely 18p area was a better time to de risk and not the potential 9 p lows.
Was playing around with chiques calculator today. And whilst not trying to get too ahead of ourselves. Next years sales if we achieve 250k which id like to think would seem achievable would achieve somewhere in the region of £7-£8m profits vs a £24m mcap today.
John I really do mean no offence here but your vendetta against Brian is probably causing you to make emotional moves in the market. As investors/traders when we start to blame everyone else we end up on a slippery slope. If we fail to look within at what we could have done better first then we act emotionally and never learn from mistakes we’ve made. We don’t learn to hold investments that we should because our vision is so clouded by anger and emotion.
9-10p is 50% below 18p high. Significant drop already in the market. Selling a 50% drop in a company with fundamentals improving by the day, possibly the best sector to be invested in, alongside a management who actually have done and are doing what they’ve said they will do doesn’t seem a sale made through logical thinking.
Your sale may end up being the right thing for you and I’m not in any position to tell you how to do things and no one knows the future. But through my relatively short investing career I’ve noticed the best investors or traders look first at what they could have done better and inevitably they grow, learn and become successful.
Ultimately I believe swingy is correct and the future here is very bright and I couldn’t think of anything worse than selling my shares. Just my opinion! You’ll make your choice whether it’s right for you to buy or sell or whatever, but before you do check your doing it for the right reasons.
And you don’t know that distributors will take 30% of kp fertil sale either! If your so bothered you should have turned up to the investor meet and submitted your questions. That would involve giving real name and email though ha
Vast majority will be sold direct through our own sales team. That was the whole reason for expanding the sales team the past 2 years.
Plus the margins on the small 25kg bags are excellent. Ramp up in sales will also be as result of farmers from previous years coming back for more in bigger quantities. Not a lot of time would need to be spent with those existing customers, leaving plenty of time for our sales team to build new relationships with new farmers.
Limestone asset really key here now. If we can get that up into production from free cash flow in the next few years then that would be excellent.
Limestone not a new product in the market and most farmers buy it. With the customer base we’d hope to have with kp fertil in 2/3 years I would hope limestone could be sold alongside kp fertil with deals for farmers who buy both to entice them in. The farmers shouldn’t need to try the product for a growing cycle before they buy large quantities as it’s a well known product in the market and limestone is limestone.
The asset is in its infancy clearly but the potential may be there should economic assessments appear favourably. A really exciting asset and one which if/when built and producing should be able to be sold quite easily along side kp fertil.
Positives -
Cash position increased to 2.4m aud from 1.7m aud
3 price rises so far - would be reasonable to think 40-50% increase this year I think - 300 real per tonne or 80 aud.
Q3 expected to be strong as usually is.
No more capex costs to produce 320kt
Management looking to return money back to shareholders at soonest possible time.
Opex cost I think Brian said circa 10 dollars? Someone correct me if I’m wrong on that.
20m aud in tax losses previously so no tax to be paid on profits for a few years at least.
Just listening to verde agritech agm to try and get some more inspiration for questions. An interesting one was asked whether share buyback or dividends would be a better route and it got me thinking here. I expect £4-5m profit this year. If the market was to value us at such low mcap as it is now of £18m surely a share buyback would make more sense than dividends at these prices? If we were valued a lot higher then wouldn’t make sense. We will be spending money on limestone asset and capacity expansion anyway this year I’m sure, but sales and profits alike have real potential to grow exponentially and if the market didn’t catch up surely a buyback would be appropriate. Just a thought.