Upbeat RNS23 Mar 2018 09:04
Harvest Minerals Limited, the AIM listed Brazilian fertiliser producer, is pleased to announce its unaudited interim results for the six month period ended 31 December 2017.
Highlights
� Focus on building sales of natural fertiliser from Company's Arapua project into large local market
o Post period end, signed first major deal with a key distributor of fertiliser in Brazil for an initial supply of 36Kt of KPf�rtil with a sales value of +US$2m
o Strong sales pipeline on back of expansion of sales team
� Verified significant advantages of KPf�rtil over traditional fertilisers for perennial crops
o Certification of KPf�rtil by MAPA as a remineraliser expected imminently
� Demonstrated strong project economics at Arapua
� Developing modular operations to expand production in line with sales - on track to complete Phase 1 plant expansion early Q2 2018 to bring capacity to 320Ktpa
� On the corporate side, successfully completed a placing of �1.2m in October 2017 and certain Board changes undertaken
Please refer to the Company's website for the full interim report, which will be uploaded shortly.
Chairman's Statement
Our focus during the period was on advancing the Arapua Project towards commercial production and developing a robust sales pipeline of KPf�rtil, our proven multi-nutrient fertiliser. Located in Brazil in the heart of the world's largest and fastest growing agricultural belt, this exciting project benefits from strong government support and compelling economics. It is now on the cusp of reaping the benefits of significant investment as commercial production come in sight.
We set ourselves four targets during 2017: to complete all the required agronomic test work; to apply to register our product KPf�rtil with the Brazilian Ministry of Agriculture ('MAPA'); to achieve first sales; and to commission a modular processing plant to ensure that it is easy to expand production in line with sales. At the time, these appeared ambitious, but through the determination and hard work of all our team, I am very pleased to report all were achieved during 2H 2017.
The completion of all the required agronomic test works was particularly satisfying. Originally, we were told this would take 18 months, but through our proactive monitoring and engagement with all the agencies taking part, we were able to apply to MAPA in well under 12 months. Whilst, we will continue with further agronomic test work to assist our marketing efforts including our long-term coffee test work, all our agronomic studies to date indicate that KPf�rtil will work as both a remineraliser and a fertiliser. What is particularly exciting is that as it releases the nutrients slowly over time with very little lost due to leaching, it will outperform traditional fertilisers for perennial crops such coffee, sugar cane