Full text13 Jan 2018 13:13
Value the Markets Q&A with Brian McMaster, Executive Chairman of Harvest Minerals (HMI)
by ValueTheMarkets � January 13, 2018
Harvest Minerals (AIM:HMI) is a fertilizer development company listed on the London AIM market with four principal projects in Brazil. ValueTheMarkets.com posed some questions about the demand for their product and operations on the ground to Executive Chairman, Brian McMaster�.
Experience past & present
Harvest Minerals has been a popular company during 2017 seeing its share price start the year at 18p and closing just shy of 15p after seeing lows of 7p. I understand the team in Brazil has been through a period of validation to ensure its natural organic fertilizer business meets the government classification criteria, and this milestone has now been reached. Could you give investors some insight into the experience of the management team, both in Brazil, but more so where operating a producing asset of this kind?
�The Brazillian team is comprised of industry professionals with cumulative decades of experience. Luis Azevedo is regarded as one of Brazil�s pre-eminent mining entrepreneurs having been involved directly in the creation and management of numerous companies as well as acting in a professional capacity as an adviser to dozens of clients. Interestingly, Luis has extensive experience in running Brazilian fertilizer companies having previously been at the helm of Rio Verde Minerals before it was sold for $55m. Another interesting tidbit is that Luis was recently awarded �Brazilian Explorer of the Year.� Quite a feat and well deserved.�
Scalability & ease of recovery
Can you explain the ease of recovery and how the mining operation can be scaled up subject to sales orders?
�The deposit occurs at surface and we have already identified decades worth of product. So extracting it is really easy. There�s no blasting or anything it just a dig and crush operation. We have already put in the bulk of the civil works and the first modular crushing plant. If we want to expand production (which we will), we simply have to add more modular capacity. The design of the plant so far has assumed we will be adding more capacity as we go.�
market size for commodity
We understand that the Brazilian government has cut the royalty taxes for the commodity which reinforces the company�s belief that fertilizer of this nature is a critical local need. What are your production targets coupled with the market size for your fertilizer?
� We have said for a while that we are targeting 400-450kt per annum. We estimate the market within a 200 km radius of us for KpFertil equivalent products is 6-8Mtpa. That means we have lots of room for expansion.�
Local relationships
You are listed in London. Can you give us an understanding of your local in-country business relationships in Brazil?
�Luis is