Last checked at 17 Mar 2020 08:15
Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining
17 March 2020
Harvest Minerals Limited ('Harvest' or the 'Company')
Cost Savings Programme Implemented
Harvest Minerals Limited, the AIM listed remineraliser producer, is pleased to provide an update on its cost savings programme implemented to further improve the Company's financial performance at its Arapua Project ('Arapua') located in the heart of the Brazilian agricultural belt in Minas Gerais, which produces KPFértil, a multi-nutrient direct application natural remineraliser product.
Highlights
· Total permanent annual cost savings of approximately US$400k have been identified and implemented
· All savings are from "general and administration" categories
· Further cost savings expected to be made during the year
Brian McMaster, Executive Chairman of Harvest stated, "Harvest has experienced rapid growth in its development from an explorer to a fully permitted producer. To accommodate this growth, it was necessary to apply adequate resources, however, some of these costs are not recurring and by refining our methods we have been able to eliminate these costs. We are therefore delighted to be able to implement substantial permanent annual savings of US$400k, which reduces our break-even point considerably, and look forward to updating shareholders if any further material savings occur."
Details
As announced in the Trading Update on 2 December 2019, having fully permitted and constructed the production facilities at Arapua, Harvest commenced a cost savings review to revisit all cost lines and improve its financial performance. Accordingly, the Board has identified several opportunities including certain items of expenditure that do not need to be repeated, predominately at the corporate level; these will result in permanent annual cost savings of approximately US$400k. The Company continues to monitor its costs and believes that further savings can be implemented throughout 2020; further material savings will be announced as they occur.
*ENDS*
For further information, please visit www.harvestminerals.net or contact:
Harvest Minerals Limited | Brian McMaster (Chairman) Dr Mark Heyhoe (COO) | Tel: +44 (0) 203 940 6625 |
Strand Hanson Limited Nominated & Financial Adviser | James Spinney Ritchie Balmer Jack Botros | Tel: +44 (0) 20 7409 3494 |
Shard Capital Partners Broker | Damon Heath | Tel: +44 (0) 20 7186 9900 |
St Brides Partners Ltd Financial PR | Charlotte Page Beth Melluish | Tel: +44 (0) 20 7236 1177 |
Notes
Harvest Minerals Limited (HMI.L) is an AIM-quoted low-cost and high margin Brazilian remineraliser producer, located in the heart of the largest and fastest growing fertilizer market in Brazil.
Its product, KPFértil, is a registered and approved organic multi-nutrient direct application remineraliser. It contains many of the essential nutrients and minerals required by plants and, unlike most fertilisers, it does not require any complex processing or chemically alteration but can instead be applied directly to crops.
KPFértil is produced at the wholly owned Arapua project, that consists of a fully permitted mine, production and storage facilities able to produce and deliver KPFértil to customers. Known mineralisation at the Project is expected to support 100+ years' production at 450Ktpa.
The Company's focus remains on growing the business, utilising its dedicated in-country sales and marketing team with the skills, experience and contacts to sell KPFértil into the potential multi-Mtpa market on the doorstep of the Project.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014