Harvest Minerals says 'stars are lining up' for fertiliser project

Harvest Minerals Limited (LON:HMI) has issued a bullish half year update as it moves forward with plans to market its fertiliser replacement KPfertil in Brazil. “Looking ahead, we remain committed to developing our business and believe that the stars are lining up for us,” said Brian McMaster, executive chairman. “We have the right commodity given continued global population growth that requires increased food production and therefore increased need for fertiliser; we are in the right location, given that Brazil, the largest agribusiness exporter, set to double by 2024, lacks domestic fertiliser and currently imports 90% of potash and 51% of its phosphate requirements; and this is the right time, given Arapua's location and its simple, low cost product with its +80% margin and excellent expansion potential. “ Harvest’s flagship project is Arapua in the heart of the Brazilian agriculture belt in Minas Gerais state Arapua’s current resource is 13Mt, achieved from 6.7% of identified resource, giving the project a more than 30-year mine life at a rate of 450,000 tonnes per annum. Harvest said yesterday it had applied for KPfértil to be registered as a remineraliser with the Brazilian Ministry of Agriculture, Livestock and Supply (MAPA). The application is expected to be approved by the end of the year. McMaster added: “I am confident that the foundations are in place for an extremely profitable business; subject to attaining certification, we anticipate national demand for our product to significantly increase and remain optimistic that Harvest will become a key player in the market. “ Losses in the half year to June were US$2.75mln while cash holdings were US$1.39mln.