Harvest Minerals Ltd (AIM:HMI, OTC:HMIFF) told investors that accumulated sales orders in 2022 to date totalled 30,161 tonnes, which marks a 1,070% increase over the fertiliser producer’s internal forecasts.
It represents a 35% increase compared to the whole of 2021, and, 20% of the overall sales target for 2022 - which was set at 150,000 tonnes.
Now, the company said it is advancing planning in order to increase its capacity to 200,000 tonnes.
“During January and February 2022, we saw that momentum continue strongly with an upsurge in orders in February as farmers recognise the benefits of KP Fértil®, which has now been certified as a fertiliser,” said chairman Brian McMaster.
“Additionally, anticipated disruptions in fertiliser deliveries to Brazil leading to expected product shortages and price rises are causing substantial market volatility.”
McMaster added: “we are benefitting from improved margins and are advancing plans to accelerate production and storage capacity to increase our role as a domestic fertiliser provider.”
Historically the company’s sales tend to grow through the first half of the year, peak at the mid-point, and taper into the wet-season, but, that appears to be changing, McMaster noted.
“During the second half of 2021 and, to date in 2022, we have seen that trend flatten somewhat with substantially increased demand throughout the year,” he added.
“If this trend continues, our previously published sales target of 150,000 tonnes will be adjusted upward.
“Harvest is well placed to continue to grow organically and satisfy the expected increased demand for its product."