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Capital Network's Catalano spells out potential of Harvest Mineral's Brazil project

Harvest Minerals Limited's  (LON:HMI) Arapua fertiliser project in Minas Gerais, Brazil is a "fantastic one", according to Capital Network analyst Sam Catalano.
Speaking to Proactive's stocktube team, he said the project should be coming into production later this year.
Among its credentials, it is a very low capex start up, costing only up to $400,000 to get going, he says, since it's a case  of simply digging the potash up from the ground and putting it on a truck.
It will be able sell the fertiliser at around $50 per tonne, while operating costs are less than $10 a tonne.
At a profit of around $40 a tonne, he reckons the project could yield free cash flow in double digits within the next couple of years.
The analyst added that Brazil was a faster growing market for fertiliser than the rest of the world.

 
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