Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

30 June 2022

Harvest Minerals Limited ('Harvest' or the 'Company')

H1 2022 KP Fértil® Sales Show 340% Year-On-Year Increase

Harvest Minerals Limited, the AIM listed remineraliser producer, is pleased to provide an update on sales of its organic, multi-nutrient, direct application fertiliser, KP Fértil®, during Q2 and H1 2022 from its 100% owned Arapua Fertiliser Project in Brazil ('Arapua').

Highlights:

·    165% increase in Q2 2022 sales year-on-year to 47,339 tonnes (Q2 2021: 17,854 tonnes)

·    340% increase in H1 2022 sales year-on-year to 117,539 (H1 2021: 26,726 tonnes)

·    On track to exceed 2022 sales target of 150,000 tonnes

·    Demand for organic fertilizers like KP Fértil® continues to surge amid supply squeeze

·    Focus on domestic fertilizer production continues to increase in primary market, Brazil

Brian McMaster, Chairman of Harvest, said: "The first half of 2022 has seen the growth of our organic fertiliser business accelerate at an astounding rate, marking one of our most successful periods since operations began, with accumulated sales reaching 117,539 tonnes, up 340% year-on-year.  Demand for our organic product KP Fértil® continues to surge, aided by an uplift in production at Arapua, situated in the heart of the Brazilian agricultural belt. This phenomenal organic growth was achieved after implementing several strategic changes including new marketing campaigns and extending our sales efforts.

"Additionally, we have today released our 31 December 2021 audited financial report wherein we have accounted for the write down of the carrying value of our non-core assets as a "cleaning of the slate" and a recognition that the near term for Harvest is focussed on maximising cash generation from Arapua and other near term cash generative assets. 

"As we work towards increasing capacity to support the seemingly insatiable appetite for natural fertilisers and remineralisers, sales of KP Fértil continue to enjoy a major growth spurt that we anticipate will enable Harvest to exceed its 150,000 tonne 2022 sales target and deliver significant value to stakeholders and shareholders."

Review of Operations

During the second quarter of 2022, Harvest sold 47,339 tonnes of its KP Fértil® bringing the total accumulated sales in the first half of the year to 117,539 tonnes compared to 26,726 tonnes in H1 2021, a 340% increase.  The strong performance during H1 2022 has reinforced the Company's belief that it will achieve its targeted 2022 year-end sales target of 150,000 tonnes of KP Fértil® before the end of the period, which will further strengthen its already robust cash position.

In terms of market fundamentals, fertiliser demand remains buoyant, in particular, appetite for natural fertilisers and remineralisers like KP Fértil are enjoying a major growth spurt, a trend that is forecast to continue thanks to an increasing emphasis on pesticide-free crops and concerns around soil contamination and over farming. Earlier in the year, the Brazilian Government pledged to reduce imports of nitrogen, phosphates and potash and focus on domestic production, which is a major sea change considering circa 90% of fertiliser is currently imported into the agriculture powerhouse. The recent events in Ukraine have placed further pressure on imported fertiliser and crop production. In turn, Harvest hopes to play its part in meeting heightened demand for domestically produced, high quality organic fertiliser.

**ENDS**

For further information, please visit www.harvestminerals.net or contact: