Harvest Minerals Ltd on Monday downgraded its 2023 sales target for its application fertiliser KP Fertil to be lower than half of its original goal.
Harvest Minerals shares fell 26% to 2.40 pence each on Monday morning in London.
The London-based fertiliser producer with operations in Brazil said it now aims to sell 70,000 tonnes of KP Fertil during 2023, down from its revised target of 120,000 tonnes set in June. Back in April, the company said it was on track to achieve its original target of 200,000 tonnes.
In January, the company reported a total fertiliser sales volume for 2022 of 172,000 tonnes, doubling from 85,030 tonnes in 2021.
Harvest Minerals explained that sales for July remained below the revised internal expectations, alongside a drop in fertiliser prices.
The company said it ‘is observing that farmers are continuing to delay purchasing fertiliser until greater stability in the market is seen; low crop prices and high energy costs are some of the factors unbalancing the market. Market observers are widely predicting that fertiliser demand is expected to improve throughout the remainder of the year.’
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