Harvest Minerals Ltd shares dropped on Thursday, after it reported lower interim revenue and a widened loss.
Shares in the company were down 32% to 1.40 pence each in London on Thursday around midday.
The fertiliser producer said revenue from fertiliser sales in the six months to June 30 dropped by two-thirds to $931,608 from $2.7 million a year before. Its pretax loss doubled to $1.6 million from $883,556.
Harvest attributed the weaker performance to lower demand and lower pricing for its product.
During the first half of the year, Harvest sold just 7,280 tonnes of its organic fertiliser KP Fertil, down 74% from 28,104 tonnes.
While historically the majority of Harvest’s annual sales have been achieved in the second half of the year, sales to date in 2023 have remained below internal expectations, the company noted.
‘This is attributable to a reduction in volume demand by farmers who are less incentivised to boost production whilst crop prices are low and energy prices are high,’ said Executive Chair Brian McMaster.
Harvest Minerals is positioned to support higher sales volumes and rebuild profit ‘as and when the market improves’, he said.
In order to reduce the company’s cash burn rate, the directors have agreed to temporarily pause drawing their remuneration due from the company during the second quarter until the point that the company is in a better position to pay.
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