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

08 March 2022

Harvest Minerals Limited

('Harvest' or the 'Company')

Harvest to Ramp Up Production Following An Increase of Over 1,000% in Sales Orders

Harvest Minerals Limited, the AIM listed fertiliser producer, is pleased to provide a trading update for its organic, multi-nutrient fertiliser, KP Fértil®, from its 100% owned Arapuá Fertiliser Project in Brazil ('Arapuá').

Highlights:

·    CY22 accumulated sales orders as at 28 February 2022 totalled 30,161 tonnes, an increase of over 1,070% compared to internal forecasts for the same period, and representing:

o  35% of the total 2021 sales orders

o  20% of the sales target for FY 2022 (150,000 tonnes)

·    Company is well advanced on planning stages for an increase of capacity to 200,000 tonnes

·    Increased demand for KP Fértil® continuing

Brian McMaster, Chairman of Harvest, said: "2021 was a pivotal year for Harvest as demand for our product increased and the Company became profitable. 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.  Additionally, anticipated disruptions in fertiliser deliveries to Brazil leading to expected product shortages and price rises are causing substantial market volatility.  Consequently, 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, our sales figures tend to grow throughout the first half of the year to a peak season around mid-year and then taper further as the wet season approaches.  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.  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."

Further Information:

During the two first months of 2022, Harvest experienced a very strong sales performance, achieving a total volume of 30,161 tonnes of its KP Fértil®, representing a 1,070% increase over management's internal forecasts for the same period.  The total sales orders to date in 2022 accounts for 35% of the total 2021 sales and 20% of 2022 sales guidance of 150,000 tonnes. In calculating the 2022 target of 150,000 tonnes, Harvest assumed it would sell 2,574 tonnes during January and February.  The total sales of 30,161 is substantially more than initially forecast (over a 1,070% increase).

Historically, Harvest has experienced a seasonal sales performance with relatively modest sales during the start of the year ramping up to a buying season around mid-year, tapering off to more modest sales around the wet season at year end.  Given the historic expectation that approximately 80% of sales are seasonally placed in the second half of the year, the Company is advancing its plans to meet production of 200,000 tonnes.

Additionally, it has been widely reported that Brazil is experiencing product shortages and price increases due to a global supply shortage.  Harvest experienced an increased demand and improved sales value for KP Fértil® prior to the current macro-environment developments.  Notwithstanding, current events appear to be accelerating demand and again improving prices and we are responding accordingly.  Given Harvest's business has a strong gross profit margin and the relatively fixed nature of OPEX costs, we expect any increase in sales value will reflect strongly in the net profit of the business. In addition, the Government of Brazil is debating the introduction of various legislative and economic stimulus packages to incentive local production.

**ENDS**

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