It really is, right place, right time for Harvest Minerals
“…Everything we said we would do when the share price was a lot higher we have actually done. You can ‘bin’ the idea of a fundraise because it’s not necessary…”
If Brian McMaster had the money he would buy the company he currently chairs.
The business is Harvest Minerals, the AIM-listed remineraliser producer which mines the organic, multi-nutrient fertiliser KP Fértil at its Arapua fertiliser project in Brazil.
The country has over 200 million inhabitants and labelled ‘the agricultural miracle’ with over 4 million family farms producing 70 percent of food consumed in the country. It’s a country with an emerging middle class keen on organic and paying attention to the provenance of their food.
This is an important scene setter as it’s the family farmers who come to the mine gate for samples to see if everything they’ve heard about KP Fertil is true.
Sales are rising, repeat custom is more frequent and McMaster says at this stage of the company’s development, the local market is more than enough to make Harvest a success. He understands the fundamental calls for the company to expand its geographical and customer footprint, but he says it doesn’t make economic sense in terms of marketing, freight charges, currency fluctuations, among the myriad of complications associated with Amazon listings, and shelf presence outside Brazil.
The business is doing well as outlined in the January fourth quarter sales performance and 2022 guidance which revealed encouraging sales orders already placed for this year.
In this conversation with Sarah Lowther he says the company has increased its prices, but won’t say by how much as the competition shouldn’t be party to that information. He’s protecting shareholder interests.
What can be said in the open market is shared with investors who he says can ‘bin’ the idea of a fundraise because it’s not necessary.
Access the updated corporate presentation
Follow the company on Twitter – @harvestminerals
The author was remunerated but does not hold shares in the company
