Three things could happen to Harvest Minerals and a placing isn’t one of them
“…One. Somebody’s going to take us out. Two. The market is going to realize that we’re undervalued and respond accordingly. Or three people are going to become shareholders at these low levels…”
Last year was described as a ‘breakout year’ for Harvest Minerals. The phrase was used by Chairman Brian McMaster and January’s full year update underpins his faith in 2022.
Sales order targets for the organic multi nutrient fertilizer KP Fértil® were exceeded, and the way sales are articulated to the market now are presented as invoiced sales.
McMaster says this is an important distinction, and should give once confused investors clarity and confidence about the company’s ambitious trajectory. Revenue from 150,ooo tonnes of actual invoice sales he says, in an unaudited sense, equates to “revenue sort of a bit over 10 and a half million Australian dollars.”
For those who like their currency in British pounds – at January 2023 levels that’s the equivalent of six million pounds which is just under half the company’s market cap.
“We’ve got year-on-year compounding annual growth rates which are staggering. I’d challenge anybody to show me an AIM listed company with a market cap of 14 or 15 million pounds doing better than we are because the answer is, I don’t think anybody meets those criteria.”
McMaster stresses this business is an extremely stable one with an expanding customer base and three things could happen to this young company.
“One. Somebody’s going to take us out. Two. The market is going to realize that we’re undervalued and respond accordingly. Or three people are going to become shareholders at these low levels, and over the course of time receive returns on their investments, which will reward their investment in the company at these levels handsomely. None of them seem like bad alternatives to me.”
And as Brian tells Sarah Lowther the company is happy to put its neck out and say Harvest expects to produce 200,000 tonnes in 2023 which “we certainly think is a proper basis for investment decisions to be made on.”
Watch the company’s latest Investor Presentation (below)
Read the latest corporate presentation
Follow the company on Twitter @harvestminerals
The author was remunerated but does not hold shares in the company