Harvest Minerals yet to see impact from pandemic

Remineraliser producer Harvest Minerals updated the market on its position on Tuesday, in light of the Covid-19 coronavirus pandemic, reporting that there had not yet been any impact on its operations, but it was continuing to monitor the situation “closely”.

The AIM-traded firm said a series of measures had been implemented to keep staff, customers and the local community safe.

It said it was debt-free, with a positive working capital position of AUD 9.7m as at 31 December making for a “strong” balance sheet.

The company’s annual financial results to 31 December were now expected late in the second quarter, with the delay due to the pandemic.

On the sales and marketing front, Harvest said its teams had been expanded to provide coverage in two new geographical areas, with orders up 150% to the end of February compared to the same period last year.

Operationally, it said the expansion of both the footprint of the operating mine and the product storage facility was underway.

The company was also planting 18,000 native trees during 2020, in a bid to become a carbon free company.

“We are currently in the wet season in Brazil, a traditionally quieter period for us, and so our operations have not yet been directly impacted by the global pandemic,” said executive chairman Brian McMaster.

“However, we do know that Brazilian farmers are taking advantage of the weaker real, which has fallen by 17% this year against the dollar, and that they have already pre-sold 20% of this year's soybean harvest.

“Naturally, this is driving an increased demand for fertilisers; forecasts suggest a 3% growth in fertilisers this year.”

McMaster said the weaker real also meant that imported fertiliser prices were higher, and that the supply chain was currently disrupted, which could strengthen the firm’s proposition as a local producer.

“However, we are living in unprecedented times and whilst there have been no reported cases of Covid-19 near the Arapua Project, we cannot afford to be complacent.

“We place the safety of our staff, customers and community as the highest priority and have therefore implemented a series of measures to help protect our team and community as best we can.

“We would like to take this opportunity to send our thoughts and best wishes to all at this difficult time and will continue to monitor updates on the Covid-19 pandemic closely and update shareholders as the situation evolves.”

At 1612 BST, shares in Harvest Minerals were up 2.86% at 2.7p.