Harvest Minerals Share Discussion Threads

[jailbird] 30/3/2019 16:27

RTMany thought 10p,11p,12p etc was a buying opportunity after the fall from 20p... and we all wondering why these has fallen ... oh yes a seller .. once gone we will move back upSeller know of the not so good new coming So this news is now out of the bag ... this further drop is now another great opportunity... maybe it is ... been here before The Co has lost trust , and their communication is not even trying to make amends or create confidence

[roguetreader] 30/3/2019 16:15

Scrutable

Agree with the tenor of your post.

IMO the biggest problem has been the BOD over promising on early delivery, where early delivery is often if not always problematic for small start-ups. Clarity around orders and financials would be welcome (including the un-budgeted one-offs referred to), so hopefully these will follow.

The question is whether or not people believe there is anything fundamental from this release that negatively impacts the long-term story here. If they do then they should / will get out and move on, if not then it has to be seen as a buying opportunity.

RT

[jailbird] 30/3/2019 16:08

Focused on generating value for shareholders through realising several key milestones and establishing a firm platform for future growth.Really but the Co dues not want to provide periodic progress updatesThese unexpected costs have really annoyed me.. co just does not smell right and I am saying that as a holder . This is a straight forward business not rocket science . What are directors being paid to do to justify large salaries . These lot need to be ripped up at an AGM meeting by place shareholders at 18p

[ypymytyc] 30/3/2019 15:44

'Consulting expenses', IMO Geociclo!
YP

[cl0ckw0rk0range] 30/3/2019 15:39

Going to get some pumping this off the back of the drop - usual suspects

[kreature] 30/3/2019 14:32

I make the profit margin negative 1800% , but my maths has always been rubbish so I might be slightly out (cost of sales 418k divided by actual revenue 23k?)

[john henry] 30/3/2019 13:44

Scrubable, investors have been pushing the company for more visibility for 12 months.

They arrogantly think twice a year is ample.

McMaster is Arrogant, at least this market is calling this arrogance into question.

He has caused Placee institutions much to think about 60% down in 12 months.

[scrutable] 30/3/2019 13:30

Yeterday's interim was not nearly as bad as the fulminations from this b/b suggest.
A completely amateur report, omitting details of sales traction, and empty of joy ..yes, but the figures mainly tell us that the project has been slower than expected to crank up.

The 40% margin left after subtracting cost of sales was more than enough to cover wages and salaries, travel expenses etc. What is depressing is the figure, without comment, given for 'Consulting'. Was this a one-off to settle the major parameters for start-up? How much is repeatable, and will eat up current and next year's margin?. Many of the items were one-offs. The operation should imminently reach break even and then become very profitable. The share price is suddenly cheap enough to encourage buyers and shorters to close.

The £345k paid to directors was, as a measure of greed, far too high for a start-up, but AIM investors will see it as par for the course, not unexpected in this casino, and OK if they perform as they should during H2.

Investors should bombard the board with complaints against the inadequate information for which there can be no good excuse. This is not a company with IP needing to hide information from competitors. Investors need monthly sales reports to establish confidence and some objective reports, customer feed-back of how K-fertil has changed the economics of farming their particular product. Even expert reports from the demonstration farm should be published to raise confidence, currently unnecessarily low.

[john henry] 30/3/2019 12:55

Im guessing the plant is mothballed at the moment, storage should contain enough product for 1-2 years.

At least their overhead cost should be reduced if the plant is not operating.

Sales team on commission only, win win LOL

[kreature] 30/3/2019 10:26

23k in actual revenue would be more realistic IMO, with total 'cost of goods sold' being 418k. Enough to make anyone weep, but perhaps clarification required from the company ?

" Initial revenue numbers of A$1,048,062."

So not revenue then, just 'numbers' ?

"The Group derives its revenue from the sale of goods at a point in time"

Can anyone define 'time' ? When/What is the point ?

Why isn't it 'over time' rather than 'a point in time' ?

EY: 'Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation'....'An entity satisfies a performance obligation by transferring control of a promised good or service to the customer, which could occur over time or at a point in time.'

I'm revising my share price forecast to 0p until there's some clarification on the above

[ypymytyc] 30/3/2019 10:01

Yes, and if that were the case the ROM would be virtually empty now.
Is it?
YP

[kreature] 30/3/2019 09:55

Seriously though, who would pay $1m for dust (and 2m including debtor)? It's ridiculous. It must be accrued to 'a point in time' surely? 4p next station stop imo (3p probably covers the cash, plus 1p to cover the 'potential' of the dust )

[ypymytyc] 30/3/2019 09:47

21k:
This will be CFEM @ 2% mineral(potassium) - the reduction to 0.2% was vetoed?

CFEM payment:
Payment will be made monthly on the last business day of the second month following the taxable event, by bank transfer available on the website of ANM.

Total revenue 1,048,000:
Based on CFEM payment it looks like it's received revenue.

Trade Debtors 1,025,000:
This could be trade within 60 days prior to end Dec 2018, and recalling the recent court process regarding CFEMs, they should have paid the CFEM even if it was on 60 days deferred payment.

CFEMs:
7% to the mining sector regulator
1% to the National Fund for Scientific and Technological Development (FNDCT).
1.8% for the Mineral Technology Center (Cetem).
0.2% to the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA).
15% for the Federal District and the states where production occurs.
60% for the Federal District and the Municipalities where production occurs.
15% for the Federal District and the Municipalities, when affected by the mining activity and production does not occur in their territories.

AIMO - YP

[kreature] 30/3/2019 08:41

Total revenue 1,048,000

Trade Debtors 1,025,000

?

Is it only ‘accrued’; revenue then? “At a point in time”. When is the point in time?

[kreature] 30/3/2019 08:05

Royalty expense 21k? Who gets that again ? The government or landowner or vendors

[john henry] 30/3/2019 07:03

5p would definitely be worth a punt.

McMaster did get the fund raise timing spot on. Their saving grace for the next 3-4 years.

[cl0ckw0rk0range] 30/3/2019 06:53

Sadly it's probably going sub 5p and then it's a hold until Summer when it may fall again. Watch list.

[john henry] 30/3/2019 06:51

Dont forget the 3 day rule after disastrous news.

Imho 6p low.

[john henry] 30/3/2019 06:31

Imho the share price will trade around asset value plus (cash)in the short term.

Question is, is there an actual business. Can KP Fertil carve out a market for itself.

The days of talking about sales of 320K tonnes a year are long gone.

However in 2-3 years i believe they could probably be selling 100-120 K per annum on a regular basis.

Run the plant for around 4 months of the year and become a profitable little local business.

[hungary16] 29/3/2019 22:52

Zero credibility - heads should roll but won’t ! To think management / directors helped themselves to “ performance “ shares ! Looks like it was all a con - no way back from here for the share price !

[ypymytyc] 29/3/2019 22:34

7p, and it could get worse.
It’s this part of the RNS interests me:
‘Additionally, the Company has experienced some unbudgeted one-off costs that have impacted the Company's profit before tax in H1 2019, which are not expected to be repeated in H2 2019 or thereafter.’
Now that sounds to me like they’ve had a plant failure.
Why did they go on to mains power Feb 2019? I didn’t expect that until they had the FML.
Search Jusbrasil for ‘Master Diesel Ltda’. 21/03/2019 a court process for R$ 36,726.36
Read the ‘Switch to Grid Power’ RNS’, it’s laughable.
YP

[kreature] 29/3/2019 21:34

Well yp said this would be 7p, and here we are on the way past.

Given all of those genuine sales of dust, in hindsight could they have used a real life farm rather than the purpose built demonstration farm ?

[amunro] 29/3/2019 17:00

Another AIM star? Seems to be alot of expenses since there is a bit of income; oops the expenses have gobbled up the income!