Harvest Minerals Share Discussion Threads

[h2owater] 30/8/2016 10:56

BY MASTER INVESTOR29 April 2015Matthew Wood And Brian McMaster Come To Town, Bearing Diamonds, Fertilisers And Future ProfitsBy Alastair Ford Times change, and so do entrepreneurs. Matt Wood and Brian McMaster have made a pretty penny for themselves and their investors over the years through the creation and onward sale of such stellar companies as Highfield Resources, Hunnu Coal and Avanco. "Anybody who put money in when we did and came out when we did made money", says Matt. Highfield is now a US$400 million potash company with assets in Spain, Hunnu won successively IPO of the year and Mines & Money deal of the year before being taken over for nearly A$500 million, while Avanco is now worth more than A$100 million and will start producing copper in Brazil very soon. Sharp-sighted investors will detect an Australian theme to all this, and indeed Brian and Matt do both hail from Australia. But their focus now is increasingly moving to London – in part because regulations in Australia make operating any projects in their own back yard an increasingly onerous undertaking, and in part because being based in the capital markets in London makes much more sense in terms of access to Brazil, which is where their attention currently lies. There's also the question of the money. "The market here's so much deeper", says Brian. As everyone knows, capital in Australia is now very hard to come by, and in Canada it's no better. Not that London's all singing and dancing, but you can at least get things done. Accordingly, Matt's been in London for nearly a year now, and Brian is eyeing up properties as we speak. Together, they operate an umbrella organisation called Garrison Capital, which provides seed and ideas, but it's in respect of two discreet operating companies that they are now doing the rounds here with a view to establishing a more permanent presence in due course. Both companies have Brazilian assets, and both are pretty well advanced. "Historically we worked exploration properties up into development properties", says Brian. "But we've moved up the curve. We are now interested in taking forward later, pre-development stories." And so it is that Matt sits as executive chairman of Five Star Diamonds, which has a 3.5 hectare kimberlite pipe in the Goias region of Brazil, while Brian is executive chairman of Harvest Minerals, which has a major potash project on the east coast, and which has also just acquired a phosphate project inland in Minas Gerais. The plan is that both companies will in due course seek fresh capital in London, and that both will end up with an Aim listing before too long. Harvest is already listed in Australia, but Five Star is currently held privately. Will there be an appetite here? Well, that's what Brian and Matt are currently evaluating. But so far so good. They've already been able to raise funds to continue with development work for both companies, and are currently in the process of lining up all the relevant advisors to ensure a smooth transition. In the case of Five Star, Matt is very clear as to the opportunity. "For 150 years Brazil was the world's largest diamond producer", he says, and it still has huge potential. No major kimberlite pipe has ever been found there, although there have been several smaller economic pipes, including the pipe that lies at the centre of Five Star's aspirations, which is 3.5 hectares in area. What's more, diamond demand is looking up, as Brian points out. "There are people who view diamonds as another form of currency", he says. "And De Beers has said that by 2020 they don't have an explanation for how demand will be met. So, although the Five Star pipe is small, that doesn't mean it won't end up generating significant cash. After all, as Matt points out, size isn't everything. "Diavik is a one hectare pipe", he says. "We're looking at pipes with high grade and quality stones." Now that the new money's in, construction of a pilot plant has commenced. If that goes well then the hope is rapidly to move on to a feasibility study and then full scale production at the rate of upwards of 500,000 carats, using the money raised in conjunction with the Aim listing to get there. Meanwhile, the transition of Harvest from tin to fertilisers initiated by Matt and Brian is now complete. The phosphate project should be the first cab off the rank, funded by the proceeds of the mooted Aim listing. That fundraise should also put something in the kitty for a bankable study for the potash, but by then Harvest will be up and running, producing cash in a country that is the biggest importer of fertilisers globally. As far as positioning goes, it couldn't be better. "This time next year we'll have cash from our phosphate and all the questions on the potash will be answered", says Brian.https://masterinvestor.co.uk/uncategorized/matthew-wood-and-brian-mcmaster-come-to-town-bearing-diamonds-fertilisers-and-future-profits/

[sja123] 30/8/2016 08:22

For his part, and speaking to Simon Rees of Mining Weekly, Harvest Mineral’s uber-smart CEO, Brian McMaster, was equally bullish:

“There is significant upside to the project both in terms of the current resource and potential to expand the planned initial production with the project ideally located in the prime agricultural Cerrado region where fertilizer demand is high.”

“The best part is, we’ve got a quote on the desk already for a contractor. And as it stands today, first production from the trial mining is likely to take place before the rains set-in this November.”

“We are targeting 100,000 tonnes in the first run under the terms of our trial mining license. Our ambition to become a significant potash producer in Brazil should not be underestimated.̶1;

[larrylight] 30/8/2016 03:57

Hargreaves Lansdown Top of the stocks SXX, HMI, REM, SOU, 88E, REM
30th August 2016

[miahkaysor] 26/8/2016 23:02

Good luck Glenkaz :-)

[glenkaz] 26/8/2016 22:55

Personally I would have put a sell limit at 49p!!! Think you're being greedy!!! Lol! 🤒

[miahkaysor] 26/8/2016 22:42

Fortunately ive added some at 16.25p!!!Flying tomorrow morning to Dubai for a week so I have decided to put a limit sell at 50p!!!It's going to be huge!!!!!!!!!

[moormoney] 26/8/2016 19:47

Thanks for posting sja ...excellent article! That should bring more interest next week, I thought of adding a few more this morning, just wish I had now!!
Should do well next week now.

[glenkaz] 26/8/2016 18:56

Hi all have a great bh! Good day! Bring on the permit!💵8176;💶Ԍ98;

[miahkaysor] 26/8/2016 15:05

Will go crazy with permit news!!!!!!!!!

[miahkaysor] 26/8/2016 12:55

HERE WE GO!HAD A FEELING WILL TURN BLUE!!

[moormoney] 26/8/2016 12:14

Good bit of optimism this morning!! I agree with you all 30-50p. Yum yum!

[miahkaysor] 26/8/2016 10:46

CC I FILLED MY BOOTS WITH THESE!!! BEEN BUYING ON ANY WEAKNESS!!! JUST BOUGHT A FURTHER 25K @ 16.25p EARLIER!!!!ONCE THE PERMIT HITS THE MARKET WHICH IS DUE IN THE NEXT COUPLE OF WEEKS, I THINK WE CAN EXPECT TO TRADE THIS ANYTHING BETWEEN 30p-50p!no advise intended, only my opinion, dyor

[charles clore] 26/8/2016 10:37

It is down to individual choice whether to get on board before the journey commences but looking at the facts it is clear that HMI has a profitable business that is in the embryonic stage. A permit would deliver the new born baby and then we will see some real growth imho. Bearing in mind the Brazilian government is very keen to promote the fertiliser sector to help farmers grow more food I see the environmental permit arriving soon, followed swiftly by the trial mining permit.

[barnsey] 26/8/2016 10:28

This little acorn could become a large oak tree!

[johndee] 26/8/2016 10:26

Those who wait for the proof of this company having the prospects anything like SXX will be paying about 64 pence a share minimum in my opinion.

[sja123] 26/8/2016 10:22

Not to forget Mandacaru, which they only acquired last December and already have a JORC for....phosphate in this one, so a nice mix of near term phosphate and longer term potash....possibilities of joint venture with Vale on that in time....

[barnsey] 26/8/2016 10:09

Looking ahead there must be huge value re Sergi and Capela
Consider vales situation with production ending 2017 you
would imagine they would be interested.
Remember Vale is the only producer in Brazil right now and
HMI own the rights to these two potash projects.
That is a strong position to be in and hats off to the management.





Consists of Sergi and Capela potash projects.
Located in the Sergipe Alagoas Basin within 40km and 13km
from Vale’s Taquari-Vassouras mine respectively.
Taquari-Vassouras is scheduled to expire in 2017 leaving both
the Company’s Sergi and Capela potash projects ideally
positioned for a low capex development taking advantage of
the existing infrastructure.
The Taquari-Vassouras mine has been in production since 1985
and historically produced 400 - 800 thousand tonnes of K60.

[soulsauce] 26/8/2016 10:08

Fair comment jailbird.

[jailbird] 26/8/2016 10:06

potential is huge However until permits are granted and this then this becomes closer to commercializations , I am reluctant to invest here just yetOf course ppl who got in the lows, hopefully top sliced

[soulsauce] 26/8/2016 10:01

Correct ;-)

[charles clore] 26/8/2016 09:55

In other words Soul - compared to Sirius this is the bargain of a lifetime!

[jailbird] 26/8/2016 09:49

Thanks good info

[soulsauce] 26/8/2016 09:14

The short term excitement is that before the end of the year this will be producing an initial 100kT of excellent product at production cost of less than $7 per ton and selling it for upwards of $50 per ton giving a potential profit of £3m. On a PE of 10 that would be a £30m mkt cap.

But that only tells half the story. SXX who will not be producing for 3yrs and have 2bn to spend on a mine is valued at £1bn.

The CAPEX & OPEX are minimal that is where the value lies. Brazil is hungry for fertiliser products, further licencing would be a formality.