Harvest Minerals Share Discussion Threads

[charles clore] 29/9/2016 14:25

The shares are tightly held making for some occasional tightness in liquidity. In those circumstances when the price moves it tends to move big and fast. A future example of this could be when the mining permit is issued. Given the Brazilian government's special interest in fertiliser projects we should not have long to wait imho.

[shakeypremis] 29/9/2016 12:57

MM's still taking over 60k shares at the same price they'll take 5k. Encouraging.

[soulsauce] 29/9/2016 12:00

Quite shakey.

[shakeypremis] 29/9/2016 11:49

I'm not forgetting about the other assets. I'm just making a fantastic case for investment and massive earnings growth based on the current project at Arapua and what we know about already. We don't even need those other projects to make a LOT of money here. Yet we have them and that just makes the investment case even greater.

[soulsauce] 29/9/2016 11:20

Lets not forget about the other assets chaps when doing valuations. The other projects are the biggies but they have started on Arapua for the vision of quick return which will allow the company the wherewithal to advance those other projects.

Also if this pays off, and there is no reason to believe it won't in a big way, the company will have it's ear to the ground and the contacts for more DANF projects.

[shakeypremis] 29/9/2016 11:11

Those calcs give a price to earnings ratio (19p share price, 3.2p earnings per share) of about 6 which is not exactly high. The earnings have vast scope for increase so a PE of 6 is far from overvalued. Quite the opposite in fact.

With the rolling 50k of production allowed under the trial license we could see up to 350kt mined in a year which makes the total amount of profit 3.5x higher at $14m (£10.775m at current USD/GBP exchange rates). That makes the PE ratio 1.7 (assuming a 19p share price and 96,000,000 shares in issue).

Of course we are going to see more dilution, but not by a whole lot more, I think the total number of shares that will exist is something around the 110m mark (I can't remember, perhaps someone can clarify). Even then we are still looking at low PE ratios with massive scope for growth.

[mr roper] 29/9/2016 10:34

shakey
50-60p is most likely a good 9-12 mths away and will depend on a) increasing from 100000kt a year and also b) extending the resource. Both I should think are possible.

current mkt cap $23m
100000kt a year at 50$/t = 5m, with profit margin of 80% = $4m

I'd think this should be aiming for double that mkt cap in 3-6 mths once production is really underway

[shakeypremis] 29/9/2016 10:24

Mr Roper, what do you base that 50-60p figure on? If you don't mind me asking of course. I'd like to see your calculations (not disputing, just genuinely interested in people's calculations).

[shakeypremis] 29/9/2016 10:22

Quite right too. There is a lot of potential here. All we need is the trial license (which seems to be a matter of when, not if). Once we get that, hopefully we can also get some indications of production rates under the trial license and additionally also perhaps some indications of the price the phosphate will be sold for.

[mr roper] 29/9/2016 10:21

not getting mine. I'm looking for 50-60p.

[shakeypremis] 29/9/2016 10:15

MM's offering £0.1857 for over 60k shares.

[dice1950] 29/9/2016 09:12

HARVEST MINERALS LIMITED ORD NP (HMI.L)
18.90 +0.90 (+5.00%) 4 star buy
Resistance1: 24.15 Resistance2: 28.21

[mr roper] 29/9/2016 08:11

fine start this morning anyway

[shakeypremis] 29/9/2016 08:05

Fission453, do you have access to the 'full report' mentioned in your above post?

Cheers

[pathai3] 29/9/2016 04:57

Harvest Minerals Limted’s (LON:HMI) world production of potash would have double to meet the present day’s population
29th September 2016

[fission453] 28/9/2016 23:10

Harvest Minerals (HMI.L)
Buy at 17.5p
(Target Price: 32.0p)
Cyan Holdings
Harvest Minerals’ Arapua project is a multi-nutrient fertilizer deposit in Brazil. First production is fully funded and expected this November, with the aim of producing an initial 50kt from an area called Maximus which Harvest will use to start developing the local market.

This near term production is welcome, however our investment case is based on a larger scale operation. Assuming Maximus is successful, Harvest will develop new mining areas for minimal capital cost. The Arapua project covers 150km2 and should contain at least 15mt of mineable and marketable resources.

For an estimated $7/t Arapua material can be mined and crushed, to be sold at the mine gate. Helpfully, it is located in one of Brazil’s main agricultural regions which has poor soil and currently imports most of its fertilizer needs. This should ensure strong local demand and attractive pricing. A sales price of $50/t, which we believe is achievable, would give a gross profit margin in excess of 80%. We initiate with a Buy recommendation and a 32.0p target price. Read the full report

Beaufort Securities acts as corporate broker to Harvest Minerals

[charles clore] 28/9/2016 20:51

R&H that is usually the way it works in mining. The permit is a share price trigger.

[regandharry5] 28/9/2016 19:41

If I could ask,,it seems most people agree that thing main thing holding this back is the mining permit.So if this permit was a "gimme " why isn't the share price higher.If the permit is gonna be held up what is that going to do to the share price.

[dice1950] 28/9/2016 16:45

Charles stay here there is more posters and genuine research done,thanks a big rerating coming here and stock is tightly held.

[charles clore] 28/9/2016 16:39

Posted on other thread, sorry to repeat.If you do a comparison with peers this company gives you a lot more bang for your buck. For example Sirius is probably 4 or 5 years away from production and yet their market cap is getting on for a billion pounds. This is a few weeks away from production with a vast resource and amazingly still valued at under 20 million. Imho we have a couple of things stopping the price rising. One is the mining permit hasnt been rubber stamped yet. The other is a few warrant holders converting and taking a profit. Only a small number but enough to dampen buying in the prelude to the mining permit. After that is issued in a few weeks time, I doubt you will be able to pick these up for less than 30p. My target for xmas is 50p.

[charles clore] 28/9/2016 16:36

If you do a comparison with peers this company gives you a lot more bang for your buck. For example Sirius is probably 4 or 5 years away from production and yet their market cap is getting on for a billion pounds. This is a few weeks away from production with a vast resource and amazingly still valued at under 20 million. Imho we have a couple of things stopping the price rising. One is the mining permit hasnt been rubber stamped yet. The other is a few warrant holders converting and taking a profit. Only a small number but enough to dampen buying in the prelude to the mining permit. After that is issued in a few weeks time, I doubt you will be able to pick these up for less than 30p. My target for xmas is 50p.

[dice1950] 28/9/2016 16:34

HE aint seen nothing yet wait a few days £££;


Allenby’s Matt Butlin AIM is booming, but just what are the junior market's most popular stocks Harvest Minerals Ltd (LON:HMI)
15:37 28 Sep 2016

[dice1950] 28/9/2016 15:29

ive been loading up here guys bid talk for weeks.


AVN RNS And 2 other institutions bought today

Lesire AG Upto 3m after third day of buying = 2,035% or £1m pounds Avanti Communications (LSE:AVN)