Harvest Minerals Share Discussion Threads

[sja123] 10/8/2016 14:45

From above article:

"Around 90% of Brazil’s potash is imported, and the rest is produced by local champion Vale (NYSE:VALE) at Taquari-Vassouras.

Vale's involvement nearby has its advantages, reportedly. One is that infrastructure, such as transport links, are already in place.

Another is that in time Vale may come to appreciate the proximity of Capela and the advantages of maintaining its current monopoly on production.

Also that the existing mine at Taquari-Vassouras has gone through the process and set precedents for permitting."

[sja123] 10/8/2016 14:41

Nice summing up by Proactiveinvestors....seems like Capela may well become a target for Vale as their current mine will run out in 2017....so could be near term major value to Harvest in that...

All IMO etc...

[andrbea] 10/8/2016 13:27

So HMI aim at 100ktpa for 7 years
Compare DuSolo (and assume the quality of the product is the same). We don't know that yet...
At DuSolo, they say that 81,100 tons of DANF is worth $8.5 million..
So do the maths...
/////

TW: Let's start with DuSolo Fertilizers, which is a beautiful logistics play. It has a high-margin phosphate mine, the Bomfim project, that's within one of Brazil's most productive agricultural regions. It is the only direct-application natural fertilizer (DANF) producer within 500 kilometers. It already has sales contracts in place for 81,100 tons of DANF, and that's worth $8.5 million ($8.5M). It just submitted an application to increase its mining capacity from 100,000 tons per year (100 Ktpa) to 200 Ktpa. The beauty of being located so close to the farmers within Brazil's agricultural region is that the company doesn't incur the transportation costs that rival fertilizer companies do in terms of importing. DuSolo's edge is its location and lack of local competitors.

[sja123] 10/8/2016 13:04

Yep, in the HMI interviews, McMaster makes big of the higher potassium makeup of the product, which apparently is significant when gauging demand...and price!

[pilot48] 10/8/2016 12:39

I believe the key is understanding the quality of the product. The estimates in the RNS were quite wide ranging when considering potential NPVs. Although that operating cost is excellent.

[sja123] 10/8/2016 12:01

In the HMI Mirabaud note, DuSolo are the company reported as getting $90/t locally on 65% margin...

With costs to HMI less than $10/t and still aiming to reduce cost, that sort of margin would be terrific!

All IMO etc

[babbler] 10/8/2016 11:46

Advfn full of people like badrobot now that just spam boards. So yeah probably dying...

[andrbea] 10/8/2016 11:46

In today's RNS, they mention a DANF type product

Looking that up brings up another company, who do seem to be making a nice profit:

article dd 25 July 2016:

TW: Let's start with DuSolo Fertilizers, which is a beautiful logistics play. It has a high-margin phosphate mine, the Bomfim project, that's within one of Brazil's most productive agricultural regions. It is the only direct-application natural fertilizer (DANF) producer within 500 kilometers. It already has sales contracts in place for 81,100 tons of DANF, and that's worth $8.5 million ($8.5M). It just submitted an application to increase its mining capacity from 100,000 tons per year (100 Ktpa) to 200 Ktpa. The beauty of being located so close to the farmers within Brazil's agricultural region is that the company doesn't incur the transportation costs that rival fertilizer companies do in terms of importing. DuSolo's edge is its location and lack of local competitors.

TER: What near-term catalysts do you see for DuSolo?

TW: DuSolo is putting out an updated resource estimate later this year. I don't think the market realizes what DuSolo is sitting on at Bomfim. It has identified significant resources past the initial resource estimate area. If the company comes out with a much larger estimate than what it currently has, that could propel DuSolo much higher. Also, if the company gets approval for an increase in its mining allocation permit so it can mine 200 Ktpa, that, along with additional sales contracts, will definitely get noticed.

TER: Is DuSolo's management deeply invested in the company?

TW: Inside and institutional ownership is roughly 15%. Tembo Capital Mining Fund L.P. is a big holder as well. As with all the companies that I hold in The AgLetter, I like to see when management has put its own money on the line.

[ryan83] 10/8/2016 10:53

This is a 'no brainer' now

[pilot48] 10/8/2016 09:08

Plenty of activity on LSE and Twitter. Are advfn bbs dying off?

[h2owater] 10/8/2016 08:38

08:09 10 Aug 2016The Maximus target is part of the group's Arapua fertiliser project in BrazilHarvest Minerals' Maximus study shows robust economicsThe study concerns just one target in the Arapua prohectA scoping study for Harvest Minerals' (LON:HMI, ASX:HMI) Maximus project in Brazil confirmed that fertiliser could be produced at low cost with a very simple processing method.The Maximus target is part of the group's Arapua fertiliser project, and significantly the study is based on an initial resource of 883,000 tonnes, which represents only around 3% of the estimated mineralisation.Production is put at 100,000 tpa (tonnes per annum) for seven years with initial capital expenditure (capex) of US$800,000 for equipment.Importantly, the entire project can be funded from existing cash reserves, with first production expected later this year.Processing of what's called a DANF (direct application natural fertiliser) product involves very simple dry processing, including only crushing and milling.Operating costs are put at US$4.77/t mined and processed, and US$ 7.34/t including selling costs and general and administrative expenses.At sales prices of US$50/t and US$65/t, net present values of US$15mln and US$21mln post-tax were generated.Harvest's executive chairman Brian McMaster said: "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 fertiliser demand is high."We expect to be able to refine and improve on the numbers presented in the scoping study and we are in the process of appointing contractors to carry out the mining and processing, which could significantly reduce the initial CAPEX requirements and potentially reduce these already low OPEX [operating expenditure] costs even further."We are busy working towards first production later this year and whilst our trial mining permit application is being processed, our technical team and consultants continue to conduct further test work including an agronomic study, the initial results of which we expect to receive during the current quarter."

[scotty666] 10/8/2016 08:24

Blimey nice update, I probably would of used a higher WACC given its Brazil but thats just being picky :)

[sja123] 10/8/2016 07:40

100,000 tpa for 7 yrs on just this 3% of one of their assets...

[sja123] 10/8/2016 07:38

Very quiet here....

RNS scoping study released showing excellent metrics on only 3% of their DANF project...no extra funding required, production imminent once trial mining licence secured, contractors already being engaged...

Possible £5m per yr profit and market cap not much more than that so very cheap at these prices...



DYOR etc...

[ryan83] 09/8/2016 21:36

Just the start

[andrbea] 09/8/2016 17:31

red to blue finish

So scoping study this month?
And very low free float, so illiquid
and open-cast mining (so cheap to extract)
And only 3% of the asset drilled till now

last two points reminds me of rem..

and Brazil is the biggest consumer of fertilizer, so near to customer base. Even better than sxx on that point.

Just my thoughts....

[sophiegb] 27/7/2016 14:22

new video at Proactive Investors is here:

[dice1950] 27/7/2016 06:40

Brian McMaster Harvest Minerals (HMI) boss is confident
27th July 2016

A new JORC compliant resource estimate earlier today, for just a small part of the project, confirmed there is more than enough for the start of a trial mining ...

[pilot48] 20/7/2016 10:26

Are they all the same person?

[zed2002] 27/5/2016 15:31

Quick question. Are you all invested in HMI?

[annonymous2] 27/5/2016 12:52

Aye 5.5p bid.

flops is still at it on twitter disgusting and shameless and yet they fall over themselves to buy his tips.

The ones that keep going up he pretends to still hold and brag about multibaggers and the ones that collapse are never mentioned again.

Oh and his little pump and dump sidekick moreforus working the same stocks as
moz8

[nick rubens] 27/5/2016 12:50

anon2 Did you get out with a profit?

Ramps are risky, as not all succeed.

[annonymous2] 12/5/2016 22:24

pilot48

If I know something is going to get ramped and I can make money from it then
why not. I'm not ramping it. I'm not saying it's a multibagger every 5 minutes
and I'm not telling people to buy here. Plenty of twitter that are and there's
enough mugs out there willing to chase any stock blind that is pumped there.

So do not have a go at me ok !