Harvest Minerals Share Discussion Threads

[soulsauce] 16/8/2016 17:12

A little dated but the sentiment hasn't changed:-

[trotterstrading] 16/8/2016 16:51

massive growth phase, still under the radar.. keep buying those dips

[soulsauce] 16/8/2016 16:35

Given how this has risen and what is possible here pilot I am surprised more aren't posting. Be interesting when the herd arrives.

[pilot48] 16/8/2016 16:28

Great to see the board come to life recently, hope it stays this way for the foreseeable.

[andrbea] 16/8/2016 16:13

this about Mosaic:

Aug 10 2016

Solid cash flows despite losses
Mosaic generated free cash flow worth $382 million in the second quarter despite suffering a loss of $10 million. How is that possible, you may ask? Well, Mosaic received $361 million in advance payments from customers in Brazil during the second quarter, which drove the company's operating and free cash flows significantly higher.

What's important to note here is the uptick in demand from Brazil -- a key agricultural market that's also on Mosaic's priority growth list right now. According to industry reports, Mosaic is already in talks with Brazilian mining giant Vale to buy out its fertilizer business in a deal that could be worth $3 billion. If the deal goes through, it should give Mosaic a solid foothold in a market that's the world's largest producer of sugar and coffee, and second-largest producer of soybeans.

[soulsauce] 16/8/2016 16:12

Just bought some more and will keep buying on any dips.

The more I read about this the more I find it a no brainer and an undervalued gem.

[andrbea] 16/8/2016 15:41

I suppose by this time next year Vale will want to land grab (its existing fertiliser project ends next year, deposit exhausted)
so hmi's 3% of acreage proved up would be a tasty titbit for Vale methinks (eg a takeover). And that's then big bucks one would hope.

Perhaps someone else is then the big shot, and not Vale.
Read this:

The Rio de Janeiro based company is reportedly closing in on selling its entire fertilizer business, which generated more than $550 million in adjusted earnings ((EBITDA)) last year, to an unidentified buyer, although Mosaic (NYSE:MOS) is reportedly mulling over buying the unit. Through this sale, Vale could pocket as much as $3 billion.

[soulsauce] 16/8/2016 14:25

Great find andrbea, all very good for HMI.

[andrbea] 16/8/2016 14:22

Brazil's fertiliser industry

bullish signs...

said.

Record high

Aug 8

The group forecast Brazilian fertilizer deliveries reaching some 19m tonnes in the second half of 2016, up from 18.5m tonnes in the same period of last year, -although below the 19.3m tonnes in the July-to-December period of 2014, when farmers accelerated purchases in expectation of weakness in the real.

A weaker real increases the price of imported goods, such as fertilizers, of which Brazil buys-in more than twice as much as it produces itself.

Nonetheless, second-half fertilizer deliveries of 19m tonnes would leave Brazil's total volumes for 2016 at 32.2m tonnes, matching the 2014 record high.

'Inventories are used up'

Fertilizantes Heringer's assessment of an improving market tallies with talk from groups such as Canada's PotashCorp, the Canadian potash giant, which two weeks ago said that "recovery… is evident in Brazil, where $5-10 per tonne price increases have recently taken hold".

And US-based Mosaic, which has a large South American operation, last week said that there had been a rise in potash prices in Brazil of "some $10, $20 up [a tonne] in the last couple of weeks", adding that "we expect that to continue as we get closer to their main planting season".

"Brazilian demand forecast just keep getting revised higher and higher, despite the chaotic political backdrop, volatile exchange rate and tight farm credit," said Mike Rahm, the Mosaic vice-president of market analysis.

"That is not a surprise given record high local currency prices for soybeans, corn, sugar, cotton and coffee."

Rich Mack, the Mosaic finance director, told investors that Brazilian buyers "can't defer [purchases] anymore.

"Inventories are used up. And so that's where we see some price momentum in Brazil, both for phosphates and potash."

[h2owater] 16/8/2016 13:44

34m free float!"We've got something that's really cheap to operate, really cheap to build. We've got enough cash already to get the project into production and it's something that's really quite special," he told Proactive.http://www.proactiveinvestors.co.uk/companies/stocktube/5404/harvest-minerals-ltd-readying-to-charge-at-exciting-maximus-prospect-5404.html

[soulsauce] 16/8/2016 12:56

andrbea thanks for that. There is really the potential for a multi bag here.

Looking forward to the story unfolding here.

[andrbea] 16/8/2016 12:25

don't forget that other project up their sleeve..
... called Mandacaru... (JORC 4.38mt)

With Arapua, Sergi, Capella and now Mandacaru, we are steadily building a
portfolio of phosphate and potash assets that will enable us to realise our goal of becoming a
significant South American fertilizer company"

quote from page 1 (dated June 16) of 'download document' in following link.

[sja123] 16/8/2016 12:06

Also, of course, once Arapua is running, won't take much to double production taking in only 6% of area and with economies of scale, should more than double earnings...HMI ought to be worth three times it's present value just on what we have now imo...

[sja123] 16/8/2016 12:02

Yep, once the money's coming in, they have options, DANF project purchases, invest in getting their potash assets up and running....always a possibility of some sort of partnership or buy out with Vale too....seems HMI assets are either side of Vale and Vale mine running out next year, so will want to find a way to stay in business....seem to remember when McMaster was asked about the possibility of a sale to Vale, he's thinking more along the lines of a joint enterprise....BOD have plenty of experience also....set up well here I think...

All IMO etc

[pilot48] 16/8/2016 10:59

Strategy seems to be do the trial run, expand and also look for similar DANF projects. Simple ops, cheap to set up and good economics.

[soulsauce] 16/8/2016 10:58

Nice one CC kicking myself for not buying more on the dip this morning doh!!

[charles clore] 16/8/2016 10:49

Soul - just joined you on here for a toe in the water to start, 40k.

[soulsauce] 16/8/2016 08:42

Nice start but still very much off the radar. Was only brought to my attention last Friday and after doing some research over the weekend I was lucky enough to get in on the dips yesterday.

Looks a great prospect for big gains. Looking forward to more news and the incredible prospects unfolding.

[sja123] 15/8/2016 22:07

Amazingly, near term production at 100k TPA for seven years based on just the first 3% of Arapua asset.... And they are confident that the whole of the asset is similarly composed...

[soulsauce] 15/8/2016 20:14

Excellent interview, what's not to like.

I don't think the current mkt cap even covers the Arapu asset let alone near term production & cash flow and other huge potential assets.

[sja123] 15/8/2016 18:47

McMasters on Proactive investors today....

[h2owater] 15/8/2016 16:55

Yes, news all within the month, including who they are selling to!
+
News on their other projects!

[sja123] 15/8/2016 16:09

News on mining licence and appointment of contractors expected soon....