Harvest Minerals Share Discussion Threads

[cyberbub] 05/10/2016 10:11

Yes that makes sense IMO

[jerseymike] 05/10/2016 08:29

Thanks YP, you have focussed my thinking.I have done more research and now think I understand why the word trial is used. Triumph Tin, wholly owned subsidiary of HMI, cannot begin "commercial production" until it pays US$1,000,000 to the land owner. The land owner will also receive 2% of the net trading profit (not company profit) as a "Net Smelter Return". Net trading profit means sales value less refining and transportation costs.We don't know what the land owner expects, if anything, from the "trial" mining agreement. I guess very little as they will want the $1m as soon as they can get it.So my assumption is that once the company has sold enough under its "trial" licence so it can afford to pay the $1m, it will be awarded the commercial license.JM

[shakeypremis] 05/10/2016 07:16

So basically, harvest will only lose 2% of their next profit with 50% of that 2% (1%???) going to the landowner. Have I read that right?

[shakeypremis] 04/10/2016 15:39

Just stick around Steven. There are good gains to be made here if everything pans out. No guarantees of course but seems fairly certain this company will do well, even with just the trial license there will be the opportunity to make some double, possibly triple digit percentage gains from today's price.

[shakeypremis] 04/10/2016 15:20

Charles, while I am not sure there are actually food shortages, if distribution and wastage were to be addressed, those concerns almost certainly won't be addressed so yes fertiliser is going to be required!

Besides most (if not all) the fertiliser from HMI is going to go straight in to Brazil as they are such a big importer of the stuff. HMI are probably never going to need to sell elsewhere (unless of course higher profits can be achieved selling overseas).

[charles clore] 04/10/2016 14:58

In a world heading towards food shortages I believe fertiliser will be bigger than gold and silver. In the meantime patience is required.

[shakeypremis] 04/10/2016 14:41

I think what Steven really means is that he's too impatient to wait.

[soulsauce] 04/10/2016 12:36

Lol, can you explain why you say that steven or just an off the cuff remark? And yet the share price has more than quadrupled this year.

[stevenrevell] 04/10/2016 12:00

This is a lame duck

[cyberbub] 03/10/2016 20:48

Go on then Jersey Mike, buy a few more, you know you want to :-)

[jerseymike] 03/10/2016 16:09

Thanks Barnesy. I have probably incorrectly assumed trial did not mean much production at all. I now see that it is 3 years with an option to acquire if the vendor wants to sell. I was looking to buy more and just trying to be thorough - which I hadn't been!

[gilscottheron] 03/10/2016 15:48

.......well almost everytime!!

[gilscottheron] 03/10/2016 15:39

Looking back......every time it's flatlined, it's shot up at the end. Just saying!!

[barnsey] 03/10/2016 15:24

Please note a) is pre consolidation so now December 31, 2016 the payment AU$100k and issue of 6 million fully paid ordinary shares

[barnsey] 03/10/2016 15:17

Arapua Fertilizer Project
As announced on the ASX on 5 September 2014, Harvest acquired a 100% interest in the Arapua Fertilizer Project in the
State of Minas Gerais in Brazil. The salient terms of the acquisition are:
a). A total payment of US$1,000,000 at the commencement of commercial production; and
b). A Net Smelter Return Royalty to the vendors of 2%.
The elements of the consideration have not been fulfilled as at 30 June 2016 and have therefore been recorded as
commitments as appropriate

[jerseymike] 03/10/2016 14:17

That's my assumption. Maybe the company could clarify? We know they monitor these boards.

[cyberbub] 03/10/2016 12:10

Would the stated sub-$10 cost of production not include any landowners royalty etc?

[jerseymike] 03/10/2016 11:59

SP. I agree but until we know how much the land owner wants per tonne we are in a state of limbo.

[shakeypremis] 03/10/2016 09:51

Jerseymike, not really. Even under the trial mining license this company can still make a lot of money.

[jerseymike] 03/10/2016 07:29

I have been surprised by the seemingly slow pace of this share and now think I have found the reason. The 18.8.16 RNS says the company has an agreement with the owner of the land for trial mining. To me this means it is impossible to estimate any value for the company until a mining/extraction licence is agreed and signed. I hope this is announced soon.