Harvest Minerals reports wider loss, completes rare earth acquisition

Harvest Minerals Limited, a fertilizer producer listed on the London Stock Exchange, disclosed a decline in profits for the six months ending June 30 in their latest financial report. The company reported a loss of $1.18 million, down from a loss of $1.68 million in the previous year's corresponding period. This improvement came after a decline in fertilizer sales, with the company selling only 12,210 tonnes, compared to 12,310 tonnes a year earlier.

The company's sales forecast for the year has been adjusted downwards to 44,000 tonnes, due to unpredictable market conditions. Despite the drop in revenue, the company managed to increase its sales from $516,533 to $610,415. However, this was overshadowed by the increase in the cost of goods sold from $623,077 to $740,356. The company's cash position dwindled, with cash and cash equivalents dropping from $1.15 million at the end of 2025 to $652,682 by June 30.

Total liabilities now outweigh total assets, with the gap widening to $915,954 from a slight positive equity of $264,093 at the end of 2025. The company's borrowing increased to $3.46 million as of June 30. In a significant move, Harvest recently settled a debt of $279,618 with Banco Itau S.A., paying $70,170 to clear all outstanding amounts.

In September, the company completed its acquisition of Scanty Mineração Ltda, Brazil's subsidiary, for A$200,000 in cash and 40 million new ordinary shares. This acquisition includes potential milestone payments up to A$300,000 and defers A$1.5 million in acquisition payments and royalty obligations. Scanty Mineração Ltda controls eight rare earth element projects spread across 27 exploration tenements in Brazil.

Despite these setbacks, Harvest's management remains uncertain about the future of its fertilizer division and continues to assess its standing within the company.