29th Mar 2019 13:01
LONDON (Alliance News) - Harvest Minerals Ltd on Friday said interim loss widened sharply due to an increase in operating costs and annual revenue is anticipated to be 25% lower than market forecasts.
"2018 was a transformational year for Harvest Minerals," said Chair Brian McMaster.
"The company therefore expects to report a 2019 full year revenue figure 25% below current analyst estimates, and to breakeven at the profit before tax level," McMaster added.
Harvest Minerals shares were trading 24% lower on Friday at 8.89 pence a share.
The AIM-listed fertiliser producer reported a pretax loss of AUD1.8 million, or around GBP974,412, for the six months to the end of 2018 compared with AUD829,681 loss a year earlier, due to the sharp increase in consulting expenses to AUD665,157 from AUD140,719.
In addition, the company recorded USD486,275 impairment of loan versus none the year prior.
Harvest Minerals recorded revenue of USD1.1 million versus nil in the year ago period as the company continued development of its Arapua project in Brazil.
The company said it has spent the first half of its financial year completing the mine and associated processing plant expansion at the project to facilitate the increased production of up to 320 kilotonnes per annum, to be in a position to service both existing and new sales contracts.
The company expects that the assumptions relating to sales volumes, and therefore revenue, and resultant profit before tax, will not be met by the June 30 year-end, predominately as a result of a timing issue where the prime selling seasons in Brazil and the company's financial year end do not reconcile.
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