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(Sharecast News) - Harvest Minerals reported sales of 12,300 tonnes of its 'KP Fértil' fertiliser as of 31 May on Monday, with 8,165 tonnes invoiced and delivered, supported by its recent 'Momento Certo' sales campaign and expectations of a stronger second-half selling season.
Despite recent improvements in demand, the AIM-traded company noted that Brazil's agricultural sector remained under pressure due to limited credit availability.
It said it was maintaining a cautious sales strategy, limiting exposure to higher-risk customers in order to safeguard cash flow and minimise the risk of payment defaults.
Efforts to recover outstanding debts from historical purchase orders were ongoing.
The company also confirmed that PVW Resources was nearing completion of its initial exploration programme targeting rare earth element (REE) potential on Harvest's licences, with a separate update expected in the second quarter.
Meanwhile, Harvest said it was continuing its strategic review, evaluating a range of options including the potential divestment of one or both of its business divisions, as it seeked to maximise shareholder value.
"While the market remains challenging, our 'right timing' sales campaign has helped drive engagement with about 12,300 tonnes of sales orders so far," said chairman Brian McMaster.
"As we enter the traditionally stronger seasonal period, we are well positioned to build on this momentum."
McMaster said the company remained focused on maintaining financial discipline, recovering outstanding credits, and exploring strategic opportunities to strengthen its position and maximise shareholder value as it navigated the year ahead.
"We thank PVW Resources Limited for their efforts and collaboration to date and look forward to updating the market shortly in relation to this work.
"We continue our strategic review to explore a range of alternatives, including the potential sale of one or both business divisions, with the objective of maximizing shareholder returns and positioning the company for sustainable growth."
At 1219 BST, shares in Harvest Minerals were up 18.75% at 0.48p.
Reporting by Josh White for Sharecast.com.
