One small cap stock to look out for in 2018

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After a somewhat trying year for Harvest Minerals in 2017, all signs now point to a strong resurgence in 2018.

In November, Harvest announced encouraging test results relating to its natural fertiliser and remineraliser product — KPfrtil.

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The tests found that only a small amount of potassium from KPfrtil was lost from leaching before it could be used by plants. Harvest’s product, therefore, will only need to be applied in a single dose — a significant draw for potential customers.

On top of this, Harvest said that its pre-certification sales drive for KPfrtil was “progressing well”, with demand expected to increase dramatically once the product is officially certified by the Brazilian Ministry of Agriculture, Livestock and Supply (MAPA). Approval is likely to come early this year.

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Government incentive

In another positive development for potential investors, the Brazilian Government has approved a bill that would see a reduction in royalty rates of fertiliser projects from 3% to just 0.2%, as part of an effort to boost the country’s mining sector and the general economy.

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Harvest is due to “benefit significantly” from this, because of its products low production costs and potentially huge margin. With the government incentive, the assumed royalty costs of $1.58/t based on sales of $60/t of product have now been slashed to just $0.12/t.

With Brazil determined to become self-sufficient in fertilisers by 2020, Harvest could beat previous share price highs in 2018.

The post One small cap stock to look out for in 2018 appeared first on Growth Company Investor.



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