Shares in Harvest Minerals Ltd (AIM:HMI, OTC:HMIFF), the organic fertiliser producer, fell 9% on Wednesday to 0.25p after interim results showed net liabilities and a material uncertainty over its going concern status.
The company reported a loss after tax of A$1.18 million for the six months to 30 June, down from A$1.98 million a year earlier, while revenue rose 18% to A$610,415.
Sales totalled 12,210 tonnes in the period, but Harvest has cut its forecast for the full year to 44,000 tonnes and calls the outlook for fertiliser very unclear.
The group had net liabilities of A$915,954 at 30 June, compared with net assets of A$264,093 at 31 December, while cash fell to A$652,682 from A$1.15 million.
Net cash outflow from operations rose to A$456,364 from A$313,542, and the accounts flag a material uncertainty over going concern, meaning doubt that the group can keep operating without new funding.
Triunfo Mineracao do Brasil, Harvest's Brazilian subsidiary, is continuing negotiations with Brazilian financiers over restructuring its debts, while the directors have agreed to pause their remuneration until the company can pay.
Banco Itau, one of its lenders, accepted A$70,170 on 19 May in full settlement, and A$279,618 of the debt was forgiven, leaving the bank no longer a creditor.
Harvest completed its purchase of Scanty Mineração on 1 September, adding eight rare earth projects in Brazil; rare earths are metals used in magnets and electronics.
The price was A$200,000 in cash and 40 million new shares, with up to A$300,000 more tied to milestones and about A$1.5 million of deferred payments assumed.
Harvest also signed a technical-scientific cooperation agreement on 14 September with the Brazilian Geological Survey to research the potential occurrence of minerals considered critical or strategic for Brazil.
