Harvest Minerals (HMI) AI Stock Analysis

• Market Cap: £1.64M
• Dividend Yield: N/A
• Average Volume (3M): 722.48K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): >-0.01
• Shares Outstanding: 503,169,220
• 10 Day Avg. Volume: 127,775
• 30 Day Avg. Volume: 722,484
• PEG Ratio: 0.07
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.87
• P/FCF Ratio: -5.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 0.30p ▲(35.00% Upside)

The score is primarily held back by sharp deterioration in financial performance (large losses, margin collapse, and renewed cash burn) alongside rising leverage. Technicals provide some support (price above key moving averages with neutral momentum), but valuation is not supportive due to ongoing losses and no dividend yield.

Positive Factors

Historic margin recovery potential

Prior years (notably 2022) produced healthy gross margins and meaningful revenue, indicating the underlying business model and market position can support profitable operations when demand or pricing normalizes. That track record suggests upside if cost structure or pricing stabilizes, aiding medium-term recovery.

Equity cushion remains

Positive equity and a balance-sheet cushion mean the company still has a capital buffer to absorb losses and pursue restructuring or financing alternatives. This reduces immediate solvency risk and gives management time (2–6 months) to implement operational fixes or secure transitional funding without imminent insolvency pressure.

Demonstrated cash generation in good years

The firm has previously converted revenue into strong operating and free cash flow in favorable periods, showing the business can generate self-funded growth under the right conditions. That historical cash-conversion ability supports the view that operational improvements could restore internal funding capacity over the medium term.

Negative Factors

Sharp revenue and margin deterioration

A 20% revenue decline alongside a collapse to ~3% gross margin indicates material demand, pricing, or cost-absorption issues. Operating losses that exceed revenue suggest core profitability has broken down, reducing the firm’s ability to self-fund operations and increasing the risk that structural fixes will be required to restore sustainable margins.

Persistent negative cash flow

Repeated negative operating and free cash flow raises the probability of near-term funding needs. Persistent cash consumption limits reinvestment, forces reliance on external financing, and can trigger dilutive capital raises or higher-cost debt, constraining the company’s ability to execute strategic plans and recover margins.

Rising leverage and capital erosion

Rapidly rising debt-to-equity and stepped-down assets/equity signal erosion of the capital base and increased solvency risk. Higher leverage narrows financial flexibility, raises funding costs, and could force asset sales or restructuring if losses persist, undermining competitive position and long-term resilience.

Harvest Minerals Business Overview & Revenue Model

Company Description

Harvest Minerals Limited engages in the mineral exploration and production of organic natural fertilizers in Brazil. It holds 100% interests in the Arapua fertilizer project located in the state of Minas Gerais in Brazil; the Mandacaru phosphate project comprising three exploration licenses covering an area of 5,908.67 hectares located in the Ceara State, Brazil; and the Sergi potash project located in the Sergipe State, Brazil. The company was formerly known as Triumph Tin Limited and changed its name to Harvest Minerals Limited in December 2014. Harvest Minerals Limited was incorporated in 2010 and is based in Perth, Australia.

How the Company Makes Money

Harvest Minerals Financial Statement Overview

Summary

Financial performance is weak. Revenue fell ~20% in 2024, profitability deteriorated into large losses (with operating losses exceeding revenue), and gross margin collapsed to ~3% in 2024. Cash flow is also pressured, with negative operating cash flow and worsening free cash flow in 2024, increasing funding risk. The balance sheet still has positive equity, but leverage has risen quickly (debt-to-equity ~0.70 in 2024).

Income Statement

Profitability has deteriorated sharply. Revenue fell ~20% in 2024 and the company moved from a modest profit in 2022 to large losses in 2023–2024, with operating losses that are bigger than revenue and a very low gross margin in 2024 (~3% vs ~47% in 2023). The main positive is that the business has shown it can generate meaningful revenue and healthy gross margins in prior years (notably 2022), but the recent trajectory is clearly negative and suggests weak cost absorption and/or pricing pressure.

Balance Sheet

The balance sheet is mixed but weakening. Equity remains positive, but leverage has risen quickly: debt-to-equity increased to ~0.70 in 2024 from ~0.38 in 2023 and near-zero in 2020–2022. Returns on equity are deeply negative in 2023–2024 due to net losses, and total assets and equity have both stepped down versus 2023, pointing to erosion of the capital base. Strength: the company is not yet over-levered on this measure and still has a meaningful equity cushion; weakness: the pace of debt build and losses increases financial risk.

Cash Flow

Cash generation is weak and volatile. Operating cash flow was negative in 2024 and free cash flow has been negative in most years (2020, 2021, 2023, 2024), with 2024 free cash flow worsening materially versus 2023. While 2022 showed strong operating cash flow and positive free cash flow, the more recent pattern suggests the business is consuming cash as losses persist, raising the likelihood of additional funding needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.69M	2.65M	3.13M	8.63M	4.86M	1.95M
Gross Profit	258.11K	90.54K	1.48M	5.76M	3.59M	1.24M
EBITDA	-2.53M	-3.00M	-2.69M	755.95K	-4.13M	-3.23M
Net Income	-2.88M	-3.67M	-3.18M	197.80K	-4.17M	-3.32M
Balance Sheet
Total Assets	4.25M	9.07M	11.61M	10.75M	9.22M	13.31M
Cash, Cash Equivalents and Short-Term Investments	255.60K	1.01M	795.55K	2.72M	1.71M	2.99M
Total Debt	1.66M	3.17M	2.79M	245.68K	253.53K	0.00
Total Liabilities	2.28M	4.56M	4.28M	1.04M	607.21K	264.54K
Stockholders Equity	1.98M	4.51M	7.33M	9.71M	8.61M	13.04M
Cash Flow
Free Cash Flow	55.39K	-405.24K	-1.02M	406.01K	-1.34M	-2.31M
Operating Cash Flow	101.45K	-393.53K	0.00	2.48M	-820.19K	0.00
Investing Cash Flow	-46.07K	-11.71K	-1.27M	-2.07M	-695.79K	-2.31M
Financing Cash Flow	59.92K	859.60K	2.35M	-74.58K	253.53K	0.00

Harvest Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HMI	48 Neutral	£1.64M	-0.45	-86.00%	―	―	―
KP2	44 Neutral	£170.81M	-165.00	-0.58%	―	―	―