But the Aussie says he would be disappointed if 2017 is not even better and is happy to predict a ‘ripper year’ ahead for Harvest.
Having listed on AIM at the equivalent of 4.5p just over a year ago, the price is now 13.8p.
Latest news was an upgrade to the resource at Maximus, the key target at the Arapua licence in Brazil.
There was a 37% increase to the high grade tonnage to 1.2mt within a 1380% overall rise.
According to house broker Beaufort that should be the basis of an even better share price performance.
"Field trial progress at Arapua, new customer wins, testwork results, stonemeal certification and first sales," are all on the way said the broker.
“Test work thus far and the views of Harvest’s agronomist give us confidence that the KPFértil product will be saleable at or around US$60/t,” said the broker, which has a buy rating.”
Beaufort sees the mine developing in two stages into a 500,000 tonne annual operation.
To get there will require capex of US$1.0mln, total mine operating costs of $7/t and a conservative long-term sales price of $55/t.
For a mine life to 2028 that gives a net present value [future cash flows] estimate of US$68mln.
A trial mining permit was awarded at the start of for Maximus , but perhaps even more importantly a contract was tied up with local coffee producer Veloso.
Coffee contract confirms price for KPfertil
While 45,000 tonnes is not a huge quantity, the key point says McMaster is that the price it will get for its KPFertil fertiliser product is r200 /US$60 per tonne.
That is near the top its expectations and sets a benchmark going forward, he said.
Veloso’s involvement also now means that it is firmly on the radar of both farmers and the government in Brazil.
Awful lot of opportunities in Brazil
And that means a lot of new opportunities are set to come its way, of which McMaster wants to take advantage.
“In the next few months, we want to be in a position to make some acquisitions of assets with like products, simple processing, an agriculture bias and that are cash flow positive.”
The immediate focus though will be to apply for a full licence for Maximus and work will start on that process straight after Christmas.
What Mirabaud said
The on-time award of the trial mining permit will allow the company to commence production before the year-end, as promised, said Mirabaud.
“Thus, we believe that Harvest could mine and sell the first 45kt material before the end of the current financial year (end-June 2017) which, based on the price agreed, will result in revenues of US$2.7mln for 2017.
“That compares favourably with our estimate of US$2m, which is based on our assumption that Harvest will sell 50kt of its product by the end of June, but at a lower assumed average price of US$39/t.”
Mirabaud adds the trial permit is subject to certain agronomic tests but if KPfertil proves to be efficient, Veloso could possibly replace conventional K and P fertiliser with Harvest’s product.
“KPfertil is a toxic-free, highly soluble direct application multi-nutrient fertiliser (contains K2O, P2O5as well as high grades of calcium oxide and magnesium oxide, while it is low in other contaminants), which compares well with existing products in the region.