One Up ... Tony's response will be interesting, however my understanding is as follows:
(i) CCF needs to invest in land to allow the plantations to be established.
(ii) They need to invest / plant the trees.
(iii) These large upfront cost is what I believe explains the cash position as you point out.
(iv) Broadly, a glance at the balance sheet would support this (ie. assets up - land and inventory which is in fact plantations, as is liabilities).
(v) There is a very strong bias toward upfront payment, however also annual payments.
My impression is that there is a reasonable need for plantations to keep happening (at projected rates) for the good cash flow to keep coming. However I am still trying to get my head around it all too.
The above is from a combination of the company's presentations, reports, and the Alto Capital research report commissioned by the company (which is worth a read for those here who haven't read it yet).
MJS
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