' The Company retains flexibility to vary its cash commitment to biomass, and the source of its funding for this investment, as part of its growth planning to align biomass levels with sales objectives.'
They don't or may not need to continue with the current level of biomass investment. They have flexibility in the source of funding i.e internal funding, debt, equity. Biomass growth is being aligned with anticipated sales i.e an investment in future sales growth.
Biomass growth is currently running at approx a third more than sales growth (2,750 tonnes growth 3 qtrs vs sales forecast fy) with sales growing at approx 25%. This disparity won't continue indefinitely as a substantial part of the biomass growth is the expansion growth of frylings taking up to 2 years to reach sales size. Once the expansion stock reach sales size the biomass investment will fall until they decide to expand other leases.
CSS Price at posting:
95.0¢ Sentiment: Buy Disclosure: Held
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