Yes, that's a good point (that I missed) Tim. Their level of inventory is much lower than 1 year before, so it may affect their volume of sales in H2 22.
At the same time, the company expects to harvest 160,000 pearls during Q3 vs 72,000 harvested in Q3 last year, so it could fully offset this level of low inventory. I don't know what happened last year during Q3 21, as they reached this low harvest level (which was much lower than their initial expectation of an harvest of 150,000 pearls during Q3). Obviously, they could have the same problem this year.
If they reach their target to sell 75,000 pearls during Q3, their revenues should be around 0.3 m lower than Q3 last year. So, you're right. The impact on their cash flow will probably be limited (if costs are flat vs the same quarter last year).
ATP Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
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