This was a little disappointing. A pass would have been positive cash flow but they borrowed $25 million and still had another $7 million outflow.
They continue to promise to make the 3.2 kwmt sales target. To achieve that result, they need to significantly ramp up shipments. The last time they shipped 1,000 kwmt was December quarter 2018. They need to do that in the next two (2) quarters just to make the bottom end of the forecast. Head winds to achieving this outcome is constraint on shipping in this post covid world and their ability to crush at these levels wont be fixed until end of this quarter/beginning of next quarter.
I think they are kicking the "results can" down the road and in 3 months time they will adjust their outlook downwards. They will blame weather and supply chain constraints - blah blah blah.
I expect the share price will reflect this over the next few months.
MGX Price at posting:
64.0¢ Sentiment: Hold Disclosure: Held
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