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March '19 this was announced as 50,000kg facility ready in...

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ChopsInOz

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01/08/21

15:24

Post #: 54940106
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Originally posted by KelpieInvestor: ↑

The cost was initially expected to be $130 million, the estimate is now $184 million - a cost blowout is typically characterised when a planned project or expenditure costs more than planned or expected… so the difference in the two figures is $54 million. In this case, I’d argue the cost blowout looks like it’ll be approx. $54 million but who knows given the factory isn’t finished.

I also appreciate there are differences in labour costs/land etc… I stand by a previous sentiment that Iv expressed on there that Aurora were able to build their ‘Sky Factory’ which has a much much larger capacity capability than CANNs Mildura factory at a significant cheaper cost. Makes me wonder personally.

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March '19 this was announced as 50,000kg facility ready in second half 2021, now 12,500kg.

The $180m x 4 = $720m for 50,000kg.

Depreciation straight line over 10 years - $184m / 12,500,000g = $1.47/g for depreciation only, then add Australian labour, energy costs.

Outdoor with GMP is less than 50c/g (direct costs) for bulk product.

CAN Price at posting: 28.5¢ Sentiment: None Disclosure: Not Held
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