TSXV:EVE.H - Post by User
Post by
Vini123on Dec 31, 2019 10:40am
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Post# 30505036
EVE 2020 - enjoy the ride
EVE 2020 - enjoy the ride Facts from last financials :
1) Revenue of $3,151,20 during the nine month periods ended September 30, 2019.
2) The increase in revenue is due to sales of 1,048.2 kg of dried cannabis flowering material.
Simple Math :
1) Kg was actually sold at 3006$/kg by EVE.
2) Remember : The revenue comes from NF only and from the old facility.
What I think will happen in 2020 :
1) Cost to produce a kg in the new facilty will drop to $1210 (comes from Melinda in a Midas interview).
2) EVE will produce 50 000kg (Melinda said it's a conservative number in a Midas interview).
3) EVE will sell 2.0 products at a higher profit margin.
4) EVE will not suffer from the potential oversupply problem since it has 3 important european customers and many provincial deals (NF, Manitoba, Saskatchewan, Ontario and BC)
What Haywood think will happen in 2020 :
1) Haywood has a price target of 0,92$ for EVE (well explained by the way).
2) The price target is based on a KG sold at $3290 (personally, I do not see any problem with that price per KG considering the higher margin with the 2.0 products and the start of the sales in the european market).
Enjoy the ride in 2020
Cheers