RE:RE:RE:RE:Wow
PedroPistacio wrote: Bit confused. When the announcement came out at the end of August that Plant 2 had been commissioned, I am pretty sure profit guidance was maintained, wasn't it? Only nine days later, profit guidance for this year was reduced from 87 cents back down to 50 cents, a drop of 42.5%. That seems odd. In any event, didn't the statement says the issue should be fixed between 4-8 weeks? A big difference. It seems like sales were hoped to run at the equivalent of about 25,000 tonnes a week at this time of year so here's hoping it's nearer 4 weeks of downtime. It seems like it's in the lap of the gods. Certainly don't trust what I'm saying though, DYOR. GLTA.
Pedro, this groundwater issue means only plant 1 is operational for Q3 and possibly the first month of Q4. This timing could not be worse as it is literally the annual peak demand window, so the guidance revision is to e expected. The company needs to rebuild credibility with farmers who will not get their supply, which likely means considerable discounts to retain those unhappy customers. Let this be a lesson to Cris to not over promise again. The questionable timing of plant 2 commissioning and ramping up without delay to meet such aggressive guidance tarnished his market credibility with investors but more importantly is how this is being managed with customers who were looking to take product. The tone of the NR suggests a more paced strategy moving forward with planned optimization of plants 1 &2 due to plant 3 construction being pushed out probably a full year.