Sold Same Volume of Sugar and Less Maple SyrupThan year to date last year. Adjusted gross margin stayed flat, despite higher prices leading the higher gross revenue. That says input and processing costs went up as much as the price of the sugar did. The depreciated value of all plant and equipment is $270 million, the book cost of it before depreciation is 548 million. They are spending almost 50% of the book cost and nearly 100% of the depreciated value of buildings and equipment to get a 12.5% lift in output.
This company has a poor record of over spending to expand. They spent 200 million getting into Maple Sugar and have written off over 100 million of that already. This company has a market cap of only $580 million but they are talking about issuing shares to fund part of the $200 million expansion cost, which rapidly dilutes the shares.
Not hard to see why the market isn't real happy with the announcement.