Cost analysis has never been one of my strengths, but as it relates to cannabis production it has come up in conversations with a couple of old friends.
I speak regularly with Jorge about my progress or sometimes the lack of it on the extraction efficacy trials I am conducting using a new French technology. The subject of his visits to cultivation facilities always comes up. He knows that cultivation is of great interest to me. We have never discussed grams per watt or grams per watt per 30 days of flowering. It is always cost per gram. That encompasses everything and he feels professional cultivators should know to the penny what something costs to produce. He really likes it when he asks a grower and he gets an answer. Unfortunately, all to often the grower has no idea.
The second friend this has come up with is retired and spends time analyzing potential investments in publicly traded cannabis companies. He brought up Canopy Growth as a company he has purchased stock in. He is happy he did so long before Constellation Brands paid C$245 million for a 9.9% stake. What he likes is their honest unvarnished reports. I glaze over when I look at such things, but I found this synopsis which lists the cost per gram to the penny (or at least to a Canadian penny):
Record quarterly revenue of $21.7 million highest ever reported in Canadian cannabis sector driven by strong domestic and international sales
Record Germany quarterly sales of $1 million, all from domestic Canadian production
Year-over-year registered patient growth of 138% and revenue growth of 123%
Weighted average cost per gram1 to point of harvest decreased 18% sequentially quarter over quarter to $0.59 per gram, sixth consecutive quarter below $1 per gram; weighted average cost per gram before shipping and fulfillment decreased 18% sequentially quarter over quarter to $1.03 per gram
Only cannabis company to secure multi-year supply agreements with four provincial entities; multi-year commitments from Canopy totaling up to 25,000 kilograms per year
Secured four retail license allocations in Newfoundland and Labrador, locations represent first announced privately owned and operated legal cannabis retail locations in Canada.
Raised $245 million in landmark deal with Fortune 500 company Constellation Brands and subsequent $201 millionbought deal financing including the first co-led by a major bank, BMO Capital Markets
International production licenses announced in Denmark and Jamaica (provisional), bringing number of global licensed facilities to 102
Approximately $400 million cash on hand to fund domestic and global expansion