Production estimates give Aurora shares a jolt

Company on track to top expectations

Edmonton-based Aurora Cannabis Inc. anticipates higher production than originally expected in the final quarter of 2019, according to an update released Tuesday that preceded a brief jump in the trading volume and price of Aurora shares on the Toronto Stock Exchange.

“Our Q4 2019 guidance highlights Aurora’s continued leadership. We are the leader in cultivation capacity, production available for sale and revenues for cannabis in the Canadian medical and consumer markets,” Terry Booth, CEO of Aurora, said in the release.

The company expects to report that production available for sale in the fourth quarter of 2019 will be at the “upper end” of a range between 25,000 kilograms and 30,000 kilograms, slightly above

We are the leader in cultivation capacity, production available for sale and revenues for ... the Canadian medical and consumer markets.

the 25,000 kilograms that it previously expected.

On Tuesday, Aurora shares went to $9.05 from the previous day’s closing price of $8.39 on the TSX. That represents an increase in value of 7.87 per cent after more than 12 million shares changed hands on the TSX Tuesday.

Described as a “reiteration of guidance and clarification of operations” intended to update investors, the release outlines expected growth across all key business segments including medical and consumer markets.

Based on a preliminary and unaudited review, Aurora is anticipating net revenues for the fourth quarter of between $100 million and $107 million, net of excise taxes, compared to $19.1 million in the same period ending June 30, 2018, and compared to $65.1 million for the previous quarter ending March 31.

The company also expects to report regular improvements in kilograms of cannabis sold and the company’s cost per gram to produce it and expects total net revenues for the 2019 fiscal year to be between $249 million and $256 million.

Aurora’s complete audited financial results for the fourth quarter and latest fiscal year will be released before Sept. 15.