Aleafia Health (TSX: ALEF) announced its outdoor harvest yields this morning, identifying that they had produced 10,300 kilograms of cannabis across the firms 26 acres of outdoor grow space. The firm identified that its zone 1 section, which was planted in June 2019 managed to produce 1,000 kilograms of dried cannabis flower per acre.
Aleafia first received approval from Health Canada to grow outdoor product on June 10, in an area comprised of 292,000 square feet, or approximately 6.7 acres. By July 15, the firm had secured licensing from Health Canada to produce outdoor cannabis on its entire 26 acres of phase 1 outdoor cultivation space, which comprised of zones 1- 4.
However, it appears that the licensing from Health Canada for the majority of the space came too late in the season, despite Aleafia having planted clones into pots prior to receiving the amendment. The potting method was conducted as a means of allowing cannabis clones to start to develop while waiting for licensing, with the pots being placed in excess field space within zone 1 until licensing came through.
Aleafia had originally guided for 60,000 kilograms of cannabis to be produced across the 26 acres, or 2,307 kilograms per acre, assuming timely licensing.
With zone 1 achieving 1,000 kilograms of dried cannabis per acre, this accounts for 6,700 kilograms of the total 10,300 kilograms harvested this fall. Naturally, this infers that the remaining 19.3 acres only managed to procure 186.53 grams per acre, for a total of 3,800 kilograms across zones 2, 3, and 4.
Nevertheless, Aleafia provided guidance for its 2020 harvest, with the firm expecting to yield 1,200 kilograms of cannabis per acre as a result of being able to achieve a full grow cycle. This results in an expected yield of 102,000 kilograms of cannabis across an expanded 86 acres of grow space.
Aleafia Health indicated that the firm was able to achieve a cash cost per gram of $0.08 during the 2019 outdoor grow cycle, with all-in costs per gram coming in at $0.10.
Aleafia Health closed Friday’s session at $0.81 on the TSX.
Information for this briefing was found via Sedar and Aleafia Health. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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