Replies to post #36741 on Aurora Cannabis Inc (ACB)

[mr green239]

Eventually, the price of raw product will correlate to the price of extracted oils.

Extraction yields about 15% of dry flower weight.

CANNABIS:
1000g @ $2/g = $2000.

15% EXTRACTION:
150g @ $20/g = $3000.

Relatively high operational expenses tag along with the extraction process.

Future margins on extraction can be seen stabilizing at 20%.

15% EXTRACTION ON 1kg WITH 20% MARGIN:
150g @ $16/g = $2400.

If the price of raw cannabis dropped to $1/g... The price of extracted oils would follow closely.

Outdoor cannabis farms with low operational costs and massive cultivation volumes would be highly suitable for large-scale extraction and refining operations.

-cannabisbusinesstimes.com/article/your-guide-to-ethanol-extraction