MBAC Fertilizer Corp. (TSE:MBC), a Canadian integrated fertilizer company with operations in Brazil, tumbled to an all-time low after saying that it did not generate revenue in the fourth quarter.
MBAC plummeted 22.5 percent to 62 Canadian cents at 1:54 p.m. in Toronto, after touching 59 Canadian cents earlier in the day. The stock has lost 60 percent this year, leaving the company with a market value of C$94.3 million.
MBAC, which owns and operates the Itafós Operations, said in a statement today that it did not generate material revenue during the fourth quarter, compared with net sales of $1.1 million a year earlier. Analysts were looking for revenue of $2.9 million.
The Toronto-based company said its revenue and average selling price were impacted by the seasonality of Brazil's planting season and higher than customary inventory levels.
"The fourth quarter is typically a slow period for fertilizer companies in Brazil operating in this industry," the company said.
Net loss widened to $11 million, or 8 cents per diluted share, in the three months ended Dec. 31, from $1.9 million, or 2 cents per diluted share, in the year-earlier period. Adjusted net loss was 2 cents per diluted share.
Looking ahead, the company said it expects to generate positive cash flow from operations in the upcoming periods as it ramps up production towards its nominal capacity of 500,000 tonnes per annum.