Sucro forms JV for Guyanese cane sugar refinery

Executive Summary

• Sucro Ltd. announced a joint venture with Gaico Construction & General Services Inc. to form Demerara Sugar Refinery Inc. (DSR) for the development and operation of a cane sugar refinery in Guyana, with Sucro holding a 15% indirect interest.
• As part of the transaction, Sucro will sell its current operating refinery assets in Hamilton, Ontario, to the JV once decommissioned, valued as a complete operating entity to support the Guyana project's capitalization.
• Sucro launched a new business unit, Sucro Engineering Services, to provide third-party engineering and project services, leveraging proprietary technology (SucroZone) and reporting a firm order backlog extending through 2026.

Key Details

• Guyana Joint Venture Structure:
  • Parties: Sucro (via Sucro Caribbean Investment LLC) and Gaico Construction & General Services Inc.
  • Entity: Demerara Sugar Refinery Inc. (DSR).
  • Location: Wales, West Bank Demerara, Guyana.
  • Sucro Interest: Indirect 15% ownership.
  • Capital Costs: Estimated at $20 million (U.S.).
  • Operational Model: DSR will procure, install, and commission a used refinery plant sourced from Hamilton, Canada. Gaico provides wharf/infrastructure under commercial terms.
  • Sucro’s Role: Provides engineering, equipment supply, process design, raw sugar supply, and marketing of refined output under a tolling arrangement. Profits/losses shared according to JV interests.
• Hamilton Asset Sale:
  • Sucro will sell its current operating refinery assets in Hamilton, Ont., to DSR.
  • Timing: Once the new Hamilton refinery is operational and the old one is decommissioned.
  • Valuation: Based on the value of a fully operating and profitable refinery.
  • Purpose: Streamline commissioning timelines and capital intensity for the Guyana plant.
• Sucro Engineering Services (SES):
  • Scope: Turnkey offering including feasibility, process design, equipment procurement, construction oversight, operational support, and raw sugar sourcing.
  • Technology: Deploys SucroZone (patent-pending sugar process technology) and PLC-driven real-time colour control.
  • Leadership: Led by Kamran Siddiqi, Vice-President, Engineering.
  • Backlog: Firm order backlog extending through much of 2026.
• Recent Share-Based Compensation (Nov. 20, 2025):
  • Directors: 11,865 restricted share units (RSUs) awarded to non-executive directors as part of annual retainer. Vesting occurs one year from the date of award.
  • Consultant: Stock options granted to acquire an aggregate of 5,000 subordinate voting shares.
    • Exercise Price: $13.33 per share.
    • Expiration: December 31, 2028.
    • Vesting: Over a 25-month period from the date of grant.
  • Status: All awards subject to regulatory approval.

Notable Quotes

• Jonathan Taylor, Founder and CEO: "Guyana provides an ideal second cane sugar refining platform for Sucro within the Caricom region that will enable Sucro, through its local affiliates and partnerships, to deliver reliable, value-added refined sugar supplies and further reduce the need for imports, creating much needed jobs and security to local communities across the Caribbean... By relocating our proven Hamilton refinery assets into Wales and combining it with Sucro's engineering and Gaico's exceptional local logistics capabilities, we expect a rapid and capital-efficient start-up."
• Kamran Siddiqi, VP, Engineering: "I am delighted to be leading Sucro's proven team of engineers in this significant new commercial service. Our expert team has delivered proven industry breakthroughs, typically with significant cost savings. As a result of our experienced and accomplished new refinery design and construction team, we start this new venture with a firm order backlog extending through much of 2026."