Expansion plans have GMP Securities analyst Martin Landry feeling good about Aurora Cannabis’s (Aurora Cannabis Stock Quote, Chart, News: TSXV:ACB) prospects.

On August 31, Aurora announced that construction of its 800,000 square-foot Aurora Sky facility in Edmonton is progressing well, and that it expects to have plants growing in the facility by the end of this year. The company expects the facility to be complete before the first half of 2018 is over. Management also noted it had recorded record revenue of $3.0-million for the month of August.

Landry says this is a positive development, as Aurora is meeting its timeline projections.

“Given the scale of the Aurora Sky project, with expectations of production capacity of 100,000kg, we are pleased to see that the company’s construction timeline has remained on track with initial projections. The sizeable capacity expected to come on stream during 2018 should provide strong positioning for Aurora to gain share in the Canadian recreational market.

The GMP analyst thinks the Alberta facility will give Aurora a low cost advantage,

“Aurora’s large production facility, currently in construction, is expected to provide the company with low production costs due to its large scale and high level of automation,” Landry says. “In addition, its location, at the Edmonton airport, should reduce the company’s shipping costs and shipping times, an important advantage for the mail order system. Hence, we would expect Aurora to have low production costs once its Aurora Sky facility is fully operational.”

In a research update to clients August 31, Landry maintained his “Buy” rating and one-year price target of $3.25 on Aurora Cannabis, implying a return of 30 per cent at the time of publication.