So are these guys actually making money now?Back of the napkin calculations:
Mill is starting up July 6th
They need about $360+ to be profitable (as per Ken Shields)
Mackenzie can produce about 200M BF annually.on two shift capacity
Let's say they produce 50M/quarter... @ $400 avg price
50,000 x ($400-360) = $2,000,000 profit (quarterly)
Futures currently sitting around $440 = $4,000,000 profit. (quarterly)
Don't forget lumber was up in the $600's not too far back.
At that level CFF could potentially be throwing out $12,000,000 Profit per q = $48 Million Annually.
Yeah, lumber likely won't be in the 600's for any length of time, but when you look at the Market Cap of the company, it becomes ridiculous if we have lumber anywhere north of $400.