Conifex Timber Inc T.CFF

Alternate Symbol(s): CFXTF

Forest Products Lumber & Wood Production

Conifex Timber Inc. is a Canada-based forest products company, which operates fiber baskets in North America, northern British Columbia. The Company produces lumber products and renewable energy from its sawmill and bioenergy plant in Mackenzie, British Columbia. Its lumber products are sold in the United States, Canadian and Japanese markets. It also produces bioenergy at its power generation facility at Mackenzie, British Columbia. Its lumber products include J-GRADE, 2 AND BETTER, SELECT, STUDS, ECONOMY and 3. The Company operates a two-line sawmill in Mackenzie, British Columbia (the Mackenzie Mill). Its Mackenzie Mill has approximately 240 million board feet of annual lumber capacity on a two-shift basis. It operates a 36-megawatt biomass power generation plant in Mackenzie, British Columbia (the Power Plant), located at the site of its Mackenzie Mill. Its Power Plant's output capacity is in excess of 230 gigawatt hours (GWh) of electricity per year.

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Conifex Timber Inc > "Some of you have asked about cash..."

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Post by dosperroson Aug 12, 2020 10:22am

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Post# 31397488

"Some of you have asked about cash..."

-Asked by investors
-Asked by Board
-Asked to present to BOD next meeting
-Variety of factors to consider...
-1. Balance sheet preservation. 2. Safety CAPEX. 3. Funding projects (this is what Warren Buffett hates BTW, and why he doesn’t go into capital intensive industries).

-Trade at huge discount to book values, vs. the 20% premium the other investors have.

-We believe return on shareholder investment will improve as they move to greener sawtimber and the duty goes away.

-"We are seriously evaluating the suggestion that we implement as share repurchase program"
*****
Q&A:

What’s a reasonable range EBITDA in Q3 per Hamir @ CIBC
1. They are conservative
2. Expect full year EBITDA of at least double the consensus $6 to $8M.
How are you maximizing returns?
1. 5% to Japan
2. 12.5% to China
3. 12.5% to Canada
4. 70%+ to USA
Govt’ grant benefits for Q3.
1. Looking at it now
2. Expecting a run up in revenuce, and DQ from further subsidy
3. Not at the level of the Q2 subsidy where they saw $2M
What's the dead live mix in Mack? Per Paul Quinn
1. 45% green
2. Had been as low at 30% greeen