Bullboard - Stock Discussion Forum 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... see more

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Conifex Timber Inc > So are these guys actually making money now?

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Post by horseshoefalls on Jul 01, 2020 10:18am

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.

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