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Western Forest Products Inc T.WEF

Alternate Symbol(s):  WFSTF

Western Forest Products Inc. is an integrated softwood forest products company. The Company’s primary business is the sale of lumber and logs, which includes timber harvesting, sawmilling logs into specialty lumber, value-added lumber and glulam remanufacturing and wholesaling purchased lumber. Its product categories include Outdoor Living, Exterior Appearance, Interior Living, LIFESTYLE CEDAR, WFP Engineered Products and others. The Outdoor Living products include decking, timbers, outdoor structures and fencing products. The Exterior Appearance products include siding, trim and fascia, soffits, and door and window products. The LIFESTYLE CEDAR products include LIFESTYLE CEDAR Decking and LIFESTYLE CEDAR Fencing. The Interior Living products include interior paneling, interior moldings, architectural millwork, and stair components. The WFP Engineered Products include Curved and Arched Glulam, Straight Glulam, Fabricated Trusses, Calvert GL3000 and Other Glulam Products.


TSX:WEF - Post by User

Comment by dosperroson Nov 17, 2020 11:24am
135 Views
Post# 31914315

RE:RE:RE:Logging roads....

RE:RE:RE:Logging roads....I think the land sales have some upside but won't be a silver bullet.

They reference this as "Additional Sources of Potential Liquidity" in the investor deck.  These are "Other non-core assets (Orca quarry, private timberlands, non-core lands) "
https://www.westernforest.com/wp-content/uploads/2017/10/WFP-Investor-Presentation-August-2020-vFINAL-1.pdf

Importantly, it's the non-core land.  They have lots of waterfront -- it's the dryland sorts and mills for the most part.  It's quite core to the business.

The private timberlands are a stark contrast to Mosaic, which has HBU upside.  WEF's private land is far north, and has both greater hemlock which hits the timberland valuation, but also just not a lot of population.  It's either by Port McNeil or further notth, Quatsino.  It's able to be sold, but there's not a lot of buyers out there given the attenuated value of exports due to the 'blockmail' of the surplus test on exports.  Ideally it would be HBU if Willie Mitchell came to build a huge resort or something; anything not contingent on exporting Hemlock.

The quarry.... who knows what's going on there.  They've been trying to sell that thing it seems for as long as I've followed this name which is going on a decade.

The tenue map tells the story.  The HBU thing is illutated by one of the two constituent companies in Mosaic which owned about 1/3 of the large Nananimo Regional District, which has great land sale upside.  It's just easier to sell that area than it is Port McNeil.
https://www.westernforest.com/wp-content/uploads/2017/10/Tenure_Map.pdf





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