Conifex Timber Inc T.CFF

And here comes's the game changer. Adios BC?

[dosperros]

Open request -- send me a note on your thoughts from the CC yesterday.

https://ca.finance.yahoo.com/news/edited-transcript-cff-earnings-conference-012740730.html

Sean Steuart, TD Securities Equity Research - Research Analyst [5]

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And I guess, just further your comment on potential asset sales. When might we expect to hear something on that front? And how much of this is complicated by Bill 22? Any thoughts on your timing for potential dispositions?

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Kenneth A. Shields, Conifex Timber Inc. - Chairman, CEO & President [6]

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Well, I mentioned in my comments, Sean, that we've got a Shareholders Meeting on June 24, and there is a good chance we might have some news to share with you then. And I would say that there is also a good chance if we don't have news available on that date, that we will when we report our Q2 results. So that's the window that we think that some of these initiatives that we're exploring and discussing could materialize.

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Operator [7]

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The next question is from Paul Quinn of RBC Capital Markets.

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Paul C. Quinn, RBC Capital Markets, LLC, Research Division - Analyst [8]

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Just back to Sean's question on asset monetization. What -- I mean, you've done some initial work there, just wondering what the -- and you've sold some tenure in the past. I think you'll recall it was somewhere around $150 per cubic meter, B.C. Just curious of that, are you still holding in the market, is it -- as you're feeling that it's increasing potential log shortages are getting more acute? Or is Bill 22 having an adverse effect on the value?

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Kenneth A. Shields, Conifex Timber Inc. - Chairman, CEO & President [9]

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Well, Sean -- Pardon me, Paul, let me share my views with you is that, first of all, we think that tenure values in B.C. have come down a bit for a couple of reasons. Number one is that when we did the transactions in 2015, there was more of dead pine timber that had more commercial value in the stand than we have today. So that's a factor that would impact tenure values, namely the deterioration in the commercial value of many timber stands in B.C. And the second thing that it appears to me has happened is that people generally have less optimistic views about the potential supply-demand balance in lumber in North America. And they aren't factoring in as why a profit margin on lumber manufacturing, and that will limit or tamper the amount that people are prepared to pay for tenure. So Paul, we look very closely at these values last March, besides we're telling people that we have a book value per share that's 4 or 5x multiple of our current share price. And so we satisfied ourselves that the balance sheet carrying value for our forestry assets are appropriate and in line with the current -- our current estimate of [tenure] financial values supports the book value of our company, whether it's in the high -- pardon me, in the low triple digits for cubic meter or in the high double digits, it's probably in that range given the location and other factors that are associated with the tenure.

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Paul C. Quinn, RBC Capital Markets, LLC, Research Division - Analyst [10]

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Okay. And then just on your initial work, what's -- can you give us an idea of the overall interest i.e., do you have -- is there a good number of people that are interested in some of the things that you're talking about in terms of assets to sell?

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Kenneth A. Shields, Conifex Timber Inc. - Chairman, CEO & President [11]

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Well, we mentioned on our March 27 call that there are a great many forest industry stakeholders that are communicating with us and others to gain a better understanding as to the consequences of potential future harvest reductions. So in the areas that we operate in the Prince George and Mackenzie regions, I'm -- my guess is that of all the sawmillers operating in that region that we probably have the highest degree of saw timber self sufficiency and one of the older, in terms of age, sawmill complexes. So you can see that, Paul, that be the basis for -- of considerable interest in discussing opportunities that are mutually advantageous, but we're not at the stage where we can make a final decision and precisely determine our path forward. We still have more work to do on fiber flow optimization in our region and that work is going to take a while to get done. It might be get done by the 24th of June, but it might run a little longer than that.