Aliceville Phase 2 + Meadowbank WESP Upgrade Restarted Aliceville Phase 2 Project Nearing Completion
- The Company completed the Phase 2 Project at its mill in Aliceville, Alabama in early October. The mill is owned and operated by Alabama Pellets LLC, in which Pinnacle has a 70% interest. This project adds a truck unloading system to the mill's infrastructure and broadens access to additional supplies of sawmill residuals on a go-forward basis, supporting the Company's goal of boosting production volumes at the mill. Pinnacle contributed $2.0 million on the Aliceville project in Q3 2020, bringing total expenditures to approximately $3.9 million or 78% of budget at quarter-end.
Meadowbank WESP Upgrade Restarted
- The Meadowbank WESP upgrade, which was halted temporarily during the initial stages of the COVID-19 outbreak, was restarted during the quarter. This upgrade will enhance the operating flexibility of the facility and allow Pinnacle to continue to adapt to cyclical changes in wood fibre supply within the B.C. Interior. The upgrade is expected to increase the mill's production capacity by 30 kMT per annum.
- The project is progressing as planned and is on-budget, with commissioning expected in the fourth quarter of 2020 ("Q4 2020").
- The total authorized capital spend for the project is $9.5 million. Pinnacle spent $2.4 million on the project in Q3 2020, bringing total project expenditures to-date to $5.6 million or approximately 59% of budgeted costs.