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Conifex Timber Inc T.CFF

Alternate Symbol(s):  CFXTF

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.


TSX:CFF - Post by User

Post by black4444on May 12, 2021 2:49pm
233 Views
Post# 33184275

Q1

Q1If CFF had sold the extra production at Q1 selling prices, you would have an extra $1,053 less $725 per MBF. So maybe an extra 10 or 15 MBF equaling $3.3m to $4.9m in EBITDA for the quarter. That will be sold in Q2 at a higher price so a nice win.

Note the reported cost of goods sold per MBF has increased dramatically to an estimated $600 MBF with freight stable at $125 MBF.

And quarterly G&A at its highest level since Q3/19.

So aside from lumber prices, everything is going in the wrong direction.

Compare that to IFP. Cost per unit up very modestly, G&A up modestly, able to ship virtually everything they produce.

Place your bets.

A single mill in a subpar jurisdiction with rapidly rising costs, net debt and unable to ship everything they produce.

Or multiple mills spread across geographic and geopolitical jurisdictions, excellent cost containment at both the production and G&A level, net cash and no shipping issues.

And be sure to check the EV/EBITDA multiples. You might be surprised.

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