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Interfor Corp T.IFP

Alternate Symbol(s):  IFSPF

Interfor Corporation is a Canada-based forest products company. The Company and its subsidiaries produce wood products in Canada and the United States for sale to markets around the world. It operates through the solid wood products segment. The Company’s product categories include Dimension Lumber, Specialty Lumber and Engineered Wood Products. Its products include Spruce-Pine-Fir, Douglas Fir-Larch, Hem-Fir, Southern Yellow Pine, Western Red Cedar, Douglas Fir-Larch, and P3-Joist. Its sawmills provide a diverse range of sustainable products to supply North American markets with a complete offering of framing materials. Its Western Red Cedar products include Elite Decking, Elite Fascia & Boards, Elite V-Joint Paneling, Elite Fineline Paneling, Elite Channel/Lap Siding, Elite Bevel Siding and Elite Shadow Gap Siding. It has an annual lumber production capacity of approximately 5.0 billion board feet and offers a diverse line of lumber products to customers around the world.


TSX:IFP - Post by User

Comment by dosperroson Apr 13, 2022 12:47pm
113 Views
Post# 34600843

RE:RE:RE:RE:RE:RE:RE:RE:Assets priced at 50% discount

RE:RE:RE:RE:RE:RE:RE:RE:Assets priced at 50% discountCapex is overdone.  Their cash breakeven is ballpark identical to the RYAM mills that went to GFP.  You can also use RFP as a proxy but RFP's Thunder Bay outfit at 330MMFBM is a behemouth so that gives them a few bucks better costs.

I'd calc'd it before and recall it was maybe $40 or $50 pe mfbm higher all-in costs that the IFP mothership.  Big at $500 wood but that's a paper tiger these days.  

I worked at one of the now GFP mills in the past and it's suboptimized but their median 150 MMFBM outputs are more onside now then they were there (in the era of mega mills).  The mega mills are rationalizing, dropping 3rd sawlnies, etc.  Per Plateau (CFP's $150M albatross that's only 15 years old).

I'd say let em run as is.  If we veer into cash loss territory, turn em off.  It's that simple.  We are not subsidizing the customer at Home Depot anymore nor trying to play last man standing with peers but shaving op costs to the bone.  That's shareholder cash and should (will) be treated as such per current thinking re: capital allocation frameworks.
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