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Canfor Pulp Products Inc T.CFX

Alternate Symbol(s):  CFPUF

Canfor Pulp Products Inc. is a Canada-based global supplier of pulp and paper products with operations in the central interior of British Columbia (BC). The Company operates through two segments: pulp and paper. The pulp segment includes purchase of residual fiber, and production and sale of pulp products, including Northern Bleached Softwood Kraft (NBSK) pulp and Bleached Chemi-Thermo Mechanical Pulp (BCTMP), as well as energy revenues. The paper segment includes production and sale of paper products, including bleached, unbleached, and colored paper. Its products under the solid wood category include dimension lumber, specialty lumber, and engineered wood products. It produces green energy in its lumber and pulp facilities across North America. The Company owns and operates three mills in Prince George, BC with a total capacity of about 780,000 tons of Premium Reinforcing Northern Bleached Softwood Kraft (NBSK) Pulp and 140,000 tons of kraft paper.


TSX:CFX - Post by User

Post by Catscratchon Oct 30, 2023 10:29am
170 Views
Post# 35707137

Free Cash Flow

Free Cash FlowDespite what seems to be management and board's best efforts to tank stock (or just poor investor relations and a severe lack of share ownership by management and board), CFX did generate positive free cash flow in Q2.  Yes, this includes changes in working capital but inventory balances going into Q3 were still good.  Q3 results are certainly going to be challenged with maintenance downtime and weak NBSK prices.  But we've seen stronger NBSK pricing so far in Q4.  

 In a strong pricing environment CFX could generate $100M in Free Cash Flow in a couple quarters.  In the current NBSK pricing/FX environment CFX should at minimum be free cash flow break even (without the working capital draw).

This doesn't justify a market cap of just slightly over $100M.
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